Can I open a corporate account at a bank in a serviced office?

• Update:2023/11/14

To start a business, you cannot begin without a bank account. Considering the level of trust from customers and suppliers, as well as accounting operations, we would definitely like to open a corporate account.

But, you may be wondering, “Is it possible to open a corporate bank account at a serviced office?” We will explain how to open a corporate account at a serviced office.

In this article, we will introduce the difficulty level and convenience of opening a corporate account at each financial institution, as well as points to increase the success rate.

Can I open a corporate account at a bank in a serviced office?

To sum up, basically, it is possible to open a corporate account at a bank even in a serviced office.

However, in recent years, financial institutions have become more strict in their screening process for opening bank accounts. In the past, bank accounts have been abused by virtual offices by groups such as bank transfer scammers, and the National Police Agency has asked financial institutions to tighten their screening procedures.

However, the Police Department has required financial institutions to tighten their screening procedures.

Nevertheless, since opening an account itself has become more difficult regardless of whether it is a serviced office or not, the final decision must be left to the discretion of each financial institution.

Type of Financial Institution

Depending on size and type of transaction, financial institutions are classified into the following three categories.

• City banks (megabanks)
• Regional banks and Shinkin banks
• Internet Banks

The severity of the screening process is generally city banks > regional banks and shinkin banks > Internet banks.

In this section, we will look at the difficulty of screening, convenience, advantages and disadvantages of each financial institution.

City banks (megabanks)

Having a corporate account at a city bank or a so-called megabank is a good way to impress clients, and its many ATMs and branches are highly convenient.

In many cases, the screening criteria are not disclosed, but it is said that the screening process is the most difficult. Of course, just because it is a serviced office does not mean you will be rejected immediately. It is possible to open a corporate account if you prepare the proper documents.

The disadvantage is that most transactions require a commission fee, which is high. If you are just starting out and your revenue is low, the fees may become a burden.

Regional banks and shinkin banks

Compared to city banks, regional banks and shinkin banks tend to be easier to qualify.

Another advantage is that many banks are community-based and offer extensive support for small and medium-sized businesses. In some cases, they can even provide small loans, which can be a strong ally when you are just starting out.

On the other hand, they have fewer ATMs and branches than city banks, making them somewhat less convenient. In addition, in some cases, it is difficult to open a corporate account at a shinkin bank without a specific introduction.

Net banking

Internet banks are the easiest financial institutions to screen among those listed here.

Another attractive point is that the process can be completed on the Internet, without the need to visit a store.

The advantage is the low fees. Because of the low fees for transfers and deposits and withdrawals, Internet banks are quite easy to use if you often make small transactions. They are also convenient because they are available 24 hours a day, 365 days a year.

However, there is no contact point where you can get help in case of an emergency or if you want to consult with them directly. The drawback is that it may take a long time to resolve the issue since the consultation is done by phone or e-mail.

Points to increase the success rate of opening a corporate account

While an office serviced is not the only reason you will be screened out, if your business is not credible, you will not be approved.

In this section, we will introduce some points to increase the success rate of opening a corporate account.

Clarify the nature and purpose of the business

In the following cases, it is likely that the screening process will fail because the actual status of what kind of company cannot be ascertained.

• Multiple business lines and miscellaneous genres
• Business objectives are vague and unclear

First, it is essential to clarify the nature and purpose of the business and be able to briefly explain it to the financial institution’s staff.

At this point, it is important to be careful to provide an explanation that can be understood without any knowledge of the industry. The person in charge at the financial institution is a financial professional. They are not familiar with all industries, so if you use too many technical terms, they may not be able to understand your explanation.

Try to provide explanations that can be easily understood by a layperson.

Note the amount of capital

The amount of capital should also be taken into consideration.

A company can be established with as little as one yen in capital, but if you wish to open a corporate account, a too low amount of capital is not desirable.

In some cases, the amount of capital is judged as the “operational capacity of the company” in the examination process. Therefore, if the amount of capital is too low, the company may be considered to lack the strength to operate the business.

Generally, for a small company, the capital is considered to be about 1-3 million yen. Therefore, when opening a corporate account, it is better to have at least 1 million yen in capital to avoid being evaluated unfavorably in the examination.

Choose a bank that is close to your serviced office

Choose a financial institution that is close to your serviced office to open a corporate account.

If the location of the serviced office and the address of the bank branch are far apart, not only will the application not be approved, but in some cases the application itself may not be approved. If there is no special reason, it is basically safe to choose the bank/branch nearest to the serviced office.

If the bank is close to the serviced office, it is likely that the bank will know of the office’s presence, which will be a source of reassurance.

Note that when opening a corporate account at an online bank, there is no need to worry about the location of the bank, as there are no physical branches or contact points.

Prepare a website

During the screening process for opening a corporate account, the contents of the website or web site are often checked. Be sure to create a website for your company, as a company without a website may be judged to have low credibility.

Checking the website will allow the screening staff to learn about the company’s business and its actual status.

It is worthwhile to create a website because it will lead to trust and security not only from financial institutions but also from customers.

Prepare documents that prove the actual status of sales and transactions

Be sure to also prepare documents that prove the actual status of your business and transactions.

Specifically, these include contracts actually used in the business, and purchase orders, delivery slips, invoices, and receipts sent by suppliers. These documents will serve as evidence of the actual business operations.

Since they also serve as the aforementioned “explanation of the nature of the business,” it is not uncommon for some banks to ask you to submit them as additional documents. Be sure to have all of these documents in order so that you are prepared to be asked to submit them at any time.

List of items required to open a corporate account

There are many required documents and items to be prepared for opening a corporate account. To ensure a smooth screening process, please make sure to have as many as possible ready at the time of application.

<List of items required to open an account>

The required documents are basically as shown in the table, but it is important to check in advance because the required documents also vary from bank to bank.

Summary

Basically, you will not be refused to open a corporate account simply because you are a serviced office.

However, in recent years, financial institutions have tightened their screening procedures, making it more difficult to open a corporate account.
Therefore, it is essential to clarify the nature of your business and the actual status of your company to enhance your credibility.

The level of difficulty of screening will naturally vary depending on each financial institution.

• City banks (megabanks)
• Regional banks and Shinkin banks
• Internet Banks

Each has different advantages, disadvantages, and convenience, so it is advisable to choose a financial institution according to the size of your business.