Business Manager by Tokyo Immigration Lawyer in Japan.

Business Manager

(3 months, 1 year, 3 years or 5 years.)

Introduction

When a foreign national establishes a business in Japan or engages in the management of an existing business, such activities fall under the “Business Manager” status of residence.
In this case, it is necessary that the applicant is substantially involved in management or administration, meaning participation in making important business decisions, executing business operations, or engaging in supervisory activities.
Furthermore, in order to obtain a Business Manager visa, the applicant must meet the requirements stipulated in the Ministerial Ordinance on Criteria for Landing Permission, such as the securing (existence) of a business office and the scale of the business.
At the time of renewal, authorities will also examine whether the applicant can continue to engage in managerial or administrative activities, and in addition, the applicant must properly fulfill legal obligations as a business operator.
Below, based on the official guidelines published by the Immigration Services Agency of Japan, I will explain the requirements in detail.

(1) Securing a Business Office

 
The Immigration Bureau states in the Ministerial Ordinance on Criteria for Landing Permission:
“Facilities to be used as an office for conducting business must be secured in Japan,” or “a business office must exist in Japan.”
Additionally, according to the “General Principles of the Japan Standard Industrial Classification” issued by the Ministry of Internal Affairs and Communications, a business office is defined as follows:

• Economic activity is conducted under a single management entity at a specific location (sectioned-off area).
• The production or provision of goods and services is conducted continuously with personnel and equipment.

If both of these conditions are met, the requirement of securing a business office is considered satisfied.
 

Examples not considered a valid business office

• Short-term monthly rental spaces
• Easily removable facilities such as street stalls

Requirements for lease agreements

If the office is leased property, then:

• The lease agreement must clearly state the use as business, store, or office, not residential.
• The lessee must be the corporation itself, and its use for business must be clear.

When using a residence as an office

For start-ups or small-scale operations, a residence may be partially used as an office. In such cases, the following are required:

• The landlord must consent to non-residential (business) use.
• The corporation must have a dedicated business-use room with appropriate equipment.
• Utility cost-sharing and payment arrangements must be clearly established.
• A company nameplate or signage must be displayed.

Incubation facilities

If the business is supported by an incubator such as JETRO’s Invest Japan Business Support Center (IBSC), then even a temporary address or office may be treated as satisfying the requirement of “securing a business office.”

(2) When Two or More Foreign Nationals Jointly Manage a Business

When multiple foreign nationals act as joint managers, it is not sufficient that they simply hold officer titles. Each must be substantially involved in management or administration.
The following conditions must be met:

1. Based on the scale of the business, workload, or sales, there must be a rational reason why multiple managers are required.
2. Each foreign national’s duties must be clearly defined.
3. Each must receive remuneration for their managerial work.

If these conditions are met, all of the foreign nationals may be recognized under the “Business Manager” status of residence.

(3) Business Continuity

Even if a company is running at a loss, the visa may still be approved if the business can reasonably be expected to continue in the future.
The examination takes into account the most recent two fiscal years’ financial statements, business plans, and financing status.

Examples where continuity is recognized

• The company shows gross profit.
• Temporary losses exist, but there is a reasonable plan for recovery through financing or business planning.

Examples where continuity is not recognized

• Insolvency (liabilities exceeding assets) continues for more than one year.
• No gross profit for two consecutive fiscal years.

Exceptions for start-up companies

For newly established companies (within 5 years), flexibility may be applied if there is evidence of funding, product/service development, or customer base expansion.

(4) Fulfillment of Obligations as a Business Operator
Foreign nationals staying under the Business Manager visa must comply with Japanese laws and properly fulfill their duties as business operators.

1. Tax obligations – National taxes (corporate tax, income tax) and local taxes (inhabitant tax, etc.) must be paid appropriately.
2. Labor laws – Employee working conditions must comply with labor laws.
3. Social insurance – Where applicable, companies must enroll in health insurance, employees’ pension, and labor insurance, and pay premiums properly.

Failure to comply may be considered a negative factor in the visa review.

(5) Raising Funds Through Paid Stock Options (Warrants)
The business must generally have at least 5 million yen in paid-in capital.
However, funds raised through the issuance of stock options (warrants) may be counted toward this 5 million yen requirement, provided the following conditions are met:

• The payment is non-repayable.
• The payment is contractually set to be counted as capital, either upon exercise of the option or as profit when unexercised.

Required documents include:

• Investment contract (such as J-KISS type agreement)
• Evidence of actual payment (bankbook or statement copy)
• Written pledge to record the payment as capital in the future

Case Examples (Approval and Non-Approval)
The Immigration Bureau has published actual cases of approvals and denials. Below are examples, presented as-is for your reference.
 

1.Using a residence as a business office

• Approved Case 1: Although the lease contract was for residence, a special agreement with the landlord allowed use as a company office. → Approved
• Approved Case 2: Headquarters registered at the director’s home, but a branch office was leased from a Chamber of Commerce. → Approved
• Approved Case 3: Office had a separate entrance from the residence, with signage and business equipment. → Approved
• Denied Case 1: Residence only, with no signage, no business equipment, and only household items. → Denied
• Denied Case 2: Lease under residential purpose only, no business equipment or signage. → Denied
• Denied Case 3: Office leased under an employee’s name, landlord’s consent not obtained, utilities in employee’s name. → Denied

2.Multiple foreign nationals managing together

• Approved Case 1: A and B each invested 5 million yen; A specialized in overseas trading, B in accounting and inventory control; decisions made jointly. → Both approved
• Approved Case 2: C and D invested 6 and 8 million yen respectively; divided the transport service area and managed independently with joint policy decisions. → Both approved
• Approved Case 3: E and F invested 8 and 2 million yen respectively; E served as CEO/Head Trainer, F as Chief Marketing Officer; roles clearly divided. → Both approved

3.When most recent financial results show losses

• Approved Case: Company incurred losses in its first fiscal year but was not insolvent; continuity was recognized.
• Denied Case: Gross loss occurred, accumulated deficit double the capital amount, insolvency. → Denied

Conclusion

As seen above, the Immigration Bureau’s guidelines are extremely detailed, and they thoroughly examine the reality of the office, the substance of management, financial conditions, and compliance with laws.
Simply registering a company is not sufficient – genuine business operation and sustainability must be demonstrated.
As a certified immigration lawyer, I, Shinichi Narita, provide comprehensive support for foreign entrepreneurs based on these official guidelines, tailoring the application process to each client’s unique situation.