JMC offers a range of services to help foreign multinational companies open and manage bank accounts in Japan, pay employee salaries, pay suppliers, take care of tax payments in Japan, and more. If you are opening a business in Japan, you should know that getting a bank account is not always easy for foreign business owners. JMC can help you set up a company bank account in Japan and take care of your other banking needs.
JMC’s cash management services in Japan can provide you with all the services you need to control your finances and make payments securely.
Each month, JMC will provide you with a payment forecast for the employees and vendor payments in Japan that will need to be made.
Once you authorize a payment, JMC will proceed with registering wire transfer instructions with Japanese banks. The payment process is conducted using a secure 2-step process followed by a double check. At least two different people will submit the payment order and authorize it.
At the end of each month, or at a more convenient interval like once per week, an electronic bank statement written in English is sent to the client.
JMC will help foreign companies open a bank account with a major Japanese bank that has internet banking capabilities they can use to pay employees, compensate suppliers, and make tax payments in Japan. In Japan, some restrictions apply on services that can be provided by foreign banks like Citibank or Bank of America, and it is often necessary to open a bank account with a major Japanese bank to do things like pay taxes. Japanese banks provide internet banking services but only in the Japanese language. Because of this fact, it is often convenient to use JMC’s services to make many of your payments in Japan.
Many Japanese banks are reluctant to open accounts for foreign businesses; that is why it helps to have a local representative to serve as your surrogate. Without a Japanese bank account, tax payment in Japan may become an issue. With JMC’s assistance, opening a bank account and bank account management in Japan will be much simpler for you, and your chances of success will be much higher.
In Japan, bank transactions are not conducted using signatures the way they are in other countries. Instead, each company has a registered seal with the bank, often called a bank seal. This seal, in conjunction with the bank book, allows a company to make bank transactions securely.
If your company already has an officially registered seal, JMC advises you not to use it to manage your bank account. The registered seal of the company called a “jitsuin,” has a different significance in the Japanese business community. Your jitsuin is very powerful and allows you to make important changes within the company, including changing owners. That is why it should be kept in a safe place and not be used for day-to-day banking transactions.
As a consequence of the Japanese tradition of using official seals for banking, there are no signatories on Japanese bank accounts. When a company’s certificate of incorporation is issued, a representative is designated. This person will be responsible for the use of any company bank accounts that are opened. The bank seal will also be registered when the account is opened, and a bank book will be provided to the company.
JMC can help foreign companies get bank balance certificates from Japanese banks at the closure of their fiscal year for auditing purposes.
The bank account and the bank seal allow a company representative to perform almost all operations on the bank account. As such they should be kept in a safe place. Note that Japanese banks rarely verify the identity of the person who is making a bank transaction at the bank branch. If a person has possession of the bank book and the bank seal, they will be able to conduct any transaction. As a business owner, it is your responsibility to ensure these items are accounted for at all times.
Without an account at a local bank, tax payment in Japan will be much more difficult, if not impossible. Vendor payment in Japan and payment management in Japan may also prove problematic without a Japanese bank account. Your bank account is the lifeline of your business in Japan, so you must take all the necessary steps to ensure you can send and receive money freely. Get in touch with JMC today to speak with a consultant who can advise and assist you with all your banking needs in Japan. In addition to helping you with your banking, we can also provide ongoing services like accounting and payroll to make you more successful.
Disclaimer: The information provided here is for illustrative purposes only. JMC cannot be held liable for any decisions made based on this information. For specific advice about your company, we recommend setting up a consultation with us as soon as possible.