For foreign nationals who manage a company on a Business Manager Visa, the naturalization application makes not only the applicant and cohabiting family members, but also the company they manage, subject to review. In other words, the conditions to clear and the documents to gather for a naturalization application increase. This page introduces the key points when applying for naturalization from a Business Manager Visa.
~ To Begin With ~ Is it preferable to apply for naturalization after five fiscal periods of financial closing are completed?
When applying for naturalization from a Business Manager Visa, we recommend applying once five fiscal periods of financial closing have been completed. The reason is that you are required to submit the company’s corporate tax and other tax payment certificates for the most recent five years.
In other words, unless at least five fiscal periods of financial closing have been completed, you cannot submit five years’ worth of tax payment certificates. Also, since the management situation and the stability and continuity of the business are also subject to review, it is preferable to apply after obtaining the Business Manager Visa and completing five fiscal periods of the company’s financial closing.
Naturalization Application from a Business Manager Visa
Point ① The company’s management situation
When applying for naturalization from a Business Manager Visa, you submit the financial statements for the most recent fiscal period. Of course, by submitting them, the company’s management situation and the stability and continuity of the business are reviewed. In other words, caution is required in cases where there is simply a deficit, or even where there is a surplus but the amount of liabilities such as borrowings is large.
If the company’s financial condition is in a state of insolvency (liabilities exceeding assets), the stability and continuity of the business cannot be said to be secured. When applying for naturalization, we recommend applying when the company is on a stable track.
Point ② Officer remuneration
When managing a company, how much you set officer remuneration at becomes an extremely important point. This is because a naturalization application requires that you be able to live in Japan without difficulty in your livelihood (livelihood condition, Article 5, Paragraph 1, Item 4 of the Nationality Act).
Therefore, taking into comprehensive account rent, living expenses, the presence or absence of dependents, and so on, you need to receive officer remuneration sufficient to live in Japan.
Regarding the livelihood condition of the Nationality Act, it states that “it is judged on the basis of the family unit sharing a common livelihood, and even if the applicant themselves has no income, the condition is met if a stable life can be led through the assets or skills of a spouse or other relatives.” However, in the case of a company manager, in order to prove that the company’s management is going well, it is preferable to satisfy the livelihood requirement on your own.
The final judgment is based on the taxation certificate issued by the municipality. Therefore, even if you set officer remuneration that satisfies the livelihood condition, caution is required if you have become exempt from taxation by recording a negative income from a side business in your final tax return, etc.
Point ③ Tax payment
In the case of a company manager, after paying the taxes imposed on the company, you need to submit a great many tax payment certificates. Below are the tax payment certificates submitted in a company manager’s naturalization application, for your reference.
1. Individual resident tax
In the case of a company manager, many people use special collection (withheld from officer remuneration). For an ordinary company employee, special collection is fine in most cases, but in the case of a manager, paying the specially collected amount is the manager’s obligation, so if there are unpaid or overdue amounts, the naturalization application may not be approved. In the case of ordinary collection, please pay using the payment slips mailed from the city hall.
2. Corporate tax
Payment is required to the tax office with jurisdiction over the corporation. The payment timing is, like the filing deadline, within 2 months from the end of the fiscal year. There are two payment occasions: the interim filing portion (if there is an interim filing obligation) and the final filing portion. The interim filing portion is within 2 months from the day on which 6 months have elapsed from the start of each fiscal year.
3. Consumption tax
Businesses subject to consumption tax are required to pay it to the tax office. Even if exempt, a certificate of “none” is required.
4. Corporate enterprise tax
Businesses subject to corporate enterprise tax are required to pay it to the prefectural tax office. Even if exempt, a “certificate of no taxable amount” is required.
5. Corporate prefectural resident tax
Corporate prefectural resident tax must be paid to the prefectural tax office with jurisdiction over the corporation.
6. Corporate municipal resident tax
Corporate municipal resident tax must be paid to the municipal office with jurisdiction over the corporation.
7. Withholding income tax payment slips
These are required if you withhold the income tax of employees, including yourself, from salaries. In addition to the payment slips paid for the most recent fiscal year, you also submit the withholding records. The withholding records are submitted only for the naturalization applicant, not for all employees.
8. Social insurance premium payment slips
In the case of a corporate manager, enrollment in social insurance is mandatory, so if you are not enrolled in social insurance, you cannot apply for naturalization. Also, even in the case of a Sole Proprietor, if there are 5 or more regularly working employees, an obligation to enroll in social insurance arises. As for proof of payment of social insurance premiums, payment slips for the most recent 2 years are required.
In Closing
When applying for naturalization from a Business Manager Visa, the review items and required documents increase compared to an application by an ordinary company employee. Not only the applicant but also the company they manage is subject to review.
However, if you properly confirm the requirements for naturalization, fulfill your tax obligations, and apply with the required documents and application forms in order, obtaining approval is entirely possible. Our office has supported a great many company managers with their naturalization applications, so please do not hesitate to contact us.
