Business Manager Visa Japan: Renewal Despite Deficit?

As the time for renewing your Business Manager Visa Japan approaches, some business owners may feel anxious if their company has recorded a deficit. While a deficit can indeed be a negative factor in the visa renewal process, it does not automatically lead to a rejection. With proper preparation and countermeasures, it is entirely possible to have your visa renewed even with a deficit.

Here are the key points of this article:

✓　 Prepare a realistic and detailed business improvement plan: Clearly explain why the deficit occurred and how the business will return to profitability and maintain stability in the future. ✓　Submit objective supporting documents: Proactively provide contracts, proof of funding, expert evaluations, and other materials to demonstrate the feasibility of the plan. ✓　Ensure full legal compliance: Submit proof that all taxes and social insurance payments are up to date and that all relevant business laws are being followed. ✓　Set an appropriate executive salary: Secure a level of remuneration that allows the business owner to live stably in Japan and be ready to explain and justify it.

This article explains how a deficit affects the renewal review of the Business Manager Visa Japan, the cases where renewal is still possible despite a deficit, situations where renewal becomes difficult, and concrete strategies to overcome the deficit and achieve a successful renewal.

1.How Does a Deficit Affect Business Manager Visa Japan Renewal?

In the Business Manager Visa Japan renewal review, the company’s financial health—particularly a deficit on its financial statements—is a critical factor. Immigration authorities closely scrutinize whether the applicant can continue to operate the business in Japan in a stable and sustained manner.

1‑1. Key Evaluation Standard for the Business Manager Visa Japan: Business Stability and Continuity

The foundation of the Business Manager Visa review is the “stability and continuity of the business,” meaning the applicant’s enterprise must contribute to Japan’s economy and remain sustainable going forward.

A deficit directly raises doubts about this stability and continuity. Immigration authorities do not merely look at past figures; they evaluate how those numbers will affect future operations.

Because the review is forward‑looking—focusing on whether the business can operate “stably and continuously”—the unavoidable fact of a past deficit prompts the question of how it will influence future stability and how the applicant plans to overcome it.

1‑2. Specific Reasons a Deficit Hurts Business Manager Visa Japan Renewal

There are numerous ways in which a deficit can disadvantage you during the renewal process.

Doubts about the company’s ability to continue operations

First, doubts arise over whether the company can keep operating. If deficits persist, reviewers may conclude that funds will eventually be exhausted and the business will no longer be able to continue.

Management skills of the business owner come into question

Next, the applicant’s competence as a business owner may be scrutinized. If the deficit stems from factors such as insufficient market research, flaws in the business model, or poor financial management, the individual may be seen as lacking the necessary managerial ability.

The business owner may struggle to maintain a stable life in Japan

More critically, if the company cannot financially support the business owner, it becomes difficult for the owner to live stably in Japan. This not only goes against the purpose of the Business Manager Visa but can also raise suspicions that the owner may engage in activities outside the permitted scope of the visa to sustain themselves.

For example, if the deficit forces the company to set an extremely low executive salary, this concern becomes even more pronounced. In this way, a deficit is not merely a financial issue—it can call into question the overall legitimacy of the business owner’s residence status.

2.Don’t Give Up! When Business Manager Visa Japan Renewal Is Approved Despite a Deficit

While a deficit can negatively impact visa renewal, there are still cases where renewal is granted depending on the circumstances. The key is to clearly and objectively explain the reasons for the deficit and the outlook for future improvement.

2‑1. First-Year Deficit: Relatively Flexible Review

In particular, when a company shows a deficit in its first fiscal year after establishment, immigration authorities tend to review the case more flexibly.

It is common for newly established companies to incur significant upfront costs such as capital investment, advertising expenses, and market development, and it often takes time before sales stabilize. As such, a first-year deficit is a common phenomenon. Immigration authorities are aware of this and often grant the first visa renewal if the business plan is reasonable and a clear path to future profitability is presented.

