Requirements for Renewing a Business Manager Visa in Japan
I’m concerned about whether I will be granted an extension for my business manager visa. What are the key criteria for approval?
The financial conditions, tax, applicant’s salary will be really important.
Renew the Business Manager VISA
When it comes to renewing a business manager visa in Japan, foreign entrepreneurs often find themselves navigating a complex process. Typically granted for an initial period of one year, this visa must be extended before its expiration to ensure continued legal residence. However, the renewal process is far from straightforward, and several factors are critical for approval.
Manager visas have a period of 5 years, 3 years, 1 year, 4 months, and 3 months. Generally, the renewal period is 1st year → 2nd year : 1 year → 3rd year ● years. It is updated with a period of year. If long-term period is permitted, such as ● in the third year, the status of the business so far will be judged comprehensively
Key Criteria for Visa Renewal
The most important aspects that the Immigration Bureau will evaluate include financial stability, business performance, and personal tax compliance. Ensuring that your company is financially sound and able to maintain operations is crucial. This is assessed primarily through your company’s balance sheet and gross profit from the initial two quarters of the business year. A positive financial outlook can significantly boost your chances of visa renewal.
A minimum investment of ¥5 million is also a key requirement for obtaining and renewing this visa. The Immigration Bureau will carefully examine your company’s financial health to determine if this threshold is being met. If your business is in surplus, with net assets exceeding ¥5 million, the outlook is positive, and the continuation of the visa is likely. However, if your company is running at a loss or in debt, you will need to provide a detailed explanation.
In addition to business performance conditions, there are the following necessary conditions for business management visa renewal.
A) Paying corporate tax
B) Fulfilling your personal tax liability
C) Executive remuneration should be set at a minimum of at least new graduate starting salary (about 200,000 yen per month)
Personal and Corporate Tax Obligations
Aside from financial performance, paying both corporate and personal taxes is essential for securing a visa extension. Failure to meet these obligations could severely jeopardize your application.
A critical point to note is executive remuneration. To qualify for renewal, your personal salary must meet or exceed the equivalent of a new graduate’s starting salary in Japan, generally set at around ¥200,000 per month. Setting a salary below this threshold—even if your business is in its early stages—can lead to visa denial. Some business owners may opt for a lower salary to reinvest in their company or reduce operational deficits, but this approach can backfire when applying for a visa renewal.
What Happens If Your Business Is In The Red?
If your company is running at a loss, don’t panic. The Immigration Bureau understands that businesses can face difficulties, and a loss doesn’t automatically mean your visa will be denied. However, you will need to submit a recovery plan that includes clear strategies for returning the business to profitability. This is crucial not only for your visa renewal but also for maintaining confidence among investors and financial institutions.
If you have substantial debt, additional documentation is required, such as a professional evaluation by a small business diagnostician or a certified public accountant. They must assess whether your debt can be resolved within a year. In such cases, the Immigration Bureau might shorten the permitted stay to one year to closely monitor your financial recovery.
This is important not only for the Immigration Bureau, but also for shareholders and financial institutions. The logic should not be broken. Here we will advise if you can consult with our office.
×Avoiding Common Pitfalls
One of the most serious mistakes applicants can make is submitting false information to the Immigration Bureau. Foreign intermediaries or unscrupulous immigration lawyers sometimes propose fraudulent schemes to help secure visa approvals. These actions are illegal and, if discovered, will result in immediate rejection of the application. It’s crucial to avoid such practices and instead provide accurate and honest information.
Financial status and business sustainability
If you are insolvent or facing significant debt…
In the event of insolvency or significant debt, you will be required to provide a written evaluation from a specialist, such as a small business diagnostician or a certified public accountant, confirming that the debt will be resolved within one year.
In such cases, the Immigration Bureau may shorten the period of residency, for example, granting only a one-year extension instead of the usual three years. This is due to the critical nature of the business and financial situation. It may be necessary to inject additional capital or secure funding, regardless of the visa renewal process.
If the company has experienced a net loss for two consecutive terms or has incurred debt over the same period, business continuity is not recognized. Without management support, such as a capital increase by the business owner or a third party, visa renewal will not be granted.
Click here for requirements and precautions for business manager visas
Professional
Masakazu Murai
Immigration consultant, financial advisor
18 years’ experience in Investment Banking at Mitsubishi UFJ Morgan Stanley. He had provided financial advisory more than 500 entrepreneurs and senior management.
Gyoseishoshi Immigration Lawyer
CMA (Japanese financial analyst license)
CFP (Certified Financial Planner)
Master of Business Administration in Entrepreneurship (Hosei Business School)
