To do financial instrument business in Japan, a legal entity needs special license according to their business purpose. There are mainly 4 different business license for financial instrument business in Japan as below.
1. Type I Financial Instruments Business Mainly, to sale and solicit securities and FX.
2. Type ll Financial Instruments Business Mainly, to sale and solicit securities equivalent, trust beneficiary right.
3. Investment Management Business Mainly, to run investment management.
4. Investment Advising and Agency Mainly, to advise Investment and support as an agency
Both legal entity for KK and GK can get the license but, to obtain Type I license, the type of entity must be KK not GK. There is also minimum capital request (1. more than JPY 50M is needed Type Investment Management, 2 more than JPY 10M is needed for Type II). Therefore, before starting incorporation, all conditions to obtain the license should be checked in advance.