However, this “flexibility” is not unconditional. If the deficit stems from fundamental issues—such as a complete lack of revenue or the absence of real business activity—rather than typical startup costs, even a first-year renewal may be denied. In other words, the “nature” of the deficit matters.

2‑2. Single-Year Deficit Without Insolvency

If a company with a track record of profitability or sufficient retained earnings posts a deficit due to temporary factors—such as sudden changes in the external environment (e.g., COVID‑19) or a short-term market downturn—but is not insolvent (i.e., its liabilities do not exceed its assets), visa renewal may still be approved.

In such cases, it is essential to clearly explain the reasons for the deficit and present specific recovery plans. The absence of insolvency indicates that the company still has financial strength and can likely overcome a temporary loss, making this a crucial factor in the review.

While a deficit reflects short-term financial performance, insolvency means negative net assets and suggests a more serious issue with financial viability. This distinction is given significant weight in the screening process.

2‑3. Startups (Unlisted Companies Within 5 Years of Establishment)

For startups—domestic, unlisted companies established within the past five years—with unique technologies or innovative business models, it is common for early-stage deficits to occur due to high upfront costs in R&D and market development.

In such cases, if the applicant can submit a business plan that reasonably demonstrates a high likelihood of generating operating profit in the future, and the plan is deemed credible, the Business Manager Visa renewal is more likely to be approved despite ongoing deficits. This reflects the government’s broader policy to support innovation by evaluating not just short-term profitability, but also the medium- to long-term growth potential of promising new businesses.

However, this also means that higher standards are applied to the quality of the business plan and the supporting evidence—such as evaluations from certified small business consultants.

2‑4. Conditions for Demonstrating Business Continuity Through Future Outlook and Improvement Plans

Regardless of the deficit situation, the most critical factor is submitting a convincing business plan—or business improvement plan—that clearly outlines the company’s future prospects and realistic recovery strategy.

By accurately analyzing the causes of the deficit and presenting concrete strategies and action plans to overcome it and return to profitability, the applicant can significantly increase the likelihood that immigration authorities will recognize the continuity of the business. This plan is not just a formality—it serves as the key tool to demonstrate the applicant’s management capability and strong commitment to business recovery.

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3.[Caution] Deficit Scenarios That Make Business Manager Visa Japan Renewal Difficult

Conversely, depending on the nature and scale of the deficit, renewal of the Business Manager Visa Japan can become extremely difficult. Understanding these patterns and taking early countermeasures is essential.

3‑1. Two Consecutive Years of Deficits: Stricter Review

While a single-year deficit may be explained as a temporary setback, two consecutive years of deficits raise serious concerns about structural issues in the business or the applicant’s managerial capability, leading to a much stricter review.

A first-year loss might be attributed to initial investments or delays in market entry, but if no improvement is seen in the second year, immigration authorities are more likely to conclude that the business model itself is flawed or that effective measures have not been taken.

In such cases, submitting a more detailed and highly feasible business improvement plan becomes essential. A consistent pattern of losses is viewed as a serious red flag, rather than a temporary downturn.

3‑2. Insolvency (Liabilities Exceeding Assets): A Major Obstacle to Renewal

Insolvency refers to a financial state where a company’s total liabilities exceed its total assets—meaning that even if all assets were sold, the company would still be unable to repay its debts. This is a far more serious financial issue than a simple operating loss, as it suggests an inability to meet obligations. In the context of Business Manager Visa Japan renewal, insolvency poses a significant concern regarding business continuity and greatly increases the risk of renewal being denied.

Difference in Severity Between Single-Year and Two Consecutive Years of Insolvency

If a company is insolvent for only one fiscal year—for example, due to large initial investments or a one-time significant loss—it may still be possible to obtain a one-year renewal by strengthening capital through additional funding and submitting a recovery plan evaluated by experts such as certified accountants or SME consultants.

