Bank accounts for initial paid in capital in Japan

Account Holder:

When a stock company is established, the capital is usually paid into the account of the promoter. In principle, the promoter’s bank account should be used for this purpose. However, if the promoter does not have an account available for payment, the capital can be paid into the personal account of the founding director.

As of March 2017, a special exception has been made for cases where the promoters and directors do not have residential addresses in Japan during the time of incorporation. In such cases, it is now possible to incorporate a company by paying the capital into a third party’s account. The third-party account holder can be an individual or a corporate account holder.

Payment Handling Institutions:

The payment of capital can be made at domestic head offices and branches of Japanese banks, as well as at overseas branches and domestic branches of foreign banks. However, it’s important to note that domestic branches of foreign banks are limited to those established with the approval of the Japanese Prime Minister. Overseas head offices and branches of foreign banks are not included in the eligible institutions. The list of the eligible institutions as follows:

【Payment Handling Institution】

• Domestic head office and branches of Japanese banks
• Japan branches of foreign banks (banks established with the approval of the Japanese Prime Minister)
• Overseas branches of Japanese banks

【When making the payment, the following information is required: 】

• Name of the financial institution (including the branch name)
• History of payment of capital
• Name of the account holder

If a copy of the savings book shows a foreign currency deposit, additional details related to the amount paid, such as the exchange rate on the date of payment and the equivalent amount in Japanese yen, are required.

【Information that may be Required】

• The exchange rate on the date of payment
• The amount in Japanese yen converted based on the exchange rate on the date of payment

Important Note on Opening a Corporate Account After Incorporation:

As the range of account holders for payment of capital has been expanded, the requirements for incorporation of a company by a nonresident have been eased, making it easier for a nonresident to incorporate a company by oneself. However, it can still be challenging for nonresidents to open a corporate account after incorporation. To avoid delays in starting the business after incorporation, it is advisable to check with financial institutions in advance regarding the requirements and procedures for opening a corporate account.