Explaining the current situation for international students aiming to start or manage a business in Japan and the key points for obtaining a business manager visa

International students who want to start a business in Japan after graduating from university etc. need a business manager visa. Since a business manager visa does not require any academic background, even those who started a business as a student or dropped out of school can aim to obtain one.

However, when international students obtain a business manager visa, the hurdles are high, including stricter screening of business plans, so careful preparation is necessary. We will explain the secret to success.

What is a Business Manager Visa?

If an international student wants to start a business in Japan, they will need to change to a business manager visa. We will explain what a business manager visa is.

Overview and purpose of business manager visa

A Business Manager Visa is a status of residence for “Business Manager” that is given to foreign nationals who are engaged in the management of trade or other businesses or business management in Japan.

If a foreigner is simply working as an employee of a Japanese company, they may have a different residence status. However, if they become a company director or other officer, or if they establish their own company, they will need to change their residence status to “Business Manager.”

Specific examples of cases in which international students are eligible

If international students wish to continue working in Japan after graduating from university, it is common for them to obtain a work visa such as an “Engineer/Specialist in Humanities/International Services” residence status.

However, some international students may be considering starting their own business after graduation.

Or maybe you are a student and want to start your own business.

In such a case, you will need a business manager visa rather than a work visa.

Differences from other residence statuses

The main difference between a business manager visa and other residence statuses, such as a work visa, is the position you take when working.

A work visa is a status of residence for those who work as employees of a company etc. Requirements include that the applicant has a certain level of educational background and work experience, and that they receive the same remuneration as Japanese people.

On the other hand, the Business Manager Visa is a status of residence required for those who work in a managerial position. Not only if you establish your own company, but also if you are promoted to a managerial position such as a director at the company where you work, you will need a Business Manager Visa.

The applicant’s educational background is not questioned, but the main subject of the review will be the actual business operations of the company, such as whether the business office of the applicant runs is physically located in Japan and whether it is of a size that can be considered a business.

Requirements for changing from a student visa to a business manager visa

Even for foreign students, the requirements are not relaxed when changing to a business administration visa,You will be required to meet the requirements for the “Business Manager” residence status.

What is important for a business manager visa is the scale of the business, the actual state of the business being managed, etc.

Securing a business location in Japan

You must have a place of business in Japan to carry out your business.

This is not a problem if you are renting a regular office, but please be aware that a virtual office cannot be considered a business establishment.

In addition, it is generally difficult to have your current home used as a place of business approved.

→Check the office requirements for business management visas

Operate a business of a certain size

The business must be of a certain scale.

Specifically, the total amount of capital or investment must be 5 million yen or more, or two or more full-time employees must be employed. The applicant does not necessarily have to provide the capital himself, but the source of the capital will be strictly checked. Therefore, it is necessary to provide a reasonable explanation to the Immigration Bureau about the history of fundraising.

Proof of business stability and continuity

The most important thing about a business manager visa is whether the business is stable and sustainable.

・For new companies, the business plan will be subject to review. The contents of the business plan will be reviewed to see if it is feasible.

・For existing companies, the most recent financial statements will be reviewed to see if they are in the red or have excessive debts. If they are in the red, you will need to prepare a business plan to prove that you will be able to operate your business stably and continuously in the future. If you are in debt, you will need a company evaluation report prepared by a small and medium-sized enterprise management consultant or certified public accountant.

The need for substantial participation in management

The business manager visa requires that the applicant himself/herself is substantially involved in the management and administration of the company.

Substantial participation in management means engaging in the following activities:

Even if a person is appointed as an officer such as a director, if he or she does not engage in any of these activities, in other words, if he or she is merely a nominal manager or officer, he or she cannot obtain a Business Manager Visa.

Fulfilling obligations as a business operator

Business operations must be conducted appropriately.

Specifically,

Points such as these will be examined.

Educational requirements (university graduation is not required)

For business management visaThere are no educational requirements for the applicant.

Therefore, if you are an international student, you can obtain a business manager visa before graduating by starting a business while you are still a student. You can also obtain a business manager visa even if you drop out of the university you are studying at.

However, if the applicant intends to engage in the management of a business, the applicant must have at least three years of experience in business management (including the time spent majoring in business management at graduate school) and receive remuneration equal to or greater than that which a Japanese national would receive in the same position.

Important points and screening points specific to international students

Since international students generally do not have practical experience in corporate management, the screening process for business manager visas tends to be strict, with the view that “it may be difficult for this person to run a business stably and continuously.”

