If you plan to start a business in Japan, acquiring the appropriate resident status—often called a “work visa“—is essential. This visa allows you to engage in your business as a president or manager in Japan. One critical type of visa for entrepreneurs is the Business Manager Visa. To help you understand the process, we spoke with Yusuke Irie, a Japanese lawyer, about this visa category and its requirements.
Understanding Work Visas and Legal Framework
Like many countries, Japan requires foreign residents to obtain the appropriate visa to work legally. There are various types of work visas, including categories such as Business Manager, Technical Intern Training, Intra-Company Transferee, and Engineer/Specialist in Humanities/International Services.
According to Yusuke Irie, most employees hired by Japanese companies will typically receive an Engineer/Specialist in Humanities/International Services visa. However, if you intend to start your own business in Japan, you will need to switch from an employee work visa to a Business Manager Visa. Failing to make this switch could result in legal violations and severe cases, leading to deportation.
Visa Options For Entrepreneurs in Japan
Starting a business in Japan can take various forms, including sole proprietorships (kojin jigyo). With limited English proficiency among many locals, English-speaking entrepreneurs have excellent opportunities in areas such as teaching, translation, and interpretation. Even for one-person businesses, the Business Manager Visa may not always be required.
If you already hold a different residency status, such as Engineer/Specialist in Humanities/International Services, you may be able to maintain it while starting a business, as long as you remain a one-person business; that is, you hire no workers. Yusuke Irie, the representative lawyer at the Irie Law Office in Toyama, Japan, also advises that if you plan to leave your current employer to start your own business, it’s essential to file a startup notification before your employment ends.
A gap of more than three months between leaving your company and submitting your business start-up notification can result in legal issues.
Steps To Transition From Employee To Business Manager
Switching to a Business Manager Visa can be challenging and requires considerable preparation. The application process may take several months, so it’s crucial to start early. Irie outlines the minimum requirements:
- Open an office in Japan.
- Employ at least two full-time staff members.
- Invest a minimum of 5 million yen.
- Prepare a business plan.
These requirements must be documented with materials such as rental agreements and employment contracts. Additional documents may vary depending on the size and nature of your business.
To apply, you will need the following:
- Application for a Certificate of Eligibility
- A 40x30cm photo
- A return envelope
- Passport and residency card
Applications are typically processed through Japan’s Regional Immigration Services Agency. You can submit the necessary documents at the agency office or download the forms online.
Challenges and Considerations
Obtaining a Business Manager Visa requires careful planning, even if you are switching from an employee visa. The Japanese government sets high requirements for this status. It is advisable to begin preparations while still employed to avoid legal risks. Leaving a job without starting the visa transition can result in an illegal stay if the gap in employment exceeds three months.
The Business Manager Visa is typically issued for periods ranging from three months to five years. Securing a visa valid for three or more years can be difficult, especially for new businesses categorized under “Category 4” by immigration authorities.
To extend your Business Manager Visa, you’ll need to submit:
- Application for an extension of the period of stay
- A passport-sized photo
- Passport and residency card
For further assistance, the Foreign Residents General Information Center offers guidance in English.
Other Things To Keep in Mind
Here are some other details to consider when starting a business in Japan.
If You Plan To Hire Staff, You Need a Business Manager Visa
If you’re starting a business in Japan and employing people, you are required to have a Business Manager Visa or switch to it if you’re already in Japan on a different visa (like a student or working visa).
Starting a Business From Abroad is Difficult:
Japan’s immigration system makes it challenging to get a Business Manager Visa if you aren’t already living in Japan. You can’t just register a business remotely from another country and easily qualify for this visa to move to Japan.
Switching To a Business Manager Visa Isn’t Easy
If you’re in Japan on another visa (e.g., working, student or spouse visa), changing your status to a Business Manager Visa can be complicated. This may involve strict requirements, such as proof of sufficient capital, office space and an operational business plan.
Frequently Asked Questions With Irie Law Office
Yusuke Irie, the representative lawyer at the Irie Law Office in Toyama, Japan, provided insights into Japan’s visa requirements:
Q: What law governs work visas in Japan?
A: The Immigration Control and Refugee Recognition Act.
Q: What visa do most foreign workers hired by Japanese companies receive?
A: The Engineer/Specialist in Humanities/International Services visa.
Q: Do company presidents or managers need a specific visa?
A: Yes, they require the Business Manager Visa.
Q: Is switching from an employee visa to a Business Manager Visa difficult?
A: Yes, you must meet all requirements and submit the necessary documents. For example, you need to open an office, hire two full-time employees, invest at least 5 million yen, and prepare a business plan.
Q: How long does it take to obtain a Business Manager Visa?
A: Processing time varies, but it typically takes at least three months.
Q: What documents are needed for a Business Manager Visa application?
A: Certificate of Eligibility application, a photo (40x30cm), a return envelope, passport and residency card.
Q: What documents are required to renew a Business Manager Visa?
A: Application for extension, passport, residency card and a photo.
Q: Where should applicants submit visa applications?
A: The Regional Immigration Services Agency.
Q: Is there support available for applicants?
A: Yes, the Foreign Residents General Information Center assists, including in English.
What’s your experience with starting a business in Japan? Let us know in the comments below.
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