FAQ: Opening a bank account for a newly established foreign corporation's Japanese subsidiary.
Opening a bank account for a newly established corporation is extremely difficult due to anti-money laundering regulations and measures to prevent illicit crimes. This is especially true if the beneficial owner is a foreign corporation. However, if a company is actually conducting business in Japan, the companyyou can pass the bank's acceptance procedures and open a bank account by proving the substance and existence of your business.
Bank account opening procedures for a Japanese subsidiary of a newly established foreign corporation.
| Issues | FAQ | Example answer |
|---|---|---|
| If the business has already started and you can demonstrate its track record | Our business has already started in Japan. What documents demonstrate the actual state of our business? | Business operations can be demonstrated using purchase orders from Japanese customers, as well as delivery notes and invoices issued to those customers. However, these documents must be written in Japanese. If the documents are only in English, a Japanese translation is also required. |
| If the business has not yet started and has no track record | Our business hasn't started in Japan yet. What documents should we prepare to get the bank to recognize our business operations? | When a Japanese subsidiary starts operations at the direction of a foreign parent company or as a point of contact for Japanese customers, useful documents include a business agreement between the foreign parent company and the Japanese subsidiary, and business agreements between the foreign parent company, the Japanese subsidiary, and the Japanese customer. A signed business agreement with the third-party Japanese customer would be even better. |
| Business plan | We have been asked to submit a business plan. What kind of information is required? | Your business plan for the next 3-5 years must include plans for increasing the number of employees, specific sales targets, and profit targets. You will also need to explain how you will achieve these goals, so this should be incorporated into your detailed business plan. |
| Web-site | There was a question about whether we have a website. Is a web-site necessary? | Ideally, the Japanese subsidiary would have its own website, but if it doesn't, ask the foreign parent company to include information about the Japanese subsidiary on their website. This information must include the Japanese subsidiary's name and registered address. Note that a website that only lists the company name and address (simply serving as a business card) cannot prove the company's actual business activities. It must include detailed information that clearly shows what kind of business the company conducts. |
| Employee | We haven't hired any employees in Japan yet. Does that mean we can't open a bank account? | Since a business cannot operate without employees, it is necessary to be prepared to explain specifically how many people you plan to hire and how you will hire them in the future. |
| Existing Japanese customers of foreign parent companies | The foreign parent company already has existing customers in Japan. Is it possible to leverage that to demonstrate the business presence of the Japanese subsidiary? | If you already have customers in Japan, it will be easier to explain your business operations. However, you will need to show how your Japanese subsidiary will conduct business with those Japanese customers. It would be even better if you have a signed business agreement between your Japanese subsidiary and the existing Japanese customers of your foreign parent company. |
| The beneficial owner is a foreign corporation. | The beneficial owner is a foreign corporation; would that make opening a bank account difficult? | Proof of the existence of the foreign corporation is required. An original company certificate from its home country would be useful. |