Almost every foreign founder in Japan hits this fork within the first week: kabushiki kaisha or godo kaisha? KK or GK?
Most English-language explanations list the legal differences and stop, which leaves you knowing what the two structures are without knowing which one you should sign. This guide is organised the other way round — around the decisions that actually change the answer.
The short version
A GK is cheaper and faster to set up, simpler to run, and invisible to most Japanese counterparties. A KK costs about JPY 140,000 more (roughly USD 900) in unavoidable government fees, carries more annual formality, and is the structure Japanese companies, banks and landlords recognise without thinking about it.
Neither is “better”. They fail in different directions: a GK costs you credibility, a KK costs you money and administration.
What it costs, in fees nobody can discount
| Item | KK | GK |
|---|---|---|
| Registration licence tax | JPY 150,000 | JPY 60,000 |
| Articles of incorporation notarisation | approx. JPY 52,000 | not required |
| Statutory total | approx. JPY 202,000 | JPY 60,000 |
The GK skips notarisation entirely — that is where a chunk of the saving comes from, and it also removes a step from the timeline.
Professional fees follow the same pattern. Among firms in our directory that publish prices, Oak Immigration Services lists KK incorporation from JPY 250,000 against GK from JPY 200,000, and Venture Japan lists KK from JPY 358,000 against GK from JPY 254,250. Roughly JPY 50,000 to 100,000 of difference in professional work, on top of the JPY 140,000 statutory gap.
What actually decides it
1. Who has to take you seriously
This is the real question, and it is not a legal one.
A KK is the default corporate form in Japan. A GK is legally a full company — limited liability, same tax treatment — but it is newer, less familiar, and in some rooms it reads as a small operation. Where that shows up in practice:
- Selling to large Japanese corporates. Procurement departments sometimes have vendor criteria written years ago that assume a KK. This is the single most common reason founders regret starting as a GK.
- Opening a corporate bank account. Japanese banks are cautious with new foreign-owned companies regardless of form, but a KK gives them one fewer thing to hesitate over — we cover that step in opening a corporate bank account.
- Signing an office lease. Landlords screen tenants, and the same familiarity effect applies.
If your customers are consumers, or overseas, or other startups, this matters much less. If you are selling into Japanese enterprises, it may be the whole decision.
2. Whether you will raise money
A KK issues shares. A GK has membership interests, which are transferable only with the consent of the other members and which no Japanese venture investor is set up to buy.
If external investment is a realistic part of the plan, start as a KK. Converting a GK to a KK later is possible but costs registration fees and time you will not want to spend mid-raise.
3. How much annual formality you can absorb
A KK carries obligations a GK does not: shareholder meetings, director terms that require periodic re-registration, and — depending on size — public disclosure of financial results. A GK is run by its members with far less ceremony.
For a one-person company, that difference is real ongoing overhead in a country where the paperwork will be in a language you may not read.
Where the visa comes in
Here is the part specific to foreign founders, and the reason this decision is not the same for you as for a Japanese founder.
The Business Manager Visa does not require a KK. A GK satisfies it. What the visa requires — since the rules changed on 16 October 2025 — is JPY 30 million in paid-in capital, a full-time employee, Japanese language ability, management experience, a business plan vetted by a qualified professional, and an independent office.
Note what that does to the cost comparison. If you are putting JPY 30 million into the company anyway, the JPY 140,000 difference between KK and GK is about half a percent of your capital. It is close to a rounding error against the thing that actually determines whether you can proceed.
Firms price the two paths differently even in visa packages — ACROSEED publishes JPY 660,000 for a KK plus Business Manager Visa against JPY 600,000 for an LLC plus the visa, for applications after the October 2025 change.
A way to decide
Answer these in order and stop at the first yes:
- Will you raise external investment? → KK.
- Will you sell to large Japanese companies? → KK, most likely.
- Are you a subsidiary of a foreign parent, serving that parent or overseas customers? → GK is usually enough, and many foreign subsidiaries in Japan are GKs.
- Are you a small operation watching every yen, selling to consumers or internationally? → GK.
If you land between 2 and 3, weigh it this way: the KK premium is a one-off six-figure yen cost, while being taken less seriously is a cost you pay repeatedly and never see itemised.
Two things people get wrong
“A GK means unlimited liability.” No. A godo kaisha gives limited liability, like a KK. It is often compared to a US LLC, which is where the confusion starts.
“You can just convert later.” You can, and it is a normal procedure — but it costs registration fees, takes time, and tends to become urgent exactly when you are busy with the thing that made it urgent.
Who to ask
Incorporation is filed by a shiho-shoshi (judicial scrivener); the visa is handled by a gyoseishoshi; the tax registrations by a zeirishi. Some firms cover several of these, some cover one. Our directory records which firms do what, which of them publish fees, and when each listing was last checked.
This guide describes the general shape of the decision. It is not advice on your situation — for that, take the specifics to a licensed professional.
Frequently Asked Questions
What is the difference between a KK and a GK in Japan?
Both are full companies with limited liability and the same tax treatment. A GK (godo kaisha) is cheaper and faster to set up and simpler to run; a KK (kabushiki kaisha) is the default corporate form that Japanese companies, banks and landlords recognise without thinking about it. Neither is better — they fail in different directions. A GK costs you credibility, a KK costs you money and administration.
How much more does a KK cost than a GK?
About JPY 140,000 in unavoidable government fees: registration licence tax is JPY 150,000 for a KK against JPY 60,000 for a GK, and a KK must notarise its articles of incorporation at around JPY 52,000, which a GK does not. Professional fees add roughly JPY 50,000 to 100,000 more on top for a KK, judging by the firms in this directory that publish prices.
Does the Business Manager Visa require a KK?
No. A GK satisfies the visa just as a KK does. What the visa requires since 16 October 2025 is JPY 30 million in paid-in capital, a full-time employee, Japanese language ability, management experience, a vetted business plan and an independent office. Against JPY 30 million of capital, the JPY 140,000 difference between the two company types is about half a percent — close to a rounding error.
Does a godo kaisha mean unlimited liability?
No. A GK gives limited liability, exactly like a KK. The confusion comes from it often being compared to a US LLC.
Can I convert a GK to a KK later?
Yes, it is a normal procedure — but it costs registration fees, takes time, and tends to become urgent exactly when you are busy with whatever made it urgent. If external investment is a realistic part of the plan, start as a KK: a GK has membership interests transferable only with the other members’ consent, and no Japanese venture investor is set up to buy them.
Which should I choose?
Answer in order and stop at the first yes. Raising external investment? KK. Selling to large Japanese companies? KK, most likely. A subsidiary of a foreign parent serving that parent or overseas customers? A GK is usually enough. A small operation watching every yen, selling to consumers or internationally? GK.