How to establish a company with a 4-month business manager visa in Japan? Explanation of the visa acquisition process and important points to note

For foreign entrepreneurs living overseas who want to start a business in Japan, the 4-month business manager visa, often referred to as the “startup visa,” allows you to prepare for your business without the risk of securing funds before obtaining the visa. This means you don’t need to deposit capital in a Japanese bank account or sign a business office lease contract beforehand.

However, to make the most of this 4-month business manager visa, it is essential to accurately understand its requirements and the acquisition process.

The key points of this article are as follows:

✓The 4-month business manager visa (startup visa), introduced with the revision of the Immigration Control Act in April 2015, allows foreign entrepreneurs living overseas who are planning to establish a company in Japan to use it as a preparation period before the actual company establishment. ✓With the one-year business manager visa, it is necessary to complete startup preparations before the visa application, including transferring funds, sending capital to a Japanese bank account, and securing an office. Therefore, having a collaborator in Japan to help with these preparations is essential. ✓By obtaining the 4-month business manager visa and coming to Japan, you can open a personal bank account to receive capital from overseas, secure an office, and proceed with company registration preparations. ✓Within the 4-month business manager visa period, complete the company registration process and apply to extend it to a one-year business manager visa. ✓If you cannot submit the company registration certificate when renewing the 4-month residence period, consistency with previously submitted documents will be required. If there is any inconsistency, the renewal may be denied. ✓With the 4-month business manager visa, only certain financial institutions may accommodate you, and property owners may be hesitant to approve lease contracts. ✓Considering the need for renewal within a short 4-month period and the effort required for preparation, applying for a one-year business manager visa from the beginning may be a more efficient choice in terms of time and effort.

This article provides a detailed explanation of the 4-month business manager visa.

1. What is the 4-Month Business Manager Visa Japan?

The 4-month business manager visa (startup visa), introduced with the revision of the Immigration Control Act in April 2015, allows foreign entrepreneurs living overseas who are planning to establish a company in Japan to use it as a preparation period before the actual company establishment.

1-1. No Need for Fund Transfers Before Obtaining the 4-Month Business Manager Visa Japan

With the 4-month business manager visa, if you can properly prepare a business plan for Japan, you can avoid the risk of transferring large amounts of funds to a Japanese collaborator’s bank account or signing an office lease contract before obtaining the visa.

After obtaining the 4-month business manager visa and coming to Japan, you can then proceed with activities involving fund transfers, such as overseas remittances and securing an office. This is a key feature of this visa.

1-2. Differences from the One-Year Business Manager Visa Japan

The standard business manager visa is issued for a stay of more than one year and allows activities necessary for business management after establishing a company. For the standard business manager visa, it is necessary to complete startup preparations, such as fund transfers and securing an office, before applying for the visa. Therefore, having a collaborator in Japan to help with these preparations is essential.

In contrast, the 4-month business manager visa is intended for preparation after arriving in Japan and allows activities related to company establishment before actually forming the company.

If you come to Japan on a short-term stay visa (90 days) for the purpose of startup preparation, you cannot register a resident record in Japan and therefore cannot proceed with company establishment preparations. However, by obtaining the 4-month business manager visa before coming to Japan, you can open a personal bank account to receive capital from overseas, secure an office, and proceed with company registration preparations.

2. Benefits of the 4-Month Business Manager Visa Japan

The 4-month business manager visa offers the following benefits:

2-1. Ability to Register for a Resident Record and Seal Certificate

Typically, foreign nationals in Japan need a mid-to-long-term visa and a residence card to obtain a resident record and seal certificate. Without a residence card, you cannot register for a resident record, making it difficult to obtain a resident record or seal certificate. Without these documents, it is challenging to sign real estate lease contracts or open a bank account in Japan.

With the 4-month business manager visa, you can complete resident registration. This facilitates various procedures necessary for company establishment and living in Japan.

