Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the FSA register entry, including banking and payment rails.
Get a payment license in Japan.
Japan runs payments under one statute: the Payment Services Act, Act No. 59 of 2009. A funds transfer business registers with the Financial Services Agency in one of three types - Type III for transfers of JPY 50,000 or less, Type II up to JPY 1,000,000, Type I with no ceiling and an extra authorisation of its business implementation plan. Issuers of third-party prepaid instruments register separately and hold JPY 100,000,000 of net assets. The registers carried 84 funds transfer providers and 792 third-party prepaid issuers on 31 July 2026, and the act was amended again in June 2025.
27 yrs
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Japan in brief
One act, three funds transfer types, and a guarantee deposit in place of a capital floor.
The Payment Services Act, 資金決済に関する法律, is Act No. 59 of 2009, promulgated on 24 June 2009; the Ministry of Justice translation carries it to Act No. 61 of 2022, and the Diet amended it again by Act No. 66 of 2025, enacted on 6 June 2025. Article 37 makes a funds transfer business a registration rather than a licence, and the 2020 reform split it into three types by the size of a single transfer. Type III handles exchange transactions of JPY 50,000 or less. Type II carries the older ceiling of JPY 1,000,000, fixed by Article 2 of the Cabinet Order. Type I has no ceiling at all and pays for that with a second step: Article 40-2 requires the agency to authorise its business implementation plan on top of the registration. Prepaid instruments sit under the same act. An issuer that only accepts its own instruments notifies under Article 5; a third-party issuer must be a corporation and must register under Article 7, with net assets of JPY 100,000,000 under Article 5 of the Cabinet Order, or JPY 10,000,000 where use is confined to a single municipality.
What the act does not print is a capital figure for a funds transfer provider. Article 40 lets the agency refuse an applicant that lacks a sufficient financial basis and leaves the number to the file. The money goes instead into the performance guarantee of Article 43: a deposit covering outstanding obligations plus estimated fulfilment costs, with a floor of JPY 10,000,000 under Article 14 of the Cabinet Order, recomputed every business day by a Type I provider and at least weekly by Types II and III. A guarantee contract or a trust contract may replace the deposit, and Article 45 limits what the trust may hold to money, bank deposits, and government or other prescribed bond certificates. Prepaid issuers post their own security: once the unused balance on a base date of 31 March or 30 September passes JPY 10,000,000, Article 14(1) requires an issuance guarantee of not less than half that balance. The registers of 31 July 2026 list 84 funds transfer providers and 792 third-party prepaid issuers. Corporation tax is 23.20%, consumption tax 10%. There is no decision period in the act and no published fee, so any timeline is an estimate, and ours is nine to twelve months.
Payment Services Act, Act No. 59 of 2009. Funds transfer registers under Article 37 in three types: Type III up to JPY 50,000 a transfer, Type II up to JPY 1,000,000, Type I with no ceiling plus an Article 40-2 plan authorisation. Third-party prepaid issuers register under Article 7 on JPY 100,000,000 of net assets.
No capital figure for funds transfer; the Article 43 performance guarantee has a JPY 10,000,000 floor. Prepaid guarantee is half the unused balance above JPY 10,000,000. Registers of 31 July 2026: 84 providers and 792 prepaid issuers. Tax 23.20%, consumption tax 10%. No decision clock, so nine to twelve months is an estimate.
The routes
Funds transfer registration, or a third-party prepaid issuer.
Two registrations under one act, and the choice follows what the money does: value moved between people is funds transfer, a balance spent at merchants is a prepaid payment instrument. The type within each route follows the numbers.
Funds transfer registration in one of three types, or third-party prepaid issuance.
01 - FUNDS TRANSFER SERVICE
資金移動業 - Types I, II and III
Registration with the Financial Services Agency under Article 37, in the type that matches your per-transfer size. Type I carries no ceiling and needs its business implementation plan authorised under Article 40-2; Type II stops at JPY 1,000,000 a transfer; Type III at JPY 50,000. All three post the Article 43 performance guarantee.
