Investor visa self help guide has been created to help you understand the the Japan investor visa and how it applies to you. This type of visa has a few names in English and is often referred to as investor visa, business visa or a self-sponsorship visa.
Who is the investor visa for?
This type of visa is meant for entrepreneurs who wish to establish their own business in Japan rather than work for a Japanese company as a highly skilled professional or a working holiday traveler. This type of visa is also suitable for those, who are going to manage an already existing business in Japan.
While business visa allows for more working and entrepreneurial flexibility compared to a traditional recruitment by the company as an employee, this type of visa poses much stricter requirements. Also, one must remember that it might be difficult for a foreigner to establish a company in Japan from outside Japan without the assistance of the professionals.
Where should I apply for an Investor Visa?
Applications for an investor visa are done at the immigration office in Japan. Thus, you may apply personally if you reside in the country at the moment of application. You will need to ask for the assistance of a certified immigration official to submit your papers on your behalf if you reside outside Japan at the moment of application.
How do I apply for an investor visa?
Quite simply there are 2 solutions:
– Use a Japanese immigration official (行政書士 – gyouseisoshi)
– Apply yourself (*only if you have an advanced level of Japanese language skills)
Investor Visa – Who may help me establish and run the company?
A certified immigration official
In order to achieve the best possible result and get your company established and visa approved, you may need assistance from a certified immigration official.
Using such an official is inevitable if you are applying from outside of Japan (see the paragraph above). They can also provide guidance about the most suitable Japanese company type for your business.
Available options include kabushiki-gaisha or an incorporated company (Co., LTD), godou-gaisha or limited liability company (LLC), Japan branch of a foreign company, and a representative/liaison office.
The rules and requirements for establishing a company may slightly vary depending on the type of business. Gathering documents and running errands will demand the high level of understanding of Japanese laws and practices as well as advanced Japanese language skills.
While there is a generalized outline for the requirements, application procedure, and a set of necessary documents which you may find below, actual investor visa applications are processed on the individual basis. Thus, getting a professional involved may positively influence the quality of your application and processing times.
A local co-director or Nominee director.
In order to establish a company in Japan, at least one of the company’s directors should be a resident of Japan (Japanese national, a permanent resident, a spouse or a child of Japanese national, a spouse or a child of permanent resident, or a foreign national with a long-term visa).
If at the moment of application for establishment of a company you are residing outside of Japan, you will need to find a co-founder/co-director who fulfills this requirement. (See the list of requirements below.) Alternatively, you can hire a nominee director for the the period of establishment.
Is a tax accountant required?
It is highly recommended to hire a Japanese tax accountant to deal with such taxation matters as:
- Undertaking the incorporation of the company
- Filing corporate taxes after the legal establishment
- Handling current tax and compliance matters. For example, annual returns, employees’ payrolls, social insurances, labor insurances, etc.
- Helping with your individual tax as a company owner, and many others.
All of these procedures are done exclusively in Japanese and require a lot of precision while doing the paperwork and in-depth understanding of Japanese tax. Failing to handle your taxes in time and in accordance with the rules may create serious problems for your company and get your investor visa revoked.
What are the Investor Visa Requirements?
There are several types of activities you are eligible to do with your investor or business visa. Depending on your type of activity there are different requirements for applicants. Most common options are either starting your own company or managing an existing business.
Please note, that if you want to start your own business, you will have to establish a company in Japan prior to applying for your investor visa.
If you are starting your own business, you will need:
- An investment (a paid in capital) of at least 5 000 000 yen (45 000 $). The higher the investment, the higher your chances of getting the investor visa, provided that other requirements have been met. The money you have invested will be available for use in your business when the incorporation process is complete. Investment can come from one’s own savings, family money, a bank loan, etc. If you choose to loan the money from a bank, you will also have to submit a loan contract specifying details of the loan.
- A business plan. The nature of your business should be very clear and consistent and comply with the current Japanese legislation. Special attention should be paid to the articles of association as well as profit and loss statements. Your business plan should demonstrate that your company is operable and can yield results and profits. Make sure your business plan explains these points well.
- Appropriate business license. Some types of businesses require appropriate certifications to operate. For example, restaurants, construction companies, financial services, etc. Make sure you have obtained all the necessary licenses to run your business.
- Appropriate background and working history of an investor. If you are trying to establish a business in an area where you have no experience, your application may be waived. You need to have at least three years of relevant experience in the business sphere where you would like to establish your company in order to able to run your own company in Japan.
- An office. The office should be an actual premise meant for business use. Pop-up stalls or monthly rental rooms, shared offices, home addresses, P/O boxes, virtual offices, temporary structures or any other similar options are not acceptable. Immigration office has the right to visit your business premises and check its compatibility with the requirements, as well as ask you for pictures of your office to make sure you are being truthful about its existence. You might need a guarantor in Japan to rent the right kind of office.
- A co-director. At least one of company’s directors should be a resident of Japan (Japanese national, a permanent resident, a spouse or a child of Japanese national, a spouse or a child of permanent resident, or a foreign national with a long-term visa). If at the moment of application for establishment of a company you are residing outside of Japan, you will need to find a co-founder / co-director who fulfill this requirement.
