A TK is provided for under Japan‟s Commercial Code. It consists of a TK operator and one or
more “silent” or TK investors. A TK is not a legal entity for Japanese tax purposes, but rather an
agreement between the TK investor and the TK operator under which the TK operator agrees to
operate the business on behalf of itself and the investor. The TK investor makes a contribution to
the TK operator in exchange for a percentage of the TK operator‟s profits or losses. Critically, the
TK investor must not have any control in the management of the TK operator.