2-2. Ability to Open a Japanese Bank Account

To establish a company in Japan, you need to deposit capital into a Japanese bank account. To open a bank account in Japan, foreign nationals need a residence card issued with a visa valid for more than three months. With the 4-month business manager visa, a residence card is issued, allowing foreign nationals to open a bank account at financial institutions.

However, it’s important to note that only certain financial institutions may allow you to open a bank account with the 4-month business manager visa. Therefore, it is advisable to consult with experts familiar with the 4-month business manager visa when selecting a financial institution.

2-3. No Need to Deposit Funds into a Collaborator’s Bank Account

For the one-year business manager visa, foreign entrepreneurs often lack a Japanese bank account when starting a business in Japan. Consequently, they need to transfer the required capital of at least 5 million yen to a Japanese collaborator’s bank account as part of the visa application and company registration process.

With the 4-month business manager visa, you can open your own bank account beforehand. This allows you to deposit the capital directly into your own account, simplifying the process and avoiding the risk of temporarily entrusting the capital to a collaborator.

Proof of 5 Million Yen Capital with Articles of Incorporation

If the company registration has not been completed at the time of applying for the 4-month business manager visa, proof of the capital of at least 5 million yen required for establishment can be provided with a copy of the articles of incorporation or other documents that clearly indicate the intention to establish the company. Additionally, documents proving the source of funds, such as income certificates, should be prepared to support the visa application.

2-4. No Need to Sign an Office Lease Before Visa Application

Securing office space is a crucial point when starting a business with a business manager visa. The standard business manager visa requires securing an independent office before applying for the visa. However, with the 4-month business manager visa, you can sign an office lease contract after obtaining the visa.

Proof of Office with Property Documents

When applying for the 4-month business manager visa, you do not need to have a signed office lease contract. Instead, you can submit documents related to potential office spaces (such as location, size, and budget) to demonstrate your plans.

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3. Process of Obtaining the 4-Month Business Manager Visa and Establishing a Company

The process of obtaining the 4-month business manager visa and establishing a company in Japan involves the following steps:

• Draft the articles of incorporation.
• Have the articles of incorporation notarized at a notary office.
• Create a business plan.
• Apply for the 4-month business manager visa.
• Complete the visa issuance process in your home country.
• After arriving in Japan, complete the company registration process.
• Within 4 months, apply to extend the business manager visa to one year.

Below is a detailed explanation of each step.

3-1. Drafting the Articles of Incorporation

The first step in establishing a company is drafting the articles of incorporation.

The articles should include essential information such as the company name, business purpose, capital, head office location, fiscal year, investors, and directors. For capital, if you do not plan to hire employees initially, a minimum investment of 5 million yen is required to obtain the business manager visa.

Setting Capital to 5 Million Yen or More in the Articles of Incorporation

At the time of applying for the 4-month business manager visa, it is not necessary to actually transfer 5 million yen to a Japanese bank account. However, the documents submitted with the visa application, such as the articles of incorporation, should state the capital as 5 million yen or more, and you should have the equivalent amount in Japanese yen ready.

3-2. Notarizing the Articles of Incorporation at a Notary Office

After preparing the articles of incorporation, you need to have them notarized by a notary at a notary office in the prefecture where the company’s head office is planned to be located.

Sign Certificate Required if No Seal Registration

For foreign residents living overseas, who do not have access to Japan’s seal registration system, a notarized signature certificate (affidavit) can be used instead of a seal registration certificate to complete the notarization of the articles of incorporation.

Save 40,000 Yen with Electronic Articles of Incorporation

If it is difficult for the foreign entrepreneur to visit the notary office in person, a judicial scrivener or administrative scrivener can handle the preparation and notarization of the articles on their behalf. Additionally, many judicial or administrative scriveners can prepare electronic articles of incorporation, which can save you 40,000 yen in revenue stamp fees.

3-3. Creating a Business Plan

Next, create a business plan.

