Are you a business person looking to relocate in Japan? An important global economy, Japan is nowadays an interesting country to do business and live in, provided certain conditions are met.
Our company formation consultants in Japan can inform you on the most important aspects relating to this subject. We can also assist you if you intend to open a company in Japan.
Foreign nationals who decide to move to Japan will have to follow a number of steps, as well as get accustomed to the Japanese way of life.
Relocating to Japan will most likely mean that the foreign national will be interested in applying for Japanese residency. This is possible when the applicant has been living in the country for a sufficient period of time, has a job that meets the requirements, has paid all taxes and contributions during his or her stay, and complies with other criteria. We can help those interested commence the application process.
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The investor/business manager visa in Japan
If you are a foreign business person who intends to open a company in Japan, or to manage or administer a business here, you will be required to obtain the investor/business manager visa in Japan. With this visa, you will be able to move to Japan and run your business.
In order to be granted this type of visa, you will have to set up a business and hire employees. Then, you will need to effectuate all the arrangements so that the company can start its activities immediately after receiving the visa. Owning a company can be a good reason to immigrate to Japan.
The working visa for a business manager is the category foreign nationals who will run a business will be required to apply for. It can be issued for different periods of time: 5 years, 3 years, 1 year or less (for only 4 months or 3 months).
The following documents are required for a business manager visa:
- Passport;
- Filled-in application form; (some foreign nationals such as those from Russia or Georgia are asked to provide two application forms);
- Photograph;
- Certificate of eligibility;
- For Chinese applicants: copy of the Chinese family register; the Chinese residence certificate or the temporary residence permit.
The needed documents may differ according to the applicant’s nationality. This is why we suggest that investors apply for the business manager visa with our help.
The usual visa processing time can be 5 working days and the Certificate of Eligibility can be applied for in advance in some cases. The Certificate is issued by a regional immigration authority and certifies that the applicant complies with the conditions to enter Japan, namely that the stated activity for the visa purpose is truthful.
Our company registration advisors in Japan can help you with the entire process of obtaining the investor/business manager visa in the country. This is mandatory if you wish to relocate to Japan for business purposes. This process includes:
- Establishing a business entity in Japan;
- Reporting to the relevant authorities;
- Effectuating the arrangements for the business initiation;
- Hiring employees; Some of them may need to move to Japan;
- Preparing the application documentation for the immigration office;
- Applying for the visa at the immigration office;
- Acquiring the visa.
Corporate taxation in Japan is based on the residence of the business: a resident company is subject to tax on its worldwide income, while a non-resident business is only taxed on certain Japanese income. However, for taxation purposes, a branch is considered a permanent establishment and it is taxed the same way as a subsidiary (that is, a locally registered company).
Investors who wish to immigrate to Japan, based on business creation, can see below the most important taxes applicable to corporations:
- the corporate income tax rate of 23.2%, up to 30-34% including the local taxes;
- consumption tax (the equivalent of the VAT) of 10% or at two reduced rates of 0% or 8%; a national tax and a local tax are combined to amount to these values;
- social security contributions by the employer in amount of about 16.23%;
- Japan has signed approximately 80 double income tax treaties;
- a real property tax, a transfer tax, and stamp duty apply, among other types of taxes that apply to companies.
Our partner accountants in Japan can answer your questions concerning taxation, tax compliance, and the annual accounting and reporting mandatory filing.
If you are interested in company registration in Japan, and how you can obtain a business visa, our team will assist you based on your particulars (the industry you are investing in, your background, and other criteria).
Extending a business in Japan
If you wish to extend your business and relocate in Japan, you can do so by setting up a branch or representative company in Japan.
In order to open a branch office in Japan, you should:
- Be issued an affidavit certified by the Embassy or Consulate of Japan from the parent company’s country. Alternatively, this can be issued by a public notary in the country where the parent company is registered;
- Have a seal certificate or a signature attestation of the representative in Japan. This seal is issued within three months;
- Have the official seal of the branch office.
As for the representative office in Japan, its main advantage is that it can effectuate marketing surveys and data gathering activities in the country before beginning its activities. It can be a first step before the company relocates to Japan.
Besides, a representative office in Japan can hire employees in Japan and does not have to be registered with legal bodies such as the Legal Affairs Bureau.
Move to Japan for work purposes
Foreign citizens who want to work in Japan have to obtain a special working visa to do so. It is not allowed to perform paid activities under a tourist visa in this country. Employment can be one of the reasons foreign nationals choose to immigrate to Japan.
