Business manager visa japan: Health Insurance Obligations, Procedures & Renewal Impact

For foreign entrepreneurs who establish a company in Japan and obtain a Business Manager Visa to run their business, understanding and properly enrolling in Japan’s social insurance system is a management priority as vital as the business plan itself. Regardless of nationality, every corporation conducting business in Japan is legally required to join the social insurance system.

Fulfilling this obligation is more than a matter of compliance; it directly impacts the continuity of business activities in Japan and, most importantly, the possibility of renewing the Business Manager Visa. In recent years, the Immigration Services Agency has increasingly scrutinized whether public obligations—such as paying taxes and social insurance premiums—are being met when assessing visa renewals.

Therefore, foreign business owners should aim not merely to obtain a visa once but to build a track record of clean, law-abiding business operations and establish a stable, sustainable residence status. Proper enrollment in social insurance and the sincere payment of contributions form the foundation for this goal. This record is also a critical evaluation factor when pursuing more secure residence statuses in the future, such as permanent residency.

The key points of this article are as follows:

✓　Social Insurance Enrollment is a Legal Obligation After Company Formation: Under Japanese law, corporations such as KK (Kabushiki Kaisha) or GK (Godo Kaisha) are required to enroll in social insurance (health insurance and employee pension insurance) even if the company has only one director. This system differs from the National Health Insurance for sole proprietors. ✓　Direct Impact on Visa Renewal: Proper enrollment and payment of social insurance premiums are among the most critical factors in the review process for Business Manager Visa renewals. Delinquency in payments can directly lead to visa renewal denial. ✓　Health Insurance and Employee Pension Are Mandatory as a Set: Corporate social insurance in Japan always includes both health insurance and employee pension insurance. It is not possible to enroll in only one of them. ✓　Premiums Are Based on Executive Compensation: Social insurance premiums are calculated based on the director’s remuneration, not the company’s profits. The premiums are split equally between the company and the director. Setting the remuneration requires careful consideration of the company’s cash flow, the director’s living expenses, and visa renewal requirements. ✓　Application Must Be Filed Within Five Days of Company Registration: Within five days after completing the company registration, the new social insurance application and employee enrollment notification must be submitted to the local pension office. Meeting this deadline is essential. ✓　 Consulting Professionals is Recommended: Given the complexity of social insurance procedures, it is advisable to consult specialists such as gyoseishoshi (administrative scriveners) or shakai hoken romushi (social insurance labor consultants) to ensure accurate and timely processing and to reduce the risk of visa renewal issues.

This article provides a professional overview of the complex social insurance system, including health insurance, that foreign business managers face after obtaining a Business Manager Visa in Japan. It explains the legal basis for enrollment obligations, detailed procedures, premium calculation methods, and, most importantly, the impact on visa renewal.

1.Business Manager Visa Japan: Health Insurance Enrollment is a Legal Obligation for Company Presidents

Many foreign business owners often ask the initial question: “Do I have to enroll in health insurance even if I’m the only person in my company?” The answer is clear: Yes, it is a legal obligation.

Under Japanese law, corporations such as Kabushiki Kaisha (KK) and Godo Kaisha (GK) are classified as “mandatory social insurance entities,” even if there is only one president in the company. This is because the president is treated as an employee of the corporation.

The most critical point here is that the required enrollment is in the “corporate social insurance” (which includes both health insurance and employee pension insurance). This is completely different from the National Health Insurance system that applies to sole proprietors or unemployed individuals. Once you are the representative of a corporation, you generally cannot choose to remain in the National Health Insurance system.

This common misunderstanding stems from confusing one’s personal status with that of the corporation. The moment a company is established, a new legal entity—the corporation—is born, separate from the individual business owner. The social insurance obligation applies to the corporation. The president who receives remuneration from the company is considered, under Japan’s social insurance system, an “insured employee” of the company. Therefore, the company, as the employer, is required to enroll the president, as the employee, in the social insurance system.

The National Health Insurance system is designed for those who cannot join employee insurance, such as sole proprietors and freelancers. Once a corporation is established, the president automatically becomes subject to employee insurance and cannot remain under National Health Insurance.

