Business structure in Japan – Limited liability partnership (LLP)

Limited liability partnership (LLP)

The LLP itself will be liable to the full extent of its assets, but the liability of the members will be limited. Designated members are responsible for carrying out certain duties including signing the annual accounts that would normally be carried out by a director.

The registration details are below.The name, address and business purpose of the LLP, the names and addresses of designated members, and the representative, the date of LLP establishment.

Business structure in Japan – Establishing a Godo-Kaisha (LLC)

Establishing a Godo-Kaisha (LLC)

A limited liability company (LLC) is a separate legal entity and can own property, incur debts, sue and be sued. Any business dealings are made on behalf of the company. Its owners are liable only for the amount they invested. An LLC must have at least one director to manage the business.

The registration details are below.
The name, address, amount of capital and business purpose of LLC, the accounting method for balance sheets, the names of members, representatives.

Business structure in Japan – A Stock company

Establishing a Kabushiki-Kaisha (K.K.) (Stock company)

A K.K. is owned by its shareholders whose liability is limited by shares.
A K.K. is a separate legal entity to the company directors, therefore it is the business itself that shoulders the financial liability if the business goes wrong.

The registration details are below.The name, address, amount of capital and business purpose of LLC, the accounting method for balance sheets, share capital information, director(s) and representative(s) and share transfer restrictions (if applicable).

Business structures in Japan – Branch office

Branch office

A branch office does not have a separate legal corporate status so claims and liabilities arising in the branch can be applied to the main company of which it is part.
It could open its own bank accounts or lease property in its own name but it will need to negotiate with a bank or landlord.

The registration details are below.
The address of the branch office, the representative in Japan, the date of branch office establishment, the accounting method used for balance sheets and details of the home company.

Business structures in Japan – Representative office

Representative office

A representative office is the least expensive way to make contact with and establish a presence in the Japanese market but it cannot open its own bank accounts or lease property in its own name.

A representative office generally cannot engage in profit making activities, such as accepting payment for services or issuing receipts.

The registration details are below.

1. The name and address of the representative in Japan

2. The date of representative office establishment

3. The accounting method for balance sheets

4. The detail of the home company.