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Branch office, KK, GK, Company Registration, Tax, Social Insurance etc.
Subsidiary Company Registration, Incorporation, Formation. Setting-up of a Kabushiki-Kaisha (KK Co.), Godo-Kaisha (GK Co.) in Japan. Opening up a legal entity & business presence in Japan.
A foreign company willing to establish a subsidiary company in Japan may choose from the following options:
There are also formats such as unlimited partnerships (Gomei-Kaisha) and limited partnerships (Goshi-Kaisha) under the Companies Act, but they are rarely chosen in practice because equity participants burden unlimited rather than limited liability.
A subsidiary company is a separate legal entity from the foreign company, therefore foreign company will bear the liability that of an equity participant stipulated by law for all debts and credits generated by the activities of the subsidiary co. Minimum requirement for establishing a subsidiary co in Japan is to have a local physical address (not a PO Box) & a local “Resident in Japan”. Either a Japanese or a foreign national, but in case of a foreign national the person must have an appropriate status of residence as per immigration law.
Note: re exception allowed for “subsidiary co.” since the change of regulation effective Mar'15.
Japanese govt. has allowed foreign co. to register a local subsidiary co. (Kabushiki-Kaisha [KK] or Godo-Kaisha [GK]) in Japan without a local “Resident in Japan”. [In case of GK Co. the overseas investor must be a corporation]
But in both cases, it would require a temporarily a local “Resident in Japan” for the purpose of completing the procedure of paid-up capital for KK Co. & equity for GK Co.
In case of a KK Co. a “local resident shareholder” & in case of a GK Co. a “local resident member (equity holder)”.
The features of Kabushiki-Kaisha [KK Co.] and Godo-Kaisha [GK Co.] Limited Liability Company at a glance:
Time-frame for registration: Depends on the type of entity & structure of investors, directors (executive officers) etc. Upon applying at Legal Affairs Bureau for registration it takes about 2(two) weeks to obtain company registration certificate.