Importance of SME Consultant Assistance in Obtaining and Renewing Business Management Visas -EN

The "Business Manager Visa" is an essential residency status for foreign nationals aiming to start a business or manage operations in Japan. In March 2024, the Immigration Services Agency of Japan released a clarification document, which provided greater transparency regarding the specific standards and requirements for obtaining this visa. This article summarizes the significance of support from certified professionals, such as SME management consultants, in obtaining and renewing the Business Manager Visa based on this document.

Overview and Requirements of the Business Manager Visa

The Business Manager Visa is required for foreign nationals who intend to start a business or be substantially involved in the management or operation of an existing enterprise in Japan. To obtain and maintain this visa, the following conditions must be met:

• Not just holding a title, but being actively involved in critical decision-making, execution, or supervision of business operations
• Securing a physical business office as stipulated by Ministerial Ordinances and meeting business scale and related criteria
• A feasible prospect for continuous business operations
• Proper compliance with public obligations such as taxation, labor laws, and social insurance regulations

Business continuity is especially crucial in renewal applications and may also be a key criterion in initial applications under certain conditions.

Key Evaluation Points in Cases of Deficit or Excess Liabilities

Even if a business anticipates an operating loss due to various factors, its continuity will be evaluated comprehensively based on the prospects of continued operation. The assessment considers not only a single year’s financial result but also the financial performance over the past two terms and the overall financial position.

Here, the role of certified professionals such as SME management consultants becomes especially important in the following scenarios:

Case 1: Operating Loss Without Excess Liabilities

It is necessary to demonstrate business continuity through a business plan for the upcoming year. The immigration authority may also request a written evaluation by a third-party expert holding a national qualification, such as an SME management consultant or certified public accountant.

Case 2: Excess Liabilities Limited to the Most Recent Period

If the excess liabilities have not continued for more than one year, and there is a concrete plan for improvement within the next year, the business may still be recognized as sustainable. An evaluation report by a certified professional such as an SME management consultant or CPA is required.

Case 3: Ongoing Excess Liabilities

As a general rule, business continuity is not recognized. However, in the case of unlisted start-ups within five years of establishment, there may be room for flexible judgment, supported by an evaluation from a certified professional such as an SME management consultant.

Case 4: No Gross Profit

Typically, business continuity is not recognized. However, for start-ups, flexible assessment may be possible based on an evaluation report by an SME management consultant, including prospects for improvement.

Summary: The Role of Evaluation Reports by SME Management Consultants

For companies facing operating deficits or financial distress, evaluation reports by professionals such as SME management consultants are often required. These documents are crucial for immigration authorities to determine the feasibility of business continuity.

Authorities require more than just the applicant’s assertion that “the business can continue.” Objective evaluations and forecasts from certified experts serve as reliable materials for decision-making.

SME management consultants possess the expertise to analyze business plans and financial statements, offering convincing assessments of continuity and recovery prospects. Their role is particularly important in assessing the innovation and future potential of start-ups facing initial financial difficulties.

An evaluation report from an SME management consultant is not a mere supplement to financial statements—it serves as essential evidence supporting the business’s future potential and recovery outlook.

Support from Local Governments and the Complementary Nature of Evaluation Reports

Local governments also enhance the likelihood of business success through support such as incubation facility access and guidance from resident consultants.

Especially in cases where a company’s financial situation raises concerns, evaluation reports by SME management consultants—who hold national certifications—can serve as a decisive factor in meeting screening standards.

Conclusion: Professional Support by SME Management Consultants as the Key to Visa Success

For obtaining and renewing a Business Manager Visa—especially when facing deficits, excess liabilities, or lack of gross profit—submitting an evaluation report by a certified professional such as an SME management consultant is crucial and can be indispensable in the approval process.

Such objective evaluations are also vital for encouraging flexible decisions for start-ups. Therefore, for applicants in such situations, seeking professional support from an SME management consultant can be an extremely effective and important strategy for successfully acquiring or renewing the visa.