The Business Manager visa is a status of residence for foreign nationals who operate or manage a business in Japan.

Until now, immigration review has focused on matters such as office space, business plans, capital and business continuity. Under the new requirements, however, applicants will need to prepare more concrete evidence, including at least one full-time staff member, capital or investment of JPY 30 million or more, Japanese ability equivalent to B2 level, relevant business background or academic background, and a business plan reviewed by a qualified professional.

In other words, simply establishing a company or renting an office will not be enough. Immigration will examine whether the business has a real and sustainable operating structure in Japan.

Under the new requirements, the company or business operated by the applicant must employ at least one full-time staff member.

A key point is that not every employee can be counted for this requirement. For the full-time staff requirement, the person must be a Japanese national, a special permanent resident, or a foreign national with a status of residence under Appended Table II, such as Permanent Resident, Spouse or Child of Japanese National, Spouse or Child of Permanent Resident, or Long-Term Resident.

Foreign nationals with statuses under Appended Table I, such as Engineer/Specialist in Humanities/International Services, Specified Skilled Worker, Student, or Dependent, are not counted for this full-time staff requirement.

However, for the Japanese language ability requirement, the term “full-time staff member” may include foreign nationals with Appended Table I statuses. Therefore, it is important to distinguish between the full-time staff requirement and the person whose Japanese ability is used as evidence.

The new requirements include capital or investment of JPY 30 million or more.

For a corporation, this generally means paid-in capital for a stock company, or total contribution for a limited liability company or similar entity. For an individual business, the relevant amount may include the total investment required to operate the business, such as office costs, one year of staff salaries and equipment investment.

In practice, companies should be careful. For a corporation, it is risky to assume that rent, staff salaries or other operating expenses can simply be combined to reach JPY 30 million. The capital or contribution amount should be checked carefully before application.

Under the new requirements, either the applicant or a full-time staff member must have a certain level of Japanese ability.

The Immigration Services Agency explains this as Japanese ability equivalent to B2 level under the “JF Standard / Framework of Reference for Japanese Language Education.” For people other than Japanese nationals or special permanent residents, typical evidence includes JLPT N2 or higher, or a BJT Business Japanese Proficiency Test score of 400 or higher.

B2-level Japanese should not be understood as simple daily conversation only. In a Business Manager visa case, the person should be able to understand and respond to practical business matters, such as explaining the business, communicating with business partners, handling employees, responding to administrative procedures, and understanding basic accounting or tax-related communication.

Tommy’s Legal Service has prepared a simple mini test page to help foreign entrepreneurs understand the practical image of BJT 400-level business Japanese.

BJT 400-Level Business Japanese Mini Test

The applicant must have either a doctoral, master’s or professional degree in a field related to business management or the technology or knowledge necessary for the business, or at least three years of experience in business operation or management.

In addition, the business plan submitted at the time of application must be reviewed by a person with professional knowledge of business management. As of the enforcement date, the Immigration Services Agency lists Small and Medium Enterprise Management Consultants, Certified Public Accountants and Certified Tax Accountants as such professionals.

At the same time, preparing documents to be submitted to government offices as a paid service is subject to restrictions under the Administrative Scrivener Act. The evaluation of the business plan and the preparation or submission of immigration application documents should be handled as separate professional roles.

Office arrangements will also become more important because the business must have a place suitable for the scale and nature of the management activities under the new requirements.

The Immigration Services Agency states that using a private residence as the business office will generally not be accepted. Applicants should therefore secure an office appropriate for the business scale, employees, client handling, licensing requirements and actual business operations.

Foreign nationals already staying in Japan under the Business Manager visa should not ignore the new requirements.

For renewal applications filed within three years from the enforcement date, the Immigration Services Agency says it will make decisions by considering the business situation and the prospect of meeting the new requirements, even if the business does not yet fully satisfy the revised standards.

However, for renewal applications filed after three years from the enforcement date, the applicant will need to satisfy the revised requirements. Existing business owners should therefore review capital, full-time staff, Japanese ability, office arrangements, business plan, tax payments and social insurance compliance as early as possible.

After the enforcement date, if a person does not meet the revised requirements, applications for Permanent Residence based on Business Manager, or based on Highly Skilled Professional status premised on Business Manager activities, may not be approved.

Foreign business owners who plan to apply for Permanent Residence in the future should consider the new requirements not only for the next renewal, but also as part of a long-term residence strategy in Japan.

At the time of renewal, immigration will also review whether the business has properly fulfilled public dues and other obligations. This includes labor insurance, employment insurance, social insurance, national taxes and local taxes, depending on the business.

If the business requires a license or permit, immigration may also ask for documents showing the status of that license or permit. If there is a valid reason why the permit can only be obtained after the residence status is granted, the documents may be requested at the next renewal.

If you are preparing for the Business Manager visa or already hold one, start by checking the following points.

• Does the company have capital or total contribution of JPY 30 million or more?
• Does the business employ at least one person who can be counted as a full-time staff member?
• Can the applicant or a full-time staff member prove Japanese ability?
• Does the applicant have a relevant degree or at least three years of management experience?
• Is the office independent from the applicant’s private residence and suitable for the business?
• Is the business plan specific, reasonable and feasible?
• Are tax, social insurance and labor insurance procedures and payments properly handled?
• Does the business have the required licenses or a reasonable plan to obtain them?
• Can the business explain its plan to satisfy the new requirements for renewal or future Permanent Residence?

Tommy’s Legal Service supports foreign entrepreneurs and foreign business owners with Business Manager visa matters in Japan, including pre-application requirement checks, renewal risk review, document preparation strategy and review of practical issues before application.

A Business Manager visa case should be reviewed from four perspectives: the applicant, the company, the documents to be submitted, and the likely examination points. Under the new requirements, capital, full-time staff, Japanese ability, office arrangements, background, tax and social insurance compliance will be especially important.

Consulting before company incorporation, capital transfer, office contract or staff hiring can help reduce risks that may be difficult to fix later.