However, if insolvency continues for two consecutive fiscal years, the situation becomes extremely serious. Immigration authorities may conclude that the business’s survival is in jeopardy. Unless the insolvency is resolved through substantial capital injection and concrete, fundamental improvement measures—with supporting evidence—the chances of visa renewal are extremely slim.

While a single year of insolvency might be viewed as a chance for recovery, two consecutive years suggest that the opportunity was missed or that the issues are deeply rooted, greatly undermining confidence in the company’s ability to continue operations.

3‑3. Negative Gross Profit

A negative gross profit—meaning the company loses money with every sale, as cost of goods sold exceeds sales revenue—indicates a fundamental and serious problem in the business model.

This may reflect incorrect pricing strategies, surging procurement costs, or a lack of market competitiveness in the products or services offered. Since losses occur even before accounting for operating and administrative expenses, a complete overhaul of the business model is essential. If gross profit remains negative for two consecutive years, the likelihood of the business being deemed unsustainable is extremely high.

Compared to operating losses caused by high advertising costs, a negative gross profit is seen as a deeper structural flaw in the company’s profitability and is treated more severely in visa renewal evaluations.

Likelihood of Business Manager Visa Japan Renewal by Deficit Type and Key Considerations

Situation	Likelihood of Renewal	Key Measures / Required Documents
First-Year Deficit	Relatively High	Business plan (explaining first-year deficit and future profitability plan)
Single-Year Deficit (No Insolvency)	Possible with Conditions	Business plan (explaining deficit and improvement measures), financial statements
Two Consecutive Years of Deficits (No Insolvency)	Difficult	Detailed business improvement plan, proof of progress on specific measures, expert opinion (recommended)）
Single-Year Insolvency	Difficult	Business improvement plan, capital increase/funding plan, evaluation report by SME consultants or similar experts
Two Consecutive Years of Insolvency	Extremely Difficult	Proof of resolving insolvency through major capital injection, comprehensive business restructuring plan with evidence of implementation, strong expert support required
Negative Gross Profit (Especially Two Consecutive Years)	Extremely Difficult	Fundamental review of business model, improvement plan for pricing strategy and cost structure, strengthening financial base through capital increase (if insolvent)

This table outlines general trends based on the type of deficit, but actual decisions may vary depending on individual circumstances. However, it can serve as a helpful guide for objectively assessing your company’s situation and taking appropriate action.

4.From Deficit to Turnaround! Concrete Strategies to Successfully Renew Your business manager visa japan

To successfully renew a business manager visa japan under the challenging condition of a deficit settlement, a strategic and concrete approach is essential. It is necessary to convincingly demonstrate the future potential of the business and the capabilities of the manager to the Immigration Bureau.

4-1. Key Point: How to Create a Persuasive “Business Plan (Improvement Plan)”

In the case of a deficit, the most critical document that determines the success or failure of a business manager visa japan renewal is the “business plan” (or “business improvement plan”). This must not be a mere dream scenario for the future, but a concrete and feasible roadmap that accurately identifies current challenges and outlines how to overcome them to put the business on a stable path.

10 Essential Elements to Include in a Business Plan (Adjustable Depending on Content)

A persuasive business plan generally includes the following elements. These serve as a foundation, and depending on the nature of the business and the specific circumstances of the deficit, additional items may be required or certain sections may need to be described in greater detail.

