“Business Manager” is a status of residence (visa) type that allows foreign nationals to operate or manage trade or business in Japan. In this article, we introduce the requirements and steps to acquiring a business visa in Japan.
First Published: 2021-05-11
Updated: 2024-10-31
Table of Contents
- Reasons to Start a Business in Japan
- Business Visa in Japan
- 1 Year Business Visa in Japan
- 4 Months Business Visa in Japan
- Conditions for Business Visa in Japan to be Relaxed
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Reasons to Start a Business in Japan
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Starting a business in Japan offers numerous advantages due to the country’s unique combination of a strong economy, technological infrastructure, and access to a large consumer base.
Here are some compelling reasons to consider:
Strong Economy and Market Opportunities
Japan is the world’s third-largest economy, providing a robust and stable environment for foreign business ventures. With a high standard of living and consumer spending, Japan is an ideal market for introducing innovative products and services.
Supportive Government Policies
The Japanese government has implemented various initiatives to support foreign entrepreneurs, such as streamlined procedures for visa processing, tax incentives, and deregulation in sectors like technology and renewable energy. Programs like the "J-Startup" initiative offer tailored support for startups, including networking, mentoring, and access to resources.
Access to Advanced Technology and Skilled Workforce
Japan is renowned for its advancements in technology, making it an attractive location for businesses in tech, manufacturing, and research. The skilled Japanese workforce is highly educated, which can be a valuable asset for businesses needing specialized skills.
Strategic Location in Asia
Japan’s geographic location provides strategic access to other major Asian markets and trading partners, including China, South Korea, and the broader Asia-Pacific region. Businesses based in Japan can take advantage of trade agreements and the country’s transportation infrastructure to scale operations across Asia.
Room to Grow
With its aging population, Japan faces gaps in sectors like healthcare, technology-driven solutions for aging, and workforce automation—areas where foreign entrepreneurs can make a substantial impact. Additionally, Japan's focus on innovation offers opportunities for international businesses to bring in fresh perspectives and new technologies, addressing emerging demands and establishing themselves as leaders in a less competitive market segment.
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Business Visa in Japan
The business visa in Japan, officially called “Business Manager (経営・管理; Keiei Kanri)”, is a status of residence (visa) type for foreign nationals intending to start or manage a business in Japan.
The activities permitted under the Business Visa include:
- To start a business in Japan and to engage in management of that business
- To participate in the management of an existing business in Japan
- To manage a business in Japan on behalf of someone, including a corporation
As shown above, the activities one can engage in on a Business Visa are mainly the management and administration of businesses, specifically roles like company presidents, directors, general managers, branch managers, etc.
The period of stay for a Business Visa is 5 years, 3 years, 1 year, 6 months, 4 months or 3 months. In most cases, first time applicants receive 1 year or 4 months. Period of stay after renewals is subject to several factors.
※ ISA, “在留資格「経営・管理」”
1 Year Business Visa in Japan
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The “1 Year Business Visa” is the standard “Business Manager” visa. It differs from the “4 Months Business Visa” (introduced below) in that the company must already be established before applying for the visa.
Requirements for a Business Manager Visa as a business owner include:
- A registered company in Japan
- A secured business office in Japan (virtual offices are not acceptable)
- A paid-up capital of at least 5 million yen, or at least 2 full-time employees
- Applicant’s engagement in the management of the business
Having a Japanese collaborator is usually recommended for entrepreneurs who intend to start a new business in Japan and then obtain a business visa. This is because having a Japanese partner will ease the process of company registration as they are resident in Japan. After the company and business is set-up, then the visa application process can begin.
Requirements for a Business Manager Visa as a business manager or administrator:
- Minimum 3 years experiences in business management or administration
- Compensation equal to or more than a Japanese citizen in a similar position
- Applicant’s engagement in the management of the business
The conditions for renewal of a business visa is “stability and continuity of the business”. Though extension is generally for another 1 year, there are cases where extension of 3 or 5 years is given.
4 Months Business Visa in Japan
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The “4 Months Business Visa” was introduced in April 2015 following the revision of the Immigration Control Act. This visa allows foreign nationals who are planning to start a business and establish a company in Japan to make preparations for the company’s establishment.
Under this visa, foreign nationals can:
- Receive a residence card (在留カード), which is necessary to obtain a residence record and seal certificate, which are necessary to sign real estate contracts or open a bank account in Japan.
- Open a Japanese bank account for capital remittance, etc.
- Secure an office for setting up a company.
- Prepare for company registration.
The future company’s articles of incorporation, business plan and documents proving the applicant’s financial capabilities and background are essential documents when applying for the 4-months business visa. Assistance of a judicial scrivener in Japan can ease the process, especially when it comes to notarising the articles of incorporation.
If the visa application is approved, a Certificate of Eligibility will be issued and the applicant can proceed with visa procedures at the Japan embassy in their home country.
The business visa-holder must complete the company establishment within the 4 month period as this is the main requirement for renewing the visas.
When deciding between a 4 month or 1 year business visa, it is recommended to consult with a professional.
Conditions for Business Visa in Japan to be Relaxed
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On October 30th, 2023, Nikkei Asia reported that the Japanese government is planning to let foreign entrepreneurs live in Japan for 2 years without a business place or investment, allowing them to focus their efforts on growing their business.
Under the current rule, foreign entrepreneurs are required to secure a business place, and if they do not have at least 2 full-time employees, an investment capital of at least 5 million yen in order to qualify for the Business Manager visa. This presents a huge hurdle for startup companies whose businesses may not be profitable at the beginning.
As of the end of June 2023, around 35,000 foreign residents in Japan are holders of the business manager visa. With the relaxing of the conditions, international students may even start a business while still in studies.
At the time of writing this article, revision of the conditions have yet to be announced. It is expected that the revision will be made in 2024 or 2025.
※ Nikkei Asia, “Japan to ease residency rules for foreigners starting a business” [2023.10.30]
To Close
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The “Business Manager (経営・管理)” status of residence (visa) allows foreign entrepreneurs to start and manage a business in Japan. As of 2015, there is the “4 Months Business Manager Visa” that allows foreign entrepreneurs to stay in Japan to make preparations to establish a company, and “upgrade” to the “1 Year Business Manager Visa”.
Along with the news of the future relaxing of conditions to attain the visa, it is clear that Japan greatly supports the establishment of new businesses by foreign nationals.
