How to Open a Business Bank Account in Japan
Written by Racy Yang
Japan is an island nation located in East Asia known for its unique blend of ancient traditions and modern innovations. It consists of four main islands, Honshu, Hokkaido, Kyushu, and Shikoku, as well as many smaller islands. Japan not only has historic cities such as Kyoto and Nara but also has areas with natural landscapes such as Shizuoka and Itsukushima, as well as modern, bustling cities such as Tokyo and Osaka. Traditional arts such as the tea ceremony, flower arranging, and kendo have been passed down through the ages, demonstrating the charm of cultural heritage.
As a globally important economy, Japan is ranked 3rd in the world in terms of GDP until 2023, and 4th in the world in terms of GDP in 2023 and 2024. As a major global exporter, Japan has a significant advantage in the export of electronics, machinery, and high-quality consumer goods. Household recognizable companies such as Toyota, Sony, and Panasonic also serve as vehicles to present Japan’s cutting-edge innovation and precision manufacturing. With its efficient infrastructure, highly qualified labor force, and commitment to quality, Japan occupies an important position in the global economy. In addition, Japan has a well-established and highly regulated banking system that is an important pillar of its strong economy. Opening a business bank account in Japan typically requires following a rigorous process and submitting comprehensive supporting documentation to meet the high standards of its financial system.
Banks in Japan
Japanese banks are categorized into five main types: central banks, general banks, trust banks, government financial institutions, and foreign banks. Among them, general banks are further categorized into megabanks, regional banks, online banks, and others. Since this article focuses on how to open a business bank account at a local Japanese bank, central banks, trust banks, government financial institutions, and foreign banks will not be discussed in more detail.
In terms of numbers, regional banks are much higher than other types of banks, and there are currently approximately 60 of them in Japan, located in eight regions: the Hokkaido region, the Tohoku region, the Kanto region, the Chubu region, the Kinki region, the Chugoku region, the Shikoku region, and the Kyushu region (https://ja.wikipedia.org/wiki/日本の銀行一覧). However, the limitations of regional banks are obvious, for example, the services and business scope of regional banks are usually focused on specific geographical areas or local markets, rather than national or international banks. Online banking, on the other hand, is subject to online privacy and security issues and is limited by the fact that it is “online” in terms of both personalization and timeliness of service. The common problem for both is that they are limited in the types and amounts of financial products and services they can offer. They are also generally less well-capitalized and resourced than central banks and megabanks because of their size, which limits their ability to expand their market share and respond to large-scale financial crises.
Compared to regional banks and online banks, megabanks have more resources and also offer a wider and more comprehensive range of products and services to their customers, making them the best choice as a way to open a business bank account. According to the current sales rankings of the Japanese banking industry, the top three banks on the list are Mitsubishi UFJ Financial Group’s MUFG Bank, Sumitomo Mitsui Financial Group’s SMBC Bank, and Mizuho Financial Group’s Mizuho Bank (https://www.buffett-code.com/industries/28).
Students
Before getting into the details of opening a business account with any of the three banks mentioned above, it is important to understand the legal age at which a company can be established in Japan. In Japan, only those who are 15 years of age or older can register the necessary seals to establish a company, and until they are 18 years of age or older, the consent of a legal representative is required to establish a company. However, all persons over the age of 18 can establish a company without the consent of a legal representative (https://sogyotecho.jp/kabu
On the other hand, international students who are planning to set up a company in Japan may be required to provide more comprehensive information to satisfy the relevant criteria to prove that they have sufficient financial strength and business ability to operate the company, such as age, capital, and business plan.
As long as age and related criteria are met, there is no significant difference in the establishment of a business bank account for both national and international students, as compared to national or permanent residents of Japan and foreigners who do not reside in Japan. Therefore, this article will subsequently only focus on selecting the most suitable banks for opening a business bank account from these three banks for both national or permanent residents of Japan and foreigners who do not reside in Japan.
MUFG Bank
Required Documents
Basic Documents:
1. Proof of complete history of the company within 6 months from the date of issuance.
2. Proof of the company’s seal within 6 months from the date of issue.
3. Official identification documents of the trader: driver’s license, passport, personal number card, etc.
Additional Documents: please bring the corresponding documents.
1. For industries requiring licenses, notifications, registrations, etc:
○ Documents confirming the completion of licenses, notifications, registrations, etc., that have a legal name and are within the validity period.
2. If the procedure is carried out by someone other than the representative:
○ Power of Attorney.
