Business Manager Visa Japan: Holders, Employee Requirements, Co-Manager Limits

This article explains key points about the “number requirements” for the Business Manager Visa in Japan, which are often a concern when considering starting a business in the country.

Many people wonder, “Do I need to hire several employees to obtain the visa?” However, this is not necessarily the case. In fact, it is sometimes possible to meet the visa requirements without hiring any employees, as long as you invest at least 5 million yen.

In this article, we will clearly explain the key points regarding the number of Business Manager Visa holders, the necessity of hiring employees, and the conditions under which multiple people can obtain visas for a single company, based on the latest data.

Key points of this article:

✓  As of June 2024, there are 39,616 Business Manager Visa holders in Japan, with the majority coming from Asia. ✓  If the company has capital of at least 5 million yen, hiring two employees may not be required. ✓  However, for businesses with physical stores, such as restaurants, hiring on-site staff is generally necessary. ✓  Multiple people can obtain Business Manager Visas for the same company if there are reasonable grounds and clearly defined roles. ✓ Common reasons for visa rejection include insufficient supporting documents and inadequate business plans.

1.How Many Business Manager Visa Holders Are There in Japan? | Latest Statistics

As of the end of June 2024, there are a total of 39,616 Business Manager Visa holders in Japan. Of these, 37,005 holders (93.4% of the total) are from Asian countries, with 20,551 holders (51.9%) from China. The number of Business Manager Visa holders in Japan each June over the past 10 years is as follows.

The increase in the number of Business Manager Visa holders since 2015 has been largely influenced by amendments to Japan’s Immigration Control Act. Before the amendment, the visa was known as the “Investor/Business Manager Visa,” and it was difficult for foreigners who were not residing in Japan to register a company or open a bank account.

However, following the amendment in April 2015, the “Business Manager” status of residence began to allow applicants who had not yet completed company establishment or secured office space to be granted an initial four-month period of stay. With proof of articles of incorporation and capital, applicants could now enter Japan and complete these procedures after arrival. This significantly lowered the barriers to obtaining the visa, leading to an increase in the number of visa holders.

Although there was a temporary decline during the pandemic, the number of visa holders is now recovering. Japan is also moving toward expanding support for foreign entrepreneurs and easing visa requirements. The environment for obtaining the visa is steadily improving. However, challenges remain regarding fraudulent or superficial applications, and there are calls for stricter review standards.

Reference: Immigration Services Agency of Japan | Statistics on Foreign Residents (formerly Alien Registration Statistics) Statistics on Foreign Residents

2.Is Hiring Two Employees Always Required to Obtain a Business Manager Visa in Japan?

When applying for a Business Manager Visa in Japan, hiring two employees is not always required. The visa’s business scale requirements offer two options, and meeting either one is sufficient:

1. Employing at least two full-time staff members who reside in Japan, excluding the person engaged in management or administration.
2. Having capital or total investment of at least 5 million yen.

In other words, if the company has capital or total investment of 5 million yen or more, there is no obligation to hire two or more full-time employees. In practice, many applications are based on meeting the 5 million yen investment requirement. Therefore, in businesses like internet services or trading, it is possible for the company to be operated by a single manager.

However, the situation is different for businesses that require physical stores, such as restaurants, massage parlors, or retail shops. Business Manager Visa holders are expected to focus mainly on management duties and are generally not allowed to engage in on-site work like cooking or customer service. For these types of businesses, hiring on-site staff is necessary for daily operations.

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3.How Many People Can Obtain a Business Manager Visa for One Company? | Number of Co-Managers

There is no legal limit on the number of Business Manager Visas that can be granted per company. However, in practice, the standard assumption during the review process is typically “one visa holder per company.”That said, depending on the scale and nature of the business, it is possible for multiple applications to be approved. In such cases, it is necessary to provide detailed proof of the reasonableness of having multiple visa holders.

This section explains the requirements for applying with multiple people and examples of cases where such applications have been approved.

3-1. Requirements for Multiple People Applying for a Business Manager Visa in Japan at One Company

In principle, the Business Manager Visa in Japan is intended for individuals such as company representatives, managers, or branch directors, and typically only one visa holder is permitted per company. However, if the business is large and it is determined that management by a single person is not feasible, it may be possible for multiple individuals to obtain visas for the same company.

The main requirements for such cases are as follows:

• There must be a “reasonable justification” based on the scale and workload of the business that necessitates multiple managers.
• The roles and responsibilities of each person must be clearly defined and separated.
• Appropriate compensation must be paid to each individual.

