Guide to renew your Business manager VISA
I’m afraid I’ll be allowed to renew my business manager visa. Please tell me the points for permission.
The business plan and financial conditions, tax payments, executive compensation will be reviewed from government.
Renew of Business Manager VISA
If you have a business manager Visa to start up in Japan, the period of permitted residence is generally “one year” at first. Therefore, it will be necessary to renew the business management visa one year after being granted.
Management visas have a period of residence 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
Can I renew my business manager VISA?
For business management visa renewal, business continuity is regarded as important. Therefore, we must anticipate that we can continue our business activities in the future (= As a foreigner, we can do business securely and stay in Japan stably).
The Immigration Bureau determines the business continuity by looking at the balance sheet and gross profit before the first and second quarters.
Management visas require investment of 5 million yen or more, so the Immigration Bureau will check the level of net assets on the balance sheet to see if the investment scale is maintained. In the case of a surplus result, the net assets exceed 5 million yen, and it is recognized that “the business can be continued”.
If you are in the red, or if you are in debt, we will explain later.
In addition to business performance conditions, there are the following necessary conditions for business management visa renewal.
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)
A) Paying corporate tax and fulfilling your tax obligations, and B) Treating your personal tax obligation are mandatory for renewal of business management visa.
The point to note is the amount of executive compensation. Generally, at the beginning of the company, we would like to make the company profitable for bank transactions (or to reduce the deficit), so executive remuneration may be extremely reduced to 50,000 yen a month. . However, it is not possible to do such a thing by acquisition or renewal of business management visa.
Business administration visas require a stable life in Japan. Therefore, it is necessary to set the minimum executive compensation to at least the new graduate starting salary (about 18 to 200,000 yen per month).
Your tax advisor may be unfamiliar with your management visa renewal. Be careful when tax advisors advise you to set lower executive compensation.
If you are in the red…
However, it is possible that the business will be in the red for various reasons, so even if it is in the red, the renewal of the management visa will not be denied.
If you are in the red, you need to reasonably explain to the Immigration Bureau why you are in the red. In addition, it is necessary to submit a business plan (including earnings forecast) for recovery of business results to the Immigration Bureau.
In this case, the initial business plan may have been misappropriated, and logic may be broken. Such things are a lot in real business. In fact, when I was working at an investment bank, I have not seen many companies whose business plans went as planned. The market environment, competition environment, customer preferences, technology, etc. are constantly changing.
Therefore, in the revised business plan, it is necessary to logically explain the difference from the original plan and to clearly state the measures to be recovered in the future.
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.
×If the business plan and results differ significantly
The business plan submitted to the Immigration Bureau and the actual performance may differ greatly.
The reason may be 1) the situation has changed from the initial appearance, 2) the initial appearance is crude, and 3) a plan not to obtain a business management visa permit.
1) The situation has changed from the initial view, 2) The initial view is rough, can reasonably explain the explanation and future plans. However, 3) If you submit to the Immigration Bureau a plan that does not exist to obtain a business management visa permit, business management visa renewal may be rejected.
There are many cases in which foreign intermediaries and immigration lawyers who commit crimes submit false content to the Immigration Bureau. These are crimes. If these are revealed, the visa application will be rejected.
Please do not take the invitation of criminals. If you get on it, you need to talk to the Immigration Bureau about the true facts and make a new plan.
Financial status and business sustainability
If you insolvent..
In addition, if you are in debt, you will need a written evaluation by a specialist, such as a small business diagnostician or certified public accountant, that debt will be resolved within one year.
In this case, there is a possibility that the period of residence may be shortened, such as a 3-year period of residence being granted as one year. Since this situation is a critical business and financial situation, it is necessary to pay for capital and funds through capital increase etc. regardless of renewal of business management visa.
If the company has been in red on a gross profit basis for two consecutive terms or if it has become indebted for two consecutive terms, business continuity is not recognized, and management support such as capital increase by management or third party is not recognized As long as there is no update is not permitted.
Click here for requirements and precautions for business manager visas
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 Pllanner)
Master of Business Administration in Entrepreneurship(Hosei Business School)