【Latest Guide -Part2- 】Guide to Obtaining a "Japanese Business Manager Visa" for Foreign Nationals (Corresponding to the 2024 revision) -EN

[Part 2] Key Evaluation Points for Joint Management and Business Continuity

For foreign nationals operating a business in Japan, the “Business Manager Visa” (status of residence: “Business Manager”) is an essential permit. This article provides an in-depth explanation, based on the latest Operational Guideline Clarification published by the Immigration Services Agency of Japan, focusing on how joint management by multiple foreign nationals and business continuity are assessed, with practical examples.

▶ Click here for the official guideline (Immigration Services Agency of Japan)

Key Evaluation Criteria When Multiple Foreign Nationals Jointly Manage a Company

When several foreign nationals jointly manage a single company, whether each individual is eligible for a “Business Manager Visa” is evaluated based on their specific duties and roles.

All of the following conditions must be met:

• Reasonable Justification: The business scale and workload must justify the structure.
• Clear Role Definition: Each individual must have a clearly defined management role.
• Compensation: Each must receive appropriate remuneration for their responsibilities.

✅ Approved Cases

• Foreign nationals with different areas of expertise (e.g., import/export manager and quality control manager) each handled their responsibilities and jointly made management decisions.
• Each individual took responsibility for different geographic regions as regional managers.
• Utilizing support from a National Strategic Special Zone for entrepreneurship, one acted as CEO and head trainer, while the other served as CMO (Chief Marketing Officer).

These cases highlight the importance of actual duties and responsibilities rather than just nominal titles.

Can the Business Continue Despite Deficits or Excess Liabilities? Evaluation Criteria for Business Continuity

When renewing a Business Manager Visa, the continuity and sustainability of the business are rigorously reviewed. It is especially important to address deficit settlements or excess liabilities if applicable.

📊 Basic Policy in Visa Examination

Single-year deficits are not the sole basis for judgment. Authorities evaluate two fiscal years' financial results and overall financial condition. The following outlines the specific criteria:

Gross Profit Exists and No Excess Liabilities

→ No issues. Visa renewal is likely to be approved.

Deficit Exists, but No Excess Liabilities

→ Business continuity is generally acknowledged. A one-year business plan may be required.

Excess Liabilities Exist, but Business Was Profitable Last Fiscal Year

→ If a clear recovery plan exists (within one year), an evaluation report by a certified SME consultant may allow for visa continuation.

Excess Liabilities for Two Consecutive Fiscal Years

→ Continuation is generally denied. However, in the case of startups, the following documents may be considered for exceptional review:

• Third-party evaluation report
• Documentation on fundraising status
• Documentation on product/service development progress

No Gross Profit for Two Consecutive Fiscal Years

→ Continuity is unlikely to be recognized. In exceptional startup cases with reasonable explanations, reconsideration may be possible.

✅ RExamples

• Despite a deficit in the first fiscal year, the absence of excess liabilities and the startup phase were taken into account, leading to approval (Case 1)
• Two consecutive years of deficits, with losses amounting to twice the capital → Application was denied (Case 2)

For visa renewals, tax filings, business plans, and expert evaluations are critical.

Leverage Professional Support

The process of obtaining or renewing a Business Manager Visa requires specialized expertise, from document preparation to responding to inquiries from immigration authorities. Our office provides comprehensive bilingual support (Japanese and English) from immigration specialists tailored to each applicant's situation.   

Summary: Track Record and Continuity Are Key

When applying for or renewing a Business Manager Visa, not only titles and financial figures but also actual business activities, roles, and improvement plans are essential evaluation points. Especially in cases where multiple foreign nationals are involved in management, it is crucial to clearly define individual achievements and role-sharing for success.

We hope this article proves helpful to those aiming to establish or expand their businesses in Japan.