Business Administration visa → Permanent Resident visa approval

Current holders of a Business Administration Visa:

 Resident in Japan for at least 10 years (must have worked for at least 5 years)

How many years are required when changing from a Business Management Visa to Permanent Residency?

To obtain "Permanent Resident" status, which is the right to reside indefinity in Japan, the applicant must have been continuously living in Japan for at least 10 years. Of those 10 years, at least 5 years must have been spent in Japan with a status allowing full-time work.

For example, if a student from a foreign country enters Japan on a student visa, they must, after graduating from a university, vocational school, or language school, find a job and work in Japan for a minimum of 5 years before becoming eligible for Permanent Residency.

Work experience can be any work-related status of residence, such as "Engineer/Specialist in Humanities/International Services," "Specified skilled worker," "Intra-company Transfer," "Business Administration," etc.

To reiterate, you must have lived in Japan for 10 years and of those 10 years worked with a work visa for at least 5 years before becoming eligible for Permanent Residency. For example, Three years of "Engineer/Specialist in Humanities/International Services" and two years of "Business Administration," are acceptable because it adds up to a total of 5 years.　Working as a part-time worker does not count, only the years that you have worked full-time. Even if you have changed jobs, that is fine because you can combine your work experience at your previous and current companies.

 However, when you wish to apply for permanent residence with a business administration visa, in that case, the risk of your application being denied increases if you have started a business in the last year, as it is still considered unstable. We recommend applying for permanent residence at least two years after obtaining a business administration visa.

In addition, foreign business owners must join social insurance for their own companies. This means the company must be covered by employee pension and health insurance. Social insurance is mandatory even if there are no employees and the company has only you as the president. Please note that this differs from those who apply for permanent residence on a regular work visa.

Finally, we recommend that the manager's salary be set at a minimum of 3 million yen annually. This is because this is the minimum income requirement to qualify for permanent residency.

Business Administration → Permanent Residence visa

The most common residence status among foreigners starting a business in Japan is "Business Administration.” Although there is an overlap with the requirements for Engineer/Specialist in Humanities/International Services, there will also be requirements unique to management. In this article, I would like to explain the criteria for being granted permanent residence from the " Business Administration " category.

Requirement 1: Good conduct.

The explanation is broken up into two parts, a and b below.

(The requirements are the same for an Engineer/Specialist in Humanities/International Services work visa)

a: Have never been sentenced to penal labor, imprisonment, or a fine for violating the laws and regulations of Japan.

This is precisely what the title says. The bottom line is that the person must not have a criminal record. On the other hand, if a person has committed a crime, will they be denied permanent residence? The answer is that they may be granted permission after a specific period of time has passed. The particular period is 10 years after release from prison (or 5 years after the expiration of a suspended sentence). For those who have been fined, detained, or penalized, 5 years after payment it is no longer considered to have violated Japanese law and will not be considered a crime when reviewing your record. You also need to be careful of minor violations. Minor violations are not punishable by penal labor, imprisonment, fines, detention, or penalties. However, committing multiple minor offenses will put you in the category of “those who regularly engage in illegal activities/ those who repeatedly disturb public morals.” These crimes include driving violations (cellphone use, parking violation) and when a family member on a dependent visa works when they are not permitted to, or if they do have permission to work, they consistently work over the weekly 28-hour limit. So, please be aware of your everyday life in Japan. 

Requirement 2: Have sufficient assets or skills to earn an independent living.

This is called the independent livelihood requirement, and there are similar requirements to the Engineer/Specialist in Humanities/International Services visa. The shared requirement is to have a stable income and live independently. In the case of the Business Administration visa, you must be able to run a business and, as a result, must not be a burden on the public by receiving public assistance.

The stability and continuity of the company are essential especially when considering the company`s future. If the company is continuously in the red, or even if the finances are okay, if there is a large amount of debt and is over its liabilities; likely, it will not meet this independent livelihood requirement. It is vital to ensure that the president`s annual income has been at least 3 million yen over the past three years.

As an additional note, suppose the applicant is a homemaker and not working. In that case, it may be possible to apply for permanent residence even if the applicant is unemployed, as long as the applicant’s spouse meets the independent livelihood requirement. The independent livelihood requirement is not necessarily something the applicant must have.

