What is a 4-month Business Management Visa? Advantages and Disadvantages Explained

The 4-month Business Management Visa is a visa (status of residence) that allows a foreigner to stay in Japan for the purpose of preparing to establish a company. Foreigners residing abroad can establish a company in Japan The major advantage of this visa is that it allows foreign nationals residing abroad to establish a company in Japan without the need for a partner.
What exactly is the difference between this visa and the standard one-year Business Management Visa?　Let’s take a closer look.

The video also explains how to obtain a 4-month business administration visa!

Japanese:

Chinese text:

What is the problem with a one-year business administration visa?

If you wish to obtain a one-year business administration visa, you must complete the following before applying for the visa

If the foreigner who wishes to obtain a business administration visa is already residing in Japan under a mid- to long-term visa status, then no particular problem arises. However, there is a very high hurdle for foreigners residing abroad to obtain a business administration visa.
That is, even if a foreigner comes to Japan with a temporary visitor visa, Resident registration is not possible. If you do not have an address in Japan, you will not be able to register as a financial institution in Japan. Without an address in Japan, it is difficult to open a bank account at a Japanese financial institution or sign an office lease contract.
Because of these circumstances, it is essential to have a collaborator residing in Japan in order to obtain a one-year business administration visa. Therefore, it is essential to have a partner residing in Japan to obtain a one-year Business Management Visa. A foreign national who does not have a domicile in Japan is required to obtain a one-year Business Management Visa. The partner will sign an office lease contract and prepare an account to transfer capital on behalf of the foreigner who does not have a domicile in Japan.

There are risks involved in establishing a company.

However, there are risks involved in working with collaborators to establish a company.
For example, this is a risk regarding capital. Before the company is established, it is not possible to open a corporate account in the company’s name. Therefore, the capital will be transferred to the personal account of the collaborator. In other words, You will be entrusting your precious capital to your partner. If the partner is not trustworthy, the capital will be transferred to his/her personal account. If the partner is an untrustworthy person, you have to be prepared for the worst case scenario: the partner absconds with the capital.
In addition, if you sign an office lease agreement, you will have to pay rent. Of course, while you are waiting for the Business Management Visa to be approved, you cannot start running your company, During this time, you will continue to pay rent without any business income. In addition, if your visa is not approved, you will have to pay rent for the office. Furthermore, if the visa is not approved, there is a risk that the office lease contract itself will become useless.

The 4-month business administration visa is excellent here.

In order to ease these strict conditions and encourage foreign nationals to start their own businesses in Japan, in April 2015, a new law was established called the business administration visa with a period of stay of 4 months The Business Management Visa is a visa for business management with a period of stay of 4 months.
This visa is, This visa allows a foreigner to stay in Japan for 4 months even if the company is not registered as a corporation, if it is confirmed that the company is almost certain to be established. The visa is for a period of 4 months.

Capital transfer and office contracts can be postponed.

The 4-month business administration visa does not require the company to be registered as incorporated by the time of application. Therefore, the following two items are not required prior to visa application

In the case of a 4-month business administration visa, the capital transfer and the office contract are done after the individual obtains the visa and comes to Japan. In other words, you can establish a company even if you do not have a collaborator in Japan This means that you can establish a company even if you do not have a collaborator in Japan. This is the biggest advantage of the 4-month Business Management Visa.
Also, since the contract for the office can be done after the visa is approved, the risk of the application being rejected is relatively small.

April Business Management Visa] Things you must do before applying for a business management visa

In applying for a 4-month business administration visa, you must do the following

(1) Draft Articles of Incorporation

Draft the articles of incorporation of the company. The Articles of Incorporation will include the purpose, trade name, location of the head office, and the names and addresses of the incorporators. The location of the head office can be determined at this point as long as the city, ward, town or village where the head office is located has been determined.
In the case of a joint stock company, it is best to complete the certification of the articles of incorporation at this time. It is best to have the Articles of Incorporation certified at this time. However, a certificate of seal impression (or a signature certificate) is required for certification of the articles of incorporation. However, a certificate of seal impression (or a certificate of signature) is required for certification of the articles of incorporation, so if you cannot prepare such a certificate, you should first prepare draft articles of incorporation.

➁Prepare a business plan

A business plan will also need to be prepared.
For a 4-month business administration visa, the company is not yet registered at the time of application, so the company does not yet have an actual entity. The feasibility of the company’s business will be judged mainly by the business plan. Therefore, The business plan is one of the most important documents The business plan is one of the most important documents. If the content of the business plan raises doubts about the profitability and continuity of the business, it is unlikely that the visa will be granted.

➂Prepare other necessary documents

Prepare other documents required for the application. You will need to provide proof of the amount of the person’s savings and other documents.
For offices, even if a contract cannot yet be signed, it is advisable to submit a floor plan of the property you plan to move into, as well as documents indicating that you are in negotiations with the office owner.

(4) Application for issuance of a certificate of eligibility

Once all the necessary documents are in order, apply for a Certificate of Eligibility (COE) for a visa at the Immigration and Residence Office. The examination process takes approximately two to three months.
Once the COE is successfully issued, the visa will be issued at the local embassy or consulate and you will finally be able to enter the country.