Regardless of whether the stay period is 4 months or one year, the business eligible for the business manager visa must be conducted appropriately and demonstrate stability and continuity. You need to prepare a business plan explaining these aspects and submit it to the Immigration Bureau.

3-4. Applying for the 4-Month Business Manager Visa Japan

Once the articles of incorporation and the business plan are completed, apply for the 4-month business manager visa at the Immigration Bureau. This application requires the business plan, articles of incorporation, and documents proving the applicant’s background and financial capability.

If the visa is approved, a Certificate of Eligibility will be issued. Send this certificate to the applicant in their home country, who can then use it along with the required documents to obtain the visa at the Japanese consulate in their home country. This will allow them to enter Japan.

3-5. Completing the Company Establishment Procedures After Arrival

Before the renewal of the 4-month business manager visa, you must complete all procedures related to company establishment. The following steps are necessary for establishing a company:

• Register for a resident record and seal certificate in Japan.
• Open a personal bank account in Japan.
• Transfer the capital into the opened bank account.
• Secure an office or store (lease agreement, etc.).
• Create the company seal.
• Register the company establishment.
• File a notification under the Foreign Exchange and Foreign Trade Act.
• Submit a notification of business commencement.
• Prepare office or store facilities.
• Obtain necessary permits and licenses (if required).
• Start company operations (open a corporate bank account, join social insurance).

For the 4-month business manager visa, the timing of registering the resident record, seal registration, and visa application differs from the standard one-year business manager visa, but the other procedures are generally the same. The key difference is that these procedures are carried out after obtaining the visa, not before.

For detailed procedures, please refer to the following page.

3-6. Apply for Renewal to a One-Year Business Manager Visa Japan Within 4 Months

The 4-month business manager visa is intended to support the initial stage of business preparation. Therefore, within the visa’s validity period, you must complete the company establishment procedures and apply to extend the visa to a one-year business manager visa.

The renewal application requires submitting documents such as the company registration certificate, lease agreement, reports on business activities so far, financial status reports, and future business plans, demonstrating the company’s performance and future plans.

Once renewed, you will obtain a one-year business manager visa in Japan, allowing you to take further steps toward long-term business development.

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4. Points to Note About the 4-Month Business Manager Visa Japan

Obtaining the 4-month business manager visa has the advantage of allowing you to prepare for your business without needing to secure office space or capital in Japan before arriving. However, there are some important points to consider when applying:

4-1. A Thorough Business Plan is Required

To obtain the 4-month business manager visa, you must prove to the Immigration Bureau examiner, in addition to the general requirements for a one-year business manager visa, that you meet the following criteria with your submitted documents:

• You have the intention to prepare for the establishment of a company, such as a corporation, in Japan.
• The establishment of such a company is highly probable.

To obtain the business manager visa, it is necessary to demonstrate that the business plan you intend to carry out in Japan is realistic, that the business can be stable and sustainable over the long term, and that you are highly likely to establish a company in Japan. A business model that consistently incurs losses and raises doubts about sustainability will make it difficult to obtain the business manager visa. Furthermore, if you cannot submit the company registration certificate when renewing the 4-month residence period, consistency with previously submitted documents will be required. If there is any inconsistency, the renewal may be denied.

Therefore, to support the stability and sustainability of the planned business, it is necessary to submit a feasible business plan not just for one year, but with a medium- to long-term outlook of three years.

4-2. Limited Number of Financial Institutions Allowing Account Opening with a 4-Month Business Manager Visa Japan

The newly established 4-month business manager visa is gaining attention as a visa specifically designed for the preparation period before company establishment. However, one of the challenges entrepreneurs face with this visa is the difficulty of opening a bank account at financial institutions.

Due to the short duration of the 4-month business manager visa and the lack of guaranteed subsequent renewal or long-term residency, some financial institutions do not handle account openings for holders of this visa. Japanese financial institutions generally require long-term residency status or stable income in Japan as conditions for opening an account.

