The Mipro Guide toStarting a Business in Japan～ Status of Residence～

外国人のための起業ガイドブック（在留資格編）To those who read this guidebook

MIPRO's Guide to Starting a Business in Japan describes what foreign nationals need to do in startinga business in Japan as a proprietor, according to the theme. The series of the guidebooks consists ofseven titles: "Status of Residence," "Licenses and Permissions," "Public Insurance and Employment
Management," "Business Plan Preparation," "Tax Affairs," "Establishing a Company," and "Preparations forStarting a Business.""Status of Residence" describes procedures focusing on resident statuses with permission to work,
including "Business Manager," "Engineer/Specialist in Humanities/International Services," "Intracompany Transferee," and "Startup Visa," on the assumption that a foreign national starts a business andoperates/manages the business in Japan, engages in international services, or works in Japan due totransfer. In order to deepen the reader's understanding, it also explains "Highly Skilled Professional," oneof the statuses of residence which allows excellent human resources to engage in activities in multiple
fields in Japan, and the "Points-based System for Highly-Skilled Foreign Professionals," which gives
preferential treatment based on the acquired points calculated according to academic background,professional career, annual salary, research achievements and so on. When you apply for a status ofresidence such as "Business Manager," it is recommended that you also consider whether you fall undera "highly skilled foreign professional."

Written by: Masayuki SUEDA

Administrative Attorney/
SME Management Consultant



Manufactured Imports and Investment Promotion Organization (MIPRO)March 2021

Table of Contents

1. Activities in Japan and Status of Residence(1) Types of Status of Residence 4(2) Business Startup and Status of Residence 

6

2. Application for Status of Residence(1) Change of Status of Residence 7(2) New Application for Status of Residence 8(3) Renewal of Status of Residence 

11

3. Status of Residences in Relation to starting Businesses(1) Status of Residence "Business Manager" 121) Scope of "Business Manager" 132) Office and Business Scale 143) Requirements for Engaging in Business Management 174) Business Continuity 175) Submitted Materials 185)-1 Category 

185)-2 Necessary Documents 

19

(2) S
 tatus of Residence "Engineer/Specialist in Humanities/
International Services" 211) Scope of "Engineer/Specialist in Humanities/International Services" 212) Activity 213) Compensation 224) Examples of the Relevant Services 225) Submitted Materials 235)-1 Category 

235)-2 Necessary Documents 24

(3) Status of Residence "Intra-company Transferee" 261) Scope of "Intra-company Transferee" 262) Activity 263) Types of Transfer 274) Submitted Materials 294)-1 Category 

294)-2 Necessary Documents 

30

(4) S
 tatus of Residence "Startup Visa"(Foreign Entrepreneurship Promotion Project) 321) Structure of Startup Visa 322) Requirements for Status of Residence 34

4. " Points-based System for Highly-Skilled Foreign Professionals"
and Status of Residence "Highly Skilled Professional"(1) S tructure of "Points-based System for Highly-Skilled Foreign
Professionals" 

35

(2) A
 ctivities of and Preferential Treatment for "Highly Skilled
Professional" 38(3) Application Method 411) Application Form to be Submitted 412) Application Flow 

41

5. P
 rocedures for Establishing a Business Base and Living in Japan


43

1

Activities in Japan and Status of Residence(1) Types of Status of Residence
Immigration and residence control in Japan is handled by the "Immigration Services Agency," anexternal bureau of the Ministry of Justice, and the "Regional Immigration Bureaus," regional branches of
the Immigration Services Agency. There are 29 statuses of residence in Japan, which differ according to
the purpose of activities (stay) (as of April 2020). Foreign nationals who wish to enter Japan are required
to obtain a status of residence commensurate with the activities they intend to engage in before entering
Japan ("Immigration Control and Refugee Recognition Act"; hereinafter referred to as the “Immigration
Control Act”).
Figure 1

List of Statuses of Residence

Status of Residence

Examples (occupations, etc.)

Resident statuses with no activity restrictions
Permanent Resident

Persons permitted by the Minister of Justice to be permanent residents(excluding Special Permanent Residents)

Spouse or Child of Japanese
National

Spouse, child by birth, or specially adopted child of a Japanese national

Spouse or Child of Permanent
Resident

Spouse of a Permanent Resident or Special Permanent Resident, and child bybirth that was born and continues to live in Japan of a Permanent Resident orSpecial Permanent Resident

Long-term Resident

Third-generation Japanese descendants, third country resettlement refugees,
war-displaced Japanese with Chinese citizenship, etc.

Resident statuses with permission to work (only specified activities)

4

DiplomatAmbassador, minister, consul general, member of a delegation of a foreign
government, and family members

Official

Officer of a foreign government or international organization, and family
members

Professor

University professor or lecturer

ArtistComposer, painter, writer, etc.

Religious Activities

Missionary dispatched by an overseas religious group, etc.

Journalist

Journalist or photographer of a foreign press agency

Highly Skilled Professional

Person with highly specialized capabilities

Business Manager

Manager or supervisor of a company

Legal/Accounting Services

Lawyer, certified public accountant, etc.

Medical Services

Physician, nurse, dentist, etc.

Researcher

Researcher at a government-related organization, a company, etc.

Instructor

Language instructor at a junior high school, high school, etc.

Engineer/Specialist in
Humanities/International
Services

Mechanical engineer, interpreter, designer, language instructor at a privatecompany, marketing employee, etc.

Intra-company Transferee

Transferee from an overseas business officeNursing Care

Certified care worker

Entertainer

Actor/actress, singer, dancer, professional athlete, etc.

Skilled Labor

Foreign chef, sports trainer, airline pilot, precious metal processor, etc.

Specified Skilled Worker

Workers in specified industries (care worker; building cleaning & management;
forging industry; machine parts & tooling industries; industrial machineryindustries; electric, electronics, and information industries; construction industry;
shipbuilding and ship machinery industries; automobile repair and maintenance;
aviation industry; accommodation industry; agriculture; fishery & aquaculture;
manufacture of food and beverages; food service industry)

Technical Intern Training

Technical intern

Resident statuses with no permission to work
Cultural Activities

Researcher of Japanese culture, etc.

Temporary Visitor

Tourist, conference guest, etc.

Student

Student of a university, junior college, technical college, or senior high, juniorhigh, elementary, vocational, or other school

TraineeTrainee

Dependent

Spouse or child supported by a foreign national residing in Japan

Resident statuses allowing only work related to designated activities

Designated Activities

Activities which are specifically designated by the Minister of Justice for each
foreign individual(includes domestic staff of a diplomat, etc.; working holiday participants; those
who will continue job-hunting after university graduation; candidates for foreign
nurse or certified caregiver positions in accordance with economic partnershipagreements)

Source " Foreign Workers Employment Manual" (Office for Promotion of Citizen Safety, Tokyo
Metropolitan Government)
https://www.tomin-anzen.metro.tokyo.lg.jp/chian/chiankaizen/gaikokujin/koyoumanyuaru/index.html
https://www.tomin-anzen.metro.tokyo.lg.jp/about/pdf/poster-leafret/m-31english.pdf<Reference>https://www.tomin-anzen.metro.tokyo.lg.jp/about/pdf/poster-leafret/2019manual.pdf

5

(2) Business Startup and Status of Residence
Foreign nationals are allowed to engage in activities in Japan to the extent permitted by their status ofresidence. When foreign nationals start a business in Japan, they may often fall under either of thefollowing two cases.
1) Already living in Japan with any status of residence(An application for change of status of residence is required.)2) Acquire a new status of residence(An application for certificate of eligibility is required.)
The following is an example of acquisition of the status of residence "Business Manager" required forthe operation and management of a company.
Figure 2

