How to Open a Business Bank Account in Japan

This article was writtenby Jianghai Lyu

Introduction

Japan’s banking sector is vital for its economy. The Bank of Japan (BOJ) is Japan’s central bank, responsible for ensuring financial stability, implementing monetary policy, and regulating banks. Besides, there are large institutions called “megabanks” like Mitsubishi UFJ Financial Group (MUFG),, and Sumitomo Mitsui Financial Group (SMFG) dominating the industry. These banks offer various services such as retail and corporate banking, investment, and asset management. Additionally, smaller regional banks, cooperative banks, and credit cooperatives serve local communities, ensuring widespread financial access.

Logos for BOJ, Some of the “megabanks” and regional banks

How many documents are required?

Generally speaking, some banks will require more documents while others may require less, and each bank will have its own guidelines on what must be submitted to open a business bank account in Japan. However, here’s a list that will be shown below to clarify which documents are basically necessary.

How many documents are required?

Generally speaking, some banks will require more documents while others may require less, and each bank will have its own guidelines on what must be submitted to open a business bank account in Japan. However, here’s a list that will be shown below to clarify which documents are basically necessary.

Which documents are needed?

1. For national or permanent residents in Japan

Completed application form without errors

Photocopy of the business owner’s (director/representative’s) ID; if someone assists with the application, their ID will also be required

Personal seal (hanko) of the director/representative

Company Seal Certificate

Articles of company incorporation (tohon)

Business plan of the company to prove it’s operating

Business card

Contracts with clients or business partners

Certified copy of register

Copy of tax office notification

2. For foreigners not residing in that country

Except the documents mentioned above, a foreigner who doesn’t live in Japan also needs to provide:

Passport (To replace the ID card)

Business manager visa or highly-skilled foreign professionals visa

However, for foreigners, having a status of residence will add more chance to be accepted.

3. For students in Japan

For students who are national residents in Japan, they could follow the documents under “For a national or permanent resident in Japan”. However, for international students, as student visas are generally not acceptable for a business bank account in Japan now, so they cannot open a business account in Japan.

What’s the process of opening a business bank account?

1. Choose a Bank

The company should choose an appropriate bank according to it’s own situation, as well as different requirements, services and fees of different banks.

2. Open a business account

Here’s a step-by-step guide for the company to handle the procedures:

Step 1: Audit the business

Step 2: Prepared all required documents and fill up the application form

Step 3: Wait for bank’s approval of the application forms and prepared documents

Step 4: Make an appointment

Step 5: In-person to handle procedures in the bank

Step 6: Wait for documents sent to the registered address

3. Keep a good relationship with the bank

The company should conduct transactions regularly and try to keep a positive balance to establish a good relationship with the bank.

How much will be cost to open a business account in Japan (including annual fees)?

The cost to open a business account in Japan are different depending on which banking institution to choose. However, on average, a company could complete the bank account opening with a JPY 1,000 initial deposit in its account.