(https://www.bk.mufg.jp/houjin/kouza_kaisetu/pdf/ininjou_sample.pdf)
○ The representative’s “official identification document”.
3. The business owner or processor holds non-Japanese nationality:
○ Residence card of the owner or processor.
(https://www.moj.go.jp/isa/applications/status/?hl=zh-CN)
4. Existence of shareholders, officers, etc. other than the representative who has a dominant influence on business activities:
○ Documents that can confirm the actual controller: copy of the list of actual controllers, register of shareholders, securities report, identification documents, etc.
Account Opening Process
Online: https://www.bk.mufg.jp/houjin/kouza_kaisetu/flow.html
1. Suitable People: national or permanent residents
2. Steps:
○ Apply for registration
○ Enter account application information and upload the required documents
○ Network interviews with trading representatives
○ Receive and return documents
○ Receive passbook or cash card receipt
3. Time-consuming: about 1 to 1.5 months
In-store https://www.bk.mufg.jp/soudan/raiten/index.html
1. Suitable People: national or permanent residents, foreigners
2. Steps:
○ Prepare all required documents
○ Make an appointment
○ In person at the bank
○ Receive and return documents
○ Receive passbook or cash card receipt
3. Time-consuming: about 1 month
Cost and Annual Fees
- Offer: ¥0/month ($0/month)
○ For the first 3 months after account opening.
- Monthly/Annual Fee: ¥1,760/month (~$11.40/month)
○ From the 4th month of account opening.
- Other: ¥1,320/year (~$8.55/year)
○ For savings accounts that have not been used for two or more years, an unused account management fee will be charged.
More Information
- https://www.bk.mufg.jp/houjin/kouza_kaisetu.html
- https://www.bk.mufg.jp/houjin/kouza_kaisetu/flow.html
SMBC Bank
Required Documents
Basic Documents:
1. Proof of complete history within 6 months from the date of issue.
2. Proof of application for registration of corporate name seal within 6 months from the date of issuance.
3. A certified copy of the building register of the head office or main office or lease contract is required.
Additional Documents: please bring the corresponding documents.
1. Apply online:
○ Valid driver’s license or personal identification number card of the person completing the procedure.
2. Apply in-store:
○ Identification document with a photograph of the person performing the procedure: including but not limited to the name of the legal entity, the location of the head office or main office, the purpose of the company’s transaction, details of the company’s business, whether the enterprise has any transactions or assets with a country subject to economic sanctions, the name, address, and date of birth of the person in actual control of the legal entity, whether or not an overseas political figure is applicable, etc., and the name, address, and date of birth of the person who came to the store, such as the representative of the legal entity, and the person who came to the store Reasons for trading as a formalized person (https://www.smbc.co.jp/honnin/).
3. For businesses that require a license:
○ Licenses, notices, and registrations issued to the company are valid for its main business.
4. If you want to open an account at your nearest branch instead of your principal place of business:
○ A certified copy of the branch building register or lease agreement.
5. If the beneficial owner is a foreigner:
○ Documents showing your name in English: Resident card, passport, etc.
6. If the tenant of the main office is an independent company:
○ Sublease agreement etc. that the lessor agrees to use.
7. For LLC clients:
○ Documents confirming beneficial ownership: Articles of Incorporation, etc.
○ Documents identifying the actual controller: for all applicable persons (if the actual controller is a listed company or its subsidiary, proof of all historical matters).
Account Opening Process
Online: https://www.smbc.co.jp/hojin/kouza/otetsuduki.html
1. Suitable People: national or permanent residents (who have the status of “legal entity”, whose business is not an investment business, financial industry, or special purpose company, and whose online procedures are performed by a person who can receive mailed documents on behalf of the client at the address of the certified copy).
2. Steps:
○ Online identity verification/Enter customer information
○ Mail/upload documents
○ Online inquiry confirmation result
○ Account opening procedures have been completed
3. Time-consuming: about 1 month
In-store: https://www.smbc.co.jp/hojin/kouza/soudan.html
1. Suitable People: national or permanent residents (who do not meet online requirements), foreigners
2. Steps:
○ Prepare all required documents
○ Make an appointment
○ In person at the bank
○ Receive and return documents
○ Receive passbook or cash card receipt
3. Time-consuming: about 1 month
Cost and Annual Fees
- Offer: ¥0/month ($0/month)
○ For the first 3 months after account opening.
