Business Manager Visa for Executives and Senior Management of Large Corporations
Business Manager Visa for Executives and Senior Management of Large Corporations
The Business Manager (経営・管理) status of residence is often associated with foreign entrepreneurs who establish companies in Japan. In practice, however, it is also widely used by representative directors, directors, Managing Directors (MDs), and other senior executives of large corporations.
The Immigration Services Agency of Japan identifies “business owners and managers of companies and other organizations” as typical examples of persons covered by Business Manager status. Its application guidance also specifically refers to positions such as representative directors and directors.
Corporate Executives May Also Qualify for Business Manager Status
When an executive is dispatched from an overseas headquarters to serve as a representative director, director, MD, or other senior executive of a Japanese company and is responsible for managing the Japanese business, Business Manager is typically the appropriate status of residence.
However, the applicant’s title alone is not determinative.
To qualify for Business Manager status, the foreign national must substantively participate in the management or administration of the business. This may include involvement in important decisions concerning business operations, execution of corporate affairs, or supervision and auditing.
For executives of large corporations, it is therefore important to clearly establish how the individual will participate in the management of the Japanese company, such as through board participation, formulation of corporate strategy, important management decisions, and supervision of business operations.
Outside Directors May Also Require Business Manager Status
Particular attention should be given to foreign outside directors who continue to reside overseas while serving on the board of a Japanese company.
At global corporations, a foreign outside director may maintain their principal residence outside Japan and travel to Japan only when necessary to attend board meetings and other important corporate meetings. Such an executive may be treated as a non-resident for Japanese tax or other purposes.
However, being a non-resident and determining the appropriate immigration status for activities conducted in Japan are separate legal issues.
If the individual comes to Japan and substantively performs duties as a director, including management decision-making or supervisory functions, those activities may constitute the “management or administration of a business” under Japanese immigration law.
Accordingly, even where an outside director principally resides overseas and spends only limited periods in Japan, Business Manager status may be required if the individual will continuously perform their duties as a corporate director while in Japan.
The fact that the executive spends most of the year overseas or is classified as a non-resident does not, by itself, eliminate immigration considerations.
Special Considerations Regarding Residential Address Registration
Another unusual issue for non-resident executives concerns the treatment of their residential address in Japan.
Ordinarily, a mid- to long-term resident who establishes a residential address in Japan is required to notify the relevant municipality of that address, generally within 14 days.
However, an outside director whose principal home remains overseas may not establish a permanent residence in Japan at all. Instead, the individual may repeatedly enter Japan for short periods and stay at hotels or similar accommodation.
In such circumstances, it may not be appropriate to simply register a “home address in Japan” in the same manner as an ordinary expatriate employee. Where a mid- to long-term resident does not establish a residential address in Japan, the appropriate immigration notification procedure and treatment of the Residence Card must be considered based on the individual circumstances.
Therefore, when obtaining Business Manager status for a non-resident outside director, the process does not necessarily end with obtaining the COE and visa. It is also important to determine in advance how the residential address notification requirements will be handled after entry into Japan.
Simplified Documentation May Be Available for Large Corporations
For large corporations, including publicly listed companies, the documentation required for a Business Manager application may be significantly simplified depending on the company’s immigration category.
For example, companies listed on a Japanese stock exchange may qualify as Category 1 organizations. Under the Immigration Services Agency’s document requirements, certain corporate documents are generally not required for Category 1 and Category 2 organizations.
Accordingly, an application for an executive of a major corporation does not necessarily require the extensive business plans and supporting materials commonly associated with Business Manager applications for newly established companies.
Instead, the application should be structured based on the company’s applicable immigration category and the executive’s actual management responsibilities.
Advance Planning Is Particularly Important for Senior Executives
For foreign executives, several distinct legal and practical issues may arise simultaneously, including:
corporate appointment under Japanese company law, tax residency or non-residency, executive compensation, the relationship with the overseas headquarters, the number of days actually spent in Japan, and the appropriate status of residence under immigration law.
This is particularly important for non-resident outside directors.
It would be inappropriate to simply assume:
“The director lives overseas, so no Japanese visa is required.”
Instead, companies should consider what duties the executive will actually perform in Japan, how frequently the individual will travel to Japan, whether they will establish a residence in Japan, and where and how their executive compensation will be paid.
The analysis may therefore need to cover not only obtaining Business Manager status but also the special handling of residential address notifications after arrival in Japan.
When appointing or assigning foreign executives to major Japanese corporations, it is advisable for HR and legal departments to coordinate with tax accountants, attorneys, Gyoseishoshi, and other relevant professionals to structure the arrangement from the perspectives of corporate law, taxation, and immigration practice.
Professional Consultant
Masakazu Murai
Immigration Consultant & Financial Advisor with 18 years of investment banking experience at Mitsubishi UFJ Morgan Stanley, advising over 500 entrepreneurs and executives.
- Gyoseishoshi Immigration Lawyer
- CMA (Japanese Certified Member Analyst)
- CFP (Certified Financial Planner)
- MBA in Entrepreneurship