An administrative scrivener explains how to change from a work visa to a business manager visa!

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1. From a work visa to a business manager visa -FAQs

In this section, we will summarize questions from those who aim to change from a work visa to a business manager visa.

For the general requirements for a business manager visa, please refer to:
“Business Manager Visa Requirements (1): Eligibility for Status of Residence” and
“Business Manager Visa Requirements (2): Ministerial Ordinance on Criteria for Landing Permission”

(1) Do I need an office to get a business manager visa?

In order to obtain a business manager visa, it is necessary to secure an office.
Such office can be a rental property, but must need to meet requirements for business manager visas to obtain a business manager visa.

So, what are the requirements concerning an office?
The following contents are the main points to note about an office.
・Spaces rented by monthly basis do not meet the requirements.
・Stalls, etc. which can be easily disposed of do not meet the requirements.
・The purpose of use must be business such as a workplace, commercial store, office, etc.
・The name of the lessee in the lease contract must be the name of the business owner (in case of a company, the name of the company).
・In case of using a residence as an office as well, the consent of the lender is required as well as a room specially dedicated to the business use.

Regarding the requirements concerning the office, please refer to “An administrative scrivener explains the office requirements for permission for a business manager visa!”

(2) How to prepare capital

In order to obtain a business manager visa, one of the following requirements must be met:

・ To have 2 or more full-time employees residing in Japan;
・ The total amount of capital or investment is 5 million yen or more; or
・ To be recognized as having a scale equivalent to the above.

It is rather rare to hire employees from the start-up of a company due to financial reasons.
Therefore, it is common to aim for fulfillment of the requirement of “total amount of capital or investment is 5 million yen or more.”

However, even if you have 5 million yen in cash, it’s not the end of the story.
From the perspective of preventing money laundering and show money, the source of 5 million yen will also be examined by the immigration bureau.

Accordingly, you need to clarify how you have prepared the capital, such as by working and saving your income.

In relation to the above, we are sometimes asked if it is okay to borrow money to prepare the capital. Actually, it is okay to use 5 million yen you borrowed.
Having said that, the repayment plan will also be examined to check if a stable livelihood foundation can be maintained, so it is important to make a repayment plan that will not affect the livelihood balance.

For details on the requirements for the capital, please refer to “Concept of capital of 5 million yen for business manager visa.”

(3) Is it necessary to obtain a license before obtaining a business manager visa?

As a general rule, you need to obtain the necessary licenses to carry out your business before applying for a business manager visa.
If you cannot obtain necessary licenses in advance due to some circumstances, you need to be careful.

In such case, after obtaining a business manager visa, it is necessary to make a pledge to obtain licenses necessary for business execution. And at the time of applying for a business manager visa, you must explain to the immigration bureau why the license cannot be obtained.

Please note that you must obtain licenses by the time of application for permission for a business manager visa, in principle.

(4) Can a sole proprietor obtain a business manager visa?

Many people may consider the incorporation of a company is an essential requirement for obtaining a business manager visa. In fact, it is not, and sole proprietors can obtain a business manager visa.

However, for sole proprietors, since there is no concept of capital, it is necessary to show that the total investment amount is 5 million yen or more in order to meet the requirements for business manager visas.

Because of such demonstration of the investment amount, it is more difficult for sole proprietors to obtain a business manager visa, comparing to company owners.

(5) Do I need to obtain a business manager visa if I am promoted to an officer?

If a person with a work visa is promoted to a position of an executive member such as a director, is it necessary to change to a business manager visa?

In fact, it is necessary to change to a business manager visa.
If you have been working for a company and have been promoted to a director at the same company, there is no problem as long as you change to a business manager visa before expiration of the period of stay of your working visa.
It is, therefore, not necessary to change to a business manager visa immediately after the promotion.

For comparison, if you become a director of another company, you must immediately change from a work visa to a business manager visa.

Please be careful about this point as many people misunderstood.

(6) How to choose an administrative scrivener

When a foreigner wants to start a business, the first thing that occur is the visa issue.
If you search for information on the internet regarding how to change from a work visa to a business manager visa, you will find a wide variety of websites of administrative scrivener offices.
Or, you may know some administrative scriveners already as they have helped with your work visa.

Then, which administrative scrivener office should be chosen?
Based on the opinions of our previous clients, we consider the following points to be particularly important:

・Whether the administrative scrivener has sufficient experience and achievements in business manager visas;
・Whether the administrative scrivener office specializes in international matters;
・Whether the roles until obtaining a business manager visa (whether the administrative scrivener will go through procedures on behalf of you or you have to do it on your own) are clear; and
・The scope of work with the estimated amount.

The following is a brief introduction of our company.

