K.K. assumed many characteristics not found in U.S. corporations. For instance, a K.K. could not repurchase its own stock (a restriction lifted by the amendment of the Commercial Code in 2001), issue stock for a price of less than ¥50,000 per share (effective 1982-2003), or operate with paid-in capital of less than ¥10 million (effective 1991-2005). On June 28, 2005, the Diet of Japan passed a new , which took effect on May 1, 2006. Formation A kabushiki gaisha may be started with capital as low as ¥1, making the total cost of a K.K. incorporation approximately ¥240,000 (about US$2,500) in taxes and notarization fees. Under the old Commercial Code, a K.K. required starting capital of ¥10 million (about US$105,000); a lower capital requirement was later instituted, but corporations with under ¥3 million in assets were barred from issuing dividends, and companies were required to increase their capital to ¥10 million within five years of formation. The main steps in incorporation are the following: Preparation and notarization of articles of incorporation Receipt of capital, either directly or through an offering The incorporation of a K.K. is carried out by one or more . Although seven incorporators were required as recently as the 1980s, a K.K. now only needs one incorporator, which may be an individual or a corporation. If there are multiple incorporators, they must sign a partnership agreement before incorporating the company. The value or minimum amount of assets received in exchange for the initial issuance of shares The name and address of the incorporator(s) The purpose statement requires some specialized knowledge, as Japan follows an doctrine and does not allow a K.K. to act beyond its purposes. Judicial or administrative scriveners are often hired to draft the purposes of a new company. Additionally, the articles of incorporation must contain the following if applicable: Any non-cash assets contributed as capital to the company, the name of the contributor and the number of shares issued for such assets Any assets promised to be purchased after the incorporation of the company and the name of the provider Any compensation to be paid to the incorporator(s) Non-routine incorporation expenses that will be borne by the company Other matters may also be included, such as limits on the number of directors and auditors. The Corporation Code allows a K.K. to be formed as a , or a (so-called) , in which case the