Back to Help Center
GK or KK? Why so many companies choose the Godo Kaisha
There are three main reasons founders choose the Godo Kaisha (GK).
First, ownership and management are unified. The investors are the managers, which suits companies that have no intention of separating ownership from management over the mid-to-long term.
Second, privacy. A GK has no annual obligation to publish its financial results, and no general duty to disclose its assets or earnings.
Third, structural freedom. There is no requirement to hold a shareholders' meeting every year — the company meets and decides according to its own structure, only when needed.
The cost differences are concrete, too. At incorporation: a GK pays a registration license tax of at least ¥60,000, and its Articles of Incorporation need no notarization; a Kabushiki Kaisha (KK) pays at least ¥150,000 in registration license tax plus a notarization fee of roughly ¥30,000–50,000 depending on capital — a gap of ¥120,000 or more at the formation stage alone. In ongoing maintenance: KK officers have terms of office (up to ten years), and each expiry requires a re-appointment registration with its own filing cost; GK members have no terms, so this recurring cost never arises.
Two types of companies choose the GK especially often:
One is the small startup with no equity-investment plans — in particular solo-founder and husband-and-wife companies. With no pressure to raise funds by issuing shares, a GK lets you start your business quickly.
The other is the wholly-owned Japanese subsidiary of a large foreign company. Its capital belongs 100% to the overseas parent, and its managers are appointed by that parent — ownership and management are unified from day one, with no change expected in the short term. The Japanese entities of Google, Amazon, and Apple all use the GK form.
Conversely, if you plan to issue shares to outside investors or aim for a public listing, the KK is the better fit. And the choice is not irreversible: a GK can later be converted into a KK through an entity-conversion procedure (which takes some time and cost), so "start as a GK, convert to a KK when fundraising calls for it" is a common path. If you are unsure, we are happy to discuss your specific situation in a paid consultation.
First, ownership and management are unified. The investors are the managers, which suits companies that have no intention of separating ownership from management over the mid-to-long term.
Second, privacy. A GK has no annual obligation to publish its financial results, and no general duty to disclose its assets or earnings.
Third, structural freedom. There is no requirement to hold a shareholders' meeting every year — the company meets and decides according to its own structure, only when needed.
The cost differences are concrete, too. At incorporation: a GK pays a registration license tax of at least ¥60,000, and its Articles of Incorporation need no notarization; a Kabushiki Kaisha (KK) pays at least ¥150,000 in registration license tax plus a notarization fee of roughly ¥30,000–50,000 depending on capital — a gap of ¥120,000 or more at the formation stage alone. In ongoing maintenance: KK officers have terms of office (up to ten years), and each expiry requires a re-appointment registration with its own filing cost; GK members have no terms, so this recurring cost never arises.
Two types of companies choose the GK especially often:
One is the small startup with no equity-investment plans — in particular solo-founder and husband-and-wife companies. With no pressure to raise funds by issuing shares, a GK lets you start your business quickly.
The other is the wholly-owned Japanese subsidiary of a large foreign company. Its capital belongs 100% to the overseas parent, and its managers are appointed by that parent — ownership and management are unified from day one, with no change expected in the short term. The Japanese entities of Google, Amazon, and Apple all use the GK form.
Conversely, if you plan to issue shares to outside investors or aim for a public listing, the KK is the better fit. And the choice is not irreversible: a GK can later be converted into a KK through an entity-conversion procedure (which takes some time and cost), so "start as a GK, convert to a KK when fundraising calls for it" is a common path. If you are unsure, we are happy to discuss your specific situation in a paid consultation.