Foreign managers who obtain a business manager visa will be required to set their own executive remuneration.
In typical business management, executive compensation may be set low or even nonexistent in order to turn a profit or stabilize the business.
One of the requirements for a business manager visa is that the foreign national who obtains the status of residence must be able to live a stable life in Japan.Therefore, if executive compensation is low or nonexistent, doubts will arise as to whether they will be able to live in Japan.
This inevitably leads to the question of how the foreign manager earns his/her living expenses, and there is a possibility that the foreign manager may be found engaging in activities other than those permitted by the Business Manager Visa (such as working elsewhere and receiving wages) in order to obtain the necessary funds. For example, if the executive compensation is around 50,000 yen, it is almost impossible to pay the rent for a residence and cover other living expenses, but with a monthly compensation of around 200,000 yen, it would be possible to make a living. Therefore, it is recommended that the executive compensation of foreign managers who have obtained a Business Manager Visa be set at around 200,000 yen or more per month.
After obtaining a business manager visa, there may be cases where the business does not grow as expected when actually operating the business. One idea may be to reduce executive compensation in order to improve the business’s management situation. If you initially set it at around 200,000 yen, but then reduce it, doubts will arise about maintaining a stable life in Japan, which will work against you when renewing your visa.
Furthermore, if executive compensation is low or nonexistent, it will be seen as affecting business operations if executive compensation is not kept down, which will also affect “business continuity,” an important requirement for a business manager visa.
In order to prevent your visa renewal being denied, it is best to avoid reducing or eliminating compensation in order to improve a deteriorating business situation.
In addition, if a foreigner obtains a business manager visa as a manager, the remuneration must be equal to or greater than the amount of remuneration a Japanese person would receive if he or she were engaged in the same work. The standard is that the remuneration must be equal to or greater than the amount of remuneration a Japanese person engaged in the same work in the company where the foreigner who has obtained a visa works, but in cases where there are no Japanese managers at the same level, the standard for judgment will be whether the remuneration is equal to the amount of remuneration a Japanese person engaged in the same work in other similar companies, etc.