・We are an administrative scrivener corporation that receives nearly 3,000 consultations a year, including ones about business manager visas.
・We are an administrative scrivener corporation specializing in international matters such as the visa application and naturalization application.
・Since we put importance on minimizing our clients’ burden so they can concentrate on preparation for opening, we will fully explain our services when accepting a case.
・We list up all services in our quotation.
・We provide our services in English, Chinese, and Vietnamese, so you can consult in your native language.
We provide free consultation services for those who are aiming to obtain a business manager visa, so please feel free to contact us.

(7) Do I need a consulting tax accountant?

If you incorporate a company and obtain a business manager visa, you will be obliged to report the financial results once a year.

You can prepare financial statements for your company on your own, but we recommend that you entrust to a tax accountant from the following reasons.

・When a problem is revealed in a tax investigation later, additional tax payments may occur unexpectedly, depending on how you handle such investigation.
・It is better to settle accounts while consulting with a tax accountant about future financing.
・There will be no need to pay any extra tax by accurately calculating corporate taxes, etc.
・It is a waste of time to prepare tax returns that are not related to the business.

We recommend you to meet many tax accountants to find one you feel compatible with for business success after you obtain a business manager visa.
For our clients, we can introduce a tax accountant free of charge, so if you are interested, please let us know.

(8) Do I need to join a social insurance?

As a general rule, the following business entities are obliged to join social insurance.
Please note that this is not “voluntary,” but “obligatory.”

・Companies and juridical persons such as national and local governments, etc. with 1 or more staff including the business owner;
・A private office with 5 or more full-time employees, except for some industries.

If you are a company, you need to join social insurance in principle, and if you are a sole proprietor, you need to join social insurance when you have 5 employees or more.

From the announcement by the Immigration Services Agency, you can see that the enrollment in social insurance is given considerable weight not only when obtaining a business manager visa but also when extending the visa.

Many people may feel social insurance premiums are too much burden when they newly incorporate a company.
However, as mentioned above, it is a legal obligation.
If you do not join social insurance, such fact will be a negative factor in the examination related to the business manager visa; therefore, if you wish to obtain a business manager visa and are obliged to join social insurance, please be sure to take necessary procedure to join social insurance.

2. From a work visa to a business manager visa -common problems

In this article, we will list common issues occurring when changing from a work visa to a business manager visa.
Please utilize the following information.

(1) It’s been a while after I quit my job.

There are things that you have to be careful when applying for the change from a work visa to a business manager visa.
That is how much time has passed since you quit your job.
If a considerable period of time has passed since you quit your job, you will fall under the grounds for visa revocation.

In order not to fall under the visa revocation grounds as described above, it is necessary to carefully prepare for application for the change from a work visa to a business manager visa.
If the preparation for a business manager visa takes a very long time, it is important to explain in details what kind of activities you were doing for such a long time since you had quit your job and prove them.

(2) I started a business before getting a business manager visa

Please note that if you start a business before you receive a business manager visa, your work activities may be recognized as illegal.
It is because if you engage in activities other than that permitted under your status of residence and such activities are the management of business involving income or the work activities by which you receive remuneration, you may be accused of committing the crime of engaging in an activity other than that permitted under the status of residence previously granted under the Immigration Act.

Then, when can you say you have received a business manager visa?
It is not when you receive the permission postcard. It is when you receive the residence card for your business manager visa.

If you are just expanding your suppliers and sales channels, or concluding contracts with business partners while proceeding with the application for the change from a work visa to a business manager visa, these activities are not considered as illegal work activities as you are not paid for them.

When changing from a work visa to a business manager visa, you need to understand when you can start work activities with your business manager visa and what activities are allowed during your visa application.

(3) I am planning to get a business manager visa with a type of work for which my experience is no use at all.

For example, you have worked for a trading company with a work visa, and now you want to establish a new trading company and obtain a business manager visa. In such case, the immigration will likely to have positive impression.

On the other hand, you need to be careful if you are planning to start a business that is not related to your experience with a business manager visa, such as starting a restaurant while you had been engaged in the trading business.
This is because the stability of management and the feasibility of business will possibly be suspected.

Although the law does not require to conduct the same type of business as your previous occupation, if you are aiming for a business manager visa to start a business which is not related to your experience, it is necessary to carefully proceed with the demonstration from the above perspectives.

3. Summary of how to change from a work visa to a business manager visa

In this article, we have seen how to change from a work visa to a business manager visa.
How was it?

Among many visas, business manager visas require cross-cutting knowledge.
Many people, therefore, may have impression that acquirement of a business manager visa is difficult.

Regardless of such common impression, you can definitely get the visa if you check all points necessary for permission.

We, Daiichi-Sogo Group, actively support foreign entrepreneurs.
If you would like to change from a work visa to a business manager visa, please feel free to contact us.