Nominee representative director services for Japanese KK companies

Proxy representative director services for Japanese KK companies.

If your Japanese KK company needs a resident representative director in Japan, outsourcing an experienced nominee representative director might be the most cost-effective and least-risk route to ensuring its legal compliance and your peace of mind. Our proxy representative director services for Japanese KK companies include the following benefits:

  • Knowledgeable and experienced in Japanese company management.
  • Accountable and responsible.
  • Enables enforceable corporate governance.
  • Avoids the need to make an inexperienced employee legally responsible for your Japanese company.
  • The relationship can be ended at any time, without cause or any damaging legal conflict, simply by giving 30-days notice.
  • Cost-effective monthly fees.
  • Supported by a full range of bilingual Japanese business support services.

Note that although a Japanese KK kabushiki kaisha company does not need any directors resident in Japan, anti-money laundering law might prevent Japanese high-street banks from opening bank-accounts for a company which has no resident representative director, many landlords might not lease space to a company which has no resident representative director, and many regulated industries forbid companies which do not have a resident representative director.

Many companies appoint an employee as a subsidiary KK’s representative director, but such an appointment can carry significant risks. A representative director can irrevocably bind the KK company to unauthorized loans, leases, contracts, and other major transactions, and has unlimited access and control over the KK company’s bank accounts. Among less obvious risks, an inexperienced representative director of a Japanese KK kabushiki kaisha company might inadvertently bind the company to potentially undesirable and expensive labor practices and expenses, and can expose the company to damaging tax-audits and penalties if he or she does not sufficiently understand corporate financial transactions.

If your company is fortunate to have a stable and trustworthy employee with experience and knowledge of Japanese corporate law, and if your corporate governance allows, appoint him or her as your subsidiary KK kabushiki kaisha company’s resident representative director. If not, or if your company’s corporate governance forbids appointing local employees to Board-level positions, then using an independent professional arm’s-length nominee representative director service might be safest.

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