“How do I pay for the capital when I don’t have a corporate account yet?”
I am often asked this question.
Whose account will be paid into?
Since a corporate account is opened after the registration of incorporation, there is no corporate account at the time of the initial investment. Therefore, in principle, capital should be paid into the incorporator’s own account, not into the corporate account.
Time of payment of capital
First, the articles of incorporation specify the amount of capital to be paid to establish the company, and then the incorporator must pay the full amount of the capital.
By notification from the Ministry of Justice on June 13, 2022, a capital payment can be made at the time of incorporation, preceding the preparation of articles of incorporation or the consent date of all incorporators, as long as it is deemed to occur during the incorporation.
Financial Institutions Accepting Payments of Capital
The capital should be addressed to the financial institution marked with a checkmark (✓) below for payment:
| Head office or branch in Japan of a domestic bank (e.g., Osaka branch of Bank of Tokyo) | ✓ |
| Overseas branches of domestic banks (e.g., New York branch of the Bank of Tokyo) *Excluding local subsidiaries | ✓ |
| Japan branch of foreign banks (e.g., Tokyo branch of Bank of New York) | ✓ |
| Overseas head office or branch of a foreign bank (e.g., Boston branch of Bank of New York) | NG |
If the incorporator does not hold any of the above accounts
As an alternative measure, the payment may be transferred to the accounts of the director candidates and representative director candidates who hold the above accounts. If none of the incorporators, director candidates, or representative director candidates have addresses in Japan, payment may be made through the account of a third party authorized to receive the payment.
How to pay in
Generally, a transfer or a withdrawal/deposit within the same account is treated as a payment of capital. In the case of remittance from overseas, the amount of capital can only be registered as a whole number, so please set up in advance to receive the money in Japanese yen. The intermediary bank or receiving bank may charge a fee for this service. If the remittance is equal to or greater than the amount of capital, the incorporation can still be registered, but if it is less, the remittance must be made until the amount of capital is reached.
*Please note that depending on the terms and conditions of the financial institution, you may not be able to receive your investment for business purposes in your personal account even if you remit funds overseas. Remittances from overseas to Japan are subject to stricter screening. After remittance, the financial institution may examine a document certifying the purpose of the investment.
This article only describes the general treatment and does not include detailed exceptions. Overseas remittances may take time to be received depending on the clients. Please consult with us in advance if you wish to rush the establishment of your company.