Status of Residence, Current and that required for Business Startup(For Obtaining Status of Residence "Business Manager")
Current status of residence

Necessary procedures

Status of residence
required

1) Those who are living in Japan"Permanent Resident""Spouse or Child of Japanese National""Spouse or Child of Permanent Resident""Long-term Resident"

No special procedures for changing
the status of residence

Resident statuses with permission to work in
specific activities such as "Engineer/Specialistin Humanities/International Services" and"Intra-company Transferee"An application for changing the statusof residence to "Business Manager" isrequired using an "application forchange of status of residence.""Student"(Note 1)

When starting a businessby a student

An application for the "permission ofactivities outside the scope of theresident status" is required. (Note 2)

When starting a businessat the same time as graduation

An application for changing the statusof residence to "Business Manager" isrequired using an "application forchange of status of residence.""Temporary Visitor"

An application for issuance of"certificate of eligibility" for "Business
Manager" is required. (Note 3)

No activity restrictions
under the current statusof residence"Business Manager""Business Manager""Business Manager"

2) Those who do not have any status of residence
When living abroad

An application for issuance of"certificate of eligibility" for "Business
Manager" is required.

"Business Manager"(Note 1) Regional Immigration Bureaus and their branches provide counseling services for employment support for international students. For
more information (how to make a reservation, etc.), visit the website below.
"Establishment of dedicated consultation centers for advance employment support for international students"(Immigration Services Agency of Japan)
http://www.moj.go.jp/isa/publications/materials/nyuukokukanri07_00014.html
http://www.moj.go.jp/content/001317792.pdf(Note 2) "Permission for activities outside the scope of the resident status" is not a name of a status of residence. In addition to students, those
who do not have a resident status with no activity restrictions are required to obtain "Permission for activities outside the scope of theresident status" in advance if they wish to engage in activities other than those specified in their status of residence.
(Note 3) In principle, an application for changing a status of residence directly from "Temporary Visitor" to another status such as "Business
Manager" is not allowed. If a foreign national who wishes to start a business in Japan is staying in Japan as a "Temporary Visitor," he/she
is required to apply for issuance of a "certificate of eligibility" (without having a legal representative) with the same procedure as that for
applying from abroad (See page 9 Figure 4-2 "When a certificate of eligibility is attached").
Due to the above principle, a "certificate of eligibility" does not respond to an "application for change of status of residence" from
"Temporary Visitor" to "Business Manager" even if the certificate is issued. Therefore, if a "certificate of eligibility" for "Business Manager"
is issued, an application for change of status of residence from "Temporary Visitor" directly to "Business Manager" may not be accepted.
In this case, you are required to newly acquire the status of "Business Manager" by submitting the issued "certificate of eligibility."

6

2

Application for Status of Residence

How to apply for status of residence depends on whether the applicant already has a status of residence
that allows medium- or long-term stay in Japan or the applicant lives overseas at the time of application.
For starting a business in Japan, the former is required to make an "application for change of status ofresidence" and the latter is required to make an "application for certificate of eligibility."(1) Change of Status of Residence
If a foreign national living in Japan intends to change his/her purpose of residence and to engage inactivities that fall under other statuses of residence, he/she may submit an "application for change of statusof residence" to the Regional Immigration Bureau and, if permitted, may engage in activities of thechanged status of residence. This is called a "change of status of residence." In this way, foreign nationals
living in Japan can obtain a status of residence for other activities without leaving Japan. An "application
for change of status of residence" may be made any time during the current period of stay. As a short-term
visa is issued with a relatively simple procedure, a change of status of residence from "Temporary Visitor"
to other statuses of residence is not permitted unless there are "unavoidable special circumstances."
Figure 3 "Application for Change of Status of Residence"

A foreign national who wishes tochange his/her status

Application for Changeof Status of Residence

Regional Immigration
Bureau having jurisdiction
over the place of residence<Reference> "Application form for change of status of residence" (Ministry of Justice)
http://www.moj.go.jp/ONLINE/IMMIGRATION/16-2-1.html(Immigration Services Agency of Japan)
https://www.isa.go.jp/en/applications/index.html

7

Ｑ I am currently working at a company under the status of residence of "Engineer/
Specialist in Humanities/International Services," but I would like to start my own
business. So I would like to change my status of residence to "Business Manager."
Which should I do first, establish a company or change my status of residence?

Ａ In this case, you need to apply for a change of status after establishing a company.
What should be considered is the expiration date of your current status of residence andthe timing to apply for a change of status to "Business Manager." The Immigration Control
Act specifies as follows: if it is found that a foreign national residing in Japan under the
status of residence “Engineer/Specialist in Humanities/International Services” has been
residing for three months or more without continuously engaging in the prescribed
activities, his/her status of residence may be revoked (Article 22-4, paragraph (1), item(vi))*. Therefore, you should first establish a company and then make an application forchange of status of residence to "Business Manager" within three months after theestablishment.
If you do not arrange your schedule, you may be unable to obtain the status ofresidence of "Business Manager" even if a company is established. Before starting abusiness, you need to make adequate preparations, including leaving your company.
(*) However, if there are reasonable grounds for living in Japan without engaging inprescribed activities, such as long-term hospitalization due to illness, this item does
not apply (the proviso to the item specifies "except where there is a justifiable reason
for residing without engaging in the activities").

(2) New Application for Status of Residence
Foreign nationals can apply for and obtain a visa at Japanese embassies and consulates overseas.
However, for obtaining a long-term visa for the purpose of work, Japanese embassies and consulates
overseas require more time to examine the eligibility requirements for a status of residence than they dofor a short-term visa (See page 9 Figure 4: Flow of Landing Permission Procedures (1. When there is no"certificate of eligibility")).
Under these circumstances, the Regional Immigration Bureaus in Japan generally examine whether therequirements for the status of residence applied for by a foreign national who wishes to enter and live inJapan are satisfied, and grant and issue a "certificate of eligibility" if the requirements are satisfied. If a
foreign national applies for a visa by presenting a "certificate of eligibility" to a Japanese embassy or
consulate overseas, he/she will normally be recognized as satisfying the requirements for entry into andliving in Japan and will be able to obtain a visa promptly. The status of residence "Temporary Visitor" is
not eligible for the issuance of a certificate of eligibility.

8Figure 4

Flow of Landing Permission Procedures

1. When there is no "certificate of eligibility"

Foreignnational

1) Application
for a visa
10) Issuanceof a visa

Japanese 2) Transmission
Ministry ofembassy or
consulate
Foreign Affairs
overseas
9) Instructions3) Consultation
8) Answer11) Application
for landing

Ministry ofJustice7) Transmission

Port of entry or
departure4) Instruction
for examination

Regional
Immigration
Bureau, etc.
5) Request for
proof6) Proof

Landing examination○ Validity confirmation of a passport and visa
○ Examination as to whether the foreign national
qualifies for a status of residence○ Determination of a status of residence andperiod of stay

Concerned
parties in Japan

2. When a "certificate of eligibility" is attached

Foreignnational

7) Application
for a visa
8) Issuance ofa visaJapanese
embassy or
consulateoverseas

1) Request for application forcertificate of eligibility

Regional
Immigration
Bureau, etc.
2) Application for
4) Examination
certificate of5) Issuance of
eligibility
certificate of3) Proof
eligibility

6) Sending of certificate of eligibility

Concerned
parties in Japan(legalrepresentative)9) Application for
landing
Port of entry
or departure

Landing examination○ Validity confirmation of a passport and visa
○ In principle, the examination of the status ofresidence is omitted for those who have acertificate of eligibility.
○ Determination of a status of residence andperiod of stay