- Your company should have at least two full-time employees (beside you), who are residents of Japan (Japanese national, a permanent resident, a spouse or a child of Japanese national, a spouse or a child of permanent resident, or a foreign national with a long-term visa).
If you are going to manage an existing business, you will need:
- Lesser investments. Your financial participation can drop to 2 500 000 yen (22 500$)
- One full-time employee (beside you), who is a resident of Japan (Japanese national, a permanent resident, a spouse or a child of Japanese national, a spouse or a child of permanent resident, or a foreign national with a long-term visa).
- A salary that is the same or higher as the salary of Japanese person in the comparable position.
More information about the exact set of requirements specifically for your company can be found at the immigration office.
Can co-founders both get an Investor Business Manager visa?
The simple and quick answer is yes. The important factor when applying to be aware of that you must clearly differentiate your roles in the company, this is usually done via job descriptions such as CEO, COO or CFO.
Japanese companies usually do not have co-executive directors, which makes it hard for the Japanese immigration office to understand why you would both need to be running a company, and thus, why you would both need an Investor Business Manager visa.
The key is to be very detailed in your explanations and clearly explain how your roles are complementary, required, different and how you are both essential for the business to run properly.
Duration of an investor visa
Investor visa can be granted for 1, 3, or 5 years. It’s renewal and duration depend on the performance and profitability of your business. It is important to know that when you create a company you will usually only receive an investor visa for one year. Each time you renew your visa, you also will most likely only be able to extend for one year at a time (after renewing several times you could apply for a permanent resident visa).
Investor Visa Application procedure
You can apply from outside or in Japan. Applying for an investor visa is quite simple once you have gathered all the necessary documents:
- Establishing your company before applying for an investor visa. You might want to use a help from a certified immigration professional and a tax accountant to help you run the errands.
- Applying for an investor visa Certificate of Eligibility (COE) at the immigration office and waiting for a confirmation. A certified immigrant official can do it for you if you reside outside Japan at the moment of application.
- When your COE is ready, pick it up from the immigration office and exchange it for an Investor Status of Residence (SOR). This can be done at the Embassy or a Consulate of Japan.
TIP: Finding an office and a co-director is easier when you are in Japan. Thus, you might want to consider obtaining a four-month startup visa first to make all the necessary preparations. Read our in-depth guide on setting up a business in Japan. After everything has been set, you may apply for a change of your SOR and obtain an investor visa.
Japan Residence Card
Whether you receive your Japan Investor SOR at the airport upon entering Japan or via a change of status application filed at a regional immigration office in Japan, you will receive a Japan Residence Card.
This is an official identification card that includes an IC chip. The Residence Card contains personal information such as your name, address, birth date, residence status (in this case, Investor SOR), period of stay.
You are required to carry your Residence Card at all times.
What documents do I need?
Depending on the type of the company you are intending to run and your financial situation you might need some of the following:
- Investment information. For example, a loan contract if you choose to finance your business this way, or other documents proving your investment.
- Well written, clear and coherent business plan, explaining the nature of your business, terms of association, projections of profits and losses, etc.
- Company registration documents, including its capital, registered address, and information about directors.
- Appropriate licenses should your business need them (for example, restaurants, construction companies, financial services, etc.)
- Documents about applicant’s professional background.
- Office rental documents, including photos of premises
- Employee-related documents, such as payroll information, and others.
To get a detailed list of documents that you personally will need to establish your business consult a certified immigration specialist as the list of necessary papers may vary.
How long does it take to obtain an investor visa?
An establishment of a company may be a lengthy process. There is no time estimate for that since it depends on too many other factors, such as finding an office, finding a co-director, doing all the paperwork, etc. It will take 2-3 months to get a COE and another two weeks to get the SOR. If you are changing your SOR while being in Japan, you will not be able to travel outside Japan during these two weeks.
Tax considerations upon receiving your Investor Visa
There are 2 important tax matters to bear in mind as you live and work in Japan:
1. Japanese Tax for holders of the Investor Visa
People living in Japan under Investor visa will either be
a) working for a company that handles part of their Japan tax matters on their behalf. Usually tax is deducted each month and a year-end adjustment as part of the December payroll. or
b) working for yourself (your company) and you will be responsible for both corporate tax and individual income tax (if you pay yourself a salary). Please note manadatory pension and health insurance taxes may apply.
In general you will need to submit a Japanese individual tax return by 15 March each year. It is very important that you understand your Japan tax obligations since no extensions are available.
NOTE: Complying with your national and local Japanese tax obligations is essential in order to renew your visa.
2. Taxes when the holder of Investor visa leaves Japan
Before leaving Japan, the holder of Investor visa is required to fully settle his/her taxes or appoint a tax agent.
It should also be noted that Japanese local tax (juminzei) is assessed based on where you live on 1 January each year. As a result, departing Japan prior to 1 January can result in significant tax savings.