In Japan, there are around 12 types of working visas, every one of them enabling the holder to work only in a certain professional field, such as an instructor, an engineer, or an entertainer.
Foreign professionals also have the option to apply for a highly skilled professional visa, which allows them to reside in the country and to be joined by their family members. The validity of this visa is for five years, and the dependent spouse or children may also join the visa holder for the same period (or for three years, or one year).
The required visa application documents differ based on the chosen visa. For relocation purposes, it is understood that a foreign national will intend to apply for a work or long-term stay visa, one that will allow the holder to remain for over 90 days in the country.
Below, we highlight the main steps foreign nationals who wish to relocate to Japan will need to follow:
- Secure the employment opportunity (or business opportunity when applying for the business visa);
- Prepare the visa documents: these include both the applicant’s personal documents (passport, photograph, criminal record as needed), and the visa-specific documents (the employment promise or agreement, the business investment, proof of sufficient funds, etc.);
- Apply for the visa at the Japanese Embassy or Consulate in your country of residence;
- Wait for your visa to be examined; during this step, the authorities will thoroughly examine compliance with the eligibility criteria;
- If the visa is approved, the applicant is issued his passport with the visa included; he will then need to travel to Japan within the next three months.
Other reasons to relocate to Japan
Foreign nationals are not conditioned to securing employment or setting up a company in Japan in order to be able to relocate here for temporary purposes. Pursuing studies or courses in Japan is also an option, and it is attractive for foreign nationals from many countries worldwide.
International students who are accepted by a Japanese university are granted a student visa. The conditions for this type of visa are the following:
- The validity period for a student visa is usually about 4 years or less;
- The documents required by international students include a passport, visa application form, photograph, and a certificate or eligibility; other documents may be required according to the nationality of the student applying for the visa.
Students can discuss the requirements with our immigration lawyers in Japan before they submit their documents to the Japanese consulate or embassy in their country. This way, they can ensure the correctness of the necessary documents and prevent the undesired situation in which their application is rejected for incomplete or incorrect filing.
For those foreign nationals who complete their studies in the country, the student visa can be just the first step in their journey to relocate to Japan. However, to be able to remain in the country after the completion of their university courses, visa holders will need to extend their period of stay, and this means changing their residence status from student to employee, accordingly.
To change the purpose of stay (the residence status) the following documents are submitted to the Immigration Services Bureau in the region where the applicant resides:
- Photo ID and passport;
- Residence card;
- A letter containing the reason for the change;
- Proof of economic means (this can be a scholarship certificate, or a part-time withholding slip, etc.);
- Proof of fee payment (for this type of service, the charge is 4,000 yen (however, this fee can be subject to change);
- Other documents according to the applicant’s particular situation, as required by the Immigration Bureau.
Please note that the documents for the residence status change listed above do not apply to those who change their status from temporary residents to permanent residents. You can read more about this topic below, as presented by our specialists in immigration to Japan.
If you want to extend the period of stay, and essentially relocate to Japan once you finish your studies (once you secure employment with a Japanese company), our team can help you submit your application in a timely manner, before the expiry date of your initial period of stay granted through the student visa. In some cases, a legal representative of the applicant can also make the submission. We can give you more details about the situations in which we can act on your behalf as an agent for the submissions to the immigration authorities.
Permanent residence in Japan
The goal of many of those who obtain initial residency in Japan may be to remain in the country indefinitely. However, even if permanent relocation is not the goal, most foreign nationals will remain in the country for medium to long-term purposes.
If you plan on relocating to Japan, you should know that several criteria apply when the authorities evaluate permanent residency applications:
- Good conduct;
- Sufficient assets to ensure independent living (or the skills to be able to provide for oneself);
- The person’s permanent residence is in Japan’s interest.
The first two conditions do not apply in the case of foreign spouses of Japanese nationals/permanent residents/special permanent residents, nor their children.
Additional criteria apply to foreign nationals who wish to obtain permanent resident status, including scoring at least 70 points in the special calculation table for the points-based preferential immigration treatment that applies to highly skilled foreign professionals.
Our specialists can help you immigrate to Japan and give you more details about your options for permanent residency if you fall into one of the three categories recognized for the points system: advanced academic research, advanced specialized or technical activities, and advanced business management.
If you wish to know more about permanent residency awarded for business management activities, and your options if you open a company in Japan, you can talk to our incorporation agents.
If you would like to know more about moving to Japan, please do not hesitate to contact us.