Transferring capital/funds from foreign countries to Japan
What precautions should be taken when transferring capital from overseas to establish a company in Japan?
You must have a valid personal bank account in Japan to transfer the company’s capital.
1. Need for a Personal Bank Account in Japan
When setting up a company in Japan, the capital must be transferred into a Japanese bank account. If you do not hold a bank account in Japan, establishing a company becomes impossible. However, if you previously studied or lived in Japan and maintained a bank account, this account can usually be used. Additionally, personal accounts held at branches of foreign banks located in Japan (e.g., Bank of China, Tokyo Branch) might also be accepted.
① Japanese Banks
② Branches of Foreign Banks in Japan
Account Holder’s Name Requirements:
Acceptable account holders for capital transfer are:
① Incorporator (発起人/shareholder at company formation),
② Company Directors, or
③ Third parties under special circumstances (such as family or friends residing in Japan).
If the account holder differs from the incorporator, a power of attorney document authorizing receipt of capital funds is necessary. See details on the Japanese Government’s official website.
① Incorporators (Shareholders at company formation)
② Directors
③ Third parties (relatives or acquaintances in Japan)
2. Overseas Remittances Take Longer
Transferring capital from overseas generally takes longer than domestic transfers. The processing time varies significantly depending on your country and bank, so verify the transfer schedule in advance. Note that certain foreign banks may not be familiar with the remittance process to Japan.
3. Remittance Fees & Exchange Rates
When transferring capital from abroad, be aware that foreign exchange and bank fees will be deducted. If you intend to transfer 5 million yen as capital, ensure the final amount received in your Japanese account after fees and currency exchange fluctuations is at least 5 million yen. Even a slight shortfall (such as 4,990,000 yen) will not satisfy the legal requirement for capital.
To avoid falling short, it’s recommended to remit an amount slightly greater than your required capital to cover potential fees and exchange rate variations.
4. Foreign Currency Remittance Restrictions
Certain countries, such as China, impose strict limits on foreign currency transfers (e.g., $50,000 per year). Depending on the remittance amount, permission from banks or government institutions may be necessary. In such cases, you might have to split transfers between family members or relatives to comply with these restrictions.
Learn more about obtaining a Business Manager Visa in Japan
Professional Consultant
Masakazu Murai
Immigration Consultant & Financial Advisor
Murai has 18 years of extensive experience in investment banking at Mitsubishi UFJ Morgan Stanley, advising over 500 entrepreneurs and senior executives.
Currently, he utilizes his financial expertise to actively support foreign entrepreneurs in Japan. He is recognized as a leading specialist for Business Manager Visas and entrepreneurship-related immigration procedures.
- Gyoseishoshi Immigration Lawyer
- CMA (Certified Member Analyst, Japan)
- CFP (Certified Financial Planner)
- MBA in Entrepreneurship (Hosei Business School)