Services of Sansei Trust Tax & Accounting contributing to HR and tax accounting for foreign-affiliated companies.

Assistance in corporate bank account opening

The Latest Practice and Strategy in opening Corporate Bank Accounts in Japan

There are two primary approaches; (1) Online, or (2) In-person.

Online corporate bank account opening

  • Online application and online interview
  • In person option is also available
    ※ Due to strengthened anti-money laundering check, KYC has become more stringent
    ※ Verification of with-substance business activities is heavily emphasized
    ※ Foreign-affiliated companies and newly-established companies are subject to particularly stricter review
  • Takes about 1–2 months
  • Processing time varies depending on the completeness of submitted documents

Uploading of standard required documents

  • Certificate of registered matters (full historical record) or so-called company registry
  • Corporate seal registration certificate
  • Identification documents of the representative
  • Documents evidencing business activities (invoices, contracts, business plans, etc.)
  • Documents regarding the Ultimate Beneficial Owner (UBO)

Sumitomo Mitsui Banking Corporation

Service name: TRUNK account
https://www.smbc.co.jp/hojin/kouza/
https://www.smbc.co.jp/hojin/kouza/special/kaisetsu/general.html

Mitsubishi UFJ Bank

https://www.bk.mufg.jp/houjin/kouza_kaisetu.html
https://www.bk.mufg.jp/houjin/kouza_kaisetu/flow.html

Mizuho Bank

https://www.mizuhobank.co.jp/corporate/account/index.html
https://www.mizuhobank.co.jp/corporate/account/procedure/index.html
  1. Where the representative is non-resident or non-Japanese:
    • Screening process becomes stricter
    • Additional documents such as a residence card may be required
  2. If the Ultimate Beneficial Owner (UBO) is a foreign corporation:
    • Information about the parent company must be submitted
    • Details on group chart is required
  3. Importance of the business plan
    • Clearly explain the business activities to be carried out in Japan
    • Present the business transactions and revenue forecasts in concrete terms
  4. Restriction to branch location
    • In principle, bank account must be opened at the branch nearest to the company's registered head office
    • Justification for bank account opening at a distant branch

※ All banks will conduct their KYC and success in bank account opening is not guaranteed. For foreign-affiliated company in particular, documents that convincingly demonstrate business substance is crucial.

In-person bank account opening

In recent years, bank's KYC on foreign-affiliated companies in Japan has become increasingly strict. This is an industry-wide trend, not limited to specific banks.

Points to note on bank's KYC / screening process

The below should be taken into consideration.
  • Where the representative is a non-resident non-Japanese individual:
    ※ Where the representative is a non-resident, it would be difficult to obtain a seal certificate and attending interview in-person. Hence, this would be the reason for rejection. Also, where the representative does not hold a valid Japanese residency visa, the bank would be suspicious on the possibility of business continuity in Japan.
  • Where the UBO is a foreign company:
    ※ The UBO must hold 25% or more of the voting rights. If the UBO is an overseas listed company, the process may be relatively straightforward. However, if it includes funds, trusts, or tax haven entities (e.g., BVI, Cayman Islands), various documents are required (articles of incorporation, shareholder registers, affidavits, etc.). Screening process would become extremely complex.
  • Difficulty in verifying the business activities or business plan
  • Set-up of Special-Purpose Vehicle company
    This trend is driven by anti-money laundering measures and is expected to continue.

Required documents and preparation work

For the bank's KYC / screening process, the below information is required.
  • For the ultimate holding company:
    Certificate of incorporation, articles of incorporation, shareholder's registry, company's brochure
  • For the Japanese entity:
    Certificate of registered matters / company registry, business plan, detailed business activities, revenue forecasts, recruitment plan
  • For the representative:
    Resume, work experience, resident card (for non-Japanese)
  • For business activities:
    Clients list, existing agreements, product catalog, business proposals

Documents must convincingly demonstrate business substance and continuity, not merely for presentation purpose.

Practical challenge in preparation of the required documents

Immediately after incorporation, operational structures in Japan are often not yet fully established. Company may be required to prepare business and hiring plans reflecting Japanese market practices even before the actual hiring.
In such case, support from professionals familiar with Japanese commercial practices and banking procedures can be a practical solution.

Standard timeline

  • KYC / screening process will only begin upon submission of the certificate of registered matters
  • Review period: typically 2–4 weeks
  • Duration varies depending on completeness of the required documents

Alternative approach

Depending on the KYC / screening process, the below should be noted.
  • Use of Japanese Branch of the Home Country Bank:
    If there is an existing banking relationship, KYC / screening process may proceed more smoothly.
  • Temporary operation through overseas remittance:
    Payments to be made from overseas until local Japanese bank account is successfully opened.
  • Proxy tax payment service:
    As local Japanese tax payment cannot be made from overseas, using an intermediary in Japan for tax payment may be a solution
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