Are you an entrepreneur planning to start a business in Japan?
Navigating the Business Manager Visa can be complex and overwhelming. In this guide, we break down the requirements, application process, and common pitfalls to help you succeed. Keep reading to find out how to secure your visa smoothly!
1. What is a Business Manager Visa?
The Business Manager Visa allows foreign nationals to start or manage a business in Japan. Designed for entrepreneurs, this visa typically grants a 1-year or 3-year stay, with the possibility of renewal.
2. Company Registration and Visa Application
- Separate Processes but Both Essential:
- Company registration and visa application are distinct processes, but both are mandatory for obtaining a Business Manager Visa.
- Company Registration:
- Involves preparing articles of incorporation, securing a business address separate from your residence, and registering with the Legal Affairs Bureau.
- Licenses and Notifications: Business licenses and tax office notifications must also be completed.
- Visa Application:
- Requires a Certificate of Eligibility (COE), which you can apply for only after completing company registration.
3. Requirements for a Business Manager Visa
(1) Business Scale Requirements:
- Option 1: Minimum capital of 5 million JPY or
- Option 2: Employing at least two full-time staff who are either Japanese citizens or permanent residents.
- Capital Source: Immigration will carefully scrutinize the source and transfer of capital to prevent “show money” practices. Documentation must include proof of how funds were accumulated and transferred, or any loan agreements if borrowed.
(2) Office Requirements:
- Must have a physical office space (not a virtual office) separate from your residence.
- Office lease must be in the company’s name, not in a personal name.
- Business Use Permission: The property must be zoned or approved for business use.
(3) Business Plan:
- Must demonstrate profitability and feasibility with detailed financial projections.
- Should include revenue projections, supplier contracts, service or product menus, and a clear rationale for why the business must be operated in Japan.
- Contracts or letters of intent from potential clients add credibility.
(4) Business Licenses and Notifications:
- Business licenses and notifications to tax offices must be filed before applying for a visa.
4. Domestic Applicants vs. Overseas Applicants
Domestic Applicants (Change of Status / 在留資格変更許可申請）
If you already hold a different visa, you can apply to change your status without leaving Japan.
Overseas Applicants (COE Required / 在留資格認定許可申請)
Apply for a COE first, then get a visa stamp at the Japanese consulate in your home country.
Challenges:
- Opening a bank account or signing a lease for an office can be difficult without a visa.
- Catch-22 Situation: A visa is required to open a bank account or rent an office, but these are also prerequisites for the visa application.
- Support from a Local Contact: In many cases, having a Japanese business partner or guarantor is essential to move forward.
5. Common Reasons for Rejection
Insufficient or Unclear Capital
Immigration is highly cautious about “show money” tactics. Documentation proving the origin and transfer of funds is essential, including loan agreements if funds were borrowed.
Unrealistic Business Plan
Business plans lacking credible financial projections or local relevance are often rejected. Detailed documents like sales forecasts, contracts, and supplier agreements are crucial
Inadequate Office Facilities
Using a residential address as an office or a lease under a personal name instead of the company’s name leads to rejection.
Management vs. Operations
The visa holder must be engaged in management duties, not operational tasks like serving customers. If no staff are employed, immigration may suspect the applicant of intending to manage operations directly.
6. Running Costs and Professional Fees
- Administrative Costs:
- Hiring immigration lawyers, tax accountants, and labor consultants is often essential as most paperwork and procedures are in Japanese.
- Monthly Retainer Fees:
- Immigration Lawyer (行政書士): Approx. 10,000–50,000 JPY/month.
- Tax Accountant (税理士): Approx. 30,000–70,000 JPY/month.
- Labor Consultant (社会保険労務士): Approx. 10,000–50,000 JPY/month.
- Translation Costs:
- Finding English-speaking experts can be challenging. Interpreter fees for meetings should also be considered.
- Corporate Tax:
- Even without profit, corporate tax (around 70,000 JPY annually) is mandatory.
- Hidden Costs:
- Handling permits, insurance, and employee benefits adds to the running costs.
7. Expert Assistance: Why You Should Consult a Professional
Navigating Hidden Requirements and Costs!
Applying for a Business Manager Visa involves numerous hidden requirements and potential pitfalls. Consulting with an expert can help:
- Clarify unstated requirements.
- Prepare accurate and complete documents.
- Reduce the risk of rejection.
Don’t risk your application! Book a free 30-minute consultation with our immigration experts now for tailored advice.
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