Outline of

Status of former YK

Change to KK
from YK

Merit of
Establisment of
New KK

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1.Corporate Article becomes important

The establishment of KK has become drastically flexible under the new Company Law, and now a new KK can be started with one (1) director and one (1) yen capital. In addition, putting Directors Board and Auditor in the company has become optional for the closed company and, furthermore, a position of Accounting Councilor is newly added as an additional option of company organization. 
This means the initiator(s) will own a new responsibility to decide the most appropriate shape of a new company after reviewing the size of business, purposes, surrounding circumferences, etc. And these items are required to mention ckealy in a draft of Corporate Article (TEIKAN) which is the very first step of a company establishment process.

2. Basic factors to decide first.

To mention it more practically, the initiators of a company is requested to decide these basic factors first of all.

1. Amount of Capital
2. Whether a clause of restriction of stock ownership transfer is applied or not.
(To become Public company or Non Public (Closed) company)
3. Number of directors
4. If the number of Directors are more than three(3), whether the Directors’ Board is to be put.( If so, an Auditor is also to be assigned automatically)
5. Whether the Accounting
 Councilor shall be assigned or not.

3.Patterns of KK
To summarize the above, it is very much likely to be patterned into the following groups.

A) Former YK pattern without Accounting
Stockholder (1 to several) + Director ( 1 to several)B)Former YK pattern with Accounting Councilor
Stockholder (1 ? several) + Director ( 1 ? several)
 + Accounting Councilor

C)Former KK pattern
Stockholder(1 ? several) + Director(
, or more) + Auditor