4-month Business Management Visa: What you must do after entering Japan.

After obtaining a business administration visa, during the four-month period of stay, the applicant will complete procedures such as signing an office contract and registering the establishment of a company.
Specifically, the process is as follows

(1) Address Registration

First, decide where you want to live in Japan, You must register your address at the municipal office of your city, ward, town or village within 14 days of starting to live in Japan. You will need to prepare your personal seal by this time, and register your seal at the municipal office to obtain a certificate of seal impression. It is recommended that you register your personal seal at the municipal office and obtain a certificate of seal impression. It is a good idea to register your personal seal at the municipal office and obtain a certificate of seal impression. The certificate of registered seal will be required for the registration of incorporation later.

➁Open a personal bank account

Open a personal account for the transfer of capital. At this point If you have not been in Japan for more than three months, the bank may refuse to open an account. Please open an account as soon as possible after registering your address.
For a 4-month business administration visa, it is easy to be refused to open an account at a major bank. It is relatively easy to open an account at Japan Post Bank.

➂ Office Lease Agreement

The next step is to sign a contract with the firm. In order to obtain a business management visa, You need to rent an independent office, not one that doubles as your home. A private office can be rented as long as it is private.

(4) Registration of incorporation of a company

The Legal Affairs Bureau registers the incorporation of the company. Once registered, various notifications and applications are filed with the tax office. Food, drink, lodging, etc,Depending on the type of business, it may also be necessary to obtain a business license.

5) Various notifications

After completing the procedures for establishing a company, various notifications are to be submitted. Tax offices, prefectural tax offices, municipalities, pension offices, labor standards bureaus, Hello Work, etc. are the target destinations.

(6) Various notifications

When conducting a business that requires a license or permit, it is necessary to go through procedures with the police station, public health center, prefectural government, and other administrative agencies to obtain a permit.
The main businesses requiring permits and licenses are as follows
These include the restaurant, real estate, manufacturing, hotel and inn, construction, and transportation industries.

After completing these procedures, you will apply for the renewal of your business management visa at the Immigration and Residence Management Bureau. If you can prove that your business is stable, you will be granted a business administration visa for one year. In this way, you will be able to start your business in earnest.

Are there any disadvantages to a 4-month business administration visa?

Although this 4-month business administration visa has many advantages, it also has disadvantages.
One is that because the period of stay is only 4 months, it is more difficult to open a bank account than with a one-year business administration visa. One reason is that it is more difficult to open a bank account than with a one-year business administration visa because the period of stay is only four months. As mentioned above, it is relatively easy to open a bank account at Japan Post Bank. Also, for the same reason It is also difficult to conclude an office contract It is also difficult to sign a contract with an office for the same reason.
By hiring an administrative scrivener to assist you in the company incorporation process, you can receive comprehensive consulting on these matters as well.

Points to note for 4-month Business Management Visa (1) Opening a bank account

To obtain a business administration visa, in most cases, you will invest 5 million yen to establish a company. Then, it is necessary to prepare a bank account (personal) in Japan to which the 5 million yen will be transferred. Opening this bank account is the most difficult part. First of all, many banks have the following restrictions on opening a bank account for a foreigner.

Those who have been in Japan for less than 6 months
・Who have less than 6 months remaining period of stay in Japan

Because of these restrictions, foreigners with a 4-month business administration visa are, in our experience, denied opening an account at most banks.

Bank account opened at Japan Post Bank (4-month business administration visa)

However, from our experience, it is possible to open an account at Japan Post Bank even for a foreigner with a 4-month business administration visa. However, in our experience, it is possible to open an account at Japan Post Bank even for a foreigner with a 4-month business management visa. (In our experience of supporting many foreigners who have been in Japan for 4 months on a business administration visa, we have checked with all kinds of banks, including online banks, based on our clients’ requests, and have been turned down by all of them except for Japan Post Bank.)
Therefore, unless you have special circumstances such as connections with a Japanese bank, we recommend that you open an account at “Japan Post Bank”.

Points to note for 4-month business administration visa (2) Language issues

If you do not have a collaborator in Japan, you must do the following in order to obtain permission to apply for renewal of the Business Management Visa after entering Japan with a 4-month Business Management Visa.

There are many institutions such as city hall, banks, and tax offices that require procedures in “Japanese”. While it is possible to handle the registration of incorporation and tax office procedures by hiring a specialist, in principle you will need to complete the procedures at city hall and banks by yourself. If you do not speak Japanese at all, it will be very difficult to complete the relevant procedures. Therefore, when using the 4-month business administration visa scheme, the best option is to ask an “administrative scrivener office” or other office that can provide total support for the above procedures and can handle foreign languages.

What Gyoseishoshi Lawyer can support

When applying for a 4-month business administration visa, it is important to make sure that you have the right points for the examination. In particular, you must prepare a business plan that is convincing enough to convince the Immigration Bureau. In addition, the preparation of Articles of Incorporation is also considered extremely difficult for foreigners.
If you have any concerns about visa applications or company incorporation procedures, we recommend that you first consult with a highly specialized administrative scrivener.