Additionally, Japan’s corporate social insurance system always combines health insurance and employee pension insurance. It is not possible to enroll in only one of them. Presidents holding a Business Manager Visa in Japan must be enrolled in both.

2.Business Manager Visa Japan: The Crucial Link Between Visa Renewal and Social Insurance

As mentioned earlier, enrollment in social insurance is a legal obligation. But why is this particularly important for foreign nationals holding a Business Manager Visa in Japan? The reason is that, during visa renewal reviews, an applicant’s social insurance enrollment and payment status are considered crucial, objective indicators of sound business operations.

The Immigration Services Agency requires the submission of the “Annual Report of Withholding Tax on Employment Income” when applying for a Business Manager Visa renewal. This document clearly shows total salaries paid by the company, as well as the amounts withheld for health insurance and employee pension premiums, making the social insurance enrollment status immediately evident. Additionally, the visa application form itself includes a section to report the company’s employment insurance office number, which is part of Japan’s labor insurance system.

The official guidelines published by the Immigration Services Agency explicitly state that compliance with labor and social insurance laws is a requirement for visa renewal. Failure to comply with these laws is considered a “negative factor” in the renewal evaluation, which in practice means a very high risk of visa renewal denial.

This strict review process has become particularly stringent in recent years. One major reason is that the examination of permanent residency applications has increasingly focused on social insurance history, and this trend has spread to other visa categories, including the Business Manager Visa.

For immigration officers, social insurance enrollment and payment status are not just compliance checkboxes—they are essential indicators used to assess the stability, continuity, and legal integrity of the business and its management.

From the examiner’s perspective, failure to enroll in or pay social insurance strongly suggests one of the following:

• Business Instability: The company may lack the financial capacity to fulfill its basic public obligations.
• Lack of Business Substance: There is a high possibility the company is merely a paper company without real operations.
• Lack of Legal Compliance Awareness: The business owner may be intentionally disregarding Japanese law.

Each of these points presents serious concerns that are sufficient grounds for visa renewal denial. Conversely, the fact that social insurance premiums are paid on time every month becomes one of the strongest and most objective pieces of evidence—alongside bank transaction records and tax filings—that the company is legitimate, is operating stably, and that the business owner respects Japanese regulations.

Paying social insurance premiums is not just a financial obligation; it is a concrete demonstration of the company’s credibility to government authorities.

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3.Business Manager Visa Japan: Overview of Mandatory Public Insurance Systems

Public insurance systems related to companies in Japan are broadly divided into two categories: “social insurance” and “labor insurance.” For presidents who establish a company under a Business Manager Visa, the required insurance enrollment depends on whether the company employs additional staff.

3-1. Social Insurance (Health Insurance, Employee Pension, and Nursing Care Insurance)

This is the most fundamental insurance system for company presidents.

• Health Insurance: Medical insurance that covers treatment costs for illnesses and injuries unrelated to work.
• Employee Pension Insurance: A public pension system that provides financial support for life after retirement.
• Nursing Care Insurance: Required for individuals aged 40 to 64, this insurance covers future long-term care service costs when needed.

These insurances are bundled together, and even if the company has only one president, enrollment is mandatory for corporations. The application procedures are handled mainly at the pension office with jurisdiction over the company’s registered address.

3-2. Labor Insurance (Workers’ Compensation Insurance and Employment Insurance)

This category of insurance becomes mandatory when a company hires even one employee. For a company with only a single president, enrollment is not required.

• Workers’ Compensation Insurance (Rousai Hoken): Insurance that provides coverage if an employee is injured, becomes ill, or dies due to work-related activities or commuting. This also applies to part-time and temporary workers. The application is handled at the Labor Standards Inspection Office.
• Employment Insurance: Insurance that supports employees in case of unemployment and provides re-employment assistance. Enrollment is required when hiring employees who meet certain conditions, such as working 20 hours or more per week. The application is handled at the Public Employment Security Office (Hello Work).

The relationships among these insurances are summarized in the table below.

