Which Type of Corporation Should You Establish in Japan?
【Koshida Accounting Firm Column Date:】
Hi, my name is Taisei Koshida, and I am a certified public accountant and tax accountant.
I aim to assist non-Japanese business owners who need help with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.
If you are unclear about the types of corporations in Japan, you might find this blog helpful.
Four Types of Corporations in Japan
When establishing a corporation in Japan, you can choose from a limited liability company, limited partnership company, general partnership company, and a stock company.
The Most Common Type is a Stock Company in Japan
The most common type is a stock company in Japan. From large to small businesses, more than nine-tenths of companies are established as stock companies. If cost is not your primary concern, I recommend a stock company.
Cheaper General Partnership Companies
Choosing this type could save you about 150,000 yen in establishment-related costs compared to a stock company. The running costs are the same as a stock company. However, this type of company is generally seen as less credible compared to a stock company. People might assume that this type of company does not have much capital.
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