Obtaining Permanent Residence from the Business Manager Visa: Requirements Explained

What Is the Business Manager Visa?

The Business Manager visa is one of the Statuses of Residence that can be obtained by foreign nationals operating a business in Japan.
For example, it can be obtained by those who wish to newly establish a company in Japan and act as its manager, or those who wish to serve in a managerial position at an existing company.

By obtaining the Business Manager visa, a foreign national can not only operate a business in Japan but is also permitted long-term residence.

Furthermore, by obtaining the Business Manager visa, there is also the possibility of bringing one’s spouse and children to Japan.
While there are requirements such as the applicant having sufficient capacity to support dependents, one of the major features of the Business Manager visa is the significant advantage of being able to spend time in Japan together with one’s family.

However, obtaining the Business Manager visa requires a concrete business plan.
The business plan must include the purpose, scale, and continuity of the business.
There are also detailed requirements, such as the need to have secured business premises in which to conduct the business.

What Is Permanent Residence?

Permanent Residence is a Status of Residence that can be obtained by foreign nationals who continue to reside in Japan over the long term.

By obtaining Permanent Residence, one gains a great deal of freedom regarding employment and residence in Japan.
For example, with Permanent Residence, you can work freely as long as you do not violate Japanese law, and there are no restrictions on your activities or period of stay in Japan, making it possible to build a stable foundation for your life.

In addition, if the requirements are met, Permanent Residence applications can be made for the entire family. Being able to reside in Japan together with family makes life in Japan even richer.

However, obtaining Permanent Residence requires meeting several requirements.
Typically, the applicant is required to have resided continuously in Japan for 10 years or more, but this period may be shortened in cases where the spouse is a Japanese national or certain other conditions are met.

The applicant must also have stable income and demonstrate that they have paid taxes appropriately. Additional requirements include not having a record of serious crimes and complying with the law.

Comparing the Business Manager Visa and Permanent Residence

Both the Business Manager visa and Permanent Residence are Statuses of Residence that allow foreign nationals to reside in Japan over the long term, but they differ in their purposes and characteristics.

First, the Business Manager visa is a Status of Residence for operating and managing a business in Japan.
It is required when newly starting a business, or when taking over and managing an existing business.

Permanent Residence, on the other hand, is a Status of Residence for residing in Japan indefinitely.
Permanent Residence is a Status of Residence for building a long-term foundation for life in Japan, and offers benefits that affect daily life as a whole, such as the freedom to choose one’s occupation and the indefinite nature of the period of stay.

As shown, the Business Manager visa and Permanent Residence are Statuses of Residence with different purposes and features.
That said, for those running a company, it is also a fact that holding Permanent Residence is often advantageous in practical matters such as contracts and financing.

For this reason, many people wish to obtain Permanent Residence from the Business Manager visa.

Requirements for Obtaining Permanent Residence

Several requirements must be met in order to obtain Permanent Residence from the Business Manager visa.
Specifically, the following requirements must be satisfied.

① Sufficient Period of Stay

For a Permanent Residence application, as a general rule, continuous residence in Japan of 10 years or more is required.

Within that period, residence of 5 years or more on a work-related Status of Residence (such as Engineer / Specialist in Humanities / International Services, or Business Manager) is required. This requirement can also be satisfied by, for example, residing for 3 years on the Engineer / Specialist in Humanities / International Services visa followed by 2 years on the Business Manager visa.

However, if there are frequent departures from Japan, the count toward continuous residence may be reset.
For example, if a single departure is 90 days or more, or if departures total 180 days or more in a year, please note that the period of stay may be reset, which could make a Permanent Residence application impossible.

② Residing Under the Longest Period of Stay Prescribed

The current Status of Residence must reflect the longest period of stay prescribed in Appended Table 2 of the Ordinance for Enforcement of the Immigration Control Act.

In the case of the Business Manager visa, the period of stay is 1 year, 3 years, or 5 years, but at least 3 years of period of stay is required for a Permanent Residence application.

③ Sufficient Assets or Skills to Make an Independent Living

To obtain Permanent Residence, stable income or assets are required.