Source " Q&A on Employment of Foreign Nationals" (Employment Security Department, Tokyo Labor
Bureau)https://jsite.mhlw.go.jp/tokyo-roudoukyoku/riyousha_mokuteki_menu/jigyounushi/13-01-19-4_test.html<Reference> "Application form for certificate of eligibility" (Ministry of Justice)
http://www.moj.go.jp/ONLINE/IMMIGRATION/16-1-1.html(Immigration Services Agency of Japan)
http://www.moj.go.jp/isa/applications/guide/nyukoku_flow.html
9Related information
Differences between "Visa" and "Status of Residence"
A visa is required when entering Japan (at the time of immigration) and is issued by
Japanese embassies and consulates overseas. It has two purposes: as a "confirmation" that theforeign national’s passport is valid, and a "recommendation" that the foreign national has noproblem entering Japan according to the conditions written on the visa. A visa is valid until
the foreign national goes through immigration in Japan, and is not related to the period ofstay in Japan.
On the other hand, the status of residence is used as the basis for staying and engaging in
activities in Japan after entering Japan with a landing permit at the port of entry. "Certificate
of eligibility" certifies that "the activities in which the foreign national intends to engage inJapan are not false and fall under a status of residence, and are complied with the criteria forlanding permission if the criteria are established for the status of residence," which is one of
the conditions for landing in Japan. By presenting the certificate at the time of landing
examination, the examination can be conducted smoothly. However, the "certificate ofeligibility" system does not apply to the status of residence of "Temporary Visitor" for purposessuch as sightseeing, visiting relatives, or short-term business trips.
Foreign nationals cannot enter Japan only with a certificate of eligibility. They need toobtain a visa by presenting a certificate of eligibility at a Japanese embassy or consulate
overseas. A certificate of eligibility does not guarantee entry into Japan. Landing may not be
permitted if it is found at the time of landing examination that the criteria for landing
permission are not satisfied due to a change in circumstances.

10

(3) Renewal of Status of Residence
If a foreign national living in Japan with a status of residence is unable to achieve his/her intended
purpose of residence within the period of stay granted to him/her, the following two methods can be usedin relation to the status of residence.
a. Leave Japan, obtain the status of residence again, and then re-enter Japan.
It will be a great burden for foreign nationals to leave Japan and obtain a certificate of eligibility
and visa again. Under the Immigration Control Act, if foreign nationals wish to continue theiractivities (e.g. continue business activities in Japan as a manager) under the same status of residence
after expiration of their period of stay, they can apply for an extension of their period of stay with thepermission of the Minister of Justice (Article 21 of the Immigration Control Act). However, extensionof the period of stay is not guaranteed as a foreign national's right, and the Minister of Justice has thediscretion to permit or deny it.
b. Stay in Japan and extend the period of stay.
An extension application must be made before the expiration date of the period of stay (in the caseof a foreign national with a period of stay of six months or more, approximately three months before
the expiration of the period of stay). If there are special circumstances such as hospitalization or along-term business trip, an application may be accepted more than three months before the expiration.
Please contact the relevant Regional Immigration Bureau before application.
<Reference> "Application for extension of period of stay" (Ministry of Justice)
http://www.moj.go.jp/ONLINE/IMMIGRATION/16-3-1.html(Immigration Services Agency of Japan)
https://www.isa.go.jp/en/applications/index.html

11

3

Status of Residences in Relation to Starting Businesses

If a foreign national starts a business as a manager, his/her status of residence will be "Business
Manager." Even if the operation and management activities of the applicant are specified as the services
for the status of residence "Business Manager," such status of residence may not be granted in cases where
the activities are not recognized as the main activities or it is not appropriate to grant such status ofresidence, in view of the scale of the company. However, the status of residence "Engineer/Specialist in
Humanities/International Services" may be granted when it is judged that the applicant satisfies therequirements for the status of residence "Engineer/Specialist in Humanities/International Services." Thestatus of residence "Intra-company Transferee" was established for the international development ofcorporate activities and accepting foreign nationals who are transferred from overseas businessestablishments to Japanese business establishments due to personnel changes. Activities falling under the
status of residence "Intra-company Transferee" are the same as those falling under the status of residence"Engineer/Specialist in Humanities/International Services."
The statuses of residence of "Engineer/Specialist in Humanities/International Services" and "Intracompany Transferee" are not directly related to business startup, but in order for readers to deepen theirunderstanding, explanation of these statuses are provided in this guidebook.

(1) Status of Residence "Business Manager"
This status of residence was established with the aim of promoting the acceptance of foreign nationals
who engage in business operation and management activities. It does not matter whether the businessestablishment where the foreign national engages in operation and management activities is a foreign
capital company or a domestic capital company. A foreign applicant is not necessarily required to make acapital contribution. However, since this status of residence is granted for activities that make investments
and manage businesses in Japan, it may be necessary to prove that the applicant has made a "considerable
investment," depending on the activities, in order to obtain the status of residence. The proof of investment
is not a description of the investment the foreign national intends to make, but a description and proof of
the investment he/she has made.
When granting the status of residence, the details of the services the foreign national actually engages inwill be examined. In particular, for starting a business (at this point, the applicant is not yet participating in
the business), a judgment is made based on the circumstances that led to the start of the business, thesource of funds, the status of securing offices, the specifics of the business, and the degree of involvementin the business, such as whether the applicant substantially engages in the business.
As a general rule, the same applies when a foreign national participates in a business already operatingin Japan as a manager or managerial executive.

121) Scope of "Business Manager"
Appended Table 1-2 of the Immigration Control Act (excerpt)
Status of Residence

Activities that may be carried out in Japan

Business Manager

Activities to engage in the operation of international trade or other businessin Japan or management of such business in Japan (excluding the operationor management of a business that may not be legally conducted without thequalifications listed in the right-hand column of the item of "Legal/
Accounting Services" of this table)(Note) "This table" in the table means "Appended Table 1-2 of the Immigration Control Act.""Activities to engage in the operation of international trade or other business in Japan or management ofsuch business in Japan" means substantially engaging in the operation or management of a business.
"Engage in the operation of international trade or other business in Japan" in the first part of the sentencemeans to: (1) establish an office that will serve as the basis for activities in Japan and start and operateinternational trade or other business; (2) participate in the operation of international trade or other businessthat has already been operated in Japan; and (3) operate international trade or other business on behalf of aperson who has started operation of the business in Japan or who has operated the business in Japan.
Specifically, activities for strategic decision-making of the organization, such as those of representative
directors, directors, and auditors, who engage in important management decisions, execution of services
and auditing, are included.
"Management of such business in Japan" in the latter part means to: (1) engage in the management of
the business which the foreign national has started operation in Japan or in whose operation which theforeign national has participated, and (2) manage international trade or other business on behalf of a person
who has started operation of the business in Japan or who has operated the business in Japan.
Specifically, activities of managers, plant managers, branch managers, and other organizational
decision-makers engaged in business management are included.