Additionally, each applicant must actually be engaged in decision-making and business operations within their designated areas of responsibility. Without meeting all of these requirements, obtaining visas for multiple people is generally not allowed. Therefore, when considering this type of application, it is essential to carefully verify the requirements in consultation with an immigration specialist or administrative scrivener.

3-2. Cases Where Multiple Business Manager Visa Applications Were Approved for One Company in Japan

In this section, we present cases in which Business Manager visa applications were approved, drawn from the Immigration Services Agency’s “Approved and Denied Cases.”

Case 1

Foreign nationals A and B each invested 5 million yen to establish a Japanese corporation (with capital of 10 million yen, hereinafter referred to as “Company X”) that handles imported miscellaneous goods. A has expertise in international trade and customs procedures, while B specializes in quality control, inventory management, and accounting for imported products. A is primarily responsible for international business operations, and B handles product management and accounting. The two share decision-making authority regarding Company X’s management policy through mutual consultation. Compensation is distributed from business profits based on their respective investment ratios.

Case 2

Foreign nationals C and D invested 6 million yen and 8 million yen respectively to establish Company Y, a domestic transportation service provider with capital of 14 million yen. In Company Y, each of them is responsible for managing business operations within their designated region, which was determined in advance. The overall management policy of the company is decided through discussions between C and D. Compensation is distributed from business profits according to their respective investment amounts.

Case 3

Foreign nationals E and F are pursuing entrepreneurship in Japan by utilizing the Foreign Entrepreneurship Promotion Project under the National Strategic Special Zones initiative. They plan to establish Company Z with capital of 10 million yen, with E investing 8 million yen and F investing 2 million yen. Company Z will operate a specialized education and training business focused on the field of digital marketing. E, leveraging past entrepreneurial experience and a track record in human resource development, will serve as CEO and Head Trainer. F, drawing on many years of experience in the marketing industry, will serve as Chief Marketing Officer. Together, they will jointly manage the business.

Reference: Immigration Services Agency of Japan, “Clarification of the Residency Requirements for Foreign Business Managers”

4.Cases in Which Employment Is Mandatory and Cases in Which It Is Not When Obtaining a business manager visa japan

Whether hiring employees is required when applying for a Business Manager Visa depends on the nature of the business. In industries where on-site operations are essential, hiring staff is generally mandatory. On the other hand, for businesses that are primarily desk-based, it may be possible to apply with only the representative. Below, we will look at specific cases for each scenario.

4-1. Cases Where Hiring Employees Is Mandatory

In industries where on-site labor is essential to business operations—such as restaurants, beauty salons, or massage parlors—hiring staff to handle cooking, treatments, or customer service is considered a prerequisite. If such employees are not present, immigration authorities may determine that the business owner would inevitably be involved in on-site work, indicating that the business structure does not allow the owner to focus solely on management activities.

Therefore, when applying for the visa, it is necessary to secure a number of staff consistent with the business plan and to submit supporting documents such as employment contracts, work schedules, and social insurance records. In business models involving on-site operations, proving the actual employment of staff is critically important for obtaining visa approval.

4-2. Cases Where Hiring Employees Is Not Required

When applying for a Business Manager Visa, there are cases where hiring employees is not required, depending on the nature of the business. For industries that do not involve on-site work—such as IT companies, online shops, or consulting businesses—it is possible to apply with only the representative.

In these cases, as long as the applicant can provide a capital investment of at least 5 million yen, hiring employees is not necessary. This is because the visa requirements can be met by either investing 5 million yen or employing two or more full-time staff members. In practice, many applicants choose to meet the requirement through the 5 million yen investment.

However, even within the same industry, if the business involves on-site work, authorities may determine that hiring employees is necessary. Therefore, it is essential to review the Immigration Services Agency’s guidelines in advance and plan accordingly.

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5. Japan’s Business Manager Visa Landing Permission Criteria

The landing permission criteria for the Business Manager Visa are as follows:

• Business scale (investment of at least 5 million yen or employment of two or more full-time employees)
• Securing an independent office
• Appropriateness, stability, and continuity of the business

Here, let’s delve deeper into the business scale requirement (investment of at least 5 million yen or employment of two or more full-time employees).

