FAQ: Establishing a Company and Opening a Corporate Bank Account in Japan as a Foreign National

Our office frequently receives inquiries from foreign nationals residing overseas, stating, “I want to establish a company in Japan, and initially, just open a corporate bank account.” Under Japanese corporate law, even non-residents can establish a joint-stock company (Kabushiki Kaisha) by depositing the capital into a resident third-party’s personal bank account. However, since substantial sums of money are transferred into an individual’s account, this third party must be highly trustworthy.

But what exactly is the purpose behind foreigners establishing companies in Japan?

Even if you successfully incorporate your company, you are likely to face significant issues when attempting to open a corporate bank account. Most Japanese banks require the company’s representative director to be a resident of Japan, holding Japanese nationality, permanent residency, or a valid mid-to-long-term visa such as the Business Manager visa. In other words, if the representative director is a foreign national residing overseas without an appropriate Japanese visa, the company will not be able to open a corporate bank account. This strict stance is due to the Japanese Financial Services Agency’s directive to banks, enforcing rigorous checks on new accounts to combat crime and money laundering. In recent years, banks have become even more stringent due to increasing incidents involving foreign nationals.

Without a corporate bank account, your company cannot send or receive funds in Japan, essentially defeating the purpose of establishing a new company here. To navigate this issue, foreign entrepreneurs typically have two options:

Firstly, appointing a business partner who is a Japanese national or permanent resident residing in Japan as the company’s representative director. If you plan to launch a business in Japan, chances are high you already have connections such as potential clients, friends, or acquaintances who meet these criteria.

If no suitable Japanese or permanent resident contacts exist, the second option is obtaining a “Startup Visa.” The applicant can then legally enter Japan to handle visa and banking procedures personally. This solution, however, can be particularly challenging for those residing in distant countries due to travel complexities.

Additionally, establishing a company and opening a corporate account involves navigating intricate regulations surrounding visas for business managers and employees. Moreover, Japan’s Foreign Exchange and Foreign Trade Act mandates pre-approval from the Japanese government for certain sensitive industries, such as IT sectors related to national security.

Given the complexity and intricacy of these procedures, Continental Immigration & Consulting offers personalized advisory services covering everything from initial company incorporation to successfully opening a corporate bank account. We also provide preliminary consulting tailored to your specific situation, including easily referenceable consultations via email, charged at a time-based rate of $100 USD per hour.

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