Japan KK

A KK is a distinct legal entity. KKs are most similar to C-corporations in other jurisdictions. The liability for shareholders is limited, and the KK is a well-established structure. The KK may be established with or without a board of directors. The minimum share capital required to establish a KK (Kabushiki Kaisha) in Japan is JPY 1, which makes it accessible for small businesses and startups.

To form a KK, the company must first draft its articles of incorporation, which outline the company’s objectives, share structure, and other essential details. These articles must be notarized by a public notary. Once the articles are notarized, the capital must be paid into a bank account held by a promoter or a director at incorporation (a third party’s account is accepted only if all of them live outside Japan). Following the capital deposit, the company must file the necessary documents with the Legal Affairs Bureau, including the notarized articles of incorporation and proof of capital deposit.

After registration, the KK must also register for various taxes, including corporate tax and consumption tax, with the relevant tax office. The company must keep a register of shareholders and maintain other corporate records. Additionally, a KK is required to submit annual financial statements to the tax office and may need to conduct regular audits depending on the company’s size and nature of business.