5-1. Employment of Two or More Full-Time Employees

Even if the company’s capital is less than 5 million yen, it is possible to apply for a Business Manager visa by fulfilling the requirement of employing eligible personnel. To meet this employment requirement, in addition to the foreign national manager who is the applicant, there must be two or more full-time employees residing in Japan engaged in the business. The term “full-time employees” here is limited to the following individuals:

• Japanese nationals
• Special Permanent Residents
• Permanent Residents
• Spouse or Child of a Japanese National
• Spouse or Child of a Permanent Resident
• Long-Term Residents

Holders of work-related statuses of residence such as “Engineer/Specialist in Humanities/International Services” are not included in the count of “two or more full-time employees.” Furthermore, this requirement is limited to regular, full-time employees (seishain); dispatched workers (haken shain) or individuals on service outsourcing contracts (gyomu itaku) are not eligible. Additionally, these full-time employees must be enrolled in social insurance, such as厚生年金 (Kosei Nenkin – employee pension insurance) and 健康保険 (Kenko Hoken – health insurance), and documents proving their enrollment are required. Please be aware that part-time workers (arubaito or paato) are not recognized as full-time employees.

5-2. Investment Exceeding 5 Million Yen

If you meet the requirement of an investment exceeding 5 million yen, you can apply for a Business Manager visa without hiring two or more full-time employees, depending on the nature of the business.

What is required here is that the company’s capital or the total amount of investment is 5 million yen or more. As this figure represents the overall capital scale of the company, the applicant is not required to provide the entire amount themselves. Even if there are multiple investors, the condition is met as long as the total sum exceeds the standard. This is a viable option for those who wish to start a business with a small number of people without hiring employees.

Furthermore, from March 2024 onward, payments made through certain types of paid stock acquisition rights (such as J-KISS type) that meet specific conditions are now recognized as capital. The conditions are that the payment is non-refundable and is expected to be incorporated into capital or treated as profit in the future.

It should be noted that for store-based businesses such as restaurants and retail shops, the manager is required to be engaged in management duties. Therefore, even if the capital amount meets the standard, the employment of staff to handle practical operations is essential.

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6. Other Requirements for the Business Manager Visa in Japan

To obtain a Business Manager visa, in addition to the basic requirements such as “employing two or more full-time staff” or “an investment exceeding 5 million yen,” it is necessary to meet other requirements that are considered crucial in the visa examination. For example, to operate the business in a stable manner, securing a physical office space within Japan is required.

Furthermore, when an applicant is to be engaged in an existing business as a “Manager,” as a general rule, three or more years of practical business experience is required. (This does not necessarily apply if applying as the “Business Owner/Operator”). Here, we will explain these additional requirements.

6-1. A Physical Business Office Must Be Secured Within Japan

To obtain a Business Manager visa, it is necessary to secure a suitable business office within Japan.

Basic Requirements for the Business Office

The lease agreement must be concluded in the name of the corporation. Agreements in an individual’s name are not accepted. The contract must explicitly state that the purpose of use is “for business,” and use as a residence is not permitted. As the company is often not yet established when leasing real estate, you should coordinate with the landlord in advance to ensure the contract can be put into the corporation’s name by the time of the visa application.

The office is required to be furnished with the necessary equipment for the business. Items such as a telephone, fax machine, PC, and copy machine are needed, and specialized equipment appropriate for the business type must also be installed. For example, this would include treatment beds for a massage salon or cooking equipment for a restaurant.

Types of Properties That Are Permitted

Rental offices and similar arrangements that provide an independent, private room are acceptable. On the other hand, virtual offices are not recognized as a business office. If you intend to use your home as a business office, as a general rule, multi-unit dwellings (such as condominiums and apartments) are not permitted. However, in the case of a single-family house, it may be accepted as an exception, but only if there is a business space that is clearly separated from the living quarters.

For store-front businesses, a separate, private room dedicated to administrative work is required. Simply partitioning off a section of the customer seating area will not meet the requirements. You will need to take measures such as building a new private room or setting up a separate office externally.

Securing a suitable business office is crucial for demonstrating the stability and continuity of your business. Be sure to confirm the requirements before applying for your visa.

6-2. Three or More Years of Practical Experience is Required When Engaging in Business Management

When engaging in the “management” of a business on a Business Manager visa, three or more years of practical experience is necessary. This experience is used as a standard to demonstrate that the applicant possesses adequate management capabilities. Additionally, in terms of compensation, it is necessary that the applicant receives a salary equal to or greater than that of a Japanese national in a comparable position.

This period of practical experience can include time spent majoring in subjects related to business or management at a graduate school. For example, an individual who has completed a two-year master’s program can meet the requirement with one additional year of practical experience. Furthermore, if an individual has majored in these subjects for three years, they are considered to meet the standard even without any practical business experience.

