Foreign companies have four options in the type of their Japanese corporations:
General Partnership Corporations, Limited Partnership Corporations, Limited
liability Corporations ("Godo kaisha") and Joint Stock Corporations ("Kabusiki Kaisha"), which are established
under the Corporate Law. General Partnership Corporations, Limited Partnership
Corporations and Limited liability Corporations are generally seen in relatively
small size corporations. The most common types of corporations are Joint
Stock Corporations. Therefore, the following explanation is focused on
the Joint Stock corporation forms.
Joint Stock Corporation
The Joint Stock Corporation is the common feature that their members have “limited liability” to their companies, which means that each member bears a financial obligation only to the extent of his/her investment in the company.
Brief overview of Joint Stock Corporation
＊Closed small size company example
| Related Laws |
Corporate Law |
| Amount
of capital |
More htan 1 yen |
| officer |
Director |
One or more |
| Auditor |
Can be elected |
| Representative director |
Can be elected among directors |
| Board of directors |
Can be established |
| Participative accountant |
Can be elected |
Terms of officers |
Director |
Essentially 2 years (can be extended to 10 years by the articles of incorporation) |
| Auditor |
Essentially 4 years (can be extended to 10 years by the articles of incorporation) |
|
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