Can I renew my business management visa? Explaining the renewal process and key points

It is said that renewing a business manager visa is more difficult than other residence statuses, but it is not impossible. Requirements and procedures for renewing a business manager visa. An expert administrative scrivener will explain the key points for obtaining a three-year business manager visa.

What is a Business Manager Visa Renewal Application?

The Business Manager Visa is a status of residence for foreigners who will be engaged in the management and administration of a business, and its official name is the “Business Manager” status of residence.

When renewing a Business Manager Visa, the same rigorous screening as for the initial application is carried out on points such as whether or not the applicant is substantially involved in the management and administration of the business, whether or not the requirements for the establishment and the continuity of the business are met, so it is considered to be more difficult to obtain at the time of renewal than other residence statuses.

Particular emphasis is placed on whether the business in which the foreign national is involved maintains stable management, contributes to the Japanese economy, and leads to job creation. If the business is in the red or there is evidence of a violation of laws and regulations, the renewal of the business manager visa may be denied.

The period of stay for a business manager visa is generally one year

The period of stay for a Business Manager Visa is 5 years, 3 years, 1 year, 6 months, 4 months, or 3 months.

The period of stay will be determined by the Immigration Bureau after taking into consideration the intended employment period and desired period of stay stated in the application form, as well as the scale and stability of the business in which the foreign national is involved.

Many people would like to renew their stay for a longer period, such as three or five years, but the hurdle to be overcome in order to be granted a three-year stay is high, and in most cases the stay is generally one year.

Important points to consider when renewing a business manager visa

What is emphasized in renewing a business manager visa is the stability and continuity of the business in which the foreigner is involved in management.

Particular emphasis is placed on financial statements such as balance sheets and profit and loss statements, and if gross profit has not been recorded for two consecutive terms or if the state of excessive debt continues, it may be determined that there is no continuity of the business, and the renewal of the business manager visa may be denied.

However, it is not uncommon for a company’s final financial statements to be in the red in the first fiscal year after it is established, so a company will not be unable to renew its lease just because it is in the red in a single fiscal year.

The Immigration Bureau does not simply look at the numbers, but makes a comprehensive decision on whether or not to renew the visa based on a consideration of the foreign manager’s career history, his or her residence in Japan, the size of the company, and the nature of management.

Even if the numbers in your financial statements are not good, it is possible to make up for it by using other documents.

Requirements for Business Manager Visa Renewal

When renewing a business manager visa, you are required to meet almost the same requirements as when applying for a new visa.

Meet the requirements for securing a business establishment

The question is whether or not you have a place of business in Japan to run your business. If you have not moved your place of business since the time of your new application, there is no problem, but if you have moved your place of business, your new place of business will be reviewed to see if it meets the requirements.

Meet the business size requirements

Other requirements include that the company must have two or more full-time employees residing in Japan other than the foreign national, and that the amount of capital or total investment is 5 million yen or more.

Meet business continuity requirements

The requirements for business continuity are determined primarily from financial statements such as balance sheets and income statements.

Ideally, the financial statements should not be in the red, but the Immigration Bureau does not just look at the financial statements for a single fiscal year, but makes a comprehensive judgment including the borrowing and lending situation, etc. In particular, the financial statements for the most recent two fiscal years are examined from the following perspectives:

If there is gross profit in the most recent period or the period immediately preceding the most recent period

 

No losses at the end of the most recent fiscal year	No problems with business continuity
There is a deficit at the end of the most recent fiscal year, but the company is not insolvent at the end of the most recent fiscal year.	A business plan and documents showing projected revenue are required.
There was a deficit at the end of the most recent fiscal year and the company was insolvent, but it was not insolvent at the end of the previous fiscal year.	A document evaluating the prospects for improvement by a small and medium-sized enterprise management consultant or certified public accountant must be submitted.
There was a deficit at the end of the most recent fiscal year, and the company was insolvent at both the end of the most recent fiscal year and the fiscal year before the most recent fiscal year.	The company is not recognized as being viable. (Exceptions may be made for start-ups that offer unique technologies or services, or new business models.)

