Key Considerations for Foreign Entrepreneurs Transferring Capital to Japan

A Valid Japanese Personal Bank Account is Required for Capital Transfer

To establish a company in Japan, you must transfer the required capital to a Japanese bank account. If you do not have a personal bank account in Japan, it will not be possible to proceed with company registration.

Eligible Bank Accounts for Capital Transfer

Foreign entrepreneurs can use the following bank accounts to transfer capital:

• Japanese domestic banks
• Branches of foreign banks operating in Japan (e.g., Bank of China Tokyo Branch)

For a list of banks available for business account setup, refer to the Financial Services Agency (FSA) of Japan.

Approved Account Holders for Capital Transfer

Capital transfers can be made to the following individuals:

• Incorporator (Shareholder at company establishment)
• Director
• Third parties (relatives or acquaintances in Japan, with a power of attorney)

International Remittance Timelines

The time required for international remittance varies based on the country and the bank’s processing time. Some foreign banks may not be familiar with sending capital transfers to Japan, so confirm transfer timelines with your bank in advance.

Currency Exchange & Remittance Fees

Foreign exchange fluctuations and bank fees may reduce the transferred capital amount. If your investment amount is ¥5 million, ensure that exchange rates and fees do not bring the final deposit below this threshold.

It is recommended to transfer slightly more than the required capital amount to account for fees and currency fluctuations.

Foreign Exchange Restrictions

Some countries, such as China, have strict foreign exchange regulations (e.g., an annual limit of $50,000 per person). If needed, family members may assist in transferring the required amount.

For more details on business incorporation and visas, refer to the Ministry of Economy, Trade, and Industry (METI) and Immigration Services Agency (ISA) websites.

Professional

Masakazu Murai

With 18 years of experience in investment banking at Mitsubishi UFJ Morgan Stanley, Masakazu Murai has advised over 500 entrepreneurs and executives. He specializes in financial consulting and Business Manager Visa applications for foreign entrepreneurs in Japan.

• Gyoseishoshi Immigration Lawyer
• CMA (Certified Financial Analyst – Japan)
• CFP (Certified Financial Planner)
• MBA in Entrepreneurship

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