Registration with the Financial Services Agency under Article 37, in the type that matches your per-transfer size. Type I carries no ceiling and needs its business implementation plan authorised under Article 40-2; Type II stops at JPY 1,000,000 a transfer; Type III at JPY 50,000. All three post the Article 43 performance guarantee.
- ✓Type I - no per-transfer ceiling, plan authorised (Article 40-2)
- ✓Type II - JPY 1,000,000 per exchange transaction
- ✓Type III - JPY 50,000 per exchange transaction
- ✓Performance guarantee under Article 43, floor JPY 10,000,000
- ✓Type I computes daily and secures within two business days
- ✓Trust or guarantee contract in place of the deposit (Article 45)
02 - PREPAID PAYMENT INSTRUMENTS
Third party - net assets JPY 100,000,000前払式支払手段 - third-party issuer
Registration under Article 7 for instruments spent at merchants other than the issuer. The applicant must be a corporation, hold net assets of JPY 100,000,000 under Article 5 of the Cabinet Order, and post an issuance guarantee once the unused balance on a base date passes JPY 10,000,000.
Third-party prepaid: registration under Article 7, corporations only, net assets JPY 100,000,000, issuance guarantee of half the unused balance above JPY 10,000,000.
- ✓Registration under Article 7 · corporations only
- ✓Net assets JPY 100,000,000 (Cabinet Order Article 5)
- ✓JPY 10,000,000 where use is limited to one municipality
- ✓Base dates 31 March and 30 September (Article 3(2))
- ✓Issuance guarantee of at least half the unused balance
- ✓Own-instrument issuers notify under Article 5 instead
Costs and timelines are confirmed for your case before any work begins. The act publishes no application fee and the agency no processing statistics, so state charges, guarantee funding and substance are itemised in your quote.
Why Japan
A registration you can plan against, in the region's largest domestic market.
The act sets out what a payment business may do and what it must post against the money it holds. Both routes are registrations, both have their numbers written down, and the agency publishes the register every quarter.
✓
One act, two routes
Funds transfer under Article 37 and third-party prepaid issuance under Article 7 sit in the same statute, so a group running both files one framework twice rather than two.Both routes, one statute.
✓
Three types by transfer size
JPY 50,000 for Type III, JPY 1,000,000 for Type II, no ceiling for Type I with its Article 40-2 plan authorisation. The product decides the type before the lawyers do.JPY 50,000, JPY 1M, no cap.
✓
No capital figure to argue about
The act prints none for funds transfer. Article 40 asks for a sufficient financial basis, and the balance sheet is judged against the business plan rather than a fixed floor.None printed for funds transfer.
✓
Security you can size in advance
Article 43 sets the performance guarantee at outstanding obligations plus fulfilment costs, with the JPY 10,000,000 floor of Cabinet Order Article 14. Prepaid issuers post half the unused balance.Article 43, floor JPY 10,000,000.
✓
A register that is published
Eighty-four funds transfer providers and 792 third-party prepaid issuers as of 31 July 2026, listed by name and by finance bureau.84 providers, 792 prepaid issuers.
✓
The June 2025 amendment
Act No. 66 of 2025 brings cross-border collection services into the funds transfer perimeter and adds asset-preservation methods; the agency opened consultation on the implementing orders on 16 December 2025.Act No. 66 of 2025.
How it compares
How Japan differs from the other Asian routes.
Japan is the one jurisdiction here that prints no capital figure for its transfer licence and no decision clock. What it does print is the security. The honest comparison is below.
