Yugen Kaisha (limited liability companies) will be abolished and absorbed into Kabushiki Kaisha (joint-stock corporations). In conjunction with this change, the flexibility of corporate organizational structure will be increased.
A new Japanese form of limited liability company, called Godo Kaisha, will be created.
To make it easier to establish a company, requirements such as minimum capital requirements and the need for a financial institution to issue a "capital custody certificate" to show that a company's capital has been fully remitted will be abolished.
Another law to enter effect will be the Law Concerning Yugensekinin Jigyo Kumiai Contracts in August 2005, which will provide a Japanese form of limited liability partnership (LLP) as a new organizational vehicle for doing business.