 

If there is no gross profit in the most recent period or the period prior to the most recent period

In principle, businesses will be deemed to have no business continuity. However, there are exceptions for start-ups that have unique technologies or services, or are developing new business models.

Fulfilling legal and tax obligations

As with other renewals of residence status, you will be required to comply with Japanese laws and regulations and not be in arrears with any taxes, including income tax.

Another requirement is that the company you run must not neglect to pay corporate taxes, enroll in labor insurance, employee pension insurance, and health insurance, or pay insurance premiums.

Key points for obtaining a 3-year business manager visa

When the period of stay for the business manager visa is extended to three years, it will become a stepping stone to applying for permanent residence permission.

However, unlike other residence statuses, the Business Manager visa does not automatically extend the period of stay if it is renewed many times.

Requirements for obtaining a 3-year business manager visa

In order to extend your period of stay to three years when renewing your Business Manager visa, you must meet the following requirements.

• Fulfilling the notification obligations under the Immigration Control Act
• Your children are receiving compulsory education (if you have school-age children)
• The planned period of stay is one year or more
• The company you operate must be in category 3 or above
• The business situation of the company you operate is deemed to be stable.

What does it mean if the company you run is category 3 or above?

When applying for a “Business Manager” status of residence, the screening process varies depending on the size and performance of the company.

Applications are classified into four categories, from “Category 1” to “Category 4,” in order of quality, with “Category 1” requiring fewer documents for review.

• “Category 1” refers to companies that are listed on the Japanese stock exchange or that have been officially recognized as excellent companies, such as those that have been certified as Kurumin or Eruboshi by the Ministry of Health, Labor and Welfare.
• “Category 2” is a company with withholding tax of 10 million yen or more for the previous year.
• “Category 3” refers to companies that have submitted statutory totals such as withholding slips for employees’ salary income for the previous year.
• “Category 4” is all other companies.

If the company has been running smoothly for more than a year, it will be in “Category 3.”

“Category 3” is the minimum standard, so you should aim for “Category 2”.

Regarding the stability of the business situation of the company you manage

Whether or not the business situation of the company you run is stable is an important point in extending your period of stay to three years.

Specifically,

• There must be sufficient sales and no losses or excess debts in the last two years.
• Have employees.

These two points are of particular importance.

Regarding sales, this depends on the scale of the business, but one guideline is whether or not they exceed 10 million yen.
Another important point is whether the applicant for a business management visa receives sufficient executive compensation.

Whether or not you employ employees is also important in terms of whether you are contributing to job creation.
However, there are also cases where a one-person corporation without employing employees has stable and sufficient performance. In such cases, if you can show that you have good business partners, you will be able to see the path to a three-year period of stay.

Preparations to make before renewing your business manager visa

In order to renew your business manager visa, you will need to prepare various documents.
The documents required will vary depending on the category of company you operate.

For Category 3, the following documents are generally required:

• Application for Extension of Period of Stay
• Photos taken within the last 3 months
• Copy of most recent financial statement
• company tax certificate
• Total table of statutory reports such as withholding slips of employee salary income for the previous year
• Copy of the bank account passbook in the company’s name
• Applicant’s personal tax certificate

If any other business licenses are required for the operation of your company, you will need to obtain the necessary licenses.
If there are any changes regarding your company or individual applicants and you are required to submit a notification, be sure to complete the notification by the deadline.

Please contact our office to obtain a business management visa.

When renewing a Business Manager Visa, submitting the documents specified by the Immigration Bureau does not necessarily mean that permission to renew will be granted.
The documents to be submitted will be looked over by an expert once, and if there are any points that may be problematic during the examination, additional materials will need to be prepared.

In addition, for those involved in the management of a company, having to renew their business manager visa every year is a huge waste of time and money.
In order to aim for renewal of your period of stay for 3 or 5 years, you will need the support of an administrative scrivener who is knowledgeable about business manager visas.

At Touch Legal Professional Corporation, we will listen to the circumstances of each client in a free consultation and select the optimal method for obtaining a business manager visa.