What is Godo Gaisha(GK company)合同会社とは?


Godo Kaisha (GK company) is similar to LLC in other countries. However, GK may not apply Pass-through taxation system. In Godo Kaisha (GK company), the manager and the investor are basically the same persons, and all investors’ liability is limited within the amount of investment. In principle, the investor(owner) become the manager in GK. Because of the reason, GK can be operated more flexibly.



☆Merits of GK

・Establishment cost is cheaper than KK

 For KK incorporation, the minimum payment for registration is almost 212000 yen (including notarization of articles of incorporation). But, GK incorporation registration can be done with 60000 yen (You don’t need to get notarization of articles of incorporation).

・Ratio of investors’ dividend can be determined freely under the agreement of all investors.

・GK doesn’t have the obligation of publication of the financial statement.








☆Demerits of GK

・Less credibility than KK company because GK doesn’t have the idea of “Separation of ownership and management”

・The capital may decrease due to the retirement of employees.