What is a Business Management Visa?
A “business administration” visa is a type of work visa,This visa is mainly for foreigners residing in Japan to operate a business in Japan.
The most common type of business for which a business management visa is obtained is that of establishing a company in Japan, assuming the position of its director (e.g., representative director), and engaging in activities related to the management of the company.
There are no restrictions on the company to be established, such as the company must be a joint stock company, A limited liability company can also obtain a business management visa without any problem.
The majority of companies in Japan are joint-stock companies, but being a limited liability company does not mean that you will be treated unfavorably in the examination process.
More than most, However, there are differences between a joint stock company and a limited liability company due to the different rules that apply to them. Therefore, it is advisable to choose the one with more advantages for each individual situation of the foreigner who wishes to obtain a business management visa.
This page explains how to obtain a business/administrative visa for a limited liability company.
What is a limited liability company?
A limited liability company is a new form of company created in the Company Law in 2005. It is mainly suitable for a small number of people to conduct business. Because it is modeled after the American limited liability company (LLC), it is sometimes referred to as the “Japanese version of the LLC. (However, as described below, it is not exactly the same as the American LLC.)
And just because it is suitable for a small number of people to conduct business does not mean that it is an unsuitable corporate form for larger businesses. In fact, Google and Amazon’s Japanese subsidiaries also use the Godo Kaisha (limited liability company) form.
Difference between a limited liability company and a joint stock company
A limited liability company has the following characteristics compared to a joint stock company.
In a nutshell, “A limited liability company is cheaper and easier to operate than a joint stock company, but it is harder to expand. However, it is difficult to expand the business.
- A limited liability company does not require certification of its articles of incorporation when it is established, and the registration and license tax is lower than that of a joint stock company, thus reducing initial costs.
- Unlike a joint stock company, a limited liability company has no term of office for its directors, thus eliminating the cost of registering directors for each term of office and reducing running costs.
- A limited liability company can operate more easily and freely than a joint stock company because it is not required to report financial statements and there are fewer regulations under the Companies Act regarding the design of the company’s organization.
- Since they do not have the means to raise a large amount of capital at one time, such as equity, it is difficult for them to expand their businesses.
- The corporate tax rate and social insurance requirements are the same for both limited liability companies and joint stock companies (this differs from LLCs in the U.S.).
- Since the company is not yet well known in Japan, its social credibility may be seen as lower than that of a stock company.
| Joint Stock Company | limited liability company (US, Australia, etc.) | |
|---|---|---|
| Registration tax at the time of establishment | 150,000 yen | 60,000 yen |
| Certification of Articles of Incorporation | Obligation
Certification fee 50,000 yen Revenue stamp fee 40,000 yen |
Not required |
| Name of Management Team | Board of Directors | Employees |
| Representative | Representative Director | Representative Partner |
| Owners of the company (investors) | Shareholders
(Separation of ownership and management of the company) |
Employees
(Owner of the company = manager) |
| Decision-making | According to the percentage of shares (investment) | Equal regardless of capital contribution |
| Term of office for board members | 2-10 years (depending on pattern) | None |
| Reporting of Accounts | Obligation | Not required |
| Corporate tax rate | Same | Same |
| Social Insurance Coverage | Obligation | Obligation |
| Social Credit | High | May be lower than that of a stock company |
Flow chart from the establishment of a limited liability company to obtaining a business/administrative visa (in our case)
| Procedure | Contact Person | Days |
|---|---|---|
| (1) Interview with Gyoseishoshi Lawyer and customer | Customer and Gyoseishoshi Lawyer | 1 day |
| (2) Preparation of hearing sheet
Trade name, head office, purpose, capital, directors at the time of establishment, business year, etc. |
Customer | A few days |
| (iii) Investigation of trade name and purpose | Administrative scrivener | 1 day |
| ④Creating a company seal | Customer (or administrative scrivener) | A few days |
| (5) Preparation of seal certificates and personal seals for officers | Customer | Several days |
| (6) Preparation of articles of incorporation, etc. | Administrative scrivener | Approx. 5 days |
| (7) Communication of necessary documents (seal, etc.) for company incorporation | Customer / Gyoseishoshi Lawyer | A few days |
| 8) Payment of capital contribution | Customer | 1 day |
| (ix) Application for company incorporation registration to the Legal Affairs Bureau | Judicial scrivener | 1 day |
| (10) Legal Affairs Bureau examination → Complete
= Establish a company |
Legal Affairs Bureau | About 2 weeks |
| (11) Collection of Required Documents for Management and Administration Visa | Customer / Gyoseishoshi Lawyer | Several days |
| ⑫Preparation of application documents to the Immigration Bureau and business plans | Administrative scrivener | 2 to 3 weeks |
| ⑬Application to the Immigration Office | Gyoseishoshi Scrivener | 1 day |
| ⑭Immigration inspection → Complete | Immigration office | 2 to 3 months |
| (15) Residence card issued
= Management and administrative visa |
Customer (or administrative scrivener) | 1 day |
Conclusion
A limited liability company can be established more easily than a joint stock company, but as mentioned above, from the time you start preparing to establish the company to the time you obtain a management and administration visaEven if it goes smoothly, it will take about 4 to 5 months.
There are also a wide variety of documents to be prepared and submitted to, and you may find yourself at a loss as to what to do.
If you are thinking of starting the process of obtaining a business/administrative visa at the company establishment stage, We recommend that you consult with an experienced specialist.