1. Business Overview: Provide a concise and clear explanation of the overall nature of your business.
2. Motivation for Starting the Business and Market Size: Explain why you started this business, including data and analysis on market potential and your target customer base.
3. Target Customers and Company Strengths: Clarify the value you aim to offer to whom, and your competitive advantages compared to other businesses.
4. Main Products/Services and Sales Methods: Describe in detail your product names or service content and how you plan to deliver them to customers.
5. Business Partners (Procurement and Sales Channels): Identify key suppliers, buyers, and partners, and attach supporting documents such as contracts when possible.
6. Progress to Date: Objectively describe the activities carried out so far and the results (or challenges) you have experienced
7. Marketing Strategy: Explain how you plan to acquire new customers and expand sales, including specific marketing techniques and promotional activities.
8. Analysis of the Causes of the Deficit and Improvement Measures: This is especially important when operating at a loss. Conduct a multifaceted analysis of the root causes of the deficit and propose concrete solutions.
9. Profit and Loss Plan (Next 1–3 Years) and Cash Flow Plan: Present numerical projections of sales targets, expense estimates, and profit plans for the next one to three years, along with a realistic and well-founded cash flow plan.
10. Management Skills and Experience of the Business Owner: Demonstrate your relevant experience, expertise, and management skills, emphasizing your capability to lead the business to success.

Analysis of the Root Causes of the Deficit and Presentation of Concrete Improvement Measures

Within the business plan, it is critically important to thoroughly analyze the root causes of the deficit and present concrete and feasible improvement measures in response.

For example, simply stating “sales declined due to the COVID-19 pandemic” is insufficient. You must specifically analyze which aspects of your business model were affected by this external factor and how. Based on that analysis, you should present action-level countermeasures such as “strengthening online sales channels,” “introducing delivery services,” or “reviewing store size to reduce fixed costs.”

Improvement measures must not be abstract or motivational in nature — they must clearly state who will do what by when.

Numerical Targets (Sales and Profit) and the Roadmap to Achieve Them

Vague statements such as “We will improve our management” or “We aim to return to profitability” are not sufficient to convince the Immigration Bureau. You must set specific numerical targets (e.g., “Achieve monthly sales of ¥○○ and operating profit of ¥○○ within six months”) and present a timeline-based roadmap outlining the steps to reach those goals. It is essential to clearly explain the causal relationship between each step — what measures will be implemented and how they will contribute to achieving the numerical targets.

Cash Flow Plan and Path to Financial Soundness

In the recovery process from a deficit, managing cash flow is critically important. You must present a concrete funding plan detailing how you will secure working capital to execute your business improvement plan. If additional financing is required, include your loan procurement plan; if you intend to inject personal funds, provide proof of those resources.

If your business is in a state of excess liabilities, it is essential to also outline specific measures to restore financial health — such as capital increases or loan repayment plans.

Checklist of Required Items for a Business Improvement Plan (for Deficit Recovery)

Item	Key Points to Include	Examples / Focus Areas
Analysis of Root Causes of the Deficit	Conduct a multifaceted analysis of both external and internal factors to objectively and specifically identify why the business fell into deficit.	Market fluctuations, intensified competition, cost structure issues, flaws in sales strategy, and unforeseen events (e.g., natural disasters, pandemics).
Concrete Improvement Measures (e.g., new strategies, cost reduction)	Outline concrete actions to address the analyzed causes, such as launching new businesses, developing new products, expanding sales channels, implementing cost reductions, and improving operational efficiency.	Approaching new target segments, strengthening online presence, downsizing or withdrawing from unprofitable divisions, reviewing fixed costs (e.g., rent negotiations, optimal personnel allocation), and reducing procurement costs by reassessing suppliers.
Specific Numerical Targets (e.g., sales, profit)	Set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) for sales and profit to be achieved within a defined timeframe.	Specific numerical goals such as “Increase sales by ○○% and achieve an operating profit margin of ○% by [Month, Year],” along with the rationale behind these projections.
Achievement Roadmap (timeline)	Clarify the implementation schedule and milestones for each measure leading to the achievement of numerical targets.	A detailed timeline, e.g., “Launch Product A in 3 months, open Online Channel B in 6 months, achieve target sales in 1 year.”
Cash Flow Plan	Present income and expenditure projections during the improvement period, along with a specific plan for funding and cash management to prevent cash flow shortages.	Monthly cash flow forecasts, strategies for securing working capital (e.g., personal funds, loans, subsidies).
Additional Financing or Capital Increase Plan (if applicable)	If additional financing is needed to eliminate excess liabilities or expand the business, detail the specific plan (source, amount, timing, and purpose of funds) and its progress.	Preliminary loan approvals from financial institutions, shareholder agreements for capital increase, plans to issue stock options.
Manager’s Commitment and Implementation Structure	Explain how the manager will be directly involved and accountable in executing the improvement plan, including the internal implementation structure (staff allocation, role assignments).	Management’s involvement in progress monitoring, participation in key meetings, and strategies to boost employee motivation (clarifying the specific roles of the manager).
Supporting Documents and Objective Evidence	Provide supporting documents that reinforce the feasibility of the plan (e.g., market research data, quotations, draft contracts, expert opinions).	Supporting evidence such as market growth statistics, basic agreements with new clients, quotations showing cost reduction effects, and evaluation reports from certified SME consultants.