To open a bank account, it is crucial to find financial institutions that offer services for foreign entrepreneurs. Some banks have consultation desks for foreign customers, and it may be possible for holders of the 4-month business manager visa to open accounts there. Additionally, receiving introductions from reliable business partners or experts in Japan can also help pave the way for opening a bank account.

4-3. Property Owners May Hesitate to Lease to 4-Month Business Manager Visa Holders

Securing office space is one of the significant challenges foreign entrepreneurs face when starting a business in Japan. When using the 4-month business manager visa for such business preparations, some property owners may hesitate to sign a lease due to the short duration of the visa.

The underlying issue is the perceived risk by property owners. The 4-month duration of the business manager visa may lead them to question the continuity of the business and the long-term residency of the entrepreneur. Property owners, particularly those entering into lease agreements, expect tenants to have stable income and to pay rent over a long period. The 4-month business manager visa might not provide enough assurance of such stability and reliability.

To overcome this issue, several measures can be taken. One approach is to enhance the specificity and reliability of the business plan, emphasizing the continuity and profitability of the business to the property owner. Setting up a trustworthy guarantor in Japan or using a rental guarantee company can also reduce the owner’s perceived risk and help build trust towards signing the lease.

If confident in the business plan and model, another strategy is to share the vision for visa renewal or change of residency status with the property owner during negotiations, proposing a long-term partnership. Additionally, working through real estate agents or experts who understand the needs of foreign entrepreneurs can help find property owners who are more accommodating to leasing to holders of the 4-month business manager visa.

4-4. Renewal Application Required Within 4 Months

When using the 4-month business manager visa, it is necessary to complete important steps such as securing capital, registering the company, and securing office space within the visa period to be prepared for the visa renewal.

This short-term visa focuses on the preparation period before the actual business establishment, and its validity is strictly limited to 4 months. Therefore, to officially start the business, you must proceed with the renewal process within this period to move on to the next steps.

Due to the short duration of the 4-month business manager visa, you must begin preparing for renewal immediately after obtaining the visa, which is a significant difference from the long-term business manager visa. The renewal process after 4 months involves specific business plan details and the preparation of necessary documents, which can impose additional burdens and require effort during the initial business setup phase.

Some opinions suggest that obtaining the 4-month business manager visa can be challenging, but with proper preparation and procedures, it is achievable. However, considering the need for renewal within such a short period and the effort required for preparation, if you have a collaborator in Japan and can smoothly handle the procedures, applying for a one-year business manager visa from the beginning might be a more efficient choice in terms of time and effort.

5.Summary

The 4-month business manager visa (startup visa), introduced with the revision of the Immigration Control Act in April 2015, allows foreign entrepreneurs living overseas who are planning to establish a company in Japan to use it as a preparation period before the actual company establishment. ✓With the one-year business manager visa, it is necessary to complete startup preparations before the visa application, including transferring funds, sending capital to a Japanese bank account, and securing an office. Therefore, having a collaborator in Japan to help with these preparations is essential. ✓By obtaining the 4-month business manager visa and coming to Japan, you can open a personal bank account to receive capital from overseas, secure an office, and proceed with company registration preparations. ✓Within the 4-month business manager visa period, complete the company registration process and apply to extend it to a one-year business manager visa. ✓If you cannot submit the company registration certificate when renewing the 4-month residence period, consistency with previously submitted documents will be required. If there is any inconsistency, the renewal may be denied. ✓With the 4-month business manager visa, only certain financial institutions may accommodate you, and property owners may be hesitant to approve lease contracts. ✓Considering the need for renewal within a short 4-month period and the effort required for preparation, applying for a one-year business manager visa from the beginning may be a more efficient choice in terms of time and effort.

Whether to choose a 4-month business management visa or apply for a 1-year business management visa depends on individual business plans, strategies, and the progress of preparations. Regardless of the choice, it is important to recognize the significance of preparation and planning according to the type of visa. Consult with a professional to decide whether to choose a 4-month or 1-year business management visa and proceed with the application process accordingly.