- Monthly/Annual Fee: ¥3,300/month (~$21.39/month)
○ From the 4th month of account opening.
- Other: ¥0 monthly fees can be applied: https://www.smbc.co.jp/hojin/special/kouza/
More Information
Mizuho Bank
Required Documents
Basic Documents:
1. Proof of registered items (proof of all historical items, etc.).
2. Documents that can confirm the name, address, date of birth, etc. of a representative, official, interviewee, etc.
Additional Documents: please bring the corresponding documents.
1. Apply online:
○ Identification documents for the interviewer (driver’s license, personal identification card, etc.).
■ If your company status is “Joint Stock Company, Limited Liability Company, Investment Company or Special Purpose Vehicle”, please submit one of the following documents: shareholders’ register, securities report, list of beneficial owners, a copy of the corporate tax return with details from schedule 2, etc.
■ Documents to be submitted as necessary: Documents showing business contents and business status (company information, product brochures, national or local tax returns, sales orders/purchase orders, invoices, etc.), certificate of registration (original), certificate of seal (original), etc.
○ Documents that can confirm the actual controller.
2. Apply in-store:
○ Corporate seal.
○ Certificate of registration information issued within 6 months from the date of issue (original).
○ Documents proving the identity of the visitor to the store: driver’s license, personal number card, etc.
○ Documents prove that the person you are trading with is a corporate customer.
○ If you already have an account, please bring a cash card/passbook.
○ Documents confirming the actual controller.
■ If your company status is “Joint Stock Company, Limited Liability Company, Investment Company or Special Purpose Vehicle”, please submit one of the following documents: shareholders’ register, securities report, list of beneficial owners, a copy of the corporate tax return with details from Schedule 2, etc.
○ Documents showing business contents and actual business status.
■ For example, customer website URL, company information, product brochures, state or local tax forms for the company name, sales orders/purchase orders, invoices, etc.
Account Opening Process
Online: https://ebiz.mizuhobank.co.jp/Front/index.php?hitaimen=1
- Suitable People: Customers who do not already have a corporate account with Mizuho Bank, customers who are self-employed or (voluntary) organizations, customers who wish to open an account other than a savings account, or customers whose head office is registered (country of establishment) outside of Japan
2. Steps:
○ Online application
○ Notification of preliminary selection results and interview schedule adjustment
○ Internet interview
○ Mailing of application documents (account opening completion)
3. Time-consuming: no clear time frame
In-store: https://www.mizuhobank.co.jp/tenpoinfo/c_account_branch.html
- Suitable People: Customers who already have a corporate account with Mizuho Bank, in the case of self-employed individuals or (voluntary) organizations, customers who wish to open an account other than a savings account, or customers whose head office is registered (country of establishment) outside of Japan
2. Steps:
○ Online application
○ Notification of preliminary selection results and interview schedule adjustment
○ Interview in store
○ Account opening completed
3. Time-consuming: no clear time frame
Cost and Annual Fees
- Offer: ¥0/month ($0/month)
○ For the first 3 months after account opening.
- Monthly/Annual Fee: ¥3,300/month (~$21.39/month)
○ From the 4th month of account opening.
- Other: ¥0 monthly fees for up to 5 years
○ Only for customers within 3 years of company establishment.
More Information
- https://www.mizuhobank.co.jp/corporate/account/index.html
- https://www.mizuhobank.co.jp/corporate/ebservice/account/webreport/index.html
Summary and Recommendation
Easiest
MUFG Bank is the easiest bank to open a business bank for both national or permanent residents and foreigners, as there are not many documents required and the steps are not troublesome.
Cheapest
MUFG Bank is the bank with the lowest monthly fee if there are no offers or activities.
However, in case of events, SMBC Bank is the most affordable bank as the monthly fee can be waived by applying to the customer. Next is Mizuho Bank, which has a monthly fee waiver for up to 5 years for newly established companies.
Resident and Foreigners
Whether you are a national or permanent resident or a foreigner, you will receive the same services from all three banks, the only difference being the application materials you need to prepare and whether you need to visit a store to apply for a business bank account.
MUFG Bank: From a comprehensive perspective, it is the best choice in terms of convenience, price, and bank size.
SMBC Bank: For those who don’t mind the complexity of the paperwork and procedures, SMBC Bank which waives all monthly fees, may be able to help reduce expenses.
Mizuho Bank: may be a better choice for those who want more services from the bank.
This story was written by a graduate student at NYU. Read stories about other 50 countries here