Overview of Open a Bank Account in Japan
Japan's banking system is a mature, strictly regulated sector vital to the country's economy. The banking industry in Japan, which is renowned for its efficiency and stability, is made up of a wide variety of institutions, including commercial banks, regional banks, trust banks, and cooperative banks. The Bank of Japan (BOJ) is Japan's central bank and the regulatory body in charge of policing the country's banking industry. It establishes monetary policy, prints money, regulates financial establishments, and preserves the integrity and stability of the financial system. Another essential regulatory organization is the Financial Services Agency (FSA), which promotes consumer protection, enforces compliance with banking laws and regulations, and sustains the financial sector's overall stability.
Advantages of opening a bank account in Japan
Banks in Japan are regarded as the finest place to save money. Clients can save their money in a variety of ways, and it offers a safe and secure atmosphere. Both Japanese residents and foreigners can easily open an account with the bank. You can register online or go to the bank in person. Clients have easy access to financial services because of the bank's numerous ATMs spread across Japan. Additionally, during weekdays and non-holiday hours, the banks in Japan permit withdrawals without imposing any additional fees. The banks also offer bill payment services, making it simple for consumers to pay their expenses. Last but not least, the banks in Japan also provide a variety of services designed especially for expatriates, guaranteeing that foreign residents can take advantage of the same banking services as locals.
Types of Banks in Japan
- Commercial Bank - The dominant participants in the Japanese banking system are commercial banks, including Mitsubishi UFJ Financial Group, Mizuho Financial Group, and Sumitomo Mitsui Financial Group. These financial institutions provide a wide array of services to people, companies, and governments, such as deposit-taking, lending, investment banking, and asset management.
- Trust Bank - On the other hand, trust banks are dedicated to managing trusts and other fiduciary duties. In addition to offering services, including asset management, estate planning, and financial consulting services, they act as custodians of assets. Japan's trust banks must abide by stringent rules to protect the assets and interests of their clients.
- Regional Bank - Regional banks, usually referred to as "regional financial institutions," are largely concerned with providing support to residents and companies in particular areas of Japan. They are essential in promoting regional economic growth and provide financial services that are specifically suited to the needs of the localities in which they operate.
- Cooperative Bank - The Japanese banking system also includes credit unions and agricultural cooperatives, which are cooperative banks. These organizations typically provide access to affordable financial services and loans to specific populations like farmers, small companies, and local communities. Norinchukin Bank is one example of a cooperative bank in Japan.
List of Documents
- Passport or other identity proof of the person who is applying to open the account
- Company incorporation certificate
- Company registration certificate
- Copy of Article of association
- Company stamp/seal
- Tax number – copy
- Address proof of registered office in Japan
- Other additional documents can also be required, which differ from bank to bank
Types of Bank account in Japan
- General Deposit Account
- General Savings Account
- Time Deposit Account
- Current Account
- Foreign currency deposits and foreign currency term deposits
Procedure to open a bank account in Japan
- Finding the right bank:The first step in the whole procedure of opening a bank is choosing the right bank. When it comes to selecting the right bank, many aspects have to be considered. The main point to take into consideration is whether that particular bank satisfies all the requirements or not.
- Prepare the Documents:Depending on the regulations of the particular bank, different documents may be required to open a bank account in Japan. However, business owners must gather the above-discussed vital documents.
- Submit the Application form along with the other documents:An entrepreneur in Japan normally needs to complete an application form given by the preferred bank in order to open a bank account. Personal information like name, address, phone number, and information about the company will be requested on the form. The bank may need additional paperwork, such as identification, residency, and business registration documents. These documents help the bank in confirming the entrepreneur's identity and adhering to legal regulations.
- Deposit the funds:To open a bank account, many banks in Japan demand a minimal deposit. Depending on the bank and the kind of account being opened, the precise sum could change. Before making a deposit, it is crucial to confirm the chosen bank's deposit criteria. To satisfy the minimal deposit requirement, the business owner must transfer money from their current account to the just opened bank account.
- Access to bank account:An account number and instructions for accessing the account are normally provided to the business owner once the bank account has been opened. The access methods could be doing your banking online, using a mobile banking app, or going to the bank in person. Entrepreneurs can view their account balances and transaction histories and undertake a variety of banking tasks like fund transfers, bill payments, and creating recurring payments via online and mobile banking systems. It might be necessary to visit the bank in person for some services or for more complicated transactions.
Banks in Japan
- Mitsubishi UFJ Financial Group
- Japan Post Bank Co., Ltd.
- Mizuho Financial Group
- Sumitomo Mitsui Financial Group
- Norinchukin Bank
- Resona Holdings
- Fukuoka Financial Group
- Chiba Bank
- Bank of Yokohama/Concordia Financial Group
- Hokuhoku Financial Group
Frequently Asked Questions
Only some banks provide English language services in Japan.
Japanese Yen is used in Japan.
Yes, non-residents can open bank accounts in Japan.
Different banks in Japan have different rules regarding the initial deposit at the time of opening a bank account. Only some banks will require an initial deposit.
Yes, Japan consists of many branches of international banks like HSBC Bank, Citibank, and Bank of America etc.