Japan vs other jurisdictions
| Feature |  Japan | Other jurisdictions |
|---|---|---|
| Capital | No figure printed for funds transfer | KRW 5bn in Korea, NT$500M in Taiwan |
| Per-transfer caps | Type II JPY 1,000,000 · Type III JPY 50,000 | Balance caps rather than transfer caps |
| Decision clock | None in the act | 3 months in Korea, 60 business days in Thailand |
| Client money | Performance guarantee, floor JPY 10,000,000 | Full trust in Taiwan, 100% float in Korea |
Capital
JapanNo figure printed for funds transfer
Other jurisdictionsKRW 5bn in Korea, NT$500M in Taiwan
Per-transfer caps
JapanType II JPY 1,000,000 · Type III JPY 50,000
Other jurisdictionsBalance caps rather than transfer caps
Decision clock
JapanNone in the act
Other jurisdictions3 months in Korea, 60 business days in Thailand
Client money
JapanPerformance guarantee, floor JPY 10,000,000
Other jurisdictionsFull trust in Taiwan, 100% float in Korea
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Japan | Funds transfer · prepaid (FSA) | 23.20% · 15% small | No capital figure · guarantee JPY 10M floor |
 South Korea | E-money licence · registrations (FSC) | 10-25% from FY2026 | KRW 5bn e-money · 3-month decision |
 Taiwan | E-payment institution (FSC) | 20% · dividends 21% | NT$500M · full trust or bank guarantee |
 Singapore | SPI / MPI (MAS) | 17% · reliefs | Staircase, benchmark stamp |
JapanLicense typeFunds transfer · prepaid (FSA)
Taxation23.20% · 15% small
RequirementsNo capital figure · guarantee JPY 10M floor
South KoreaLicense typeE-money licence · registrations (FSC)
Taxation10-25% from FY2026
RequirementsKRW 5bn e-money · 3-month decision
TaiwanLicense typeE-payment institution (FSC)
Taxation20% · dividends 21%
RequirementsNT$500M · full trust or bank guarantee
SingaporeLicense typeSPI / MPI (MAS)
Taxation17% · reliefs
RequirementsStaircase, benchmark stamp
Before you apply
Requirements for the FSA registration.Requirements for the registration.
The act sets the routes and the refusal grounds, the Cabinet Order sets the figures, and the agency's supervisory guidelines set what the file has to show. The checklist below is what a passing file contains.
01
A corporation for the third-party prepaid registration under Article 7 - Article 10(1) makes an applicant that is not a corporation a ground for refusal on its own.
02
A registration application under Article 37 for a funds transfer business, naming the type: Type I with no per-transfer ceiling, Type II up to JPY 1,000,000, Type III up to JPY 50,000.
03
For Type I, authorisation of the business implementation plan under Article 40-2, prepared alongside the registration rather than after it.
04
Net assets of JPY 100,000,000 for a third-party prepaid issuer under Article 5 of the Cabinet Order, or JPY 10,000,000 where the instrument can only be used inside one municipality.
05
A financial basis the agency accepts for a funds transfer provider - the act prints no capital figure, and Article 40 makes an insufficient basis a refusal ground.
06
The Article 43 performance guarantee sized to outstanding obligations plus estimated fulfilment costs, with the JPY 10,000,000 floor of Cabinet Order Article 14.
07
A calculation and securing cycle that matches the type: Type I computes every business day and secures within two, Types II and III compute at least weekly and secure within three.
08
Where a trust replaces the deposit, assets limited by Article 45 to money, bank deposits and government or other prescribed bond certificates.
09
For a prepaid issuer, an issuance guarantee of at least half the unused balance once the base-date figure of 31 March or 30 September passes JPY 10,000,000 (Article 14(1)).
10
Systems to conduct the business properly and reliably, documented to the FSA supervisory guidelines - volume 3, chapter 14 for funds transfer and chapter 5 for prepaid issuers.
01
Corporation for third-party prepaid (Art. 7).
02
Article 37 application naming the type.
03
Type I: plan authorised under Art. 40-2.
04
Prepaid net assets JPY 100,000,000.
05
Financial basis for funds transfer (Art. 40).
06
Performance guarantee, floor JPY 10,000,000.
07
Daily or weekly calculation by type.
08
Trust assets limited by Article 45.
