Immigration Status Required for Foreign Entrepreneurs and Business Executives in Japan
Immigration Status Required for Foreign Entrepreneurs and Business Executives in Japan
In order for a foreign national to establish a company in Japan and engage in managerial or executive activities,
the individual must hold a status of residence expressly permitted under Japan’s Immigration Control laws.
Without an appropriate status of residence, a foreign national cannot legally operate a business as an owner,
serve as a representative director, or act as a corporate officer of a Japanese company.
In other words, unlike Japanese nationals, foreign entrepreneurs are subject to strict immigration-based
eligibility requirements before they may lawfully conduct business management activities in Japan.
Statuses of Residence That Permit Business Management Without Restriction
Foreign nationals who hold any of the following status-based (unrestricted) residence statuses
may engage in business management activities in Japan on the same basis as Japanese nationals,
without the need for a Business Manager Visa:
- Permanent Resident (including Special Permanent Resident)
- Long-Term Resident
- Spouse or Child of Japanese National (so-called “Spouse Visa”)
- Spouse or Child of Permanent Resident
Statuses of Residence That Require a Change for Entrepreneurial Activities
By contrast, foreign nationals who do not hold a qualifying status of residence—or who remain in Japan
under statuses such as Engineer/Specialist in Humanities/International Services,
Student, or Dependent—must apply for and obtain a proper managerial status of residence
before engaging in executive or business ownership activities.
The principal statuses of residence that permit entrepreneurial and executive activities are:
- Business Manager
- Highly Skilled Professional (i)(c)
- Highly Skilled Professional (ii) (available only to those who meet the statutory conditions)
Ongoing Immigration Compliance for Business Operators
Each of the above statuses is governed by detailed statutory requirements and examination criteria
prescribed under the Immigration Control Act and the internal guidelines of the Immigration Services Bureau.
Unlike Japanese nationals, foreign entrepreneurs must also navigate:
- Periodic status renewal procedures,
- Ongoing compliance with business continuity requirements, and
- Immigration scrutiny tied to financial performance, staffing, and corporate substance.
Accordingly, careful advance planning and a thorough understanding of the applicable immigration framework
are essential prerequisites to launching a sustainable business in Japan as a foreign national.
Statuses of Residence That Permit Business Management in Japan
| Status of Residence | Overview | Period of Stay |
|---|---|---|
| Permanent Resident | Foreign national permanently permitted to reside in Japan by the Minister of Justice | Unlimited |
| Spouse or Child of Japanese National | Spouse, special adopted child, or biological child of a Japanese national | 5 years, 3 years, 1 year, or 6 months |
| Spouse or Child of Permanent Resident | Spouse of a Permanent Resident or a child born in Japan who has continuously resided in Japan | 5 years, 3 years, 1 year, or 6 months |
| Long-Term Resident | Foreign national permitted to reside in Japan for designated activities based on special circumstances | 5 years, 3 years, 1 year, 6 months, or a period designated by the Minister (under 5 years) |
| Business Manager | Engagement in the operation or management of trade or other business activities in Japan | 5 years, 3 years, 1 year, 6 months, 4 months, or 3 months |
| Highly Skilled Professional (i)(c) | Management of trade or other business at a public or private institution designated by the Minister of Justice, including the operation of an associated business |
5 years |
| Highly Skilled Professional (ii) | Granted to holders of HSP (i) who have resided in Japan for three years or more, demonstrated good conduct, and meet national benefit requirements |
Unlimited |
Source: Immigration Control legislation; compiled by Continental Immigration Administrative Scrivener Corporation
Strategic Risk Management for Foreign Founders
- Operating a business without the correct immigration status constitutes an immigration violation.
- Improper status selection can lead to visa denial, forced status change, or removal from Japan.
- Business continuity is directly linked to successful visa renewal and corporate compliance.
- Executive activity must always remain within the scope of the authorized status of residence.
Because immigration compliance is inseparable from corporate governance for foreign-owned businesses in Japan,
founders must structure both their corporate formation strategy and their personal immigration status
in a fully integrated manner from the outset.
Professional
Masakazu Murai Immigration consultant, financial advisor 18 years’ experience in Investment Banking at Mitsubishi UFJ Morgan Stanley. He had provided financial advisory more than 500 entrepreneurs and senior management.
Gyoseishoshi Immigration Lawyer
– Co head of the Tokyo Gyoseishoshi Association, Minato branch
CMA(Japanese financial analyst license)
CFP (Certified Financial Planner)
MBA in Entrepreneurship
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