Limited Liability Company vs. Stock Company: A Complete Guide for Foreign Nationals 2025

When establishing a company in Japan, many foreign nationals are unsure whether to choose a Limited Liability Company (LLC) or a Stock Company (KK). In 2025, we will provide a detailed explanation of the important points that foreign nationals should know about the differences between LLCs and KKs. We recommend that you grasp accurate information and use Check Visa Eligibility to simultaneously check the possibility of obtaining a visa.

Basic Differences Between Limited Liability Companies and Stock Companies

The basic differences between a Limited Liability Company and a Stock Company are, firstly, "organizational structure," secondly, "establishment costs," thirdly, "operational flexibility," and fourthly, "social recognition." Understanding these differences will allow you to choose the company form that is right for you.

Differences in Organizational Structure and Decision-Making

A Limited Liability Company has an organizational structure in which all investors have the right to execute business operations. Decisions are made by agreement of all investors. On the other hand, a Stock Company has an organizational structure in which shareholders and directors are separated, and decisions are made by the shareholders' meeting and the board of directors. Limited Liability Companies are quicker and more flexible in their decision-making.

Differences in Establishment Costs and Operating Costs

The establishment cost of a Limited Liability Company is 60,000 yen for registration license tax, which is cheaper compared to 150,000 yen for a Stock Company. In addition, Limited Liability Companies do not require the establishment of a board of directors, so operating costs can be kept low. On the other hand, Stock Companies have the advantage of higher social recognition and are more likely to gain the trust of business partners.

Selection Criteria for Limited Liability Companies and Stock Companies for Foreign Nationals

For foreign nationals, whether to choose a Limited Liability Company or a Stock Company depends on the purpose of obtaining a visa, the size of the business, and future plans. In particular, when obtaining a Business Manager visa, it can be obtained with either company form, but each has its advantages and disadvantages.

Selection from the Perspective of Visa Acquisition

When obtaining a Business Manager visa, it is possible to obtain it with either a Limited Liability Company or a Stock Company. However, in the Immigration Bureau's examination, Stock Companies tend to have higher social recognition and are more likely to pass the examination. On the other hand, Limited Liability Companies are suitable for starting small businesses because they are cheaper to establish and have lower operating costs.

Selection Based on Business Size and Future Plans

Limited Liability Companies are suitable for starting small businesses. Because establishment costs are low and operating costs are low, initial investment can be kept down. On the other hand, Stock Companies are suitable for those planning large-scale businesses or considering going public in the future.

Latest Trends in Limited Liability Companies and Stock Companies in 2025

In 2025, there will be no fundamental changes to the differences between Limited Liability Companies and Stock Companies, but the establishment procedures have been further simplified due to the progress of digitalization. In addition, support systems for foreign entrepreneurs have been enhanced, making it easier to start a business with either company form.

Simplification of Establishment Procedures through Digitalization

In 2025, the establishment procedures for Limited Liability Companies and Stock Companies have been further simplified due to the progress of digitalization. In particular, the creation of articles of incorporation and the creation of registration application forms can now be done online, making the establishment procedures more efficient. However, it is recommended to seek advice from experts for parts that require specialized knowledge.

Support Systems for Foreign Entrepreneurs

In 2025, support systems for foreign entrepreneurs have been enhanced, making it easier to start a business with either a Limited Liability Company or a Stock Company. In particular, startup subsidies and preferential tax treatment systems have been enhanced, creating a more favorable environment for foreign entrepreneurs. By utilizing these support systems, the success rate of startups can be increased.

Start with a Free Visa Eligibility Check

If you are unsure whether to choose a Limited Liability Company or a Stock Company, we recommend that you first receive a free visa eligibility check. An expert will analyze your situation in detail and tell you the appropriate company form and the possibility of obtaining a visa.

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