Kabushiki kaisha(KK) vs Godo kaisha(GK or LLC)

  Company Limited(Kabushiki kaisha)
Incorporation cost Certification of Article of Incorporation: 50,000yen (*1)
Revenue stamp (Tax stamp) on incorporation:40,000yen
Commission / Fee to administrative scrivener 120,000yen(*2)
Registration and license tax :150,000yen

*1:For electronic certification, 50,000yen is exempted.
*2:This may vary, depending on firms
Liabilities of investors Limited
Organization Investor can be separeted from officer
Distribution of profit In proportion to % in share
Terms of directors Up to 10 years
(After 10years, renewal is required)
Tax rate Flat rate
Per capita tax 70,000yen(*3)

*3:This may vary, depending on both the amount of capital and the number of employees.
Public notice Necessary
Running fee Commission to bank, tax advisor, social security may increase in comparison with Individuals.
Consumption tax The new company whose capital is not greater than 10 million yen is not subject to consumption tax for the first 2 fiscal year.(*4)
From the 3rd fiscal year, whether the company should be taxable or not for consumption tax depends on the amount of taxable sales for the reference period.
The reference period is the two prior period and threthold is 10 million yen of taxable sales during the reference period.

(*4):There is other criteria for companies meeting certain threthold.You may confirm with the tax advisor in details.
Memo The most common type in Japan

 

  LLC(Godo Kaisha)
Incorporation cost Certification of Article of Incorporation: None
Revenue stamp (Tax stamp) on incorporation:None
Commission / Fee to administrative scrivener 120,000yen(*2)
Registration and license tax :60,000yen

Liabilities of investors Limited
Organization Investor should be officer
Distribution of profit At discretion
Terms of directors No regulation
Tax rate Flat rate(Same as K.K.)
Per capita tax 70,000yen(*3)
Public notice Not applicable
Running fee Same as K.K.
Consumption tax Same as K.K.
Memo less common in Japan