Type of Insurance	One-Person Company (President Only)	Company Employing Staff
Social Insurance
Health Insurance	Required	Required
Employee Pension Insurance	Required	Required
Nursing Care Insurance (Ages 40–64)	Required	Required
Labor Insurance
Workers’ Compensation Insurance	Not Applicable	Required
Employment Insurance	Not Applicable	Required (If Applicable Employees Are Present)

As shown in this table, regardless of the company structure, enrollment in “Health Insurance” and “Employee Pension Insurance” is an absolute obligation for presidents holding a Business Manager Visa.

4.Key Comparison: “Company Health Insurance” vs. “National Health Insurance”

One of the most common sources of confusion for foreign business owners is the difference between “Company Health Insurance (Social Insurance)” and “National Health Insurance.” As mentioned earlier, company presidents who establish a corporation are required to enroll in company health insurance. It is essential to clearly understand why National Health Insurance is not acceptable and what the differences are between the two systems to fully grasp the reasoning behind this requirement.

Company health insurance is also known as “employee insurance” and is a system for employees (including the company president) who are employed by a company. In contrast, National Health Insurance is intended for self-employed individuals, freelancers, retirees, and local residents who are not covered by other public medical insurance systems.

The main differences between the two are summarized in the table below.

Comparison Items	Company Health Insurance (Social Insurance)	National Health Insurance
Eligible Participants	Company Employees (Including Directors and President)	自営業者、無職の方など、被用者保険に加入していない方
Premium Payment Responsibility	Premiums are split 50/50 between the company and the individual (shared by employer and employee)	全額を本人が負担
Treatment of Dependent Family Members	Covered. Eligible family members (such as spouse and children) can be enrolled without additional premiums	なし。家族一人ひとりが被保険者となり、人数分の保険料が発生
Sickness and Injury Allowance	Covered. Provides partial income compensation if unable to work due to non-work-related illness or injury	原則としてなし（一部自治体で独自の制度がある場合も）
Maternity Allowance	Covered. Provides partial income compensation during maternity leave when unable to work	なし

As shown in this table, company health insurance offers many advantages compared to National Health Insurance.

• Reduced Financial Burden: Since half of the insurance premium is paid by the company as a business expense, the individual’s out-of-pocket cost is significantly reduced.
• Family Coverage: When a spouse or children meet certain income requirements, the company health insurance allows them to be covered without additional premiums under the dependent system. This is a major benefit. In contrast, with National Health Insurance, premiums increase as the number of family members increases.
• Comprehensive Income Protection: The “Sickness and Injury Allowance,” which provides partial salary compensation in case of prolonged absence due to illness or injury, is a critical safety net for protecting the business owner’s livelihood. This generous protection is unique to employee insurance and is not available under National Health Insurance.

In this way, company health insurance is not only a legal obligation but also superior in terms of coverage. It is important to view it not as a “forced enrollment” but as a vital system that protects the lives of both the business owner and their family.

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5.[Practical Guide] Complete Step-by-Step Process: From Company Formation to Social Insurance Enrollment

Now that we’ve covered the theory, let’s look at the specific procedures. The process from establishing a company to enrolling in social insurance involves tight deadlines and requires a high degree of accuracy.

5-1. Step 1: Complete Company Registration

Everything begins with completing the company registration at the Legal Affairs Bureau. Only after this registration is finalized and the company’s “Certificate of Registered Matters” (Company Registry) becomes available can you proceed with social insurance procedures.

5-2. Step 2: Submit the “Notification of New Enrollment for Health Insurance and Employee Pension Insurance”

This is the initial notification required for the company to become a designated social insurance-covered business.

• Documents to Submit: Notification of New Enrollment for Health Insurance and Employee Pension Insurance
  Attachments:
  ○ Original Certificate of Registered Matters (issued within the past 90 days)
  ○ Copy of the Corporate Number Notification or a printout of the company’s information from the National Tax Agency’s Corporate Number Publication website
• Submission Office: Local pension office with jurisdiction over the company’s registered address
• Submission Deadline: Within 5 days from the date the company was officially established

5-3. Step 3: Submit the “Notification of Acquisition of Insured Status for Health Insurance and Employee Pension Insurance”

Next, you must submit a notification to enroll the company president (and any directors or employees receiving compensation) as insured persons.

