■ Incorporation of Company
Incorporating a company requires many decisinons such as Trade name, Business objectives, Amount of stated capital, Business year, Methode of public notice, etc. Based on your decisions, you need to proceed to the steps required by the company law in Japan.
The required process flow is showm below.
Incorporation Process Flow
■ Required Residency Status
If you want to start or invest own capital into a business and engage in working as a top management or a business manager, you are required to obtain a residency status with "Business Manager"except the case for those who have a permanent resident, long term resident, a spouse or child of a Japanese national, or a spouse or child of a permanent resident..
For example, if you have the residency status such as "Engineer/Specialist in Humanities/International Services", "Intra company Transferee" or "Skilled Labor"etc, you are required to change your residency status to "Business Manager". Otherwise, you are not allowed to start business working as a top management or a business manager in Japan.
■ Residency Status Change to "Business Manager"
A residency status of "Business Manager" is granted to foreign nationals who are to start a business or invest own capital into an existing business in Japan. The pattern granted with the residency status is devided into following shown below.
1. In such the case where foreign nationals are to start or invest own capital into a business in
Japan by themselves and engage in a top management or a business manager.
2. In such the case where foreign nationals are to engage in a top management or a business
manager on behalf of the foreigner who has started or invested own capital into the
business.
■ Requirements for Business Manager Visa
1. Employment of Full-Time Staff
The applicant’s company (or equivalent business entity) must employ at least one full-time employee.
2. Capital Requirement
A minimum capital (or equivalent investment) of 30 million yen is required.
3. Japanese Language Proficiency
Either the applicant or at least one full-time employee (Note 1) must possess a sufficient level of Japanese language proficiency (Note 2) (Article 3).
- Note 1: “Full-time employee” here includes foreign nationals residing in Japan with a status of residence listed in the Appended Table I of the Immigration Control and Refugee Recognition Act.
- Note 2: “Sufficient level of Japanese proficiency” refers to a level equivalent to B2 or higher under the Japanese Language Education Reference Framework. For persons other than Japanese nationals or special permanent residents, one of the following forms of evidence must be confirmed.
4. Educational and Professional Background
The applicant must either:
- Hold a doctoral, master’s, or professional degree (Note 1) in a field related to business management or to the technical knowledge necessary for the relevant business, or
- Have at least three years of experience (Note 2) in business management or administration (Article 4).
5. Business Plan Evaluation
When submitting a business plan at the time of status determination, it must be specific, reasonable, and feasible. Confirmation by a person with expert knowledge in business management (Note) is required.
- Note: As of the date of enforcement, the following professionals qualify:
- Small and Medium Enterprise Management Consultants
- Certified Public Accountants
- Licensed Tax Accountants
■ Important Points Regarding the Application
1. Business Activities
If it is determined that the applicant’s actual activities as a manager are insufficient—for example, if business operations are primarily outsourced—it will not be recognized as an activity corresponding to the Business Manager status of residence.
2. Business Office
Since an appropriate business facility is required for conducting management activities of the revised scale, using one’s home as a business office is, in principle, not permitted.
3. Permanent Residency Applications
After the enforcement date, applicants who do not meet the revised criteria will not be eligible for:
- Permanent residence permission from the statuses of Business Manager, Highly Skilled Professional (i)(c), or Highly Skilled Professional (ii) (based on business management activities), nor
- Change of residence status from Highly Skilled Professional (i)(c) to Highly Skilled Professional (ii).
4. Overseas Stays During the Period of Stay
If the applicant leaves Japan for a prolonged period without a valid reason, it will be deemed that there are no actual business activities in Japan, and the extension of period of stay will not be approved.
5. Fulfillment of Public Tax and Social Obligations
When renewing the period of stay, compliance with the following tax and social insurance obligations will be verified:
1. Labor Insurance Coverage
- Acquisition of insured status for employment insurance
- Payment of employment insurance premiums
- Status of workers’ compensation insurance coverage
2. Social Insurance Coverage
- Acquisition of insured status for health insurance and employees’ pension insurance
- Payment of social insurance premiums
3. Payment of National and Local Taxes
For corporations:
- National taxes: withholding income tax and special income tax for reconstruction, corporate tax, consumption tax, and local consumption tax
- Local taxes: corporate inhabitant tax, corporate enterprise tax
For sole proprietors:
- National taxes: withholding income tax and special income tax for reconstruction, income tax and special income tax for reconstruction, consumption and local consumption tax, inheritance tax, and gift tax
- Local taxes: individual inhabitant tax, individual enterprise tax
6. Required Business Licenses and Permits
Applicants must submit documentation proving that all necessary licenses or permits for their business activities have been obtained.
- Note: If it is objectively difficult to obtain such licenses or permits before receiving residence permission, submission may be required at the time of the next renewal application.