The Business Manager Visa is a type of work visa that allows foreigners to operate or manage a business in Japan. Previously known as the “Investor/Business Manager Visa,” they changed the name to allow applicants to obtain it even without foreign capital involvement.
While Japanese citizens, permanent residents, and spouses of Japanese nationals can freely engage in company management or serve as executives in Japan, foreigners face restrictions based on their visa status. However, by obtaining the Business Manager Visa, foreigners can manage or run businesses within Japan. If it will be your first time running a business in Japan you may want to check our article on the Japanese Work Culture, as it is different from Western work culture.
Key Points of the Article:
- The Business Manager Visa is a work visa that enables foreigners to manage or operate a business in Japan.
- The initial duration of the Business Manager Visa is generally one year, but you can extend it to two or three years upon renewal.
- The requirements for obtaining a Business Manager Visa include:
- Securing an independent office space
- A capital investment of 5 million yen or more, or the employment of at least two full-time staff.
- Demonstrating the stability and continuity of the business.
- As of March 2024, you can include paid-in funds for stock options in the capital investment requirement if you meet certain criteria.
- In 2024, the Immigration Services Agency plans to amend regulations to ease the requirements for securing an independent office and the 5 million yen capital investment, as well as to extend the initial visa duration from one to two years.
What is the Business Manager Visa?
The Business Manager Visa (経営・管理在留資格) is a type of work visa that allows foreigners to manage or operate a business in Japan. Previously known as the “Investor/Business Manager Visa,” it now allows eligibility even without foreign investment. Unlike Japanese nationals, permanent residents, or spouses of Japanese citizens who can engage in business activities freely, foreigners are subject to restrictions based on their visa status. With the Business Manager Visa, however, foreigners can serve as business managers or executives within Japan.
1-1. Initial Duration of the Business Manager Visa is Typically One Year
The duration of the Business Manager Visa can range from 3 months to 5 years, depending on the applicant’s business plan and circumstances. Typically, you set the initial period at one year. While you commonly renew annually, you may receive longer extensions of two or three years based on the business’s performance, the manager’s visa history, and the scale of operations.
1-2. Regular Renewal Requirement
Foreigners holding a Business Manager Visa generally need to renew their visa every year. This requires preparing and submitting the necessary documents each time, which can be a significant administrative burden for foreign entrepreneurs.
Requirements for Obtaining a Business Manager Visa
To obtain a Business Manager Visa, you must meet the following requirements:
- Securing an Independent Office Space in Japan
- To establish a company and obtain a Business Manager Visa, you must secure an independent office in Japan. A virtual office or shared rental space without clear partitions is not acceptable. Additionally, you generally cannot use an apartment or rented residence as office space.
- Capital Investment of 5 Million Yen or Employing Two Full-Time Staff
- To qualify for the visa, a capital investment of at least 5 million yen by the foreign applicant or the employment of at least two full-time staff members residing in Japan (including Japanese citizens, special permanent residents, or spouses of Japanese nationals) is necessary. Proof of the source of the capital is also required.
- Demonstrating Business Stability, Continuity, and Proper Management
- The business must show evidence of proper management, continuity, and stability. This typically involves submitting a business plan, expected income, and expense estimates to the Immigration Services Agency. The agency assesses whether the business has a viable structure, can generate profit, and will continue operating. Businesses that are projected to run at a loss for several years are unlikely to be approved.
- A Capital Investment of 5 Million Yen
- It may be sufficient for running internet-based or trading businesses with a single manager. However, for physical stores such as restaurants or retail shops, the Business Manager Visa holder is expected to focus on management rather than performing on-site work like cooking or customer service. Therefore, hiring staff is necessary for these types of businesses.
March 2024 Update
As of March 2024, you can count certain types of paid-in stock options towards the 5 million yen investment requirement if you meet specific conditions. Additionally, regulatory changes expected in 2024 will further relax the requirements for securing independent office space and reduce the capital investment threshold, making it easier for foreigners to start businesses in Japan.
Application Process and Timeline for the Business Manager Visa
Applying for a Business Manager Visa involves several steps, each requiring specific documentation and preparation. Here’s an overview of the typical process and the expected timeline from application to approval:
Step 1: Preparing the Required Documents
- Business Plan: A detailed business plan is necessary, including expected revenue, expenses, and growth projections. The plan should demonstrate the stability and sustainability of the business.
- Proof of Office Space: Documents proving the lease or ownership of a business office are required. This must show that the space is independent and suitable for business use.
- Capital Investment Proof: Evidence of the 5 million yen investment or the employment of two full-time staff members must be provided. This could include bank statements, investment receipts, and payroll details.
- Other Documents: The applicant will also need to submit identification documents, such as a valid passport, resume, and company registration certificates.
Time required: 1-2 months for document preparation, depending on the complexity of the business plan and office arrangements.
Step 2: Submitting the Application to the Immigration Services Agency
You submit the completed application and all supporting documents to the regional Immigration Services Agency office. It is essential to ensure that you fill out all documents correctly and include all necessary information.
Time required: Submission can take a few days to a week. It depends on the availability of documents and the applicant’s location.
Step 3: Review and Evaluation by the Immigration Services Agency
Once submitted, the Immigration Services Agency will review the application. This includes evaluating the business plan, financial stability, and the suitability of the office space. The agency may request additional information or clarifications during this process.
Time required: Generally, 1-3 months. This timeframe can vary depending on the complexity of the application, the workload of the agency, and the thoroughness of the submitted documents.
Step 4: Issuance of the Certificate of Eligibility (COE)
If the application is successful, the Immigration Services Agency issues a Certificate of Eligibility (COE), which is required for applying for the actual visa. The COE proves that the applicant meets the requirements for the Business Manager Visa.
Time required: Typically, 2-4 weeks after the review is completed.
Step 5: Applying for the Business Manager Visa at a Japanese Embassy or Consulate
With the COE, the applicant must apply for the Business Manager Visa at a Japanese embassy or consulate in their home country or current residence. The COE, along with a completed visa application form and a valid passport, is submitted.
Time required: Processing time at the embassy or consulate can take around 1-2 weeks.
Step 6: Entry into Japan and Visa Issuance
After the visa is granted, the applicant can enter Japan and begin business operations. Upon arrival, they will receive a residence card, which serves as proof of their visa status and allows them to carry out business activities legally in Japan.
Time required: Immediate upon entry into Japan.
Overall Timeline Summary
From document preparation to receiving the Business Manager Visa, the entire process can take approximately 3-6 months. Any down time during the application process may be a good time to learn Japanese, check our article on learning Japanese online. Factors such as the thoroughness of the initial application, the time taken for document preparation, and the review period by the Immigration Services Agency can influence the duration. It is advisable to start the application process well in advance, considering these timelines.
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