How can I obtain a [business management visa] for joint management?

Many people think, “I want to start a business in Japan with my friends. Many people want to start a business in Japan with their friends. To do so, they need a status of residence called a” business administration visa. So, what is the issue? What is the impact of being a partner in a business partnership when applying for a business management visa? Or do I not have to worry about that at all?

What you can learn about the Business Management Visa in this article

I want to co-manage.

(1) Problematic points

When two or more foreign nationals jointly manage a business, how is the acquisition of a business management visa handled? For example, there may be cases where two or more foreigners start a company and each of them wish to obtain a business management visa, or where two or more foreigners are newly appointed as directors of an existing company and wish to obtain a business management visa.

In the following cases where two or more foreign nationals who have jointly established a business and have no other employees, each of them assumes the position of an officer, What points will be examined with regard to the granting of a business management visa? The following is an explanation of what points will be examined in the case of multiple foreign nationals who have jointly established a business, each of whom will become an officer of the company without any other employees. The following information is based on a document prepared by the Immigration Control and Refugee Recognition Agency in October 2022 and revised in April 2023.

(2) Treatment of cases where two or more foreigners jointly manage a business

Substantial Participation

In order to qualify for the “Management/Administration” visa status, in essence, the foreigner must be substantially participating in the management or administration of a business (hereinafter simply referred to as “management, etc.”). In order to qualify for a “business management” visa, the foreigner must be substantially participating in the management or administration of the business (hereinafter simply “management, etc.”). Specifically, what kind of activities fall under this category? Activities to engage in decision-making on important matters related to the operation of the business, execution of the business, or auditing. This is the case in the case of a director. Therefore, simply being an officer of a company is not enough to obtain a business administration visa.

Reasonable grounds for management, etc. by more than one foreigner

In cases where multiple foreign nationals are engaged in the management of a business, in order for the activities of each foreign national to fall under the “Management/Administration” status of residence, it must be deemed that there is a reasonable reason for the management of the business to be conducted by more than one foreign national. TheThe key factors in determining the existence of reasonable cause are the size of the business, volume of business, sales, etc.

In practice, the specific nature of the business to be engaged in, the amount of remuneration to be paid as an officer, and other factors will be taken into consideration to determine whether the activities performed by these foreign nationals constitute management or control of a business.
　　　　
In this regard, since new companies usually have a small business scale, the above requirements are strict.

Clarity of each person’s job description

Another necessary condition is that each foreign national’s duties related to the management of the business must be clearly defined. For example, when a company has multiple directors, the duties of the director in charge of personnel and general affairs, the director in charge of finance, and so on, should be clearly defined.

In this regard, there is a point to be noted with regard to the business administration visa. If the duties of multiple officers are unclear and not clearly divided, the risk of visa denial increases. If the duties of multiple officers overlap, the risk of visa denial increases.

An example of a simple measure to avoid such risks would be to clearly distinguish the responsibilities of each board member.

You’re supposed to be paid for your services.

In order to make it easier to obtain a business administration visa, it is further recommended to meet such conditions that each foreigner is to receive an amount of remuneration in exchange for his/her services related to management, etc. It is recommended that each director maintain a remuneration of at least 250,000 yen per person.

Criteria for joint management

The above concept can be further embodied as follows.
　

In the above cases, it is possible to determine that all of the foreign nationals fall under the status of residence of “management/administration”.

(3) Examples of countermeasures for each pattern

While taking the above into consideration, the following are further examples of measures based on the attributes of the members of the management team.

In case of joint management by one foreigner and one Japanese

In case of joint management by two foreign nationals

Two cases of business management visas obtained through joint management

For your reference, we would like to introduce two specific cases where a business management visa was obtained for joint management.

Case 1.

A and B, both foreign nationals, have invested 5 million yen each in the establishment of Company X, with a capital of 10 million yen, which operates an import and sundry goods business in Japan. The remuneration of A and B is to be paid from the business profits in proportion to their respective investments.

Case 2.

Foreigners C and D invested 6 million yen and 8 million yen, respectively, to jointly establish a company with a capital of 14 million yen, Y, which operates a transportation service business in Japan, and C and D are in charge of their respective regions after setting the regions in which they will provide transportation services. The management policy of Company Y as a whole is to be decided by C and D in consultation, and the remuneration of C and D is to be paid in proportion to the amount of their respective investments from the business profits.

Summary of obtaining a [business management visa] through joint management

The essence of this article is posted here.