When a foreigner establishes and operates a company in Japan, they need to have a bank account in Japan. The necessary accounts are a personal account for the representative etc. and a corporate account.
However, it is said to be very difficult for foreigners to open a corporate account.
We will explain how foreigners can open a bank account in Japan and the process for setting up a company.
- It’s getting harder to open a corporate account
- Flow of company establishment
- Decide the company’s basic policy
- Create a company seal
- Prepare the articles of incorporation and have them certified by a notary public
- The capital contribution is paid into the promoter’s personal account.
- Prepare the commercial registration application documents and submit them to the Legal Affairs Bureau.
- Obtain a business manager visa
- Open a corporate account
- When do you need a bank account to set up a company?
- Documents required to open an account
- If you are denied an account opening
- Please contact us regarding company establishment preparations.
It’s getting harder to open a corporate account
It is becoming more difficult for foreigners to open a corporate bank account for a company they established in Japan.
Previously, it was relatively easy for foreigners living overseas to open a corporate bank account, but with the increasing number of cases where the representative could not be contacted and the company was left abandoned, resulting in the bank having to bear the burden of account management fees, and various regulations have been put in place to prevent money laundering, etc., it has become more difficult to open a corporate bank account.
In addition to basic requirements such as the representative residing in Japan and having a business manager visa, a comprehensive judgment is made after taking into consideration the company’s business activities, scale, annual turnover, etc.
In addition to submitting the necessary documents required by the financial institution, you may also need to prepare a business plan, etc. in order to pass the screening.
Flow of company establishment
The process for a foreigner to set up a company in Japan is as follows:
- Decide the company’s basic policy
- Create a company seal
- Prepare the articles of incorporation and have them certified by a notary public
- The capital contribution is paid into the promoter’s personal account.
- Prepare the commercial registration application documents and submit them to the Legal Affairs Bureau.
- Obtain a business manager visa
- Open a corporate account
Let’s check each one.
Decide the company’s basic policy
First, clarify what kind of business you will be doing and set the “company objectives” that are in line with your business operations.
Depending on the business, business licenses and permits may be required, so you will need to consult with an expert such as an administrative scrivener.
After that, the company name, location, capital, date of establishment, fiscal year, shareholders and officers, company organization, etc. are decided.
Regarding “capital,” in consideration of obtaining a business manager visa, it is often set at 5 million yen or more.
Create a company seal
A company seal can take time to create, so it is best to order one as soon as the company name has been officially decided.
Please check the size of the official seal, which must fit within a square with sides longer than 1cm and no larger than 3cm.
In addition, you will need to submit a seal notification form when applying for commercial registration.
Prepare the articles of incorporation and have them certified by a notary public
The articles of incorporation should reflect the company’s basic policy decisions.
There are templates for the articles of incorporation, but it is advisable to ask a professional such as a certified public scrivener to create them to suit each company.
Once the articles of incorporation have been prepared, if the company is a joint-stock company, they must be certified by a notary public at a notary public’s office.
The capital contribution is paid into the promoter’s personal account.
The capital contribution (capital) is paid into the promoters’ personal accounts in Japan.
After that, we will prepare a document certifying the payment of capital.
Prepare the commercial registration application documents and submit them to the Legal Affairs Bureau.
Prior to applying for commercial registration, procedures such as appointing an initial representative director will be required, and various supporting documents will need to be prepared.
The process will go more smoothly if you get the support of an administrative scrivener for preparing attached documents and a judicial scrivener for commercial registration applications.
The date of business registration application is the date of incorporation of the company.
Obtain a business manager visa
By establishing a company in Japan and taking on the position of director etc., it is possible to obtain a business manager visa.
However, since the hurdles to obtaining a business manager visa are high, the support of a specialist such as an administrative scrivener is necessary.
Open a corporate account
By establishing a company in Japan, you will be able to open a corporate account at a bank in Japan for deposits and withdrawals.
However, you need to pass the financial institution’s screening process, which is not easy.