On the other hand, if you will be “operating” the business yourself, the practical experience requirement is not imposed. Even a person who has just graduated from university can apply for a Business Manager visa if they have the intention to establish and run a company.

7. Reasons for Denial of a Japan Business Manager Visa Application or Renewal

When obtaining or renewing a Business Manager visa, it is not only the formal requirements but also the substance of the application that is strictly examined. Cases of denial are often seen due to insufficient supporting documents, doubts about the continuity and profitability of the business, or issues related to the applicant’s own suitability and conduct.

Below, let’s take a specific look at typical examples of denials and the reasons behind them.

7-1. The Applicant’s Proof is Insufficient

One of the major reasons a Business Manager visa application is denied is the inadequacy of supporting documents. It is not enough to simply gather the documents specified by the Immigration Services Agency of Japan; the applicants themselves must prove that they meet all the requirements.

Obtaining the visa becomes difficult if you cannot clearly show the source of the capital with documents such as a bank passbook, if the business plan fails to establish a clear outlook for business continuity, or if the physical existence of the office cannot be sufficiently demonstrated with a lease agreement and photographs. In addition, an application may also be denied if the submitted documents are incomplete, or if their content is suspected of containing contradictions or false information.

The entire burden of proof lies with the applicant. It is crucial to not only provide the requested documents but also to proactively prepare and clearly explain with “objective materials” that substantiate the reality and legitimacy of the business.

7-2. The Business Plan is Insufficient, and Stability or Continuity is Not Recognized

In the examination for a Business Manager visa, the stability and continuity of the business are crucial judgment criteria. The business plan, in particular, plays a central role in this evaluation, and if its content is insufficient, the risk of denial increases.

If the sales and financial plans lack persuasiveness and their basis is unclear, the feasibility of the business will be questioned. Therefore, the reality of the business model, its profitability, cost structure, and competitiveness in the market must be clearly demonstrated.

Applicants must construct their sales forecasts, market research, competitor analysis, and profit and loss plans in a specific and realistic manner, and create a business plan that is easy for the immigration officer to understand.

7-3. Deemed to Lack Suitability as a Manager or to Have Poor Conduct

In the examination for a Business Manager visa, the applicant’s suitability and conduct as a manager are important judgment criteria. Major reasons for denial include a past criminal record, violation of tax obligations, failure to enroll in social insurance, exceeding permitted work hours while on a different visa status (Activities Outside the Scope of Qualification), or a history of fraudulent applications. If any of these apply, the applicant will be deemed to have “poor conduct,” which is disadvantageous in the examination.

The likelihood of denial also increases if the applicant lacks management experience or knowledge of the specific industry, or if they are judged not to be substantially involved in the management and administrative duties of the business. Furthermore, failing to complete necessary administrative procedures, such as obtaining business permits for a store or filing the required notifications with the tax office, will cause the credibility of the business to be questioned.

To avoid such risks, it is required that you clearly demonstrate your suitability as a manager by leveraging your work history in the same industry and any qualifications you have obtained. If necessary, hiring experienced staff can also be an effective strategy. It is crucial to prepare by addressing both your credibility and your suitability.

8. Summary

In this article, we have explained the personnel requirements for the Business Manager visa. To summarize the content, the key points are as follows.

✓  As of June 2024, there are 39,616 Business Manager Visa holders in Japan, with the majority coming from Asia. ✓  If the company has capital of at least 5 million yen, hiring two employees may not be required. ✓  However, for businesses with physical stores, such as restaurants, hiring on-site staff is generally necessary. ✓  Multiple people can obtain Business Manager Visas for the same company if there are reasonable grounds and clearly defined roles. ✓ Common reasons for visa rejection include insufficient supporting documents and inadequate business plans.

When obtaining a Business Manager visa, depending on the nature of the business, it is not always necessary to hire two employees; an application is possible for a sole representative if the capital is 5 million yen or more. Furthermore, if multiple people in a single company are to acquire a Business Manager visa, it is required to clarify the necessity corresponding to each person’s role and duties.

For the Business Manager visa application, understanding the requirements and preparing the necessary documents are essential. You are required to meet the conditions regarding the business office, capital, and personnel, and to organize the necessary documents for your specific category. To ensure a smooth business launch in Japan, proceed with each step in a planned manner. If you find the visa application process difficult, it is recommended that you consult an expert, such as a gyoseishoshi (administrative scrivener).