Renewal of Business Management Visa: Explanation of conditions, required documents, and key points for obtaining a 3-year visa.

What is renewal of Business Management Visa?

When a new business administration visa is obtained, it is common for the visa holder to be granted a one-year period of stay. While you are struggling to set up and manage your company, the time for visa renewal will soon come.
Even if you have gone through the trouble of obtaining a business management visa, it will all be for naught if the renewal is not approved.In order to continue to reside in Japan as a business manager, one must clear the hurdle of visa renewal.

So, what are some of the things that need to be considered in order to ensure that you get a permit? Let’s take a closer look.
The official name of the Business Management Visa is the status of residence “Management and Administration,” but this article will use the commonly known name “Business Management Visa.

Business Administration Visa Renewal Requirements

The Business Management Visa will be examined based on the applicant’s “fulfillment of various obligations” and “continuity of business”. What specific items will be looked at?

Fulfillment of various obligations of the applicant

The various obligations here mainly refer to obligations such as tax payment and insurance coverage. The applicant is required to fulfill both obligations as a company and as an individual applicant.

Obligations as a company (tax payment, participation in social insurance)

In the fulfillment of the company’s obligations, special attention should be paid to Enrollment in social insurance and the

All corporate establishments are required to participate in social insurance (employee pension insurance and health insurance). Even if you are a one-person company, you must apply for Social Insurance and pay the Social Insurance premiums without delay.

In addition, if you employ even one worker, you are obligated to join labor insurance (workers’ accident compensation insurance and unemployment insurance). It is also necessary to learn about labor-related laws and regulations and ensure compliance (legal observance).

It goes without saying that corporate tax, consumption tax, corporate inhabitant tax, corporate enterprise tax, and various other taxes must be paid in full. It goes without saying that all taxes must be paid in full.

Obligations as an individual (tax payment, notification under immigration law)

It is of course important to fulfill not only the obligations as a company, but also the tax obligations as an individual manager. Payment of inhabitant tax is verified by the taxation certificate and tax payment certificate, so please be sure to pay your taxes without fail.

In addition, it is often surprisingly overlooked that Fulfillment of notification obligations under the Immigration Control and Refugee Recognition Act under the Immigration Control and Refugee Recognition Act. The Immigration Bureau will check to see that you have notified the Immigration Bureau of your place of residence, change of address, etc. without delay. Please be careful not to forget to submit various notifications.

Business continuity

The ability to sustain a business on a stable basis is a very important screening point.

If the financial report is in the black, the business is basically considered to have continuity. However, a deficit financial statement does not immediately mean that renewal will not be approved. There are various factors that contribute to a deficit. A company that has just been established may often fall into the red due to the high cost of capital investment.

The key points to focus on are, Whether or not sales are standing firm The point to look out for is whether or not the company is making good sales. If sales are strong, it means that the company is earning well. Therefore, even if the company is in the red in the current fiscal year, there is a good chance that it will be able to recover in the next fiscal year. On the other hand, if sales are not strong, the road to earnings recovery should be considered difficult.

To ensure renewal of a business administration visa, even for a company with only one employee, You need to have annual sales of at least 10 million yen and you will need to have at least 10 million yen in sales per year.

What if we end up in the red?

If you are renewing your visa with a deficit, submit a business plan for the coming year, including revenue projections, to explain why you are in the red. Due to economic conditions and changes in the environment, things often do not go according to the original business plan. By submitting a revised business plan, it is important to clearly show the prospects for future profitability.

Insolvency” more dangerous than a deficit account

A company’s total liabilities exceed its total assets. “insolvency.” is when a company’s total liabilities exceed its total assets. Since the company’s liabilities cannot be repaid even if all of its assets are sold off, the company is in an extremely critical business situation.

If the company becomes insolvent, it will be difficult to determine that the business is viable. At that time, it is necessary to obtain an evaluation report on the prospects for eliminating the insolvency within one year, which was conducted by a small and medium-sized enterprise diagnostician or a certified public accountant, who are publicly qualified to evaluate companies. A report on the prospect that the insolvency can be resolved within one year This evaluation report will help the company to resolve the insolvency within one year. This evaluation report will determine whether or not the business can continue to operate even if it is insolvent.

In the event of insolvency, there is an increased likelihood that renewal will not be granted unless there is management support, such as a capital increase by management or a third party to provide funds.

What is appropriate executive compensation?

In general business management, executive compensation may be set as low as daring in order to achieve profitability. Foreign business owners who have obtained a business management visa will also decide their own compensation, though, Be careful not to easily lower executive compensation. However, be careful not to lower the executive’s remuneration easily.

This is because the Business Management Visa requirement includes the requirement for a foreigner with a status of residence to lead a stable life in Japan, and if he/she receives no or low remuneration, he/she may be suspected of “making a living” in Japan.

In order to avoid such suspicion by the Immigration Bureau, It is advisable to set the remuneration for directors at least 200,000 yen/month. If the remuneration is lower than that, the immigration bureau will judge that it is difficult to make a stable living. If the remuneration is lower than that, it will be judged that it is difficult to lead a stable life, and the risk of disapproval will increase.

Will my renewal be denied if I stay abroad for too many days?

If the applicant spends most of the year abroad or leaves the country too often, will the renewal be denied?

In conclusion, it is possible that leaving Japan for an extended period of time may affect the screening process. If the manager has not been in Japan for a long period of time, it will be necessary to explain to the Immigration Office why it was necessary for him to stay abroad, with a rational reason in a written statement of reasons.

Nevertheless, some business managers run their companies not only in Japan but also overseas. In addition, there are many cases in which long-term overseas business trips are necessary due to various business reasons. This does not necessarily mean that the renewal will not be approved.

The two key points are as follows

If these two conditions are met, it is unlikely that a renewal will be denied solely because the applicant has been out of the country for an extended period of time.

Required Documents for Renewal of Business Administration Visa

The following documents are required for renewal of a business administration visa. (*Example for a Category 3 company)

However, if the company is in the red or insolvent, the above documentation alone will not be sufficient. As mentioned above, additional documents, such as a business plan, should be proactively submitted to show a path to improvement in the company’s business condition. to show a roadmap to improve the company’s business condition.

Points to obtain a 3-year business administration visa

I renewed my visa, but I only get a one-year visa each time. How can I get a three-year visa?” Some business owners may be wondering, “How can I get a 3-year visa?

In determining the period of stay for a business administration visa, the Immigration Bureau has considerable discretion. Therefore, there is no clear standard that says Unfortunately, there is no clear standard that says, “If you meet these requirements, you will be granted a 3-year visa without fail. Unfortunately, there is no clear standard that says “if you meet these requirements, you will be granted a 3-year visa.

It is important to be able to sustain the business in a stable manner

However, the key point is still “business continuity. “business continuity. If the company has been in the black for more than two years, it is considered to have business continuity, which is an advantageous factor in the screening process.

To present a long-term business vision, a medium- to long-term business plan of three years or more. It is also effective to prepare a medium- to long-term business plan for three years or more. If you can show a convincing figure for future sales expansion through a plan for capital investment, etc., your chances of obtaining a business management visa for more than three years will increase.

Please contact our office to renew your business management visa.

When applying for a renewal of a business management visa, it is important to make sure that the points to be examined are taken into account. If you have concerns about your business situation, especially if you have deficit accounts, you must prepare convincing documents that will convince the Immigration Bureau.

If you have any concerns about your application, we recommend that you first consult with a highly specialized administrative scrivener.