In addition, while a business manager visa does not require an academic background, if you drop out of university to start a business, you will be asked whether you can provide a reasonable explanation.

Let’s take a closer look.

Proof of origin of funds and preparation of transfer records

After establishing a company, in order to obtain a business manager visa, you will need a capital of 5 million yen or more (total investment amount) or two or more full-time employees. Since it is difficult to employ two or more full-time employees from the start (labor costs are too high, etc.), most people establish a company with a capital of 5 million yen and apply for a business manager visa.

The source of this capital of over 5 million yen will also be subject to review.

It is not common for international students to raise more than 5 million yen in capital on their own.

You may also need to ask your parents, relatives, or friends for financial support.

In this case, transfer the money to a bank account and enter into a loan agreement with the person who provided the funds.

The origin of the funds will then be proven by providing bank transfer records and loan agreements.

If you bring cash of 1 million yen or more into Japan instead of transferring it to a bank account, you will need to declare it to customs. You will need to provide a certificate of such declaration.

In addition, if you receive or give money as a gift rather than borrowing it, you will be subject to gift tax. In this case, you will also need to prepare a gift contract and show that you have paid the gift tax.

Permission to engage in activities other than those permitted by your status of residence and restrictions on part-time work hours

I think there are cases where international students have worked and saved up capital of over 5 million yen.

In this case, please note the following:

If you follow these rules and have saved up capital of more than 5 million yen through part-time work, there is no problem, so all you need to do is explain that.

If you do not follow the rules, it may become difficult to obtain a business manager visa.

Risk of overwork and illegal employment

Some international students who want to start a business in Japan may think about doing a lot of part-time work while they are students and saving up capital of over 5 million yen.

However, in order to work part-time with a “Student” visa, you need permission to engage in activities outside of those permitted under the visa status, and there is a limit of 28 hours per week.

Be careful, if you work more than the 28 hour limit per week, it will be considered illegal employment.

Please note that the 28-hour limit per week is not calculated for each part-time job. If you have multiple part-time jobs, please note that it is calculated based on the combined hours of all part-time jobs.

If it is discovered that you have been overworking or working illegally, it may become difficult to obtain a business manager visa.

Schedule management before and after graduation and timing for changing residence status

If you continue to stay in Japan after your “Student” status of residence has expired, you will be considered to have overstayed your visa (illegal residence).

If you overstay your visa (illegally remain), you run the risk of being deported or subject to criminal penalties such as imprisonment for up to three years or a fine of up to 3 million yen.

The screening process for the “Business Manager” residence status is stricter than for general work status, and the screening period tends to be longer.

If you plan to change your residence status to “Business Manager” after graduating from university, it is important to start preparing early.

Responses in the event of withdrawal, expulsion, or voluntary withdrawal

If you are staying in Japan with a “Student” status of residence, you must, as a rule, graduate from a Japanese university, etc. Even if you obtain a “Business Manager” status of residence after graduation, the reality is that the screening for a Business Manager visa is strict, as most international students do not have practical experience in business management, and there is concern that “it will be difficult for this person to run a business stably and continuously.”

If you change your residence status to “Business Manager” after dropping out, being expelled, or voluntarily withdrawing from a Japanese university, the screening process will be even stricter.

To obtain a typical work visa with a status of residence of “Engineer/Specialist in Humanities/International Services,” you will need a university degree or higher.

On the other hand, there are no educational requirements for the “Business Manager” residence status.

For this reason, there may be cases where international students who are unable to graduate from a Japanese university or other institution seek to obtain a “business manager” status of residence in order to continue staying in Japan.

Due to these circumstances, the screening process is stricter for those seeking to obtain a “business manager” residence status after dropping out, being expelled, or voluntarily withdrawing from school.

You will be required to provide a reasonable explanation for your dropping out, expulsion, or voluntary withdrawal from a Japanese university, so it is important to be able to explain the reason.

Application procedure

We will explain the process for international students to establish a company and obtain a business manager visa.

Create a business plan

Before taking steps to establish a company or obtain a business manager visa, you should first clarify your vision for starting your business.

Start preparing for your business by learning how to start a business and how to write a business plan at business startup seminars hosted by universities, chambers of commerce and other organizations.

Establish a company

The company formation procedure itself can be completed in three weeks for a joint stock company and two weeks for a limited liability company.

