GK or KK? What your company structure means for your bank account in Japan
Choosing between a GK and KK affects more than setup costs. Your company structure sends a signal to Japanese banks before you apply for an account. Here is what financial institutions are actually looking for, and what you can do about it.
When foreign entrepreneurs set up a company in Japan, many choose a godo kaisha (GK, or limited liability company) over a kabushiki kaisha (KK, or joint-stock company). The reasoning is straightforward: a GK costs significantly less to establish and involves fewer procedural hurdles. But there is one consequence of that choice that rarely comes up in the setup guides — how Japanese financial institutions will see your company before you even walk through the door.
How Japanese banks view your company structure
In a conversation with a credit union loan officer, I was told directly: when a company applying for an account or a loan is a godo kaisha, the first question that comes to mind is whether it might be a shell company.