132) Office and Business Scale"Ministerial Ordinance prescribing criteria under Article 7, paragraph (1), item (ii) of the Immigration
Control and Refugee Recognition Act" (Ministerial Ordinance) (excerpt)
Activity

Criteria

Activities related to The applicant must satisfy all of the following requirements.
"Business Manager" (i) An establishment for conducting the business pertaining to the application
exists in Japan. However, if the business has not started, facilities to be
used as an establishment for the business must be secured in Japan.
(ii) The scale of business pertaining to the application falls under any of thefollowing requirements.
(a) The business is run by at least two full-time employees living in Japan(excluding those who live in Japan under the status of residence listed in
the left-hand column of Appended Table 1 of the Act) in addition to
those who operate or manage the business.
(b) The amount of stated capital or the total amount of contributions is fivemillion yen or more.
(c) The scale of the business is considered to be equivalent to that of (a) or(b).
(iii) If the applicant intends to engage in business management, he/she musthave at least three years' experience in business operation or management(including the period during which he/she majored in subjects related tooperation or management at a graduate school) and must receive
compensation for business management equivalent to or greater than thatfor Japanese nationals.
(Note) "Appended Table 1 of the Act" in (ii)-(a) of the table means "Appended Table 1 of the
Immigration Control Act."
The "Ministerial Ordinance prescribing criteria under Article 7, paragraph (1), item (ii) of the
Immigration Control and Refugee Recognition Act" (hereinafter referred to as "Ministerial Ordinance")
requires that activities related to "Business Manager" are carried out for the operation of a business withhaving an office in Japan.* It is necessary to clarify through agreements, such as a lease agreement, thatthe office is used by the relevant corporation and to secure a facility in Japan exclusively used as an officefor conducting business. The facility must be equipped with a telephone, photocopier, personal computer,and other equipment essential for conducting business. If a business is conducted in a rental space to be
used for such a short period of time as weekly or monthly, it is not considered that the criteria are satisfied
unless there are special circumstances that make it reasonable.
(*) In cases where a business is supported by an incubator (groups and organizations that provide
management advice and provide a bridge to business services necessary for corporate operation) andthe applicant submits a letter of approval for using the office, the applicant will be treated as satisfying
the requirements of "securing (existence of) a business establishment" specified in the Ministerial
Ordinance if the applicant can secure a temporary business office, such as a temporary address andoffice of Invest Japan Business Support Center (IBSC) of the Japan External Trade Organization(JETRO) or other incubation offices, etc., that are temporarily leased for the purpose of startup support.

14

Related information
Example of a case where a business establishment is recognized as being secured
Mr. A established a stock company in Japan and made an application for certificate ofeligibility to operate a sales business. The entrances to the company office and to theresidence were separated, and a sign indicating the name of the company was placed at theentrance to the office. Since it was confirmed that office equipment, such as a personal
computer, telephone, office desk, and photocopier, was installed in the office, it wasrecognized that a business establishment is secured.

Example of a case where a business establishment is not recognized as being secured
Mr. B established a corporation in Japan and made an application for certificate of eligibility
to operate a general sales agent. According to the documents submitted, the businessestablishment was considered to be a residence. As a result of an investigation, it was a twostory apartment, and no sign indicating the name of the company was placed on the mailbox
or at the entrance. In addition, there was no office equipment in the residence, but only
furniture and other equipment for daily living. It was not recognized that a businessestablishment is secured.

As for the scale of business, for example, if a foreign national intends to start a business in the form of asole proprietorship and only one full-time employee engages in the business, an additional investment
must be made to cover the cost of having another employee engage in the business (approx. 2.5 million
yen) in order to satisfy the criteria. Investment of five million yen or more refers to the total amountinvested necessary to conduct the business, including: (1) expenses related to securing facilities used as abusiness establishment, (2) expenses for the director’s compensation and compensation paid to employees
employed at the office, and (3) expenses related to office maintenance, such as office equipment expenses
and real estate rental fees. It is not required to make investments of five million yen every year, but tomaintain the investment of five million yen or more that has been invested without being withdrawn.
In general, a company's borrowings, even if they are the business funds of the company, cannot
immediately be deemed to be investments, but if there are special circumstances, such as the foreign
national is personally guaranteeing the borrowings, they may be deemed to be investments made by the
person.
If a foreign student has made a large investment in starting a business, the source of funds is an
important factor in the examination in relation to activities outside the scope of the resident status during aperiod in which the student lives in Japan with the status of residence "Student."15

Ｑ Can I obtain the status of residence "Business Manager" before establishing a company?
Ａ As a rule, you cannot. A resident status with permission to work is issued on thepremise that a business entity where the applicant (foreign national) can work has been
secured in Japan. However, in the case of obtaining a 4-month status of residence of"Business Manager" or using the "Foreign Entrepreneurship Promotion Project" (See page32), which is implemented by some local governments, you can obtain the status ofresidence even before the establishment of the business entity.

Related information
When two or more foreign nationals jointly operate a business
Activities that fall under the status of residence "Business Manager" are activities carried out by those who
substantially participate in the operation or management of a business. Therefore, it cannot be said that aperson falls under such status of residence by the mere fact that the person has assumed the position of adirector. In order for each foreign national's activities to qualify as the status of residence "Business Manager"in the case where more than one foreign national participates in a business, there must be reasonable grounds
for more than one foreign national to operate or manage the business, taking into account the scale, volume
of work, sales of the business and so on. In practice, whether or not the activities carried out by these foreign
nationals fall under the operation or management of the business is determined by taking into account thedetails of services they will engage in and the amount of compensation they will be paid as directors.
Specifically, each foreign national is judged as falling under the status of residence “Business Manager”
when the following conditions are satisfied: (1) a reasonable ground is recognized for each foreign national tooperate or manage a business in consideration of the scale and volume of work of the business, (2) withregard to services related to the operation or management of the business, the contents of the services thateach foreign national will engage in are clarified, and (3) each foreign national will receive a considerable
amount of compensation as consideration for the services related to the operation or management of thebusiness. Specific examples are as follows.
Case 1: F oreign nationals A and B each invested five million yen to establish Company X (stated capital: 10 million
yen) which imports goods in Japan. Mr. A is an expert in overseas transactions such as customs procedures
and import and export services, and Mr. B is an expert in quality/inventory management of imported goods
and accounting. Mr. A judges the status of Company X's services from the aspect of overseas transaction
and Mr. B judges from the aspect of management of imported goods and accounting. The management
policy is decided in consultation between them as joint partners. Each person's compensation is paid fromthe business profit at a rate commensurate with the amount of each person’s contributions.
Case 2: Foreign nationals C and D invested six million yen and eight million yen respectively and jointly
established Company Y (stated capital: 14 million yen) which provides transportation services in Japan.
Based on the areas of responsibility for providing transportation services, each person is in charge ofthe area he/she is responsible for, and operates the business in the area. The management policy ofCompany Y as a whole is decided by consultation between them, and each person's compensation ispaid from the business profit at a rate commensurate with the amount of each person’s contributions.

163) Requirements for Engaging in Business Management
Item (iii) of the Ministerial Ordinance* indicated on page 14 is a criterion to be added to "In the casewhere a foreign national intends to engage in the management of international trade or other business"upon satisfying the requirements of items (i) and (ii) of the same Ministerial Ordinance.
(*) “If the applicant intends to engage in business management, he/she must have at least three years'
experience in business operation or management (including the period during which he/she majored insubjects related to operation or management at a graduate school) and must receive compensation forbusiness management equivalent to or greater than that for Japanese nationals.”
With regard to "receive compensation for business management equivalent to or greater than that forJapanese nationals" in the latter part, the compensation means that paid to Japanese nationals who engage
in the same type of services at the organization where the applicant works. If it is difficult to make acomparison, the compensation paid to Japanese nationals engaging in the same type of services at othercompanies in the same industry is used as a reference. Note that "at least three years' experience" is notexperience at a "university" but at a "graduate school." Also, the applicant’s academic background, such aswhether or not the applicant is a university graduate, is not a requirement.
4) Business Continuity
With regard to business continuity, it is required that business activities are expected to be carried out
steadily. Business continuity is evaluated by the financial result of the last two fiscal years, rather than by
the result of a single fiscal year, since a company may be in the red in normal business activities.
It is not considered that a business has continuity if "the company’s debts exceed its assets at the end of
the most recent period and at the end of the period preceding the most recent period" or "the company has
no gross profit for the most recent period and for the period preceding the most recent period." The reason
for the latter is that, although there may be cases where there is no gross profit due to special
circumstances, the fact there is no gross profit for two consecutive years does not indicate the company has
the ability to provide its principal services on an ongoing basis. In other cases, submission of additional
documents on company evaluation (limited to documents providing the reason to be the basis for theevaluation) made by a third party with a public qualification, such as an SME management consultant or
certified public accountant who is recognized as having the ability to evaluate companies, may be required.
For more information, refer to the following resources.
"Clarification of the criteria for the status of residence of foreign managers" (Immigration Services Agencyof Japan)
http://www.moj.go.jp/isa/publications/materials/nyukan_nyukan43.html

17Ｑ

I heard that it is possible to establish a company with a capital of 1 yen in Japan.
However, in order to obtain the status of residence of "Business Manager," investments offive million yen or more are required. Does this mean that foreign nationals have toprepare five million yen or more of capital to establish a company?

