KK and GK

This section provides brief explanations of what Kabushiki Kaisha (KK) and Godo Kaisha (GK) are.

KK (Kabushiki Kaisha)

There are several types of legal entities in Japan; however, all companies listed on the Tokyo Stock Exchange (TSE) take the form of a “KK” (Kabushiki Kaisha).

A KK can also be utilized for a privately held company. It is the most prevalent form of corporate entity in Japan. In a privately held KK, there is greater flexibility in designing the company’s governance and capital structure. For example, it can be structured with just one shareholder and one director, requiring only a minimum paid-in capital of one yen.

The term “Kabushiki” translates to shares of stock, while “Kaisha” means company. A KK typically uses the suffix of “Co., Ltd.”, “Limited” or “Inc.” in its English name; however, the choice of English suffix has no legal significance.

GK (Godo Kaisha)

“GK” (Godo Kaisha) is another type of limited liability company in Japan that is comparable to LLC in the United States. A GK provides even more flexibility in terms of governance and capital structure. Since its introduction in 2005, it has become a popular choice, particularly for small enterprises and wholly owned companies. While a GK cannot be publicly listed, it can be converted to a KK by following certain procedures.