This checklist serves as a guideline for creating a business plan aimed at recovering from a deficit. Covering these elements and crafting a concrete and persuasive plan is the key to obtaining approval for visa renewal.

4-2. Strengthen Persuasiveness with Supplementary Documents: Objectively Prove Business Continuity

In addition to the business plan, submitting supplementary documents that objectively support the continuity and future potential of the business can significantly enhance the persuasiveness of your application.

Utilizing “Business Evaluation Reports” by Certified SME Consultants or CPAs

In cases where the business is experiencing excess liabilities or chronic deficits, submitting a “business evaluation report” or an “opinion on the feasibility of the improvement plan” prepared by certified SME consultants or certified public accountants can be highly effective.

These objective evaluations by professional experts enhance the credibility of the business plan prepared by the applicant and send a strong message to immigration officers that “a third-party expert also considers the business recovery feasible.”

While immigration officers are experts in legal and administrative procedures, they are not necessarily specialists in business analysis. Therefore, a positive evaluation by professionals with national qualifications in Japan is expected to be advantageous during the screening process.

Proof of Fundraising: Capital Increases, Loan Execution, and Parent Company Support

If your business improvement plan includes fundraising through capital increases or new loans, you should submit documents proving their execution—such as an updated company registry (after the capital increase), loan agreements, bank balance certificates, or support commitment letters from a parent company. These serve as strong evidence that the plan is not merely theoretical but is being backed by actual financial resources.

Documents Demonstrating Future Potential: New Contracts, Business Alliances, etc.

If available, actively submit concrete materials that indicate future business potential or signs of growth — such as newly secured large-scale contracts, business alliance agreements with promising companies, or positive customer feedback on new products. These documents serve as evidence that the business is not stagnant but is actively moving toward improvement and already beginning to yield results.

4-3. Proper Setting of Executive Compensation and Accountability

In the case of a deficit settlement, it is a reasonable management decision to reduce executive compensation in order to cut company expenses. However, if the compensation is reduced to a level considered insufficient for maintaining a stable life in Japan—such as below ¥180,000–¥200,000 per month—it may negatively impact visa renewal due to concerns about the manager’s financial stability. The appropriate level of executive compensation under review during renewal also depends on the number of dependents.

The Immigration Bureau assesses whether the business manager can lawfully support themselves while residing in Japan. If executive compensation is extremely low, it is necessary to provide a logical explanation (e.g., it is a temporary measure until the business recovers) and clarify how the shortfall in living expenses is being covered (e.g., drawing from personal savings, sufficient income from a spouse), along with submitting supporting documentation.

It is important to understand that, separate from the company’s financial condition, the personal financial stability of the manager is also subject to immigration review.

4-4. Absolutely No Delays in Tax and Social Insurance Payments: Full Payment and Proof Required

Delinquency in paying various taxes—such as corporate tax, corporate inhabitant tax, withholding income tax, and consumption tax—or social insurance premiums, including health insurance and employees’ pension insurance, is a critical negative factor in the renewal of a business manager visa.