09
Prepaid guarantee: half the unused balance.
10
Systems documented to the FSA guidelines.
Reflects the Payment Services Act (Act No. 59 of 2009), the Order for Enforcement (Cabinet Order No. 19 of 2010) and the FSA supervisory guidelines, with Act No. 66 of 2025 and the consultation of 16 December 2025, as of 2026.Payment Services Act (Act No. 59 of 2009); Cabinet Order No. 19 of 2010; FSA guidelines; Act No. 66 of 2025.
How it works
From first call to the FSA register.
01
Route and type
Funds transfer or prepaid; Type I, II or III against your per-transfer size - the route and budget fixed in writing.Funds transfer or prepaid, in writing.
02
Company and funding
Japanese corporation formed, net assets or financial basis evidenced, the guarantee model chosen and priced.Formed, evidenced, guarantee priced.
03
The application file
Article 37 or Article 7 application, the Article 40-2 plan for Type I, systems and AML documentation to the supervisory guidelines.Article 37 or 7, plan, systems, AML.
04
Finance bureau review
Question rounds answered with the bureau that holds the file - no statutory clock, so plan on nine to twelve months.No clock; 9-12 months estimated.
05
Registration and launch
Register entry made, the performance guarantee deposited or contracted, and the calculation cycle running from day one.Register entry, guarantee live.
Quick facts
RegulatorFinancial Services Agency
LawPayment Services Act (Act No. 59 of 2009)
RoutesFunds transfer · third-party prepaid
Transfer capsType II JPY 1M · Type III JPY 50,000
CapitalNot printed for funds transfer
Prepaid net assetsJPY 100,000,000
Timeline9-12 months estimated
Corporate tax23.20% · consumption tax 10%
The act sets no decision period and the agency publishes no processing statistics, so nine to twelve months is our estimate rather than a statutory clock. A file the bureau accepts at first reading is what keeps it there.
Your Japan desk
Run from our Asia-Pacific desk.
Prifinance - Asia-Pacific desk
Dubai · coordinating Japanese mandates
33 Level, Al Saqr Business Tower, Dubai
01
Japanese company formation
A corporation with the shareholder and director records the registration needs, formed before the file goes in rather than during it.Corporation, records, directors.
02
The FSA file
Type selection, the Article 40-2 business implementation plan for Type I, the guarantee model and the systems documentation the supervisory guidelines ask for.Type, plan, guarantee, systems.
03
Guarantee and safeguarding
The Article 43 deposit, or the guarantee or trust contract that stands in its place, sized and funded before the register entry.Deposit, guarantee or trust.
04
Substance in Japan
Managers, a compliance function and premises, with the Local Finance Bureau that will hold your registration identified early.Managers, compliance, premises.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
London
United Kingdom
7 Bell Yard
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of payment companies in Japan.
Corporation tax at 23.20%, a 15% rate on the first JPY 8,000,000 of income for smaller companies, consumption tax at 10%, and withholding of 20.42% on dividends paid abroad.
Corporation tax 23.20%
The rate for an ordinary corporation. National and local taxes together give an effective rate of 29.74% on the finance ministry's own figure.Effective 29.74% with local tax.
Small-company rate 15%
On annual income up to JPY 8,000,000 where stated capital is JPY 100 million or less, rising to 17% if income passes JPY 1 billion, for fiscal years beginning on or after 1 April 2025.Up to JPY 8M of income.
Consumption tax 10%
7.8% national and 2.2% local, with a reduced 8% band. Which of your fees fall inside it is mapped before pricing rather than after.7.8% + 2.2%; reduced 8%.
Dividends 20.42%
Withholding on dividends to non-residents and foreign corporations, or 15.315% on listed shares, before treaty relief.Listed shares 15.315%.
Interest and royalties
15.315% on interest and 20.42% on royalties paid abroad, again subject to Japan's treaty network.15.315% and 20.42%.