• Documents to Submit: Notification of Acquisition of Insured Status for Health Insurance and Employee Pension Insurance
• Submission Office: Local pension office or processing center
• Submission Deadline: Within 5 days from the date the individual becomes an insured person (such as the appointment date of a director or employment start date)

In practice, it is common to submit Step 2 (Notification of New Enrollment) and Step 3 (Notification of Acquisition of Insured Status) at the same time.

5-4. Step 4: (If Applicable) Submit the “Notification of (Change in) Dependent for Health Insurance”

If the company president has dependent family members, this notification is required to enroll them as dependents under the company’s health insurance.

• Documents to Submit: Notification of (Change in) Dependent for Health Insurance
• Submission Office: Local pension office or processing center
• Submission Deadline: In principle, within 5 days from the date the dependent relationship arises

Main Eligibility Requirements for Dependents:

• Residence Requirement: In principle, family members must have a registered residence in Japan to qualify as dependents. Due to a 2020 legal revision, enrolling overseas family members as dependents is generally no longer permitted, except in rare cases such as studying abroad. This is a particularly important point for foreign business owners to note.
• Income Requirement: The dependent’s annual income must be less than 1.3 million yen (or less than 1.8 million yen for those aged 60 or older, or for persons with disabilities). Additionally, if living together, the dependent’s income must be less than half of the company president’s income; if living separately, the dependent’s income must be less than the amount of financial support provided by the president.
• Relationship Requirement: Eligible dependents include the spouse, children, grandchildren, siblings, parents, grandparents, and other direct relatives.

The Importance of the “Within 5 Days” Deadline

Although the legal submission deadline is set at “within 5 days,” which is a very short period, in most cases, late submissions are neither penalized nor rejected. However, this deadline should not be taken lightly.

If procedures are delayed, there may be a “gap in insurance coverage” between leaving the previous company’s health insurance and enrolling in the new company’s insurance. From a compliance standpoint, it may be necessary to temporarily enroll in National Health Insurance to cover this gap, followed by a complicated process to switch immediately to the company’s insurance.

Even more critical is the impression this leaves on visa examiners during renewal. Missing submission deadlines can be seen as a sign of poor management skills or a lack of legal compliance on the part of the business owner. In some cases, you may be required to submit a written explanation for the delay, which could raise unnecessary concerns.

Therefore, the wisest and lowest-risk strategy is to prepare all required documents in advance so they can be submitted immediately upon completion of company registration. Maintaining continuous insurance enrollment records is the first step in demonstrating clean and compliant business operations.

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6. How Much Are the Premiums? Social Insurance Premium Calculation and Model Cases

Once you understand the obligation to enroll in social insurance, the next question is likely, “How much will the premiums actually cost?” Social insurance premiums are not calculated based on the company’s profits but are instead based on the amount of the president’s personal “executive compensation.”

6-1. Basics of Calculation: “Standard Monthly Remuneration”

Social insurance premiums are not calculated based on the actual monthly executive remuneration but rather on the “Standard Monthly Remuneration” category. The Standard Monthly Remuneration refers to remuneration brackets divided into specific ranges. For example, if the monthly remuneration falls between 395,000 yen and 425,000 yen, it corresponds to the “410,000 yen” bracket of Standard Monthly Remuneration. This classification simplifies the calculation process.

6-2. Calculation Formula and Insurance Rates

The basic calculation formula is very simple.

Insurance Premium = Standard Monthly Remuneration × Insurance Rate

The total amount calculated by this formula is shared equally between the company and the executive (split evenly between employer and employee).

The insurance rates are specified for each type of insurance (example for fiscal year 2025).

• Health Insurance Rate: Varies by prefecture. For example, in Tokyo (Kyokai Kenpo), the rate is 9.91% for those under 40 years old.
• Nursing Care Insurance Rate: Added for individuals aged 40 to 64. The nationwide uniform rate is 1.59%.
• Welfare Pension Insurance Rate: Fixed nationwide at 18.3%.

Model Case: Insurance Premium Simulation for an Executive Remuneration of 400,000 Yen

To provide a concrete example, let’s calculate the insurance premiums for a company located in Tokyo, where the president (under 40 years old) has a monthly executive remuneration of 400,000 yen.

For a remuneration of 400,000 yen per month, according to the Kyokai Kenpo insurance premium table, both the health insurance and welfare pension insurance fall under the “410,000 yen” standard monthly remuneration bracket.

