Setting up a Business
Q7: Is it possible to set up a Limited liability Partnership (LLP) in Japan?

Yes. It is one of the available options to do business in Japan. This is known as Yugen Sekinin Jigyo Kumiai, a Japanese LLP.

An LLP is not a corporation. A Japanese LLP is formed through equity participants. Each participant has limited liability.

For LLPs, the internal rules can be freely drafted by an agreement among the participants.

Taxes are borne on profits allocated to the participants. In this sense, each Japanese LLP is not subject to Japanese tax, which is the substantial advantage of an LLP for foreign investors.



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