These obligations are fundamental legal duties when operating a business in Japan. Failure to fulfill them indicates a lack of compliance awareness and raises serious doubts about the manager’s qualifications. Even if the company is operating at a deficit and facing cash flow difficulties, these public dues must be paid on time.

At the time of renewal, it is essential to submit tax payment certificates and social insurance payment proof to demonstrate that all public obligations have been properly fulfilled.

This is extremely important not only for showing sound financial management but also for demonstrating the foreign manager’s commitment to complying with Japanese societal and legal norms.

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5.Required Documents for business manager visa japan Renewal: Including Additional Materials for Deficit Cases

To renew a business manager visa japan, there are standard documents that must be submitted as a baseline. In addition, supplementary materials may be required depending on the company’s condition and the extent of the deficit.

5-1. Basic Required Documents for All Categories

Regardless of the company’s size or category, the following basic documents are commonly required for renewing a business manager visa japan:

• Application for Extension of Period of Stay
• Photograph (meeting specified requirements)
• Passport and Residence Card (for presentation)

5-2. Additional Documents by Company Category (1–4)

In addition to the basic documents listed above, the required supplementary documents vary depending on the company’s category. These categories are primarily determined by the company’s size and tax payment history.

• Category 1: Companies listed on a Japanese stock exchange, mutual companies engaged in insurance, etc.
  〇A copy of the “Shikiho” (Japan Company Handbook) or a document proving the company is listed on a Japanese stock exchange.
• Category 2: Entities or individuals whose total amount of withholding income tax on the statutory report of employment income exceeds ¥10 million in the previous year.
  〇A copy of the statutory report summary of employment income withholding slips for the previous year (with a received stamp).
• Category 3: Entities or individuals who can submit the statutory report summary of employment income for the previous year (excluding Category 2).
  〇A copy of the statutory report summary of employment income withholding slips for the previous year (with a received stamp).
  〇A copy of the most recent fiscal year’s financial statements.
  〇Certificate of taxation (or non-taxation) and tax payment certificate for residence tax, showing total annual income and tax payment status.
• Category 4: Entities or individuals not applicable to any of the above (e.g., newly established corporations).
  〇A copy of the most recent fiscal year’s financial statements.
  〇Certificate of taxation (or non-taxation) and tax payment certificate for residence tax, showing total annual income and tax payment status.
  〇Other documents clarifying the nature of the business, evidence of the existence of a business facility, etc. (Documents similar to those required for new visa applications may be requested.)

Companies that are relatively small in scale or newly established are more likely to face deficit settlements, and these often fall under Category 3 or 4. In these categories, submission of financial statements and tax certificates is mandatory, and the financial condition of the business is directly subject to examination. Accurately identifying which category your company falls into and thoroughly preparing the required standard documents is the first step in a successful renewal application during a deficit period.

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5-3. Additional Documents Especially Important in the Case of a Deficit Settlement

In addition to the basic documents and those required by company category, it is extremely important to prepare supplementary materials that actively demonstrate the continuity and future potential of the business when facing a deficit. These documents may not be explicitly listed in the official requirements published by the Immigration Bureau, but they are essential for improving the chances of a favorable outcome.

Business Plan (Including Improvement Plan and Profit & Loss Projections)

As mentioned above, a business plan (or business improvement plan) that details the reasons for the deficit, specific improvement measures, and future financial projections is the most critical document when applying during a deficit period.

Statement Explaining the Background of the Deficit and Future Outlook

In addition to the business plan, it is effective to submit a personal statement that honestly outlines the specific circumstances leading to the deficit, how you as a manager reflect on the situation, what measures you are taking, and your strong commitment and concrete outlook for business recovery. This statement plays an important role in conveying the sincerity and determination of the business owner—something that cannot be expressed through numerical data alone.

