Setting up business banking in Japan: Foreign business owner's guide
Opening a corporate bank account is highly recommended when doing business in Japan as it will enhance your company's credibility. We have summarised the types and characteristics of financial institutions in Japan with a list of required documents and conditions.
Corporate bank account shows your credibility
Using a personal bank account for business can give the impression that you are mixing company and private assets. Clients might feel uneasy if your payment destination for your work is a personal account. In contrast, a corporate bank account, or houjin-kouza, demonstrates that these are being kept separate and managed properly. While sole proprietors cannot open corporate accounts, some financial institutions allow them to open bank accounts with a business name, such as a shop or office name.
Furthermore, successfully passing the screening process for opening a corporate bank account shows that your corporation is legitimate and trustworthy. Furthermore, a corporate bank account is required when receiving financing from organisations like JFC.
While it is often said that foreigners face difficulties opening corporate bank accounts in Japan, there are certain hurdles that all applicants face, regardless of nationality. The difficulty can vary depending on the type of financial institution (e.g., 'megabank' or credit union).
To help you navigate this process, we have summarised the types and characteristics of financial institutions in Japan.
