Establishing a Subsidiary in Japan-The Choice Between a Kabushiki Kaisha and a Godo Kaisha

Attached is the Corporate Counselor’s July newsletter, which discusses the principal differences between two common corporate forms in Japan — a kabushiki kaisha (the equivalent of an ordinary corporation or “c-corporation” in the United States) and a godo kaisha (the equivalent of a limited liability company/LLC in the United States).

Selecting the appropriate corporate form from which to conduct business in Japan is of crucial importance. Advisors frequently proclaim that a kabushiki kaisha projects a sense of confidence and commitment to the Japanese marketplace.

While it is difficult to refute such blanket assertions, we believe that it would be prudent to select a corporate form based on more objective criteria. The July edition of the Corporate Counsel summarizes key differences between a kabushiki kaisha and a godo kaisha, and offers factors to consider when selecting a corporate form for a subsidiary in Japan.

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The Board Director Training Institute (BDTI) is a "public interest" nonprofit in Japan dedicated to training about directorship, corporate governance, and related management techniques. It is certified by the Japanese government to conduct these activities as a regulated nonprofit. Read a summary about BDTI here, and see a menu of its services for both corporations and investors here.

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