Kabushikigaisha

Kabushiki-gaisha, abbreviated KK, is the Japanese term for a stock company and the most common form of incorporated business in Japan. It is a joint-stock corporation in which the owners, or shareholders, have limited liability proportional to their shareholding. Shares are typically freely transferable, though the articles of incorporation may restrict transfer to preserve control by specific persons or families. KKs can issue shares to raise capital and, if desired, may be privately held or publicly listed.

Formation and governance: A KK is formed under the Companies Act by filing Articles of Incorporation and registering with the Legal Affairs Bureau. The company is managed by a board of directors and a representative director who has authority to bind the company. Depending on size and structure, a KK may also appoint statutory auditors or establish an audit committee. Listed companies face additional governance requirements, including independent directors and committees.

Capital and ownership: There is no statutory minimum capital for a KK under modern law; startup capital can be modest. Shares may be issued to founders and investors, and transfer restrictions can be embedded in the articles to control ownership. Dividends are paid from profits and subject to corporate tax and shareholder approval as prescribed by law.

Context and use: The KK is the default form for many Japanese companies, especially larger ones and those seeking external financing or listing. An alternative, Godo Kaisha (GK), is an LLC-style form that has gained popularity among startups and foreign-owned businesses.