When do you need a bank account to set up a company?
When a foreigner establishes a company, they will need a bank account in Japan at the following two times:
- Payment of capital
- Deposits and withdrawals with business partners after company establishment
Let’s check each one.
Payment of capital
At the stage of paying in the capital, the representative’s personal account is required to manage the capital payments.
Generally, a personal account of the promoter in Japan is acceptable.
However, if you are a foreigner who does not have an address in Japan or has not lived in Japan for more than six months at the time of company establishment, many banks in Japan will not allow you to open a personal account.
In such cases, you should consider having someone who has a personal account in Japan join as a promoter or director, or obtaining a four-month business manager visa.
Please note that when transferring capital from overseas to a Japanese account, transfer fees are often somewhat high.
Deposits and withdrawals with business partners after company establishment
After establishing your company, you will need an account to receive and withdraw funds from business partners.
However, in order to open a corporate account, you must pass the financial institution’s screening, and it usually takes time to open an account.
Therefore, when a company is first established, the representative director’s personal account will be used instead.
Documents required to open an account
Let’s summarize the necessary documents and points to note for foreigners to open a bank account in Japan.
personal account
There are several requirements that foreigners must meet in order to open a personal account at a bank in Japan.
First of all, the basic requirement is that your period of stay is six months or more.
If your period of stay is less than six months, you will be considered a non-resident and it will be difficult to open an account.
The following types of funds are required to open an account:
- Identification documents: Residence card, My Number card, etc.
- Seal: Generally, you will need a bank seal.
- Student ID, employee ID, etc.: These must be presented along with your residence card to verify your enrollment and employment status.
Corporate account
In order for a foreigner to open a corporate account at a bank in Japan, they must first establish a company in Japan. Generally, the representative of the company applies for the corporate account, and the key point is that the representative must reside in Japan.
The following types of funds are required to open an account:
- Certificate of all historical matters (issued within the last 6 months)
- Corporate seal certificate (issued within the last 6 months)
- Official identification document of the person in charge of the transaction: Residence card, My Number card, etc.
others,
For industries that require business licenses and permits, documents that confirm the completion of licenses, notifications, registrations, etc.
If there is a person with controlling influence other than the representative, documents that can confirm the beneficial owner
You may also need additional documentation such as:
If you are denied an account opening
It is not particularly difficult for foreigners to open a personal account as long as they meet certain requirements, such as having a period of stay of six months or more.
On the other hand, opening a corporate account is generally not easy.
Your application to open a corporate account may be rejected in the following cases:
If a representative or director is found in a credit report
If, after checking the credit information of the company representative and directors, it is found that there are unpaid taxes, social insurance, or utility bills, it will be difficult to open a corporate account.
If you don’t have a fixed office
If your company does not have an office, it will be difficult to open a corporate account.
for example,This is the case when the office is a virtual office or a shared office.
When the likelihood of financing is low
Financial institutions make profits by allowing corporate account holders to obtain loans.
Therefore, if the nature and scale of your business makes it unlikely that you will be able to receive a loan, you may be denied access to a corporate account.
Applying to megabanks and other financial institutions with high entry barriers
The ease of opening a corporate account varies depending on the financial institution.
It is very difficult to open a corporate account with a so-called megabank when you have almost no trading history.
The financial institutions where it is easiest to open a corporate account are as follows:
- internet bank
- Shinkin bank
- Japan Post Bank
- local bank
- city bank
You may also be able to use the Japanese branch of your home country’s bank, so consider this.
Please contact us regarding company establishment preparations.
When setting up a company, various documents must be prepared and there are many things to consider.
It is difficult for Japanese people to establish a corporation in Japan, so it is even more difficult for foreigners to go through the process on their own.
In order to concentrate on running your company, we recommend that you seek the support of a professional such as an administrative scrivener for company establishment procedures and opening a bank account.
At Touch Legal Professional Corporation, we listen to the circumstances of each client in a free consultation and propose the best method for foreigners to set up a company.