Bank Account for Payment/Receiving Capital for Company Incorporation

Due to the company incorporation procedure, a bank account must pay [capital] whether it is a stock company or a limited liability company.

When foreigners try to establish a company in Japan, the problem of opening a personal bank account in a Japanese bank often becomes a problem. Foreigners already living in Japan usually have a bank account in Japan, but foreigners living abroad usually do not have a bank account in Japan because Japanese banks do not allow foreigners who have entered the country on a short-term stay to open an account. Before incorporating a company, it is necessary to transfer capital to the founder's personal account, but the transfer cannot be done without an account.

Suppose a foreigner residing overseas does not have an account in Japan. In that case, it is necessary to appoint a cooperator and have them temporarily enter the promoter or the director at the time of incorporation.

Due to recent revisions to the law, if none of the founders or directors at incorporation does not have an address in Japan, it is now possible to use accounts of persons other than the founders or directors at incorporation as an exception. Even in this case, the founder or director must find someone to lend you an account (third-party introduction not allowed). Additionally, suppose you do not become a director at the time of incorporation with only the cooperation of the account – it’s also a disadvantage that procedures for real estate contracts and corporate account opening after company incorporation will not proceed because all members will be living overseas.

Banks that can pay capital at the time of company incorporation are as follows.

[Official Agencies/Banks that are Allowed to Handle Payments]

1. Head offices and branches of Japanese banks in Japan

2. Overseas branches of Japanese banks

3. Branches of foreign banks in Japan (banks established with authorization)

The point to note here is that the above 2 "overseas branches of Japanese banks" are legally legal banks that can be used for company incorporation procedures. However, it will still be very difficult to open a new account and the chances of rejection are high. For example, Mizuho Bank's Shanghai branch fundamentally only provides financial services such as loans to Japanese companies operating in Shanghai. Therefore, in most cases, layman clients will have to proceed with the company incorporation procedure by choosing method [1] or [3].

If you do not have a Japanese bank account and are unable to use method [1] or [3] to open one, you will need to find someone who has a Japanese bank account and temporarily appoint them as the representative director at the time of your company incorporation. These people are called “cooperators”.

When Should I Transfer the Company Capital?

The capital must be transferred [after the date of certification of the Articles of Incorporation]. This is because before the Articles of Incorporation is certified, it is not possible to determine whether the transferred money is for an individual or for the company’s capital. Thus, the capital must be transferred only after the Articles of Incorporation are approved, so please pay attention to the schedule when transferring by overseas remittance. So remember, make no mistake and transfer the capital only [after the date of certification of the articles of incorporation]!

Can I use the Capital before Applying for the Business Manager Visa?

Once the company is incorporated & established, the capital transferred to the personal account can be used as long it is for the company’s business activities. For example, in the case of a company with a capital of 5 million yen, there is no rule that the bank balance must not be less than 5 million yen. You may use the capital before applying for a business manager visa and use it for company equipment and advertising expenses.

I Already have a Balance of 5,000,000 Yen in the Bank Account. Can I use the Amount as Capital Directly without Transferring the Money?

Even if you already have a balance of 5,000,000 yen in the stipulated bank account before the company incorporation, you must withdraw the capital amount and deposit it into the bank again.

In principle, the capital has to be transferred only after the Articles of Incorporation is certified. Even if the applicant had sufficient bank balance before the Articles of Incorporation certification, that money would not be considered as the company’s capital. The amount equivalent to the capital must be transferred to the founder's personal account (passbook) on the date after the articles of incorporation are authenticated. It is also possible to go to a bank counter, withdraw cash, and deposit money on the spot.

Things to Note when Transferring Capital by Overseas Remittance

When you have a family member in your home country remit the money that will be used as capital, overseas remittance usually costs thousands of yen in transfer fees and exchange fees, so it is necessary to remit a little more than the stipulated capital amount. For example, when incorporating a company with a capital of 5 million yen, it is safer to send about 5 million yen instead of remitting exactly 5 million yen. The final amount deposited does not need to be exactly 5 million yen as long as the amount is more than the stipulated capital amount of 5 million yen, as stated in the Articles of Incorporation. However, if the final amount is less than 5 million (e.g. 4,990,000 yen), that amount will not be recognized as capital and you have to make a transfer of an amount above 5 million yen again. Also, overseas remittances may take several days, so we recommend planning ahead.