Payroll
Income tax and social insurance on Tokyo salaries - the operating budget prices them in with the compliance hires.Income tax + social insurance.
Tax summary
Corporate tax23.20% · effective 29.74%
Small-company rate15% up to JPY 8M of income
Consumption tax10% · reduced 8%
Dividend withholding20.42% · listed shares 15.315%
Interest / royalties15.315% / 20.42%
PayrollIncome tax + social insurance
*Figures as of 2026 per the National Tax Agency and the Ministry of Finance. Treaty positions are assessed per structure.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Japanese corporation, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, registered provider.
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Japan · FSA
Launch your payment project in Japan with expert support.
Full-service assistance - from company formation to the FSA registration, the performance guarantee, rails and ongoing compliance.
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The Japanese payment registration, answered.
What authorisation does a payment business need in Japan?+
Registration with the Financial Services Agency under the Payment Services Act - as a funds transfer provider under Article 37, or as a third-party prepaid issuer under Article 7. An issuer whose instruments are only spent with itself notifies under Article 5 instead of registering.
What are the three funds transfer types?+
Type III handles exchange transactions of JPY 50,000 or less. Type II carries the JPY 1,000,000 ceiling set by Article 2 of the Cabinet Order. Type I has no per-transfer ceiling and needs its business implementation plan authorised under Article 40-2.
How much capital is required?+
For a funds transfer provider the act prints no figure at all; Article 40 lets the agency refuse an applicant without a sufficient financial basis. A third-party prepaid issuer needs net assets of JPY 100,000,000 under Article 5 of the Cabinet Order, or JPY 10,000,000 where use is limited to one municipality.
How is client money protected?+
By the Article 43 performance guarantee: outstanding obligations plus estimated fulfilment costs, with a JPY 10,000,000 floor under Cabinet Order Article 14. Type I recomputes daily and secures within two business days, Types II and III compute at least weekly and secure within three.
When does a prepaid issuer have to post a guarantee?+
Once the unused balance on a base date exceeds JPY 10,000,000. Article 14(1) then requires an issuance guarantee of not less than half that balance, and the base dates are 31 March and 30 September under Article 3(2).
How long does registration take?+
The act and the Cabinet Order set no decision period, and the agency publishes no processing statistics. On a complete file we plan on nine to twelve months from first call to register entry, and we say so as an estimate rather than a clock.
What does it cost in state fees?+
No application or registration fee is published for either route. The cost that matters is funding the performance guarantee or the issuance guarantee, which is sized to your balances rather than fixed.
Does the registration passport?+
No - Japan has no regional single licence, so the registration covers Japan. Groups serving several Asian markets license in each and sequence them; we plan the order with you.
What changed in 2025?+
Act No. 66 of 2025 was enacted on 6 June 2025. The agency's consultation of 16 December 2025 covers cross-border collection services being brought into the funds transfer perimeter, three further asset-preservation methods including a performance guarantee contract, an extended debt-assumption period, and rules for electronic-payment-instrument and crypto-asset intermediaries.
Why Japan rather than South Korea or Singapore?+
Japan is the largest domestic market of the three and asks for no fixed capital on the transfer side, though it gives you no decision clock either. Korea prints both the capital and a three-month statutory clock. Singapore has the staircase from Standard to Major and a licence the rest of the region reads as a benchmark.
Which authorisation?+
FSA registration: funds transfer or third-party prepaid.
The three types?+
JPY 50,000, JPY 1,000,000, no ceiling.
Capital?+
None printed; prepaid net assets JPY 100,000,000.
Client money?+
Article 43 guarantee, floor JPY 10,000,000.
Prepaid guarantee?+
Half the unused balance above JPY 10,000,000.
How long?+
No clock; 9-12 months estimated.
Fees?+
None published for either route.
Passport?+
No - Japan only.
2025 change?+
Act No. 66 of 2025; orders consulted on 16 Dec 2025.
vs Korea / Singapore?+
Bigger market, no clock; Korea prints both.
Client notes
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