Ａ The minimum capital required to establish a company is not directly related to thestatus of residence. You can establish a company with a capital of 1 yen, but in order toobtain the status of residence of "Business Manager," you need to prepare capital thatsatisfies the conditions of "investments of five million yen or more." Otherwise, you may
not obtain a proper status of residence although you were able to establish a company. If
you have a resident status with no activity restrictions, such as "Permanent Resident" or"Long-term Resident" (See page 4 Figure 1: "List of Statuses of Residence"), you canestablish a company with a capital of 1 yen and operate a business.
5) Submitted Materials
When applying for the status of residence "Business Manager" ("application for certificate of eligibility,""application for extension of period of stay," "application for change of status of residence"), thedocuments to be submitted (supporting documents) are determined according to the category of theorganization to which the applicant belongs.
Categories and documents submitted when making an "application for certificate of eligibility" of"Business Manager" are as follows.
5)-1 Category
Organizations by category (for "Business Manager")<Category 1>
1. Companies listed on Japanese stock exchanges
2. Mutual companies that conduct insurance business3. National or local governments overseas
4. Public interest corporations authorized by national or local governments in Japan
5. Companies falling under column (a) or (b) of the item of special addition in the table of the itemsof Article 1, paragraph (1) of the ministerial ordinance on highly skilled professional (Innovation
creation companies)
6. Companies that satisfy certain conditions<Category 2>
Groups and individuals whose withholding tax provided in the table of total withholding at thesource of employment income of the table of total statutory records, such as the withholding tax
certificate of employment income for the previous year, is 10 million yen or more
<Category 3>
Groups and individuals (excluding those falling under Category 2) that have submitted the table oftotal statutory records, such as the withholding tax certificate of employment income of theiremployees for the previous year
<Category 4>
Groups and individuals that do not fall under any of the above
Source (Immigration Services Agency of Japan)
http://www.moj.go.jp/isa/applications/procedures/nyuukokukanri07_00088.html
185)-2 Necessary Documents
The categories are roughly defined as follows: Category 1: listed companies, public organizations,
independent administrative institutions, and other organizations that are considered to have little problem
with business stability and continuity; Categories 2 and 3: businesses smaller than those in Category 1; andCategory 4: sole proprietors. Businesses falling under Category 3 or 4 are usually requested to provide
more materials than those falling under Category 1 or 2. This means that the former is examined more
carefully than the latter.
When foreign nationals start a business in Japan, they often fall under Category 4. So this section
focuses on the documents required for Category 4.
Submitted materials (for "Business Manager")
Where to apply: The Regional Immigration Bureau that has jurisdiction over the place of planned
residence/the location of the accepting organization
When to submit: M aterials must be submitted in advance so that the applicant can receive a
certificate before entering Japan.
<Materials to be submitted> (Documents according to the activities in Japan)
A. Common to all categories
1. A copy of an application form for certificate of eligibility
2. A photo (4 cm long × 3 cm wide, taken within 3 months before application, taken from the front,
no hat, no background)
3. A return envelope (standard-sized envelope on which the return address is written and affixedwith 404 yen worth of stamps for simple registered mail)4. A document certifying that the applicant falls under any of the above categories (as appropriate)
Example: The table of total statutory records such as the withholding tax certificate of
employment income of the employees for the previous year (a copy with theacceptance seal) (for Category 2 and Category 3)
B. Category 4
5. Any of the following materials that clarify the details of the applicant's activities(1) If assuming the office of a director of a company which is a Japanese corporation
A copy of the articles of incorporation specifying the director's compensation or a copy of theminutes of the shareholders meeting that determined the director's compensation (for acompany with a Compensation Committee, the minutes of the Committee)(2) If transferring to a Japanese branch office of a foreign corporation or assuming the office of adirector of an organization which is not a company
A copy of a document of the organization to which the applicant belongs that specifies the
position (assigned services), period, and amount of compensation to be paid (dispatch letter,transfer notice, etc.)(3) When being employed as a manager in JapanA copy of a document (employment contract, etc.) specifying the working conditions issued
to workers pursuant to Article 15, paragraph (1) of the Labor Standards Act and Article 5 of
the Ordinance for Enforcement of the same Act
6. If being employed as a manager in Japan, a document certifying that the applicant has at least
three years' experience in business operation or management (including the period during which
he/she majored in subjects related to operation or management at a graduate school)(1) A curriculum vitae specifying the organizations in which the applicant engaged in the relevant
duties, and details and period of the activities(2) A document certifying the period during which the applicant engaged in the relevant duties(including a document from a graduate school specifying the period during which theapplicant majored in subjects related to operation or management at the graduate school)
7. Any of the following materials that clarify the details of the business(1) If the business is conducted by a corporation, a copy of the certificate of registered matters of
the corporation (if the registration of the corporation has not been completed, a copy of thearticles of incorporation or any other document that clarifies that the corporation intends tocommence the business)*Applicable to both the case where a corporation is established in Japan and the case where abranch office of a foreign corporation is established in Japan.
19(2) A brochure describing the company's history, directors, organization, and business (including
major clients and transaction results)(3) A document equivalent to (2) above prepared by the company, etc.
8. Any of the following materials that clarify the scale of the business(1) A document clarifying that two or more full-time employees engage in the business anddescribing the payment of wages for the employees, certificate of residence, and othermaterials(2) A certificate of registered matters*If it is not submitted in 7 (1)(3) Other material clarifying the scale of the business
9. Materials certifying the existence of office facilities(1) A copy of real property register(2) A copy of lease agreement(3) Other material
10. A copy of the business plan
11. A copy of the statement of accounts for the most recent fiscal year
12. Any of the following materials clarifying the reason that the table of total statutory records, suchas the withholding tax certificate of employment income of the employees for the previous year,
cannot be submitted(1) For organizations exempted from withholding at the sourceA certificate of exemption from withholding at the source of a foreign corporation or any
other material certifying that withholding at the source is not required(2) For other organizations
A A copy of notification of establishment of salary-paying office
B Any of the following materials(A) A statement of income tax collected from employment income, retirement income, etc.,
for the last three months (a copy of the statement with the receipt date)(B) A copy of a material certifying that the special due date has been approved (if applicable)(Note) The "applicant" means a foreign national who wishes to enter or live in Japan. Certificatesissued in Japan must be submitted within three months from the date of issue. Other materials
may be required in the course of regulatory examination.
Source (Immigration Services Agency of Japan)
http://www.moj.go.jp/isa/applications/procedures/nyuukokukanri07_00088.html<Reference> Application for Certificate of Eligibility (Immigration Services Agency of Japan)
https://www.isa.go.jp/en/applications/index.html
Materials to be submitted and other details related to an "application for extension of period of stay" and"application for change of status of residence" for the status of residence "Business Manager" can be foundon the following websites.
"Application for extension of period of stay"
http://www.moj.go.jp/ONLINE/IMMIGRATION/16-3-1.html"Application for change of status of residence"
http://www.moj.go.jp/ONLINE/IMMIGRATION/16-2-1.html