Evaluation Reports or Opinion Letters by Experts (SME Consultants / CPAs)

Especially in serious cases such as excess liabilities or consecutive deficits over two fiscal years, evaluation reports or opinion letters regarding the validity of the business improvement plan prepared by certified SME consultants or certified public accountants can be highly impactful. These documents are not mandatory, but submitting them can significantly increase the likelihood of renewal approval, even in deficit situations.

Documents Proving Fundraising (Capital Increase, Loan Agreements, etc.)

Documents that concretely demonstrate improvements in cash flow or the strengthening of the financial foundation, such as an updated company registry and proof of payment in the case of a capital increase, loan agreements from financial institutions, or documents showing support from a parent company.

Tax Payment Certificates and Social Insurance Payment Certificates

Even in a deficit situation, it is essential to submit documents proving that public obligations such as taxes and social insurance premiums are being properly paid. This demonstrates a commitment to legal compliance.

By proactively preparing and submitting these additional documents, you can show the Immigration Bureau that you are sincerely addressing current challenges and making active efforts toward resolution.

6.The Seven Primary Reasons a business manager visa japan Renewal Is Denied and How to Avoid Them

Beyond a deficit settlement, there are several other reasons why renewal of a business manager visa japan can be denied. By understanding these common grounds for refusal and taking proactive measures in advance, you can improve your chances of approval.

6-1. Reason 1: Continued Business Deficit or Excess Liabilities

As emphasized throughout this article, ongoing business deficits or a state of excess liabilities raise serious concerns about the stability and continuity of the business, making it one of the most common reasons for visa renewal denial.

How to Avoid It: Prepare and submit a persuasive business improvement plan, implement concrete corrective measures, and provide evidence of progress. Seek support from professional experts if necessary.

6-2. Reason 2: Extremely Low Executive Compensation

If the business manager’s compensation is significantly below the level considered sufficient for a stable life in Japan (e.g., less than ¥180,000 per month), it may be judged that the manager’s personal financial foundation is unstable, which can lead to visa renewal denial.

How to Avoid It: Set executive compensation at a level generally deemed appropriate in society. If it must be temporarily low, clearly explain the reason and how living expenses are being supplemented (e.g., through personal savings or a spouse’s income), and provide supporting documentation.

6-3. Reason 3: The Business Manager Engaging in Manual or On-Site Labor

The business manager visa japan is granted for engaging in the operation or management of a business. If it is determined that the manager is primarily engaged in manual or on-site work—such as cooking, customer service, or massage therapy—the activities may be deemed inconsistent with the visa status, leading to denial.

How to Avoid It: Clearly demonstrate that you are focusing on your core responsibilities as a manager, such as business strategy development, financial management, HR oversight, and negotiations with business partners. Even if you temporarily assist with on-site tasks in a small company, clarify that this is not your primary role, and maintain records of your managerial activities (e.g., meeting minutes, daily work logs).

6-4. Reason 4: Delinquency in Tax or Social Insurance Payments

Failure to pay taxes—such as corporate tax, residence tax, income tax, or consumption tax—or social insurance premiums like health insurance and employees’ pension, can be seen as a lack of compliance with legal obligations, making it a strong reason for visa renewal denial.

How to Avoid It: Ensure that all taxes and social insurance premiums are fully paid by their deadlines. Submit tax payment certificates and social insurance payment proof when applying for renewal.

6-5. Reason 5: Lack of Actual Business Operations or Poor Performance

Even if an office is under contract, if there is little to no actual business activity or if extremely low sales continue for an extended period (e.g., zero sales without valid reason), the continuity of the business may be questioned, potentially resulting in visa renewal denial.

How to Avoid It: Maintain ongoing business operations and keep records of your activity (e.g., contracts, invoices, delivery slips, sales ledgers). If there is a temporary decline in activity, clearly explain the reason (such as the impact of COVID-19) and present a concrete recovery plan.

