“Tradition is a guide and not a jailer.” ― W. Somerset Maugham
Hi, my name is Taisei Koshida, a Japanese Certified Public Accountant and Licensed Tax Accountant.
I help foreign business owners in Japan navigate Japanese accounting and tax matters, especially when language barriers make the process difficult.
If you are starting a business in Japan and wondering what kinds of hanko (personal and company seals) you need, this article explains the different types of seals and when they are required.
Registered Seals (Jitsuin) in Japan
Registered Seals (Jitsuin) in Japan
Japan uses a traditional seal system known as hanko or inkan.
Among these, a registered seal (jitsuin) is the most important for legal purposes. Once registered with the local municipality (for individuals) or the Legal Affairs Bureau (for companies), it serves a role similar to a legally recognized handwritten signature in many other countries.
For important transactions, such as real estate purchases or certain corporate procedures, a seal registration certificate is often used to verify the identity of the person signing the documents.
Many foreigners use the terms “hanko” and “inkan” interchangeably, although both generally refer to the same type of personal seal.
Hanko for Sole Proprietors
Hanko for Sole Proprietors
For sole proprietors involved in important business transactions, affixing their registered seal to a contract and providing a seal registration certificate may be required.
For this reason, foreign residents who plan to operate a business in Japan are generally advised to obtain and register a personal seal.
Although tax offices and social insurance offices rarely require seals today, banks often ask you to register a bank seal when opening a business bank account. This bank seal is different from your registered seal (jitsuin), and many business owners choose to use separate seals for security reasons.
Hanko for Corporations
Hanko for Corporations
When establishing a corporation, companies commonly register an official company seal (registered seal), as it is required or expected in many legal and banking procedures.
If the representative director cannot register a personal seal in Japan, a notarized signature certificate or other acceptable documents may be required instead, depending on the circumstances.
Banks generally require companies to register a separate bank seal for banking transactions.
Many companies also prepare a square company seal (kaku-in), which is commonly used on invoices, quotations, and other business documents.
As a result, many businesses prepare three different seals: a registered seal (jitsuin), a bank seal, and a square company seal (kaku-in). The total cost is typically between ¥50,000 and ¥100,000.
At Koshida Accounting Firm, we have extensive experience helping foreign business owners with Japanese accounting and tax matters.
Through our network of trusted professionals, we can also assist with visas, company registration, social insurance, legal matters, website development, digital marketing, and business consulting in Japan.
All of our services are provided in English.
If you have any questions about starting a business in Japan or Japanese tax matters, please feel free to contact us through our inquiry form.