The significant points to note are the following:

a: Starting your own business coming from a company employee

Suppose you were previously a company employee and started your own business. In that case, there is a high risk of rejection if you have been a business owner for only one year. It is often judged that there is no established stability and your company is still a liability. You should obtain a Business Administration visa before starting your business and apply for permanent residence after two years of profitability (with no loans).

b: Number of dependents

The amount of your annual income and the number of your dependents are essential. In other words, how many dependents do you have, and how are they supported? Even if your income is high, you will have less money if you have many dependents. If you have many dependents, your income tax and inhabitant tax will be lower, meaning that you are not contributing to Japan in terms of taxes. If the number of dependents increases by one, the annual income must be considered plus 700,000 yen. If you wish to apply for permanent residence on your own, a yearly income of 3,000,000 yen is required. For example, if you support your wife, an annual income of at least 3,700,000 yen is desirable. In addition, if you have one child to support, it would be desirable to have a yearly income of at least 1.4 million yen for the wife plus the child, which totals 4.4 million yen.

Requirement 3: Permanent residence is deemed in Japan’s best interest.

This is called the national interest compatibility requirement, which means that the foreign national applying for permanent residence must meet the interests of Japan. Specifically, the following:

a: As a general rule, the applicant must have continuously resided in Japan for at least 10 years, of which at least 5 years must have been spent in Japan with employment status.

This is called the requirement for continuous residence in Japan, which requires that you have lived in Japan for at least 10 years and have worked for at least the last 5 years with a work-related status, in this case, a status of residence of technology, humanities, or international business. It is fine even if you have changed jobs. Still, even if you are working part-time, it does not count as work experience.

“Continued" means that you continue to reside in Japan without interruption in your residence status which means you must be careful if you leave Japan mid-to-long term. If you leave Japan for more than 100 days in a year or more than three months at a time, there is a high possibility that you will not be considered "continuing" and will not have a basis for living in Japan. If you have to leave Japan for a year or once for any reason (such as childbirth, business trip, etc.) you need to explain the reasons for your departure reasonably and persuasively. In addition, you should also explain your asset situation in Japan (whether or not you have real estate in Japan) and your family situation (spouse, children attending school in Japan, etc.). Suppose there is concrete evidence that there is a high probability that the applicant will continue to live in Japan. In that case, the application may be approved, although it will be a comprehensive judgment based on all aspects.

The most recent five years of residence in Japan with a work status means that you have continued to engage in activities that meet the requirements of your status of residence. For example, if you started a business and managed it for three years, had to stop for one year due to not having enough funds, or wanting to start a new business etc., and then started up operations again for two years, you would not be able to meet the requirement because you have not continued to engage in activities that meet your status of residence due to the one year of non-activity. In such a case, the requirement will be fulfilled after 5 years of consecutive management of your company.

b: Fulfillment of public obligations such as tax obligations.

As previously mentioned in the article referring to engineer/specialist in humanities/international services, the tax requirements are almost the same for business administration. However, there are different aspects that need to be taken care of as a manager. First would be taxes as a company (corporate tax, business tax, consumption tax, corporate prefectural and municipal inhabitant tax, etc.) Second is taxes to be taken care of as an individual (resident tax, income tax, etc.). Also, your company must be covered by various types of insurance. It would be best to be covered by, or registered for, employees' pensions, health insurance, unemployment insurance, labor insurance, etc. The most crucial factor in the examination for permanent residence will be whether or not you are making payments on time.

What if payments are made late?

If you have not paid on time, you should accumulate a record of paying on time for the last year before applying for permanent residence. Then, you can submit a statement explaining why you have not been paying on time, your remorse, and how you have taken countermeasures (e.g., using an automatic deduction system, etc.).

