Japanese Corporate Structure

Kabushiki gaisha have shaped the skyline of modern Japan.

Originally a feudal society, Japan entered the modern era when it developed business structures similar to those found in western society. The predominate form of business in Japan is a corporation called a kabushiki gaisha.

History

The first Japanese corporations came into existence in the late 19th Century. Reforms imposed during the American occupation following World War II gave Japanese corporations American characteristics. In the years after occupation, Japanese corporate law diverged from American law and Japanese corporations took on their own characteristics.

Formation

A kabushiki gaisha can be formed with as little as one yen in capital. The total cost of incorporation amounts to about 240,000 yen ($250,000) in taxes and fees. The articles of incorporation must include the trade name of the company, the purpose of the company, the location of the head office, the value of assets received in exchange for initial issuance of shares and the names and addresses of the incorporators.

Features

Under Japanese law, a kabushiki gaisha must have a board of directors with at least three members and a statutory auditor who represents the interests of the shareholders. Instead of corporate officers, kabushika gaisha are managed by the directors.

References

• Japanese Corporate Structure; Michael T. Skully; 1981
• Sociology in Our Times; Diana Kendell; 2010