6-6. Reason 6: Failure to Obtain Required Licenses or Legal Violations

Operating a business without legally required licenses—such as a restaurant license, secondhand dealer license, or travel agency registration—or violating other laws can result in visa renewal denial.

How to Avoid It: Confirm and obtain all licenses and permits necessary for your business operations, and ensure they are properly maintained. Comply with all other applicable laws and regulations, such as the Labor Standards Act and the Personal Information Protection Act.

6-7. Reason 7: Other Issues (Illegal Employment, Inadequate Business Premises, etc.)

Hiring foreign nationals without valid residence status (promoting illegal employment) or operating from an inappropriate business location—such as a shared residential-office space where business and living areas are not clearly separated, or using a virtual office without a physical presence—can also lead to visa renewal denial.

How to Avoid It: Properly manage the residence status of all employees and do not engage in illegal employment. Secure a dedicated, independent space suitable for business operations.

Each of these reasons can be problematic on its own, but when combined with a deficit settlement, the likelihood of renewal denial increases significantly. It is essential to understand that visa renewal is not judged solely on financial condition, but on the overall legality and soundness of business operations.

7.Consult a Specialist if You’re Unsure: Benefits of Working with a Gyoseishoshi (Immigration Lawyer)

Renewing a business manager visa japan during a deficit period is more complex than a standard renewal and requires specialized knowledge and experience. If you have concerns about preparing the application documents or explaining your situation to the Immigration Bureau, it is highly recommended to consult with a gyoseishoshi (certified immigration lawyer) who specializes in business manager visas.

7-1. Accurate Advice Based on the Latest Immigration Screening Trends

The Immigration Bureau’s screening standards and operational policies are not always fully documented and may change over time. An experienced gyoseishoshi is well-versed in the latest trends in immigration reviews and can provide precise advice tailored to your specific situation.

7-2. Optimal Document Preparation and Application Strategy Based on Your Situation

No two cases are the same—factors such as the reason and extent of the deficit, company size, and business type all vary. A qualified gyoseishoshi will conduct a thorough consultation to understand your specific circumstances and assist in preparing the most effective business plan and explanation letter, while also devising a comprehensive application strategy.

Relying on a specialist’s expertise allows you to more accurately and effectively determine which documents will strengthen your application.

7-3. Reduce Time and Effort Through Proxy Filing

Many gyoseishoshi hold a proxy application qualification, allowing them to submit documents to the Immigration Bureau on behalf of the applicant. This not only saves the applicant time and effort by eliminating the need to appear in person, but also frees them from complex procedures—allowing them to focus fully on managing their business.

When facing the challenge of a deficit, expert support can be an invaluable asset in successfully renewing your visa.

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8. Summary

While renewing a business manager visa japan with a company in deficit is certainly challenging, it is by no means impossible.

What’s crucial is not to view the deficit pessimistically, but to calmly analyze its causes, develop concrete improvement measures for the future, and present them in a persuasive manner to the Immigration Bureau.

The following points, in particular, are key to a successful renewal:

✓　 Prepare a realistic and detailed business improvement plan: Clearly explain why the deficit occurred and how the business will return to profitability and maintain stability in the future. ✓　Submit objective supporting documents: Proactively provide contracts, proof of funding, expert evaluations, and other materials to demonstrate the feasibility of the plan. ✓　Ensure full legal compliance: Submit proof that all taxes and social insurance payments are up to date and that all relevant business laws are being followed. ✓　Set an appropriate executive salary: Secure a level of remuneration that allows the business owner to live stably in Japan and be ready to explain and justify it.

It is essential to be thoroughly prepared and approach the application process with transparency. Depending on the nature of the deficit and the business, collaboration with other professionals such as certified SME consultants or certified public accountants may also be highly effective.

If you feel even slightly uncertain about the procedures, do not hesitate to consult with a gyoseishoshi who specializes in business manager visa japan renewals. With expert knowledge and support, you can overcome difficult circumstances and greatly increase your chances of maintaining your vital residency status.