Employment Eligibility: Business Manager visa
The Business Manager visa is an employment eligibility status (work visa) for foreigners who are seeking either to launch a business in Japan, or to engage in management and operation of an already-existing business. Permitted activities on this visa also includes establishing Japanese subsidiary companies.
Activities Permitted by the Business Manager visa
The Business Manager visa is obtained for conducting the following activities in Japan.
- Start and manage a business in Japan, or engage in management of the business (entrepreneurship)
- Activities to engage in or manage a business already in operation in Japan
- Activities to manage the business on behalf of persons (including corporations) who operate the business in Japan, or to engage in management of said business
The important thing here is whether the foreign employee is substantially participating in the business as a manager. The Immigration Bureau judges “substantial participation” based on various factors, such as whether the company has investments (investment amount), whether the company is engaged in selling or transferring company shares, and how the foreign manager became a managerial employee.
In practice, many people try to establish a corporation, etc., merely on the premise that they want to stay longer in Japan, instead of obtaining a Business Manager visa to run a corporation. However, since the screening of Business Manager visas is stricter than other work visas, applicants need to be careful in applying for a Business Manager visa simply to stay longer.
For example, in many cases, applying for the visa requires having registered a company with at least 5 million yen in capital before the initial application. Therefore, applicants should make sure they are eligible for the Business Manager visa requirements before applying. Our highly experienced professionals at IMS Legal Professional Corporation can work with you on a personal basis and determine your chances of success.
However, if an applicant successfully incorporates a company in Japan, they can use their own company to sponsor themselves for the Business Manager visa. The applicant’s close dependents (spouse, children, parents) can also then apply for a general dependent visa, depending on their relationship to the applicant and other factors.
In addition, many holders of the Business Manager visa eventually change to a Highly Skilled Foreign Professional visa, Permanent Resident visa, or even naturalize and gain Japanese citizenship. Although a Business Manager visa does not guarantee success, successful renewals show a strong contribution to Japanese society and the economy.Our company has a strong and proven track-record assisting clients every step of the way with their Highly Skilled Foreign Professional visa, Permanent Resident visa, and naturalization applications. Be sure to send us an email or give us a call!
Requirements for the "scale" of the business (any of the following):
Any of the following requirements must be met in order to obtain the Business Manager visa.
- Hire two or more full-time employees who reside in Japan.
- The amount of capital or the total amount of investment is 5 million yen or more.
- Other activities which are recognized as being equivalent in scale to items 1 or 2.
As mentioned above, it is required that the business has a certain scale. Therefore, not only is it necessary to prepare business plans and clarify what the business does, but also to consider whether it is a business that will contribute positively to the Japanese economy. The company is required to have two or more full-time staff members who reside in Japan, or to have an initial capital/investment that is worth 5 million yen or more. The applicant must also have a salary that allows them to live independently in Japan. However, #3 above allows for companies whose activities are recognized to be equivalent in scale as #1 or #2. This latter point is determined solely at the discretion of the Immigration Bureau.
In other words, if the Immigration Bureau recognizes that the company has positive contributions to the Japanese economy, then permission can be granted based on requirement #3. Since this is highly subjective, we recommend that you submit documents such as business plans, resumes of key personnel (including work history prior to becoming a manager), and any future business prospects when applying , including possible investments or networking .
-For the application itself, please consult with one of the experts at our company.
About "Securing a Business Office (Presence)" and "Business Continuity"
When acquiring or renewing a Business Manager visa, two necessary factors are "securing a business office (presence)" and proving "business continuity".
The Ministry of Justice provides the following guidelines：
① The economic activity takes place under a single management entity, occupying a certain place, that is, a plot of land.
In principle, "virtual offices" are not permitted, although this is not just limited to the Business Manager visa. The business must be operated out of a physical space, such as rental space in a building or apartment. However, a part of a residential rental property is used for an office, it is necessary to get the landlord's prior approval to use the space for "other than residential purposes". In addition, the room occupied by the business must be clearly divided from the living space. Temporary establishments for the purpose of encouraging and supporting entrepreneurship are also allowed, such as "incubation spaces" provided by the Japan External Trade Organization (JETRO ). ※For more information on this service, please contact your local JETRO overseas office.
In other words, a successful Business Manager visa to have a foundation (both figurative and literal) on which the business can continue.
② The production or provision of goods and services is carried out continuously with people and equipment.
There is an expectation of reliability for future business activities. If the business itself is suspended or not continuously making transactions, etc., it may become difficult to obtain or even renew a Business Manager visa. Due to various factors, it is possible for a Business Manager visa to be renewed while the company has temporary deficits. While the management figures for a single fiscal year are not the only thing emphasized, in the end, visa approvals are determined on a case-by-case basis. Therefore, it is important to thoroughly and strategically explain the business situation to the Immigration Bureau when obtaining or renewing a Business Manager visa, such as cases in which the leasing situation is not favorable , etc .
【Main Points】
- "Virtual offices" are not allowed.
- When a part of a property rented as a residence is used for an office, it is necessary to get the landlord's prior permission to use the space for "other than residential purposes." The room occupied by the business must also be clearly divided from the living space.
- Temporary establishments for the purpose of encouraging and supporting entrepreneurship are allowed, such as "incubation spaces" provided by JETRO.
- There should be an expectation of "certainty" that future business activities will happen. The visa will not be issued if the business itself is on hold or otherwise suspended, or if there is no continuity of business operations.
- There is a possibility that companies will temporarily have deficits due to various factors. Although the management figures for a single fiscal year will not be the only thing emphasized, the business conditions including the rental situation, having excessive debt, etc. will be judged comprehensively.
Period of Stay for Business Manager visa
There are five durations for period of stay: 3 months, 4 months, 1 year, 3 years, and 5 years. The duration will be determined after examination by the Immigration Bureau of Japan. Period of stay renewal procedures are necessary to continue working past the visa's expiration date. IMS Legal Professional Corporation can assist with both new applications as well as visa renewals, so don’t hesitate to contact us for more information. Newly established companies are rarely granted multi-year periods of stay during the first application; usually, only 1-year visas is granted at first. In this regard, the screening for Business Manager visas are rather strict. Even if you have made preparations for company establishment and already established capital, there are still many cases where Business Manager visas have not been approved. Therefore, it is important to be aware of the risks when applying for a Business Manager visa in order to establish a company, instead of working as an executive for an existing company.
For every renewal of your period of stay thereafter, the Immigration Bureau’s examination will focus on whether the business is expanding, its current financial figures (including showing predictable profit and loss), the number of employees, and if other business conditions are stable. Therefore, even if a Business Manager visa was approved once, it will be difficult to renew the visa if the company does not produce positive results. Obtaining a Business Manager visa requires not only having high-level skills and experience, but also the determination to be in result-driven circumstances.
【Business Manager】 When the applicant is overseas (expanding into Japan, starting a business in Japan)
【Business Manager】 When the applicant is already in Japan (going from office worker to independent business owner, starting a business upon graduation)