For the Business Manager visa, executive compensation serves as the standard for review, with an annual income of 3 million yen or more as the guideline. If there are dependents, an additional 200,000 to 300,000 yen per dependent is required.

The stability of the company’s management is also important, and at least 2 consecutive fiscal years of profitable settlements are desirable.

④ Not Being a Burden on Public Funds, and Being Expected to Lead a Stable Life in the Future

To apply for Permanent Residence, the applicant must not be a burden on public funds, such as by receiving public assistance.

Being expected to lead a stable life in the future is also given significant weight.
In other words, the business being managed must be stable, and sufficient income must be earned from it.

⑤ Being of Good Conduct

The applicant is required to comply with the law and to refrain from acts that would be socially criticized.

If you have received imprisonment or a fine in the past, it is advisable to allow a certain period of time to pass before applying.
The length of time to wait depends on the severity of the sentence and the amount of the fine, but as a guideline, it ranges from 5 to 10 years.

Also, minor traffic violations are often not a problem, but drunk driving and serious speeding constitute criminal penalties, so applications should be made only after a substantial period of time has passed.

⑥ Fulfilling Public Duties Such as Tax Payment

The requirements include the proper fulfillment of public duties such as resident tax and pension. For those running a company, corporate tax and business tax are also included.

In addition, both the applicant and their company must be enrolled in social insurance, and personal tax and insurance premium payments must be made by the deadlines.

If there are already unpaid amounts or delayed payments, obtaining Permanent Residence becomes difficult.

Key Points for the Transition from the Business Manager Visa to Permanent Residence

For a foreign national holding the Business Manager visa to transition to Permanent Residence, there are several key points.
Specifically, the stability of the business and enrollment in social insurance are given significant weight.

Stability of the Business

When applying for Permanent Residence from the Business Manager visa, the stability of the business managed by the applicant is subject to review. This is because the compensation of an executive depends heavily on the company’s performance.

If the company’s performance deteriorates, compensation may be reduced, and in the worst case, the executive may even be removed from their position. For this reason, in a Permanent Residence application, the company’s performance is given significant weight in order to verify whether the applicant has secured stable income.

Specifically, if the company is in a state of excessive debt, meaning that liabilities exceed assets, it cannot be said that stable income has been secured.

Even if not in excessive debt, if there are consecutive years of losses, there is a high possibility that compensation will be reduced, and this becomes a concern from the standpoint of stable income as well. Therefore, to improve the chances of obtaining Permanent Residence, it is desirable to have been profitable for at least the most recent 2 years.

Enrollment in Social Insurance

In a Permanent Residence review, not only the tax payment and contribution status of the individual applicant, but also that of the company being managed, are included as important review items. In particular, enrollment in social insurance (Employees’ Pension Insurance and Health Insurance) is one of the points given significant weight. Even a one-person company with only the president as its sole member must enroll in social insurance if it is a corporate business establishment.

When a business manager applies for Permanent Residence, they must submit a Certificate of Social Insurance Premium Payment issued by the pension office. If you are not enrolled in social insurance, have not paid social insurance premiums, or are behind on payments, this becomes a major negative factor in the Permanent Residence review.

You must be enrolled in social insurance and pay social insurance premiums without delay.

Please Consult an Administrative Scrivener Regarding the Business Manager Visa

Our office provides full support for procedures related to obtaining Permanent Residence from the Business Manager visa.

To transition from the Business Manager visa to Permanent Residence, strict requirements must be met.
These include continuous residence of 10 years or more, residence of 5 years or more on a work-related visa, the current Status of Residence reflecting the longest period of stay, stable income, and appropriate enrollment in social insurance.

In addition, complying with the law and not being a burden on public funds are also included in the requirements.
The stability of the business and proper enrollment in social insurance are also important points.

Our office provides advice and support for meeting these requirements.
If you have any questions or concerns about transitioning from the Business Manager visa to Permanent Residence, “Administrative Scrivener Corporation Touch” will respond carefully and provide appropriate advice and support.

If you have any difficulties regarding obtaining Permanent Residence from the Business Manager visa, please feel free to consult our office.

Free consultation appointments can be arranged by telephone or via the inquiry form on our website. Please do not hesitate to contact us.