Corporate bank account in japan

 

In the business sphere, having a financial identity is essential in deals and establishing your business

And a corporate bank account serves as the foundation of this identity. Unlike personal bank accounts, corporate bank accounts are designed to cater to the financial requirements of businesses. They typically offer a range of services uniquely designed for a businessman’s ease of use. For example, corporate bank accounts may offer services such as payroll processing and separate employee debit/credit cards, which allow the company to pay for employee salaries and expenditures easily. Despite these benefits, opening a corporate bank account has become harder.

Recently, the procedures and regulations surrounding corporate banking have become stricter, particularly when it comes to the verification of crucial details such as the CEO’s address. In the past, CEOs living abroad with a foreign passport could still open a corporate bank account in Japan. Today, banking institutions are imposing stricter measures that require the CEO to be a Japanese resident even with resident directors. But, with the right arsenal of know-how, you can be fully equipped to take on the challenge of opening an account.

Whether you are a seasoned entrepreneur looking to expand your ventures into the Japanese market or a budding business owner seeking to establish a financial foothold, this guide is written to help establish a step-by-step process of opening a corporate bank account in Japan, stocking you with the knowledge and insights necessary to navigate the intricate procedures with confidence. Feel assured in corporate banking in Japan and take the first strides toward a successful financial future.

Why would I want a corporate bank account in Japan?

Corporate bank accounts don’t sound like a must when you start, especially when the business is limited to small transactions but it’s best not to underestimate the effect having a corporate bank account has on your B2B business deals. The trust that partners and clients have in your company may also be dependent on whether or not accounts have been separated. Social credibility is low when a bank account is held by a sole proprietor as individuals are less trusted than a corporation. To better understand the social credibility each corporate structure gives you, be sure to read our article on Setting Up a Company in Japan.

 

Who can open a corporate bank account in Japan?

Before we jump into the nitty gritty of each bank and its requirements, we have to give you the disappointing reality of an exclusive banking system. Visa requirements are harsh and clear-cut in most banks so there will be no point in trying to apply for any corporate bank accounts that don’t accept the Visa type that you hold. While numerous Visas exist, the types that the banks typically require generally fall under three categories which we will simplify here.

• Permanent Resident
• Business Manager 
• Employment Visa: This is a blanket term for all other types of employment visas, including start-up visas.
• Student visas are generally not acceptable for a corporate bank account in Japan. 

 

4 Main Types of Banks in Japan

Opening a corporate bank account in Japan demands you to understand the Japanese banking sector. The sector is wide and caters to the different needs of its users by establishing a variety of banks for individuals, businesses, and corporations. The types of banks in Japan can be categorized into four distinct groups: megabanks, local banks, online banks, and credit unions which we will go into below.

Megabanks:

Megabanks are some of the largest and cayman islands phone number library most influential financial institutions in Japan. Corporations tend to place more trust in you if your business has a corporate bank account with a megabank.  If a megabank gives you a corporate bank account, it shows that your business and yourself were scrutinized/evaluated and the bank deemed you as worthy of a bank account. This improves credibility as a foreign business that no institution knows in Japan or trusts. They offer a comprehensive range of financial services to both individuals and corporations. Here are three examples of megabanks with whom you can open a corporate bank account in Japan:

a. Sumitomo Mitsui Banking Corporation (SMBC): As one of the leading megabanks, SMBC provides a broad spectrum of banking services, including retail banking, corporate banking, asset management, and investment banking.

b. Mizuho Financial Group: Another major player, Mizuho offers a wide array of financial services, such as retail banking, corporate banking, securities, and asset management, catering to both domestic and international clients.

c. Mitsubishi UFJ Financial Group (MUFG): MUFG is one of the largest financial groups globally, offering a range of services including retail banking, commercial banking, investment banking, and wealth management.

Local Banks:

Local banks in Japan primarily operate on a regional scale and serve local communities and businesses. They play a crucial role in supporting local economies and providing personalized banking services. These banks often have a strong focus on relationship-building with their clients. Some examples include:

1. Shizuoka Bank: This regional bank serves the Shizuoka Prefecture and offers a range of retail and corporate banking services tailored to the needs of the local community.
2. Aichi Bank: Based in the Aichi Prefecture, Aichi Bank provides financial services to individuals, businesses, and local organizations in the region.
3. Hokkaido Bank: Operating in Hokkaido, the northernmost island of Japan, Hokkaido Bank specializes in catering to the unique financial needs of the local population and businesses.

Online Banks:

With the advancement of technology, online banks have gained popularity in Japan as well. These banks offer convenient and digital banking solutions that cater to customers’ needs without the need for physical branches. Two notable examples are the following:

1. Rakuten Bank: A subsidiary of the e-commerce giant Rakuten, Rakuten Bank offers a range of online banking services, including savings accounts, loans, and investment options.
2. Sony Bank: Backed by the well-known electronics company Sony, Sony Bank provides online banking services that encompass savings accounts, loans, investment products, and more. It leverages the brand’s reputation for reliability and innovation to attract customers seeking modern financial solutions.

Credit Unions:

Credit unions in Japan focus on offering cooperative financial services to their members, often based on common affiliations, such as workplaces or residential areas. These institutions prioritize the interests of their members and promote savings and lending within their communities. While not as prevalent as other types of banks, credit unions are still an important part of the Japanese banking landscape. Two notable examples are the following:

1. Zentoei Credit Union (in Japanese, no automatic translation): Zentoei Credit Union serves its members with a focus on cooperative financial solutions. It caters to specific groups of people, fostering a sense of community and shared financial goals.
2. Dai-ichi Kangyo Credit Union: Dai-ichi Kangyo Credit Union provides financial services to its members, drawing from its cooperative principles to offer tailored banking solutions based on common affiliations.

Simplified Banking Solutions for Your Business

Navigating the intricacies of opening a  difficulty in enduring over time is duecorporate bank account in Japan requires precision, patience, and a clear understanding of the process. That’s where SmartStart Japan steps in as your trusted partner. With extensive expertise in Japanese business practices, they streamline the journey, helping you meet all the stringent requirements without the usual stress.

SmartStart Japan’s team handles everything from preparing necessary documentation to liaising with banks on your behalf, ensuring nothing is overlooked. Their insider knowledge means they can guide you through selecting the right bank for your business—one that aligns with your industry, financial needs, and long-term goals.

With SmartStart Japan by your side, you gain not just efficiency but peace of mind, knowing your corporate account setup is in expert hands. Contact SmartStart Japan today.

 

Step-By-Step Guide to Creating A Corporate Bank Account in Japan

Securing a corporate bank account in Japan b2 creviews involves more than just filling out an application form. It requires a good understanding of the essential details and steps to manage it effectively. Below you will find the general steps for applying a generic corporate bank account in Japan.