Company Incorporation
Joint-Stock Company (“kabushiki kaisha”) Incorporation
1. Overview The joint-stock company is one type of corporate entity which can be incorporated under the Companies Act of Japan. Through the incorporation of a joint-stock company, the investors become shareholders of the new company and each shareholder assumes limited liability up to the amount which they have invested. Shareholders acquire the right to vote at company shareholder meetings and receive dividends from company earnings in proportion to the amount which they invest. A joint-stock company differs from the…
Limited Liability Company (“Godo Kaisha”) Incorporation
1. Overview The Godo Kaisha is a new type of corporate entity introduced with the enactment of the Companies Act in 2006, that places emphasis on the personal relationship between company members, and is characterized by giving the company more flexibility with respect to methods of operational decision making, distribution of profits and other internal matters. While the investors in a joint-stock company are referred to as “shareholders”, the investors in a Godo Kaisha are known as “Members.” In principle…
Branch Registration
1. Overview “Branch Registration” refers to the registration of a Japan Branch of a foreign company. Since a “Branch” is not a subsidiary it is not legally recognized as having independent corporate status, and is treated merely as an extension of the foreign company. Accordingly, credits and liabilities resulting from the activities of the branch ultimately belong to the foreign company. A branch is permitted to open bank accounts and lease real property under the branch name. One of the…