When a foreigner who runs a company on a Business Manager Visa applies for naturalization, not only the applicant and his/her family members living with him/her, but also the company he/she runs will be subject to screening. In other words, the number of conditions to be met and documents to be collected will increase. This page will introduce the key points to remember when applying for naturalization from a Business Manager Visa.
~First of all~ Is it advisable to apply for naturalization after the completion of three fiscal years’ accounting?
If you are applying for naturalization from a business manager visa, we recommend that you apply after three accounting periods have been completed. This is because you will need to submit tax payment certificates for the company’s corporate tax, etc. for the most recent three years.
In other words, if the accounting period for at least three fiscal years has not been completed, tax payment certificates for three fiscal years cannot be submitted. In addition, since the business situation and the stable continuity of the business will also be subject to examination, it is desirable to apply after obtaining a business management visa and completing the company’s accounting period for three fiscal years.
From Business Manager Visa to Naturalization Application
Point 1: Company management situation
If you are applying for naturalization from a business manager visa, you will need to submit a financial statement for the most recent term. Of course, by submitting the statement, the company’s management situation and the stability and continuity of the business will be examined. In other words, you need to be careful if the financial statement is simply in the red, or if the amount of debt such as loans is large even if the financial statement is in the black.
If a company’s financial situation is insolvent (its liabilities exceed its assets), it cannot be said that the stable continuity of its business is ensured.
If you are applying for naturalization, we recommend that you do so once your company is on track.
Point ② Executive compensation
If you are running a company, the amount of executive compensation you set is a very important point. This is because, in order to apply for naturalization, you must be able to live in Japan without any financial difficulties. (Living Conditions, Nationality Act, Article 5, Paragraph 1, Item 4)
Therefore, you need to receive executive compensation that allows you to live in Japan, taking into consideration factors such as rent, living expenses, and whether or not you have dependents.
The livelihood requirement of the Nationality Act is “judged on a family basis that shares a common household, and even if the applicant does not have an income, if he or she can live a stable life through the assets or skills of his or her spouse or other relatives, he or she meets this requirement.” However, if you are a company manager, it is advisable for you to meet the livelihood requirement yourself in order to prove that your company is running smoothly.
The final decision will be based on the tax certificate issued by the city, town, or village. Therefore, even if you have set your executive compensation so that it meets the livelihood condition, you should be careful if you are exempt from tax by recording negative income from a side job in your tax return.
Point 3: Tax payment
In the case of a company manager, in addition to paying the taxes imposed on the company, you will need to submit a tax payment certificate for a large number of taxes. Please refer to the tax payment certificate to be submitted when applying for naturalization for a company manager below.
- Resident tax
- Corporate tax
- consumption tax
- Corporate business tax
- Corporate Prefectural Tax
- Corporate municipal tax
- Withholding tax payment slip
- Social insurance premium payment slip
1.Resident tax
If you are a company owner, you may have special collection (deduction from your salary). In most cases, there is no problem with special collection. In the case of ordinary collection, please pay the payment slip that is mailed to you by the city hall.
2.Corporate tax
Payment must be made to the tax office that has jurisdiction over the corporation.The payment deadline is within two months from the end of the fiscal year, the same as the filing deadline.
There are two payment periods: for interim tax returns and final tax returns. For interim tax returns, the payment period is within two months of the date six months after the start of each fiscal year.
3.consumption tax
Businesses that are subject to consumption tax are required to pay it to the tax office.Even if you are exempt from tax, you will need a certificate stating “None.”
4.Corporate business tax
Businesses that are subject to corporate business tax must pay the tax to the prefectural tax office. Even if they are exempt from tax, they will need to submit a “Certificate of No Tax Amount.”
5.Corporate Prefectural Tax
Corporate prefectural inhabitant tax must be paid to the prefectural tax office that has jurisdiction over the corporation.
6.Corporate municipal tax
Corporate municipal tax must be paid to the city hall that has jurisdiction over the corporation.
7.Withholding tax payment slip
This is necessary if you are deducting income tax from the salary of your employees, including yourself. In addition to the payment slip for the most recent business year, you must also submit a withholding tax book. The withholding tax book only needs to be submitted for the naturalization applicant, not for all employees.
8.Social insurance premium payment slip
If you are a corporate manager, you are required to enroll in social insurance, so if you are not enrolled in social insurance, you cannot apply for naturalization. In addition, even if you are a sole proprietor, if you have five or more full-time employees, you are required to enroll in social insurance. To prove your social insurance premium payments, you will need a payment slip for the past year.
Finally.
When applying for naturalization from a Business Manager Visa, there are more examination items and required documents than when a general company employee applies. Not only the applicant but also the company they manage is subject to examination.
However, if you carefully check the requirements for naturalization, fulfill your tax obligations, and submit the necessary documents and application forms, it is entirely possible to obtain permission. Our office has supported the naturalization applications of many company managers, so please feel free to contact us.
