KK vs GK: Choosing the Right Company Structure in Japan

KK vs GK

When expanding your business into Japan, selecting the right company structure is one of the most strategic decisions a CEO can make. Japan offers two main options for foreign investors: Kabushiki Kaisha (KK) and Godo Kaisha (GK). Both have distinct features that influence everything from credibility to cost, taxation, and operational flexibility.

What is a Kabushiki Kaisha (KK)?

A Kabushiki Kaisha is Japan’s equivalent of a joint-stock corporation. It is the most recognized and respected form of business entity in Japan, especially for larger companies or those aiming to build strong credibility with Japanese partners.

Advantages:

• Strong corporate image and trust among Japanese clients and banks

• Easier to raise capital from investors

• Preferred for B2B and regulated industries

Disadvantages:

• More complex and costly to set up

• Requires notarized articles of incorporation

• Ongoing compliance obligations can be stricter

  
  

What is a Godo Kaisha (GK)?

A Godo Kaisha is similar to an LLC in the United States. It is simpler, more flexible, and often favored by startups or small-to-medium foreign businesses entering Japan.

Advantages:

• Lower setup costs and simplified procedures

• No need for notarization of incorporation documents

• More flexibility in internal management

Disadvantages:

• Perceived as less prestigious by some Japanese clients

• May face credibility challenges in formal or regulated sectors

  
  

KK vs GK: Key Comparison Table

Criteria	Kabushiki Kaisha (KK)	Godo Kaisha (GK)
Legal Structure	Joint-stock company	Limited liability company
Setup Complexity	High	Low
Incorporation Cost	¥200,000–¥300,000	¥100,000–¥150,000
Notarization Required	Yes	No
Corporate Perception	High	Moderate
Suitable For	Mid-large firms, B2B sectors	Startups, SMEs

Which One Should You Choose?

The choice between KK and GK should align with your business strategy. If you plan to:

• Operate in highly regulated industries

• Raise funds from Japanese investors

• Build long-term brand authority

...then a KK is the best fit.

If your goals are:

• Speedy and affordable market entry

• Lean operations with minimal bureaucracy

• Testing the waters before scaling

...then a GK might be the smarter starting point.

Need Help Deciding?

Our team has helped CEOs from all over the world evaluate and launch their operations in Japan with the right entity type. Whether you need a strong corporate presence or a flexible startup structure, we guide you from decision to incorporation.

Still unsure which structure fits your business?