Step-by-Step Guide to Japan’s Business Manager Visa

To operate a business in Japan, foreign nationals must obtain a Business Manager Visa. This guide provides an overview of the Business Manager Visa requirements, application process, and necessary documents.

1. What Is a Business Manager Visa?

A Business Manager Visa is a residency status required for individuals engaged in the following activities, as specified by the Immigration and Residency Examination Guidelines (referred to below as the "Guidelines"):

1. Starting or managing a business in Japan.
2. Participating in and managing an existing business in Japan.
3. Managing a business on behalf of a corporation already operating in Japan.

Business management activities include decision-making on significant matters or conducting audits in roles such as representative director or director. Business management may also encompass roles like department head, plant manager, or branch manager.

Visas Allowing Business Operations

In addition to the Business Management Visa, there are other statuses of residence that allow business management in Japan. Permanent residents, spouses of Japanese nationals, spouses of permanent residents, and long-term residents are permitted to operate businesses without obtaining a Business Manager Visa.

A short-term stay visa are limited to activities such as business negotiations, contract signing, meetings, marketing, and after-sales service. To engage in management activities and receive director's compensation, a Business Manager Visa is required.

2. Length of Stay

The Business Manager Visa is granted for periods of 5 years, 3 years, 1 year, 4 months, or 3 months. The Immigration Bureau assesses the appropriate length based on factors such as business size and stability. Initial visas for newly established companies are often issued for a period of 1 year.

3. Six-Month Business Manager Visa

Since fulfilling the office and business scale requirements for a Business Manager Visa can be challenging without local support, Japan has introduced a "Six-Month Business Manager Visa" that allows applicants without a local partner to establish eligibility.

For more information, please see my article, How to Obtain a 6-Month Business Manager Visa in Japan.

4. Requirements

4-1 For New Company Establishment

(1) Office Requirement

A physical office in Japan is required, equipped with desks, computers, and other business equipment. With no long-term residency status, the question becomes how to secure an office. Two common methods are as follows:

1. Method 1: Use a short-term stay visa to inspect and negotiate a property lease, sign a rental agreement in your name, and transfer it to the company name upon corporate registration.
2. Method 2: Enlist a local partner in Japan to handle property inspection and negotiations, then have them sign the lease in their name, transferring it to the company name after corporate registration.

Rental or Shared Offices

Virtual offices, where no actual business activities take place, are not recognized as Office according to the guidelines. Similarly, “shared offices” or “rental offices” that offer common spaces for any member are also not considered Office. Each room must be an independent, clearly separated space. If the space is divided by only simple partitions, it is highly likely that approval will not be granted.

Using a Residence as an Office

If a residence is to be used for business purposes, the following requirements must be met according to the guidelines:

1. The property’s landlord must permit its use for non-residential purposes.
2. The lessee must also allow the corporation to operate the business from the property.
3. The corporation must have a dedicated room equipped with office necessities (e.g., desks, computers) for conducting its business.
4. Clear arrangements must be in place to pay everyday expenses related to the property, such as utility bills.
5. A sign displaying the company's name must be posted at the entrance to the office.

(2) Business Scale Requirement

The size of the business must meet one of the following conditions:

• Option 1: Employ at least two full-time employees The business must employ at least two full-time employees residing in Japan, excluding those involved in management or administration. These employees must be Japanese or foreign nationals with specific resident statuses, such as Special Permanent Resident, Spouse of a Japanese National, or Permanent Resident.
• Option 2: Provide capital or investment of at least 5 million yen If the business provides capital exceeding 5 million yen, it is possible to obtain a Business Management visa without employing more than two full-time employees.
• Kabushiki Kaisha: The capital must be deposited into the promoter's personal bank account at incorporation (per Article 34 of the Companies Act).
• Godo Kaisha: Capital contributions can be made in cash without requiring a bank account. However, for Business Management visa purposes, depositing the capital into a bank account is recommended to ensure verifiability. Proof of the source of the 5 million yen capital is also required.

Bringing Cash into Japan

If you bring more than 1 million yen into Japan, you must file a customs declaration. This documentation serves as an essential proof of the legitimate transfer of capital.

In Case of Borrowing from Relatives or Friends

When borrowing capital from family members or friends, provide documentation showing the transaction. Acceptable evidence includes:

• An IOU with a revenue stamp
• Bank transfer records
• Transaction history from a financial institution

Additional proof of income, assets, and kinship is also required to borrow from parents.

For Foreign Students Starting a Business

Foreign students starting a business and applying for a Business Management visa face rigorous scrutiny regarding the capital's source. A student visa does not permit full-time work, so earnings from part-time jobs (even with work permission) will not be recognized as valid capital. If parents or others provide the capital, records of remittances and additional documentation proving the funds' source are required.

Related Article

To learn more, please see my article, Foreign Companies Establishing Japanese Subsidiaries.

4-2 For Managing an Existing Business

The above pertains to the requirements for foreign nationals who establish a new company and engage in its management. In contrast, when a foreign national manages an existing company, in addition to meeting the requirements related to office space and business scale, they must have at least three years of experience in business management or administration and must receive a salary equivalent to that of a Japanese national in a similar role.

The period spent studying business management or administration at a graduate school, whether in Japan or abroad, can be counted toward the three years of work experience.

These requirements apply to individuals in managerial roles, such as general managers or branch managers. However, those in executive positions, such as representative directors or directors, do not need to meet the three-year work experience requirement. As a result, recent graduates from a four-year university can still apply for a business management visa if their goal is to establish and run a company.

5. Process and Timeline

1. Company Establishment and Securing Office Space: 1–3 months
2. Obtaining Necessary Permits: 1 month (if required) For example, permits and licenses are required for the restaurant, real estate, hotel, construction, and transportation businesses.
3. Visa Application Preparation: 1 month
4. Immigration Bureau Review: 2–3 months

6. Required Documents

Personal Documents

• Passport
• Academic transcript (if the applicant has a college degree or higher)
• Proof of work experience
• Documentation showing the source of the company's capital
• Proof of passing a Japanese language test (if applicable)

Company Documents

• Certificate of Company Registration
• Business plan
• Minutes of shareholder meetings (for director’s compensation of 200,000 yen or more)
• Company profile booklet
• Office lease agreement, along with office layout and photos
• Employment contracts or offer letters for employees
• Tax office documents with official stamps

7. Visa Renewal

Typically, the Business Manager Visa is renewed annually, but if the company reports a net profit for two consecutive fiscal years, a three-year renewal may be granted. The decision is based on the applicant’s experience, company size, and business performance.

Related Article

To learn more, please see my article, Key Factors for Renewing a Business Manager Visa in Japan.

8. Conclusion

A business management visa is required for foreign nationals to work in Japan as executives, such as representative directors or directors, or as managers at the department level.

To qualify, the applicant must establish a company and secure a business location before applying for the visa. It is highly recommended to have a business partner residing in Japan. This partner, known as a cooperator, may provide assistance by designating their bank account to receive the capital or temporarily signing a lease for the business premises in their own name.

If securing a cooperator is not possible, it may be worth considering a 6-month Business Management Visa as an alternative to the regular Business Management Visa, though this option typically involves a slightly longer processing time.