Immigration

When foreign nationals establish a joint business partnership and each of them takes on the role as an executive at a Japanese company, the eligibility of their status of residence and compliance with the landing criteria will be examined based on the specific activities that each individual intends to engage in. As a precaution, it is important to note that being appointed as a director or as an executive does not directly correlate with the designated residency status.

What are the requirements for all foreign nationals to be deemed eligible for the “Business Manager” residency status?

Depending on the scale of the company, intended workload, and estimated revenue of the business, the number of people who can apply for the “Business Manager” status will weigh in heavily on whether or not there is a reasonable reason for multiple foreign nationals to manage the business. For the majority of cases, only one foreign national will be needed to manage a small business, therefore the likelihood that if the job activities for other members fall under other status of residence such as “Engineer/Specialist in humanities/International services,” it will be best for them to apply for the appropriate status in that category.

Here are some examples where all foreign nationals will be able to fall under the “Business Manager” status of residence:
(1) Each individual is recognized as having a reasonable reason to manage the business based on the size and intended workload of the business.
(2) The duties related to business management are clearly defined for each individual.
(3) Each individual is expected to receive an appropriate amount of compensation for their work related to business management.

Examples where all foreign nationals will be designated to fall under the “Business Manager” status of residence, as illustrated by the Ministry of Justice

If certain conditions are met, which include the ones shown below, the probability of all applicants being able to obtain the “Business Manager” status of residence will be high. For reference, the Immigration Services Agency’s website provides two examples:

Example 1: Individuals A and B each invested 5 million yen to establish Company X, an import goods business in Japan. A is a specialist in overseas transactions such as customs procedures and import/export business, while B is a specialist in quality control, inventory management, and accounting of imported goods. A and B each assess the business situation of Company X from the perspective of overseas transactions and quality control/accounting, respectively, and have agreed to make joint decisions as co-owners regarding the management policy. The compensation for A and B is paid in proportion to their investment amount from the business revenue.

Example 2: Individuals C and D each invested 6 million yen and 8 million yen, respectively, to jointly establish Company Y, a transportation services business in Japan. After setting the areas responsible for the transportation service, C and D respectively take charge of their assigned areas and manage the business operations for their own area. The overall management policy of Company Y is decided by C and D in consultation, and C and D receive an appropriate amount of compensation for their work in proportion to their investment amount from the business revenue.