Business
Japan — Business: Limited Company (KK vs GK)
A foreign company setting up a subsidiary in Japan chooses between a Kabushiki Kaisha (KK) and a Godo Kaisha (GK); both limit equity holders liability and need capital of at least JPY 1.
VerifiedGovernment / official sourceJETRO — Comparison of types of business operationLast reviewed: 2026-10-23
Key facts
- Both KK and GK require capital of JPY 1 or more, and equity holders liability to creditors is limited to their investment; a branch office carries unlimited liability for the parent.
- KK shares can generally be transferred freely, while transferring a GK interest needs unanimous approval of the members; only a KK can make a public offering of shares.
- A KK generally holds an annual shareholders meeting and appoints directors; a GK has no legally required minimum number of executives or general meeting, and all members are in principle executive officers unless the articles say otherwise.
- A GK can allocate profits and losses at a rate different from equity participation if the articles specify it; a KK allocates by shareholding.
- A branch cannot be converted into a KK or GK; the branch must be closed while the subsidiary is established.
- JETRO notes the KK is better received by Japanese consumers than the GK, and that subsidiaries take about a month to set up.