How to Open a Corporate Bank Account in Japan: A Guide for Foreign Entrepreneurs and Business Owners
Introduction
Opening a corporate bank account in Japan is mandatory for business in Japan. In our experience, many foreign entrepreneurs and business owners struggle with this critical step. This article aims to provide a step-by-step guide to helping your business open a business bank account in Japan.
The key to getting a bank account is not very different from what you might imagine: building trust with the bank, maintaining a good track record, and demonstrating a genuine commitment to your business. Still, we see many foreign entrepreneurs struggle with the requirement for detailed documentation (in Japanese, no less!).
Japanese banks are one of the most risk-averse and traditional types of business in Japan. Consequently, many Japanese banks prefer to deal with established businesses with existing sales and customers. It’s rightly a challenge for any new business, let alone one started by foreign founders, as many banks will deem the lack of history a risk.
The odds are stacked against you, so we highly recommend that you follow the steps below and avoid trying to improvise or do it your way. Creativity is important to business, but getting a corporate bank account should rightfully be a boring process!
Step 1: Understand the Different Types of Business Structures in Japan
In general, there are 3 main kinds of business structure in Japan. Kabushiki Kaisha (KK), Godo Kaisha (GK), or Sole Proprietorship. In a Sole Proprietorship, there is no legal separation between the individual and the business. Consequently, there is neither any need nor any possibility to open a corporate bank account if your business structure is a Sole Proprietorship. To incorporate a business, you should choose the KK or GK structure.
| Category | Kabushiki Kaisha (KK) | Godo Kaisha (GK) |
|---|---|---|
| Structure | Owned by shareholders who hold stocks. Managed by directors (board of directors if there are multiple directors). More structured, with required general meetings and financial reporting obligations. Liability is split among shareholders. | Owned by members (investors) who have direct control over operations. No shareholders. Profits and management decisions are handled directly by members. More flexible management. Members bear direct responsibility for management decisions. |
| Credibility | Widely known, the most credible form of company in Japan. Seen as more prestigious and reliable. | Not as common as KK. Sometimes perceived as small or for startups, though some famous foreign companies operate as GK (e.g., Apple Japan, Amazon Japan). |
| Setting up costs | More expensive to establish (¥200,000–¥250,000+). Requires notarization of Articles of Incorporation. Requires more legal structuring and annual shareholder meetings. | Cheaper to establish (¥100,000–¥150,000). No notarization required. Easier and faster registration process. |
| Fundraising/Public Listing | Can issue shares and raise capital from investors. | Cannot issue shares. Not ideal for startups looking for venture capital or IPO. |
| Governance | Separation between shareholders (owners) and directors (managers), although one person can hold both roles. | Owned and managed by partners directly. Must invest (even small amount) to participate in management. |
| Minimum people required | At least 1 shareholder and 1 Representative Director (can be the same person). | At least 1 partner. |
| Financial reporting | Required. | Not required. |
Step 2: Get Ready to Incorporate Your Business
Decide on the basic details of your company. These include: company name, business objectives, location (address), fiscal year, and importantly, business structure, board composition, and shareholder composition.
Create the Company Seals. There are a few types.
Registered Seal (Jitsuin / 実印)
The official company seal.
Must be registered with the Legal Affairs Bureau, or 法務局.
Used for: company registration, contracts, and other important transactions.
Representative Seal (Daihyosha-in / 代表者印)
Used by the company representative for closing contracts and other legal agreements. Must also be registered with the Legal Affairs Bureau (法務局) during company incorporation.
Bank Seal (Ginkoin / 銀行印)
To be registered with the bank when opening a corporate bank account and required to authorize financial transactions.
Note: Online banks have abolished this requirement as of August 2020.
Company Seal (Kakuin or Shain / 角印・社印)
A general seal for routine operations, such as for sending out invoices. This is not registered.
Many shops, both online and physical, provide seal creation services. You can seek out an artisan to handcraft them (and pay artisanal prices) or search for one of many online shops that provide this service at a reasonable cost.
Prepare the Articles of Incorporation (and notarize if starting a KK). The details of the new company are recorded in the Articles of Incorporation or 定款 (teikan). This document is the company’s rulebook and is the starting point of establishing the new company. The process of drafting and certifying the Articles of Incorporation requires many documents and professional knowledge. We strongly recommend you consult professional judicial scriveners and/or tax accountants who have expertise in startup support throughout the process.
Tip: Are you envisioning expanding your business into different fields? Try to incorporate all types of businesses you may think of doing so that you need not go back and forth in the future when you are trying to expand your business. At the same time, don’t go overboard and write every single business idea that comes to mind, as it may signal a lack of focus.
Deposit start-up capital into the representative director’s personal account. (Remember, your company does not yet have a corporate bank account.) Keep the proof of deposit for company registration.
Register the business by submitting the Articles of Incorporation to the Legal Affairs Bureau. You will receive the Certificate of Incorporation (登記簿謄本). You’re now ready to open your corporate bank account.
Step 2: Choose the Right Bank
First, start by understanding that the banking landscape in Japan is far more diverse than it appears. There are different types of banks, and choosing the right bank is half the battle won. There are the so-called megabanks, the regional banks and credit associations, and online banks.
Megabanks (MUFG, SMBC, Mizuho, Resona). They have a physical presence across the entire country, and they have branches found in many cities. Although having a corporate bank with a megabank confers advantages – such as the image of being trustworthy – it may be difficult for foreign entrepreneurs without any business history to start a corporate bank account with these banks.
Regional banks and credit associations (e.g., Yokohama Bank, Fukuoka Bank, Chiba Bank) may require local ties.
