Why entrepreneurs prefer G.K over K.K

When you want to start your business in Japan. First step is incorporation. You have to choose type of company. Most People choose K. K(Kabushiki-kaisya) or G. K(Godo-gaisya). Concept of each oy the types are as followed.

K.K

1. Owned by shareholders(members)

2. Governed by director

3. You have to organize shareholders meeting

G.K

1. governed by members

2. no directors

　Some clients ask me which type is better for them. If you would like to save the cost to found your company, I strongly recommend you to found G.K. Here are the reasons.

1. You don’t have to get authentication from Notary Public

You need to make by law of your company when you make K.K and G.K. But you need to get authentication from Notary Public unlike when you make bylaw for G.K. You don’t need to go to an office of Notary Public after you wrote bylaw of G.K.

It just doesn’t mean you just save time to visit Notary Public. You also save money to make your company in Japan. When you need pay 50,000 yen as fee for Notary Public for authentication. Since you don’t need to get authentication for bylaw of G.K, you don’t need to pay 50,000 yen to Notary Public.

2. Revenue stamp cost for registration is lower than K.K

You need to buy revenue stamp when you register your company in case of founding K.K and founding G.K. the cost for registration is 1000/7 of paid in capital. This is the principal of the rule

But minimum cost for revenue stamp is different. In case of K.K, you have to at least 150,000 yen for revenue stamp if 1,000/7 of paid in capital is lower than 150,000 yen. If you choose G.K, you need to pay at least 60,000 yen as paid in capital when 1000/7 is lower than 60,000 yen. So, in terms of minimum cost for revenue stamp, G.K is lower than K.K by 90,000 yen.

In terms of cost saving, G.K is quite better than K.K to save the cost of authentication and reduce the cost of revenue stamp. But K.K is well used in Japanese society as way to start business because it looked trustworthy than G.K. You also need to care about this fact when you choose type of your company.