When doing business in Japan, it is necessary to have a Japanese bank account and manage it effectively.
Primarily, there is a risk that your account may suddenly become unusable if your residence card (Zairyu Card [在留カード]) expires. So, it’s essential to understand these risks in advance and take measures to prevent them, such as renewing your card.
Transactions Suspended due to Expired Residence Card
If your residence card expires, your bank transactions may be suspended.
If you are self-employed, a frozen business account will be a fatal matter. If you are a director of a corporation, and if the card has expired, you may not be able to update your information.
Many residence cards are renewed annually, and restoring the card takes a longer time than average these days. If it takes several months, even if you think the validity period is sufficient, you may quickly approach the point where transactions are suspended.
You can apply for renewal of your residence card three months before the expiration date of your period of stay. Permanent residents and highly skilled professionals (Type 2) can apply two months prior to the expiration date.
Those who hold a bank account in Japan for business purposes should closely monitor the validity period of their residence card.
Provisional Application while Applying for Residence Card?
The question here is whether any measures can be taken in cases where a residence card has been properly applied for and is awaiting renewal.
The response will vary depending on the bank, but let’s examine the example of Japan Post Bank, which is representative of such institutions.
In short, it is not possible to renew your bank account while your residence card application is pending.
Upon inquiry, even if you have a certificate of residence card application, the Yucho Bank cannot process the renewal. You must present the updated residence card to complete the renewal procedure.
Additionally, you might consider whether the bank can take any action based on the validity period of a visa. However, it’s also not possible.
The residence card renewal procedure can only be conducted with the residence card itself.
Will it be stopped immediately?
It is important to note that even if your residence card has expired, your bank account will not be frozen immediately. In some cases, your account may be frozen, while in others it may not.
The criteria for determining whether to freeze or not freeze an account are often not disclosed, even when inquired about. This may be a temporary measure within the bank. In other words, knowing that it may not be possible to renew your residence card immediately after applying for it, the bank may be giving you a little leeway before freezing your account.
Banks operate according to banking theory—immigration authorities process applications according to their own standards.
While there may be criticism of this coordination, there are differences between the government and the private sector. At present, the only action we can take is to act proactively in advance.
What measures should be taken?
We understand that it is not possible to update our bank account information without renewed resident cards, but what measures should we take?
The best measures are to keep cash on hand or transfer funds to another account.
Let’s say that your residence card has expired, and you are in the process of applying for renewal, and your bank account has not been frozen.
In this case, please withdraw your funds and keep them on hand for the next few months.
According to the bank’s standards, it is unclear whether this account will be frozen or not, though I asked directly.
Additionally, suppose you have applied through the Immigration Bureau, even if you ask an administrative scrivener about the estimated renewal deadline. In that case, you will likely only receive information that it will take some time.
Therefore, withdraw cash to prepare for the necessary period. If there is a possibility that other accounts may also be frozen, avoid those as well.
Although it may be inconvenient, take measures to ensure that your daily business operations can continue smoothly.