20

(2) Status of Residence "Engineer/Specialist in Humanities/International Services"
This status of residence was established as a comprehensive status of residence in the professional andtechnical fields by abolishing the classification of statuses of residence of "Engineer" and "Specialist in
Humanities/International Services" by the 2014 amendment of the Immigration Control Act. By theestablishment, the status of residence does not need to be changed in the case of a job relocation between
science ("Engineer") and liberal arts ("Specialist in Humanities/International Services"). It can be said thatthe procedures for interdisciplinary activities have been simplified.
1) Scope of "Engineer/Specialist in Humanities/International Services"
Appended Table 1-2 of the Immigration Control Act (excerpt)
Status of Residence

Activities that may be carried out in Japan

Engineer/Specialistin Humanities/
International
Services

Activities to engage in services that require skills or knowledge pertinent tophysical science, engineering, or any other natural science field, or tojurisprudence, economics, sociology, or any other human science field, or to
engage in services which require ideas or sensitivity based on foreign culture,
carried out based on a contract with a public or private organization in Japan(excluding activities listed in the right-hand column of the items of"Professor," "Artist," and "Journalist" in Table 1, and activities listed in theright-hand column of the items from "Business Manager" to "Instructor" andfrom "Intra-company Transferee" to "Entertainer" in this table.).

(Note) "Table 1" and "This table" in the table mean "Appended Table 1-1 of the Immigration Control
Act" and "Appended Table 1-2 of the Immigration Control Act," respectively.
"A public or private organization in Japan" includes national and local governments, independentadministrative institutions, companies, public interest corporations, and voluntary organizations. It also
includes national and local governments overseas (including regional governments) and foreign
corporations having offices or establishments in Japan. In addition, an individual without juridical
personality is included if he/she has an office or establishment in accordance with Japanese standards.
"Contract" includes employment, delegation, consignment, and commission contracts, but it must be acontinuous contract with a specific agency or agencies.
2) Activity
Activities of "Engineer/Specialist in Humanities/International Services" are divided into three
categories.
1) "Engineer": Activities to engage in services that require skills or knowledge pertinent to naturalscience"Engineer" here means a person having the ability in the field of natural science (science,engineering, agriculture, medicine, dentistry, pharmacology, etc.) to apply and process theories, withacademic background, such as majoring in science at a university or higher education, or having atleast 10 years' practical experience in the field concerned (including a period of majoring in a subject
related to the relevant technology at a university or technical college, etc.). The reason why "services
that require skills or knowledge pertinent to natural science" is provided is the necessity to carry out
more than a certain level of services backed by academic background. Those who are living in Japan
with this status of residence are, for example, computer engineers and biotechnology engineers.
2) "Specialist in Humanities": Activities to engage in services that require skills or knowledge pertinent
to humanities
These services require more than a certain level of specialized knowledge acquired by majoring inliberal arts at university, etc., While services of 1) are considered as those related to science, these
services are considered as those related to liberal arts (See "Engineer" for the explanation of at least
10 years' practical experience). Fields for the activity with this status of residence are, for example,
financial, accounting, and consultation.
213) "International Services": Activities to engage in services that require ideas or sensitivity based on
foreign culture
The services refer to those requiring "thinking methods and sensitivities that ordinary Japanesenationals do not have (sensitivity peculiar to foreign nationals)" which are rooted in the culture
peculiar to foreign countries. The services are engaged only by foreign nationals who have ideas andsensitivity that cannot be nurtured in Japanese culture.
The applicant must satisfy all of the following requirements.
- Engage in translation, interpretation, language instruction, public relations, advertising or foreign
trade, design or product development related to clothing or interior decoration, or other similarwork.
- The applicant must have at least three years' practical experience in services related to the services
in which the applicant intends to engage. (If an applicant who graduated from a Japanese university
engages in translation, interpretation, or language instruction, he/she may be admitted regardless of
his/her major, even if he/she does not have three years' practical experience in related services.)3) Compensation
In any case, the applicant is required to receive compensation for the relevant services equivalent to or
greater than that for Japanese nationals.
4) Examples of the Relevant Services

1)

Adjustment and preparation of specifications for developed software for customers, engaged
in by a foreign computer programmer who majored in telecommunications engineering andgraduated from university in his home country, was employed by a subsidiary company of aJapanese telecommunications facilities construction company in the country, and hasreceived compensation of about 240,000 yen per month under a contract with the parent
company in Japan

2)

Construction of transaction report and profit and loss databases, etc., engaged in by a foreign
national who majored in engineering and information processing and graduated fromuniversity in his home country, was engaged in risk management and system development at
a securities company, etc., as a member of the research division for financial derivatives,
etc., and has received compensation of about 830,000 yen per month under a contract with aforeign securities company in Japan

3)

Interpretation and guide using a native language, English, and Japanese for passengers, aswell as emergency response and security services and language instruction in employee
training, etc., engaged in by a foreign cabin attendant for international flights who majoredin business administration and graduated from university in Japan and has received
compensation of about 250,000 yen per month under a contract with a Japanese airline
company larification of the status of residence of "Engineer/Specialist in Humanities/International
Source C
Services" (Immigration Services Agency of Japan)
http://www.moj.go.jp/isa/publications/materials/nyukan_nyukan69.html

225) Submitted Materials
When applying for the status of residence "Engineer/Specialist in Humanities/International Services"("application for certificate of eligibility," "application for extension of period of stay," "application forchange of status of residence"), the documents to be submitted (supporting documents) are determinedaccording to the category of the organization to which the applicant belongs.
Categories and documents submitted when making an "application for certificate of eligibility" of"Engineer/Specialist in Humanities/International Services" are as follows.
5)-1 Category
Organizations by category (for "Engineer/Specialist in Humanities/International Services")<Category 1>
1. Companies listed on Japanese stock exchanges
2. Mutual companies that conduct insurance business3. National and local governments in Japan or overseas
4. Independent administrative institutions
5. Special corporations and authorized corporations
6. Public interest corporations authorized by national or local governments in Japan
7. Public corporations listed in Appended Table 1 of the Corporation Tax Act
8. Companies falling under column (a) or (b) of the item of special addition in the table of the itemsof Article 1, paragraph (1) of the ministerial ordinance on highly skilled professional (Innovation
creation companies)
9. Companies that satisfy certain conditions<Category 2>
Groups and individuals whose withholding tax provided in the table of total withholding at thesource of employment income of the table of total statutory records, such as the withholding tax
certificate of employment income for the previous year, is 10 million yen or more
<Category 3>
Groups and individuals (excluding those falling under Category 2) that have submitted the table oftotal statutory records, such as the withholding tax certificate of employment income of theiremployees for the previous year
<Category 4>
Groups and individuals that do not fall under any of the above
Source (Immigration Services Agency of Japan)
http://www.moj.go.jp/isa/applications/procedures/nyuukokukanri07_00089.html