Type of Insurance	Standard Monthly Remuneration	Insurance Rate	Total Insurance Premium	Individual Share (After Splitting)	Company Share (After Splitting)
Health Insurance	410,000yen	9.98%	40,918yen	20,459yen	20,459yen
Welfare Pension Insurance	410,000yen	18.300%	75,030yen	37,515yen	37,515yen
Total			115,948yen	57,974yen	57,974yen

In this case, 57,974 yen will be deducted from the president’s monthly take-home salary as social insurance premiums. At the same time, the company will also bear the same amount of 57,974 yen as statutory welfare expenses (recorded as an expense).

This simulation is extremely important for cash flow management and personnel cost budgeting when creating a business plan. When determining the amount of executive remuneration, it is essential to take this social insurance burden into account.

6-3. Major Risk: Penalties for Delinquency in Insurance Premium Payments

The payment of social insurance premiums is one of the most important public obligations for foreign business managers holding a visa, on par with tax obligations. If these payments are delayed, the penalties can be extremely severe and may jeopardize both the continuity of the business and the very foundation of life in Japan.

Financial Penalties and Legal Actions

When delinquency occurs, financial penalties are imposed first.

• Accrual of Delinquency Charges: From the day following the payment deadline until the day the payment is completed, delinquency charges at a high interest rate will accrue based on the number of overdue days. The longer the delinquency continues, the greater the financial burden will become, compounding rapidly.
• Reminders and Warnings: Initially, a “Reminder Notice” will be sent. If payment is still not made, a stronger warning in the form of a “Demand Notice” will follow.
• Asset Investigation and Seizure: If warnings are continuously ignored, the pension office will conduct an asset investigation based on the law. As the strictest measure, asset seizure (collection for delinquency) will be executed.

What is particularly noteworthy here is that asset seizures for unpaid taxes and social insurance premiums are granted “self-executing authority,” which does not require court approval, unlike private debt collection. In other words, there is a real possibility that, without prior notice, the company’s bank accounts may suddenly be frozen, accounts receivable may be seized, or even the president’s personal salary (executive remuneration) may be subject to seizure.

Critical Impact on Visa Renewal

More serious than financial penalties, the most critical issue for foreign business managers is the impact on visa renewal. Delinquency in social insurance payments sends the worst possible signal to the Immigration Services Agency, indicating that the individual is an “untrustworthy manager who fails to fulfill public obligations.”

In the visa renewal review, the payment status of social insurance is scrutinized just as strictly as the tax payment certificates. If delinquency is found, regardless of the reason, the chances of visa renewal being approved become virtually zero. This means the continuation of the business becomes impossible, resulting in the loss of the foundation for living in Japan.

Japanese government agencies share information regarding these public obligations. Situations where taxes are paid but social insurance is delinquent, or vice versa, are quickly known to the authorities. Business managers must view all public obligations—taxes, social insurance, and labor insurance—as inseparable responsibilities and must fulfill all of them sincerely. It is crucial to understand that even one failure can put the entire visa status at risk.

7.Frequently Asked Questions (FAQ) About the Business Manager Visa Japan and Health Insurance

Q1. Is it really necessary to enroll in social insurance even for a company with only the president?

A1. Yes, it is absolutely necessary. Under Japanese law, corporations such as joint-stock companies (Kabushiki Kaisha) and limited liability companies (Godo Kaisha) are required to enroll in social insurance regardless of the number of employees—even if the company consists of only the president. The president is considered an “insured person” who receives executive remuneration from the company and is therefore obligated to enroll in social insurance through their own company.

Q2. What happens to social insurance if the executive remuneration is set to zero?

A2. Social insurance premiums are calculated based on the amount of executive remuneration. If the remuneration is zero, there is no calculation basis, and therefore, no premiums will be incurred. However, this strategy must be approached with extreme caution. If the executive remuneration is zero, the president is required to enroll individually in the National Health Insurance and National Pension systems.

It is important to note that during visa renewal, immigration officers will rigorously question “How is the business owner sustaining their livelihood?” and “Is the business truly viable?” This can cast serious doubt on the stability and continuity of the business, significantly increasing the risk of visa renewal denial. If you are considering this approach, be sure to consult with a certified tax accountant or immigration lawyer.

