Last week, we met with a well-established visa specialist firm for a consultation on visa and business registration procedures for one of our pilot cases.\u00a0 Information regarding the various visa application processes and especially the Business Manager (formerly Investor) visa are quite limited, so we were eager to gain additional insight on this subject.<\/p>\n
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The visa specialists informed us that while only a few years ago success rates of applying for a Business Manager visa were \u201cnearly 100%\u201d if base requirements were fulfilled, in recent years the process has become increasingly strict.\u00a0 High amounts of application scrutiny with ambiguous terms for approval make it difficult to guarantee results\u2014the specialists recalled how recent applications that were prepared very similarly had been met with different results.<\/p>\n
The lowering success rate poses a sizeable risk for foreigners due to the costly application process.<\/p>\n
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The process of registering a company and subsequently applying for the Business Manager visa is both time-consuming and costly.\u00a0 Following company establishment, Business Manager visa applications demand detailed business plan information, as well as a compelling argument on what sets them apart from existing Japanese businesses.<\/p>\n
Visa application costs, business registration costs, housing & living costs while in Japan\u2026all of these can add up quickly, not to mention the minimum 5 million yen<\/em> in business capital required for the established company.\u00a0 Furthermore, the visa application process may take up to several months in some cases (coupled with the risk of ending in rejection), during which time it is difficult for the newly established company to formally conduct any business activities.<\/p>\n Our client remarked with exasperation that Japan\u2019s regulations are \u201cnot at all startup friendly\u201d\u2014with so many legal and financial hoops to jump through the scene is unideal for startups and other businesses with limited funding resources.<\/p>\n <\/p>\n Interestingly, the Business Manager visa route is not the only means to residing in Japan long-term and running a company. \u00a0In some cases, an entrepreneur may choose to designate a Japanese resident as the official representative of a company at establishment, and proceed to instead secure a standard work visa for themselves as an \u201cemployee\u201d of the company they founded (this method of course comes with a different set of risks for potential complication).\u00a0<\/p>\n For those who ultimately decide to pursue the Business Manager visa, applying to transfer from an existing Japan visa (such as a Work or Student visa) can often be more desirable than beginning the entire process while based overseas.\u00a0 Entrepreneurs meeting the age and nationality eligibility for a Working Holiday visa may also potentially be able to utilize that as an initial, shorter-term entry point for Japan.<\/p>\n Depending on the entrepreneur\u2019s intended plan of action, the timeline for formal company establishment may vary as well.\u00a0 Each route carries its own advantages and risks and depends heavily on the individual situation at hand.<\/p>\n <\/p>\n But what about working remotely in Japan with a foreign-incorporated company & foreign corporate bank account?\u00a0 Our client pointed out the sharp time and cost differences between establishing his startup in Japan and back in his home country overseas, and mused about the alternate scenario of proceeding as a \u201cdigital nomad\u201d entrepreneur instead.\u00a0<\/p>\n The specialists we were consulting agreed that this was indeed viable in theory, as it is permissible to enter Japan on a tourist\/sightseeing visa for engaging in business talks provided no domestic payment is changing hands.\u00a0 However, the obstacles associated with successfully acquiring the Business Manager visa would instead be replaced by the sharply increased barriers to developing a strong sense of trust with other companies within the Japan market.<\/p>\n Understandably, corporations would feel more assured to do business with another domestically-established entity, which conveys an increased sense of legal liability and removes the complication of costly overseas transactions.\u00a0 Obstacles could also manifest in other unexpected ways such as formal documents: many corporate contracts are specifically designed to be signed between two Japanese companies.<\/p>\n <\/p>\n With the visa application process for a Business Manager being such a difficult and potentially very costly process, enlisting a seasoned and skilled specialist becomes crucial.\u00a0 An experienced specialist will be able to evaluate each entrepreneur\u2019s specific situation and advise them on which route to running their business in Japan would be most suited to their goals and needs.\u00a0 They also will be able to provide valuable insight on major application pitfalls to watch out for<\/p>\n Although the Business Manager visa in Japan currently remains difficult to obtain, we are very thankful to the immigration specialists for openly sharing their impressions and for their best efforts towards assisting foreigner entrepreneurs.\u00a0 We are hopeful that over time we will be able to progress towards an increasingly foreigner startup-friendly environment in Japan.<\/p>\n","protected":false},"excerpt":{"rendered":"\n
Challenges In Selecting The Best Application Route<\/strong><\/h3>\n<\/li>\n<\/ol>\n
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Obstacles To Conducting Business As a Foreign Entity<\/strong><\/h3>\n<\/li>\n<\/ol>\n
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The Impact Of A Skilled Specialist<\/strong><\/h3>\n<\/li>\n<\/ol>\n