235)-2 Necessary Documents
As with the section of the status of residence "Business Manager" previously described, this section
focuses on the documents required for Category 4.
Submitted materials (for "Engineer/Specialist in Humanities/International Services")
Where to apply: The Regional Immigration Bureau that has jurisdiction over the place of planned
residence/the location of the accepting organization
When to submit: M aterials must be submitted in advance so that the applicant can receive a
certificate before entering Japan.
<Materials to be submitted> (Documents according to the activities in Japan)
A. Common to all categories
1. A copy of an application form for certificate of eligibility
2. A photo (4 cm long × 3 cm wide, taken within 3 months before application, taken from the front,
no hat, no background)
3. A return envelope (standard-sized envelope on which the return address is written and affixedwith 404 yen worth of stamps for simple registered mail)4. A document certifying that the applicant falls under any of the above categories (as appropriate)
Example: The table of total statutory records such as the withholding tax certificate of
employment income of the employees for the previous year (a copy with theacceptance seal) (for Category 2 and Category 3)
5. A document certifying that the applicant has been granted a diploma or advanced diploma if theapplicant has graduated from a vocational school and has been granted a diploma or advanced
diploma
B. Category 4
6. Any of the following materials that clarify the details of the applicant's activities(1) If concluding a labor contract
A copy of a document specifying the working conditions issued to workers pursuant to
Article 15, paragraph (1) of the Labor Standards Act and Article 5 of the Ordinance for
Enforcement of the same Act(2) If assuming the office of a director of a company which is a Japanese corporation
A copy of the articles of incorporation specifying the director's compensation or a copy of theminutes of the shareholders meeting that determined the director's compensation (for acompany with a Compensation Committee, the minutes of the Committee)(3) If transferring to a Japanese branch office of a foreign corporation or assuming the office of adirector of an organization which is not a company
A copy of a document of the organization to which the applicant belongs that specifies the
position (assigned services), period, and amount of compensation to be paid
7. A document certifying the applicant's educational background, professional career history, andother background(1) A curriculum vitae specifying the organizations in which the applicant engaged in the relevant
duties which require skills or knowledge related to the application and details and period of
the duties(2) Any of the following documents certifying the applicant's educational background or
professional careerA A certificate of graduation from university or other institution or a document certifyingthat the applicant has acquired an equivalent or superior education. A certificate of
DOEACC qualification (limited to Level "A," "B," or "C") for DOEACC (Department ofElectronics Accreditation of Computer Courses) qualification holders
B A document certifying the period during which the applicant engaged in the relevant
services, such as a certificate of employment (including a certificate issued by auniversity, technical college, high school, or special training school stating the period
during which the applicant majored in a subject pertaining to the relevant skills or
knowledge in a special course)
C For IT engineers, a passing certificate for the examination or certificate of qualificationfor "information processing technology" specified by the Minister of Justice in thespecial notification* If the material provided in 5. is not submitted
D A document certifying at least three years' practical experience in the relevant services if
the applicant engages in services that require ideas or sensitivity based on foreign culture(excluding cases where the applicant has graduated from a university and engages intranslation/interpretation or language instruction)
24

8. A certificate of registered matters
9. Any of the following materials that clarify the details of the business(1) A brochure describing the company's history, directors, organization, and business (including
major clients and transaction results)(2) A document equivalent to (1) above, prepared by the company, etc.
10. A copy of the statement of accounts for the most recent fiscal year
A business plan for new business (if applicable)
11. Any of the following materials clarifying the reason that the table of total statutory records, suchas the withholding tax certificate of employment income of the employees for the previous year,
cannot be submitted(1) For organizations exempted from withholding at the sourceA certificate of exemption from withholding at the source of a foreign corporation or any
other material certifying that withholding at the source is not required(2) For other organizations
A  A copy of notification of establishment of salary-paying office
B  Any of the following materials(A) A statement of income tax collected from employment income, retirement income,etc., for the last three months (a copy of the statement with the receipt date)(B) A copy of a material certifying that the special due date has been approved (ifapplicable)(Note) The "applicant" means a foreign national who wishes to enter or live in Japan. Certificatesissued in Japan must be submitted within three months from the date of issue. Other materials
may be required in the course of regulatory examination.
Source (Immigration Services Agency of Japan)
http://www.moj.go.jp/isa/applications/procedures/nyuukokukanri07_00089.html
https://www.isa.go.jp/en/applications/index.html
Materials to be submitted and other details related to an "application for extension of period of stay" and"application for change of status of residence" for the status of residence "Engineer/Specialist in
Humanities/International Services" can be found on the following websites.
"Application for extension of period of stay"
http://www.moj.go.jp/ONLINE/IMMIGRATION/16-3-1.html"Application for change of status of residence"
http://www.moj.go.jp/ONLINE/IMMIGRATION/16-2-1.html

25

(3) Status of Residence "Intra-company Transferee"
The status of residence "Intra-company Transferee" was established to accept engineers and otherhuman resource who are transferred from overseas business establishments to business establishments inJapan due to personnel changes in response to the international development of corporate activities. Cases
falling under this status of residence are, for example, a new Japanese subsidiary or branch office accepts
personnel from overseas headquarters, or a company in Japan that needs a foreign engineer having
experience in the services has the engineer transfer from an overseas subsidiary without newly employing
a foreign national, in consideration of cost effectiveness and certainty.
However, the foreign national is required to engage in the services stipulated in the status of residence"Engineer/Specialist in Humanities/International Services." Even if the foreign national is transferred
from/to a parent company to/from a subsidiary company, he/she is not allowed to engage in simple labor.
If an intra-company transferee operates or manages a company in Japan, he/she falls under the status ofresidence "Business Manager."
1) Scope of "Intra-company Transferee"
Appended Table 1-2 of the Immigration Control Act (excerpt)
Status of Residence
Intra-company
Transferee

Activities that may be carried out in Japan
Activities listed in the right-hand column of the item of "Engineer/Specialistin Humanities/International Services" of this table, carried out in a businessestablishment in Japan to which an employee of an overseas establishment ofa public or private organization having its head office, branch offices, andother establishments in Japan is transferred for a specified period(Note) "This table" in the table means "Appended Table 1-2 of the Immigration Control Act."
"A public or private organization having its head office, branch offices, and other establishments
in Japan" includes private companies, public corporations, independent administrative
institutions, and other organizations in Japan (JETRO, Federation of Economic Organizations,etc.). It also includes government agencies overseas and local governments overseas (including
regional governments).

2) Activity
Activities that a foreign national with the status of residence "Intra-company Transferee" can carry out
are limited to those to be carried out under the status of residence "Engineer/Specialist in Humanities/
International Services" previously described. Compared with the activities carried out under the status ofresidence "Engineer/Specialist in Humanities/International Services," activities under the status ofresidence "Intra-company Transferee" can be carried out only at a specific business establishment to which
the foreign national is transferred and during the period of assignment. The term "transferred for a
specified period" in the Table above means that the length of service in Japan is limited to a certain periodof time, and those who work in Japan for an unlimited period of time are not included.*(*) As the period of stay can be extended if certain requirements are satisfied, the period of assignment is
not limited to the period of stay provided for in the Immigration Control Act (five years, three years,
one year, or three months for "Intra-company Transferee").