Q3. Can I include family members living overseas under my Japanese health insurance as dependents?

A3. In principle, no. Following a legal revision in April 2020, one of the requirements to be recognized as a dependent under the Japanese health insurance system is “having an address within Japan” (domestic residence requirement). There are very limited exceptions, such as students studying abroad, but in general, it is not possible to list family members who permanently reside overseas as dependents.

Q4. What is a “Social Security Agreement”? Does it apply to me?

A4. A Social Security Agreement is an international arrangement between two countries to prevent double payment of social insurance premiums. It typically applies to situations where an employee is temporarily transferred from the parent company overseas to a Japanese branch, allowing them to continue participating in their home country’s social security system while being exempt from Japan’s pension system. However, if you have established a new, independent company in Japan, you are not considered a “dispatched expatriate” but the manager of a Japanese corporation established under Japanese law. Therefore, in most cases, the Social Security Agreement does not apply to you, and you are required to enroll in Japan’s social insurance system.

Q5. I hired employees to obtain my Business Manager Visa Japan. What should I do about their social insurance?

A5. When you hire employees, you are obligated to enroll them in social insurance. Employees whose prescribed weekly working hours and monthly working days are at least three-quarters of those of full-time employees are generally subject to enrollment in health insurance and welfare pension insurance. Additionally, once you hire even one employee, your company becomes subject to labor insurance (workers’ compensation insurance and employment insurance), and enrollment in these systems is also mandatory. Failure to complete these procedures will be regarded as a serious compliance violation during visa renewal.

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8.Summary

As detailed throughout this article, for foreign business managers holding a Business Manager Visa Japan, proper enrollment in and payment of Japan’s social insurance system is an unavoidable legal obligation and a lifeline for maintaining their residence status.

Finally, let’s reconfirm the most important points.

The key points of this article are as follows:

✓　Social Insurance Enrollment is a Legal Obligation After Company Formation: Under Japanese law, corporations such as KK (Kabushiki Kaisha) or GK (Godo Kaisha) are required to enroll in social insurance (health insurance and employee pension insurance) even if the company has only one director. This system differs from the National Health Insurance for sole proprietors. ✓　Direct Impact on Visa Renewal: Proper enrollment and payment of social insurance premiums are among the most critical factors in the review process for Business Manager Visa renewals. Delinquency in payments can directly lead to visa renewal denial. ✓　Health Insurance and Employee Pension Are Mandatory as a Set: Corporate social insurance in Japan always includes both health insurance and employee pension insurance. It is not possible to enroll in only one of them. ✓　Premiums Are Based on Executive Compensation: Social insurance premiums are calculated based on the director’s remuneration, not the company’s profits. The premiums are split equally between the company and the director. Setting the remuneration requires careful consideration of the company’s cash flow, the director’s living expenses, and visa renewal requirements. ✓　Application Must Be Filed Within Five Days of Company Registration: Within five days after completing the company registration, the new social insurance application and employee enrollment notification must be submitted to the local pension office. Meeting this deadline is essential. ✓　 Consulting Professionals is Recommended: Given the complexity of social insurance procedures, it is advisable to consult specialists such as gyoseishoshi (administrative scriveners) or shakai hoken romushi (social insurance labor consultants) to ensure accurate and timely processing and to reduce the risk of visa renewal issues.

While it is not impossible for business owners to handle these procedures themselves, Japan’s unfamiliar administrative processes—particularly those related to social insurance, which have strict deadlines and significant implications for visa status—can easily lead to major problems from even minor mistakes.

Therefore, to focus on your business with peace of mind, it is strongly recommended to seek support from professionals such as certified administrative procedures specialists (Gyosei-shoshi) or social insurance labor consultants (Shakai Hoken Roumushi). These professionals can handle everything from preparing the necessary documents to submitting them to the pension office, ensuring that the procedures are completed accurately and promptly. Considering the risk of losing your visa due to compliance violations, the cost of hiring a professional is a wise investment for securing the stability of your business. Solidify your foundation with reliable procedures and take confident steps toward success in Japan.

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