Online banks (GMO Aozora, Rakuten, Sumishin SBI Netbank). Online-based banks operate without physical branches, and transactions are done digitally. Not surprisingly, corporate accounts at these banks are easier to open for startups. This is our recommendation for your first account.
Check this link for a full list of licensed banks.
Our advice? Give up on the megabanks (for now). You might not want to hear this, but megabanks require at least one year of a good track record with another initial bank before approving an account.
Furthermore, the company's representative director should already have an existing personal account with the bank–used strictly for business–before applying for a corporate account. This will increase the odds of being approved.
Step 3: Prepare a Strong Application
Present a solid business plan. When you go to the bank, get ready to show up with a strong business proposal. Think of it as a pitch. The bank wants to know that you’ll be able to have a profitable, operating business. More importantly, they want to know that they are dealing with a legitimate organization and not some shady money-laundering operation. This might be difficult for startups, but please try as much as possible to include the following information:
Projected financials, business model, sales and marketing plans, and concrete development steps. What industry are you in? How are you going to run the business? How much startup capital do you have? How many employees are you planning to hire? What is your expected sales turnover? Who are the executives who will co-manage the business?
Proof of potential contracts or business offers. Do you already have customers or potential customers interested in your product or service?
Your materials should be in Japanese or translated into Japanese if the documents were initially prepared in English or any other language.
Bring an interpreter if necessary. Don’t skip this step–good communication is critical to building trust with the bank.]
Dress cleanly and professionally—first impressions matter. If you have a suit or jacket, wear one. It may seem archaic in today’s post-COVID dress-down environment, but banking is one of the most traditional industries in Japan. Bank employees still suit up, and you should too, to convey a good impression.
Note: Many banks require the representative to be a resident of Japan with a valid visa status, such as a Business Manager or Permanent Resident visa. Otherwise, the application will almost certainly be automatically rejected. Additionally, corporate bank accounts are typically only opened at the branch closest to the company's registered headquarters (business location), so please take note of this requirement unless you are planning to open an account with an online bank.
Bring printed materials—Japanese banks want to see evidence. The following is a non-exhaustive list of the documents they typically examine.
Certified copy of Certificate of Incorporation
Certificate of Seal Registration of the representative/company (inkan shomeisho / 印鑑証明書)
Copy of the Articles of Incorporation
Identity verification documents for the representative (e.g., residence card)
Identity verification documents for transaction representatives
Corporate number notification document
Corporate number printing document
Copy of corporate establishment notification
Copy of blue tax return approval application
Copy of tax return documents
Receipt or tax certificate for national or local taxes
Receipts for social insurance payments
Utility bill receipts
Lease agreement for the main office
Licenses and permits issued by government authorities
Company brochure, pamphlets, or website printouts
Business plan
Copies of contracts or memorandums with major clients
Copies of agency or franchise agreements
Copies of invoices from suppliers and customers
Any other materials that confirm business activities in detail
If your corporate bank account application is rejected. Banks typically cite “a comprehensive decision” and do not provide detailed reasons, leaving applicants uncertain about what went wrong or how to successfully open an account. As mentioned, we recommend skipping the megabanks or at least deprioritizing them for now.
Others fail simply because they are unaware of the basic eligibility criteria for opening an account and apply without realizing their application will inevitably be rejected.
Incomplete provision of documents can also lead banks to perceive the company as having poor management capabilities, which may result in automatic rejection without any follow-up requests for additional documentation. To avoid wasting valuable time, consult a professional to ensure all required documents are prepared thoroughly.
If your corporate bank account application is approved. Congratulations! Your corporate bank account will be created in the following format:
Kabushiki gaisha XXX, Representative YYY.
Financing. If you require financing, you can apply for a bank loan supported by the regional or local government if you are eligible. We recommend checking with your local city or ward office for information. The interest rates are usually low, and they may be able to recommend you to open a bank account with one of the credit associations in your area.
Credit associations want to lend money to you and will be happy to open your bank account. But take note: the loan process can be very complicated. It helps if you have permanent residency. You might need to go through several rounds of screening and interviews with them to explain your business strategy and plan properly before they deem you reliable enough.
Remember, they are in the business of profiting from their loans–they want someone who will not default! If you manage to get the loan, please avoid deferred payments because that will not be favorable to your credit history.
Step 4: Play the Long Game
Japan has some of the world’s oldest businesses.
The oldest hotel in the world? It’s in Yamanashi.
Ichimonjiya Wasuke has been selling sweets in Kyoto for over a millennia.
Even world-renowned gaming company Nintendo dates back to the 19th century.
Based on a report from 2008, out of 5,586 companies older than 200 years in 41 countries, 56% of them were in Japan alone.
In 2022, Japan had 37,550 confirmed companies over a century old.
Japan is not a country where you get rich quickly and cash out. A company that wishes to prosper in Japan has to play the long game. For that reason, banks want to see you play the long game, too. That’s why you need to set your business up for sustainable long-term success, delivering value to the communities that your business will become a part of.
Conclusion
Opening a business bank account in Japan is a process that requires patience and preparation. Remember, Japan is a country where many companies have endured hundreds, if not thousands, of years.
Hence, the focus on long-term vision is essential to your success in Japan. This focus on credibility, financial responsibility, and long-term planning will win over both Japanese banks and Japanese clients alike.
If you struggle at first, explore alternative options like online banks and regional credit associations. Once you pass the crucial first year, larger banks will become accessible.
Need more help setting up your business? For more assistance, reach out to Tokudaw’s Japan Business Development Department.