In addition, the company you manage may not be covered (enrolled) in various types of insurance. If you are a company owner, you are obligated to join even if you do not employ any employees. If you are a sole owner, you are obligated to participate if you employ five or more full-time employees. If you need to join but have yet to do so, please apply as soon as possible. Then, please save your payment records for one year. Although it is possible to make payments retroactively, you are not considered to have paid on time because you did not pay on time in the first place. Therefore, if you have a track record of on-time payments and submit a statement of reasons for not subscribing, remorse, and a track record, your application is likely to be approved.

c: The longest period of stay for the status of residence currently held.
This means that although "5 years" is the maximum period of stay under the law, if you apply to renew your visa and get a “3-year” or “1-year” visa after you have held the most prolonged possible visa for your category, then you cannot apply for Permanent Residency. For example, if you are currently holding a 5-year visa and renew your visa and receive a 3-year visa, you cannot apply for permanent residency until you receive a 5-year visa again.

d: Not likely to be harmful from the standpoint of public health

This means chronic addicts of narcotics, marijuana, stimulants, etc.

Other infectious disease patients include class I contagious diseases such as Ebola, Crimean-Congo hemorrhagic fever, pox, plague, polio, tuberculosis, diphtheria, severe acute respiratory syndrome (SARS), etc. Patients with designated and new infectious diseases are treated as potentially harmful from the public health standpoint. As proof of not being a hazard, you may wish to attach a medical certificate.

f: It is recognized that there is no risk of committing an act that is significantly detrimental to the public interest.

This is the same as the good conduct requirement and is also examined as conformity with the national interest requirement. I already stated this above, but it’s imperative, so I would like to reiterate it here.

Specifically, I and II are below.

I: Have never been sentenced to penal labor, imprisonment, or a fine for violating the laws and regulations of Japan.

II: Persons who have not repeatedly committed illegal acts or acts that disturb public morals in their daily or social lives.

Requirement 4: A guarantor must be present.

When applying for a permanent residence permit, a "guarantor" must be provided. A guarantor is defined as a person or organization that provides a guarantee. The guarantor must be a Japanese national or, a foreign national who is a permanent resident with a stable income and pays taxes. The guarantor's annual income should be at least 3 million yen. The guarantor doesn’t necessarily have to be enrolled in social insurance but must be in good standing with their tax payments. Many foreigners staying in Japan under the status of residence of "Engineer/Specialist in Humanities/International Services" ask the president of their company, their boss, or a teacher from when they were a student to act as their guarantor. If you can`t find someone to take on the responsibility of a guarantor, the person you’re asking may need to understand the meaning in the first place. In that case, we at Samurai Immigration Law will ensure that you know what the guarantor's responsibilities are.

If you are still looking for a guarantor, some companies offer a guarantor service but, you need to be careful. As a precaution check the fee structure of the company and whether the company's actual business practices are transparent, and whether it has a proven track record. If the company is not straightforward or difficult to understand, it is better to avoid them. You may be introduced to someone who tries to scam you, such as never providing any details about the guarantor or trying to introduce you to a guarantor who doesn’t exist. It’s best if the company has a track record and if their main business is administrative scriveners (行政書士) and they specialize in immigration work.

Guarantor responsibilities

The contents of the guarantor's responsibility are three things: accommodation expenses, expenses to return home, and compliance with laws and regulations, they are different from the contents of a cosigner, which has more responsibilities than a guarantor. Economic responsibility is not expected of the guarantor. A guarantor is morally responsible under the immigration control law and does not assume responsibility legally. Even if a problem arises, the Immigration Bureau will not say, "You must pay for their stay and make them return home!” Even if the foreigner commits a crime, the Immigration Bureau will not say, "Why didn't you make them comply with the law?” Again, it is a moral responsibility, not a legal one. In other words, even if the person applying for permanent residence violates the law, the guarantor will not be penalized or held responsible. However, suppose a problem should occur with the foreigner, and they fail to fulfill their moral responsibility as a guarantor (such as knowingly allowing a criminal into Japan, etc.) In that case, they will not be qualified to be a guarantor for other foreign nationals applying for permanent residence.

List of Required Documents

 Main Documents

＊For those who are company employees

Business Management Visa

Reference materials regarding guarantor (Japanese citizen or permanent resident)

源泉徴収票　(Certificate of Withholding Tax for the most recent one year)

If you have a family member with a "Family Visa" status

(For Koreans)

(For Chinese)

(For other countries)
One of the following documents that can prove your status

Documents that would be advantageous if they were available