The general steps for establishing a company are as follows:

In the preliminary preparation stage, you will decide on the outline of your company, etc. If you have created a business plan, there is nothing else to decide.

At a minimum, you need to decide the following:

When preparing and certifying the articles of incorporation, you first prepare a draft of the articles of incorporation and then have it certified by a notary public at a notary public’s office.

To pay the capital, an account is opened for the promoters, the equivalent amount of the capital (5 million yen or more) is transferred to the account, and the bank record is copied.

Company establishment registration is carried out at the Legal Affairs Bureau in the location of the head office.

Prepare the company establishment registration application form and various supporting documents.

Please note that a registration license tax will be charged when applying for registration.

As a general rule, it costs 150,000 yen for a joint stock company and 60,000 yen for a limited liability company.

Various notifications after company establishment

After establishing a company, various notifications are required. The main things you need to do are as follows:

Application for “Business Manager” status of residence

After establishing the company, you will proceed to apply for a business manager visa.

The outline of the required documents is as follows. Please note that the required documents vary greatly from case to case, so be sure to consult with the Immigration Bureau or a specialized administrative scrivener.

Please note that it will take more than three months to obtain a business manager visa.

It is important to anticipate this and start preparing well in advance.

Key points for creating a business plan

When international students apply for a “Business Manager” status of residence, the business plan will be subject to particular review.

The items to be included in a business plan can be broadly divided into four types:

Let’s check each one.

Business overview

Please list the following four items.

Among these, the most important things are your motivation for starting a business, your vision and goals.

If you decided to start a business while studying abroad, write down a specific event that triggered the idea.

Your vision and goals should describe what you want to achieve after starting your business and your sales targets.

Business content

Please list the following four items.

This is the most important item in the review of a business plan.

In the current situation analysis, etc., the extent to which the market size and competitive situation have been analyzed is checked.

The key point is whether there is a concrete plan for how to provide the products or services.

Numerical Plan

Write down the following two items. Write down the figures for the funds needed up to roughly the third year, purchase amount, sales, profit, repayment amount, etc.

We check whether the numbers are achievable, rather than being based on wishful thinking.

Execution Plan

After starting your business, describe your business schedule for the next three years.

Write down clearly the steps you plan to take to reach your goal three years from now.

What examiners look for in a business plan

When preparing a business plan, Immigration Bureau examiners place particular emphasis on the stability and continuity of the business being operated.

In particular, in the case of international students, most have no experience in running a company, so examiners often have concerns about the business ventures of international students.

It is important to create a compelling business plan that can allay such concerns.

Success and failure cases

We will explain examples of international students who have succeeded and failed in obtaining a business manager visa.

Cases of international students who have successfully obtained business manager visas

Obtaining a business manager visa takes time. Successful international students often start researching and preparing for a business manager visa from the moment they decide to start a business.

Because the source of funding is subject to strict scrutiny, we take special care to be accountable.

I also started thinking about my business startup plans early on, for example by attending startup seminars.

We start creating a business plan early on and review it repeatedly to make the most feasible business plan.

As such, starting preparations early is the key to successfully obtaining a business manager visa for international students.

Main causes and solutions in case of failure

It seems that many international students who fail to obtain a business manager visa do not start preparations early.

It is not uncommon for people to decide to start a business just before graduating, and then start preparing, only to find that it is too late.

In addition, even if you aspire to start a business, if you have saved up your own funds through overwork or illegal employment by working multiple part-time jobs, this will put you at a disadvantage when applying for a business manager visa.

Another reason for failure is that the business plan is not well-constructed and does not satisfy the examiners.

After all, if you are thinking of starting a business, it is important to research business manager visas and start preparations early.

Our firm’s support and strengths

Touch Administrative Scriveners Corporation has supported people from various backgrounds in obtaining business manager visas.

What is required to obtain a business manager visa varies greatly depending on each individual’s circumstances. It is not uncommon for the application documents to be overwhelming, over 100 pages in number.

As we have seen in this article, international students have their own unique challenges and the solutions vary.

Touch Legal Professional Corporation provides detailed support tailored to each and every international student.

Information on free consultation and support services

If you are an international student aiming to obtain a business manager visa or start a business in Japan, please contact Touch Legal Specialists Corporation.

You can consult with us about the procedure and possibility of obtaining a business manager visa.

We provide total support, from company establishment to obtaining a business management visa and successfully starting a business in Japan.