The myth of the bank account in Japan
Photo by Moja Msanii on Unsplash
Banking industry is getting stricter every year against bank account set up because of the increasing risks of money laundering, terrorist financing, corruption, and fraud.
Incidents of money laundering rose about 40% on the year to 511 in 2018.
— NIKKEI ASIA
Bank account set up is crucial especially when we need to launch a business, get investment for the business, and start transactions with clients in Japan. At the very least, we should know the expected timeline so that we can avoid surprises that may delay or ruin our business plans.
1. Personal Bank Account
At least 6-month residential period as a residence card holder
Although banks do not specify how many months the applicants need to stay in Japan before setting up a personal account, most banks require them to hold 6+ months residential period. This residential period must be stated on their residence card. On top of that, most banks also require the applicant to have already been in Japan for at least 6 months.
No less than 3 months until the expiration date of the current visa
All applicants must have 3+ months remaining on their residence card until the expiration date. If the applicants have less than 3 months to stay in Japan, they will need to apply for a bank account after renewing the current visa.
Some banks specify this rule on their own website. ( Mizuho / SMBC )
2. Corporate Bank Account
Most of the processes for setting up a corporate bank account are being digitized on the first step.
Send general information via online
Submit general information relating to your business, such as name, address, phone number, company registry, stamp certificate, amount of capital, expected sales amount, etc.
NOTE: The bank needs to confirm whether the business owner has enough (starting) capital to operate the business for the next 6 months. Many business owners tend to put the minimum of 1,000,000 JPY starting capital. If you as representative director are targeting a Business Manager Visa in the future, and you have enough funds to begin with, aim to put 5,000,000 JPY to ensure a smooth process later on.Wait for a response from the bank
The bank will provide the result of the first examination process via email or phone. At this time, the bank will request additional documents such as office contract, invoice, or brochure of the business to better understand the contents of the business.Face-to-face meeting with a banker
Some banks offer the meeting online, but most of the banks still ask for a face-to-face meeting at their office.Final answer from a bank!
Same as before, the result will be provided via email or phone.
At first you don’t succeed, try and try again. All entrepreneurs, including native Japanese people, face the same challenge, so you are not the only one.
I am Japanese citizen that has continuously lived in Japan for a few decades, but several banks still refused to open a corporate bank account for my business. One of the banks that I have been using for 5 years finally accepted my application, probably because my personal bank account showed that I have been saving money every month little by little.
Of course, when a bank refused to open my account, I was disappointed, but I have been trying to understand that banks have to operate the business under tight restrictions and regulations to combat financial crime all over the world. This effort might reduce the risks of operating a business for us in the future!
