Is it necessary to have 5 million yen in capital when applying for a business manager visa? Explained in depth!

If a foreigner establishes a company in Japan and conducts the company business, it is necessary for them to obtain a business manager visa. However, did you know that a minimum of 5 million yen is required when applying for a business manager visa?

In this article, we will explain the points to be aware of when applying for a business manager visa.

Is 5,000,000 yen required to obtain a business manager visa?

Isn't the capital the most bottleneck in applying for and obtaining a business manager visa? Many people may have heard that 5,000,000 yen is required when applying for a visa.

First of all, let us go in depth of whether “5 million yen in capital” is really necessary to obtain a business manager visa.

Capital of 5 million yen by foreigners/foreign corporations is no longer a requirement

Prior to April 1, 2015, foreign corporations or foreigners were required to have capital of 5 million yen in order to conduct business activities in Japan. However, due to the revision of the Immigration Control Law in 2014, when foreigners manage a business in a Japanese company, the capital requirements have been relaxed.

Therefore, from April 1, 2015, a foreign corporation or a foreigner who conducts business management activities or management activities can obtain a business manager visa without necessarily having a capital of 5 million yen.

Nevertheless, and realistically, it is still desirable to prepare capital of 5 million yen

As mentioned above, 5 million yen in capital is no longer required to apply for and obtain a business manager visa. However, other conditions must apply.

<Conditions when capital is less than 5 million yen>

In this way, it is possible to obtain a business manager visa even if the capital is less than 5 million yen but the strict requirements are met. However, it would be unrealistic to hire two full-time employees at the beginning of the business launch, and it would be difficult to meet the conditions.

As a result, it can be said that it is easier and smoother to apply the visa with a capital of 5 million yen.

The source of the capital (5 million yen) will be questioned when obtaining a business manager visa.

When you apply for a business manager visa, you will be asked how you collected the capital of 5 million yen.

It is difficult to obtain a business manager visa if the source of the capital cannot be proven.

When presenting capital for obtaining a business manager visa, you must also be able to explain how the capital was collected. It can be said that it is difficult to obtain a business manager visa without proving the source of the funds in order to prevent money laundering.

There are various patterns other than working in a legal way and saving yourself, borrowing from a financial institution, etc. It is necessary to prepare materials and documents in order to have the immigration examination recognize the source of the capital of 5 million yen.

For example, you may submit documents such as:

Do you research if you are bringing in or remitting capital from overseas

When sending capital of 5 million yen from overseas to Japan or bringing it in yourself, there are some things you need to know in advance.

First of all, if you bring cash of 1 million yen or more into Japan, you must declare it at customs. You will need proof of your declaration.

Also, there are restrictions on the amount of RMB you can bring out of China, so be careful especially if you are a Chinese citizen.

In addition, depending on the exchange rate at the time of remittance, even if you remit from overseas, it may not be less than 5 million yen. Since the annual limit for overseas remittance is $50,000, you must be very careful not to fall short of the necessary funds.

As mentioned above, there are cases where unexpected violation of laws and troubles occur, so be sure to check the rules of each country by yourself.

It is also possible to apply for a loan of 5 million yen?

When applying for and obtaining a business manager visa, you may prepare a capital of 5,000,000 yen with borrowed money. However, there are some important points to be considered during the review process:

There is a contract when you received a loan, or you can prove the fact that you borrowed money as a matter of fact

・Have a repayment plan that will allow you to continue to live without monetary problems in the future

・You must be able to prove the source of the funds from which you borrowed the capital of 5 million yen.

(*Because there is a possibility that you will be asked for the basis of the funds of the lender)

Keep these points in mind as you do your preparations.

Points to note when applying for a business manager visa

When applying for a business manager visa, there are other points that must be taken into account other than funds. Let's take a closer look below.

A valid reason is required for two or more people in one company to obtain a business manager visa.

If two or more people in one company want to obtain a business manager visa, the relevant facts and reasons must be recognized. For example, you need to be prepared to prove the following:

Consider the amount of work (volume of work), the scale of the business, the amount and scale of each foreigner's work and required management must be deemed as appropriate.

・The business content, scope of management , etc. - the work load that each foreigner will be responsible for must be clearly stated.

・The amount (compensation) paid to each foreigner as consideration for work, and if the work is of a reasonable amount.

If the above conditions are met, there is a possibility that two or more foreigners in one company will be permitted to obtain a business manager visa. However, it may take more time to prepare documents and explain than to apply for a business manager visa, so consider seeking the services of an immigration lawyer or other specialists.

Can I get a business manager visa if I am invited to a friend's company?

It is possible to apply for and obtain a business manager visa when participating in a company of friends, acquaintances, family members, etc. However, please be aware that the application screening process tends to be more rigorous. At the time of application, it will be determined whether the participating person can perform the following duties.

・Responsible for business execution

・Participate in making important business decisions or company decisions

In other words, it is necessary to be involved in actual important business, not just in the name of "representative director".

Practical experience in company management is not required, but it may be judged that an inexperienced person lacks credibility when performing important tasks such as the above.

International students - beware of overworking when gathering capital funds!

There are cases in which a person's status of residence is not granted due to illegal overwork despite having prepared a capital of 5 million yen. Especially for international students, they should pay attention to their working hours.

Foreigners on student visas are limited to working 28 hours or less per week. This is stipulated in the Immigration Control Act, and breaking the rules is illegal.

If you raise funds of 5 million yen due to overwork, it will be judged as funds saved due to illegal immigration law, and it will be impossible to obtain a visa.

Also, it should be noted that international students are basically not allowed to work. If you want to work as an international student and build funds, you should obtain a “permission to engage in activity other than that permitted under the status of residence previously granted” before starting a part-time job.

Summary

As of August 2022, 5 million yen in capital is not required to apply for a business manager visa. However, if the capital is less than 5 million yen, it is necessary to employ two or more full-time staff, which is not realistic for starting a new business in Japan. Therefore, it is easier to prepare 5 million yen in capital.

Proof of origin is required for funds. When borrowing from an acquaintance, you may be asked how the lender formed the funds, so make careful preparations.

In addition, there are many documents that need to be prepared in order to obtain a business manager visa. Samurai Immigration Law Firm offers support services for foreigners who want to start a business in Japan. Please feel free to contact us for a free consultation.