Small companies with investors ranging from a few family members to a maximum of 50 -- called "yugen gaisha" in Japanese, or limited liability companies -- are mushrooming ahead of new legislation that will block the establishment of such firms.
More than 79,000 LLCs were created last year, a rise of more than 10,000 from 2002, according to reports compiled by the Justice Ministry.
The number this year will eclipse last year's figure if the current pace continues. About 6,800 LLCs were formed each month through June, according to the latest figures available.