KK vs GK
Which is suggested Kabushiki Kaisha or Godo Kaisha.
When an US company sets up a subsidiary in Japan, there is an option for
KK (Joint stock company) or GK (Japanese LLC) as the business entity in
The US company should examine from both an US tax point of view and a Japanese
business point of view.
We would support for your feasibility study together with your CFO and/or
a tax advisor in US.
（Note）You can reorganise KK--> GK or GK-->KK after the incorporation
at any time under some conditions.
US tax perspective (Godo Kaisha- Japanese LLC)
1. If you can apply "pass through" by Form 8832 of IRS, you can utilise Japanese tax loss of GK in US tax computation.
2. Tax paid in Japan would be deducted through a foreign tax credit
of the US company.
Business perspective in Japan（Kabushiki Kaisha - Joint stock company)
KK is much more reliable from Japanese customers point of view as GK is
not familiar to Japanese people yet which was introduced in 2006.