26

Figure 5

Differences between "Engineer/Specialist in Humanities/International Services" and"Intra-company Transferee"

Status of Residence
Engineer/Specialist in
Humanities/International
Services
Intra-company Transferee

Activity

Same

Place of Activity

Period of Activity

Public or private organization in
Japan based on a contract

Period of stay granted

Limited to a specific businessestablishment to which theforeign national is transferred

Period of stay granted (a certain
period of assignment must be
specified)

The applicant must satisfy the following requirements.
- Continuously engaged in services falling under "Engineer/Specialist in Humanities/International
Services" for at least one year at a head office, branch office, or other establishment overseas
immediately prior to the transfer pertaining to the application.*(*) I n the case where the applicant has engaged in services at the relevant establishment in Japan, theperiod is added to the period above.
- Receive compensation for the relevant services equivalent to or greater than that for Japanese nationals
3) Types of Transfer
In addition to transfers within the same company, assignments to an associated company are included.
In this case, an associated company refers to a "parent company," "subsidiary," and "affiliated company" asprescribed in Article 8 of the Ordinance on Terminology, Forms, and Preparation Methods of Financial
Statements (Ordinance of the Ministry of Finance No. 59 of 1963)*, and the scope of transfers considered
as "Intra-company Transferee" under the Immigration Control Act as shown in Figure 6 (including intracompany transferees between business establishments such as foreign companies, foreign affiliates, andmerged companies in addition to companies having their head office in Japan).
(*) Article 8, paragraph (3):In this Ordinance, the term "parent company" means a company, etc., that controls an organization that
determines financial and operational or business policies of other companies, etc., (referring to ashareholders meeting or any other organization equivalent thereto; hereinafter referred to as "Decisionmaking Organization"), and the term "subsidiary" means such other companies, etc. If a parent
company and subsidiary, or a subsidiary controls the Decision-making Organization of othercompanies, etc., such other companies, etc., are also deemed to be subsidiaries of the parent company.
Article 8, paragraph (5):In this Ordinance, the term "affiliated companies" mean other companies, etc., except subsidiaries, overwhich a company, etc., and subsidiary of the company, etc., are able to have a significant influence on
their decisions on the financial and operational or business policies through their relationship in termsof contribution, personnel affairs, funds, technology, transactions, etc.

27

Figure 6

Scope of Intra-company Transferee

1. Transfer between the head office and a branch/regional office

Head office

Branch/regional
officeBranch/regional
office2. Transfer among the parent company, subsidiary, second-tier
subsidiary, and third-tier subsidiary

Parent company(Note)

Subsidiary

Subsidiary

Second-tier
subsidiary(Deemedsubsidiary)

Second-tier
subsidiary(Deemedsubsidiary)

Third-tier subsidiary

Third-tier subsidiary

Affiliated company
of a subsidiary

Affiliated company: Considered as a "transfer" under the status of residence "Intra-company Transferee.": Transfers between third-tier subsidiaries and a second-tier subsidiary and a third-tier
subsidiary are considered "Intra-company Transferee" if all the subsidiaries are
100%-owned subsidiaries of the parent company.

284) Submitted Materials
When applying for the status of residence "Intra-company Transferee" ("application for certificate ofeligibility," "application for extension of period of stay," "application for change of status of residence"),the documents to be submitted (supporting documents) are determined according to the category of theorganization to which the applicant belongs.
Categories and documents submitted when making an "application for certificate of eligibility" of"Intra-company Transferee" are as follows.
4)-1 Category
Organizations by category (for "Intra-company Transferee")<Category 1>
1. Companies listed on Japanese stock exchanges
2. Mutual companies that conduct insurance business3. National and local governments in Japan or overseas
4. Independent administrative institutions
5. Special corporations and authorized corporations
6. Public interest corporations authorized by national or local governments in Japan
7. Public corporations listed in Appended Table 1 of the Corporation Tax Act
8. Companies falling under column (a) or (b) of the item of special addition in the table of the itemsof Article 1, paragraph (1) of the ministerial ordinance on highly skilled professional (Innovation
creation companies)
9. Companies that satisfy certain conditions<Category 2>(1) Groups and individuals whose withholding tax provided in the table of total withholding at thesource of employment income of the table of total statutory records, such as the withholding tax
certificate of employment income for the previous year, is 10 million yen or more(2) Organizations that have been approved to use the online status of residence application system<Category 3>
Groups and individuals (excluding those falling under Category 2) that have submitted the table oftotal statutory records, such as the withholding tax certificate of employment income of theiremployees for the previous year
<Category 4>
Groups and individuals that do not fall under any of the above
Source (Ministry of Justice)
http://www.moj.go.jp/ONLINE/IMMIGRATION/ZAIRYU_NINTEI/shin_zairyu_nintei10_13.html

294)-2 Necessary Documents
As with the sections of the statuses of residence "Business Manager" and "Engineer/Specialist in
Humanities/International Services" previously described, this section focuses on the documents required
for Category 4.
Submitted materials (for "Intra-company Transferee")
Where to apply: The Regional Immigration Bureau that has jurisdiction over the place of planned
residence/the location of the accepting organization
When to submit: M aterials must be submitted in advance so that the applicant can receive a
certificate before entering Japan.
<Materials to be submitted> (Documents according to the activities in Japan)
A. Common to all categories
1. A copy of an application form for certificate of eligibility
2. A photo (4 cm long × 3 cm wide, taken within 3 months before application, taken from the front,
no hat, no background)
3. A return envelope (standard-sized envelope on which the return address is written and affixedwith 404yen worth of stamps for simple registered mail)4. A document certifying that the applicant falls under any of the above categories (as appropriate)
Example: The table of total statutory records such as the withholding tax certificate of
employment income of the employees for the previous year (a copy with theacceptance seal) (for Category 3)
B. Category 4
5. Any of the following materials that clarify the details of the applicant's activities(including details and period of the activities, position, and compensation)(1) In the case of a transfer within the same corporation(1) A copy of the order of transfer(2) A copy of the letter of appointment, etc.
(2) In the case of a transfer to/from a different corporation
A copy of a document specifying the working conditions issued to workers pursuant to
Article 15, paragraph (1) of the Labor Standards Act and Article 5 of the Ordinance for
Enforcement of the same Act(3) For executives and those who do not fall under the category of workers(1) In the case of a company, a copy of the articles of incorporation specifying the director'scompensation or a copy of the minutes of the shareholders meeting that determined the
director's compensation (for a company with a Compensation Committee, the minutes of
the Committee)(2) In the case of an organization which is not a company, a copy of a document of theorganization to which the applicant belongs that specifies the position (assigned services),
period, and amount of compensation to be paid
6. Any of the following materials indicating the relationship between the establishment where theapplicant worked before the transfer and the establishment after the transfer(1) In the case of a transfer within the same corporation
A certificate of registered matters of a branch office of a foreign corporation or any othermaterial certifying that the corporation has an establishment in Japan(2) In the case of an assignment to a Japanese corporation
A copy of a material clarifying the investment relationship between the Japanese corporationand the foreign corporation from which the applicant has been assigned(3) In the case of an assignment to a foreign corporation that has an office in Japan(1) A certificate of registered matters of a branch office of the relevant foreign corporation or
any other material certifying that the corporation has an office in Japan(2) A copy of a material clarifying the capital relationship between the relevant foreign
corporation and the corporation from which the applicant has been assigned

30

7. A document certifying the applicant's background(1) A curriculum vitae specifying the organizations in which the applicant engaged in the relevant
services and details and period of the services(2) A document from the foreign organization where the applicant worked immediately prior to
the transfer (including the organization in Japan where the applicant worked for a period oftime within one year immediately prior to his/her transfer, if the applicant has lived in Japan
with the status of residence of "Intra-company Transferee") which specifies the details ofservices the applicant engaged in the last one year and his/her position and compensation
8. Any of the following materials that clarify the details of the business(1) A brochure describing the company's history, directors, organization, and business (including
major clients and transaction results)(2) A document equivalent to (1) above, prepared by the company, etc.
(3) A certificate of registered matters
9. A copy of the statement of accounts for the most recent fiscal year
A business plan for new business (if applicable)
10. Any of the following materials clarifying the reason that the table of total statutory records, suchas the withholding tax certificate of employment income of the employees for the previous year,
cannot be submitted(1) For organizations exempted from withholding at the sourceA certificate of exemption from withholding at the source of a foreign corporation or any
other material certifying that withholding at the source is not required(2) For other organizations(1) A copy of notification of establishment of salary-paying office(2) Any of the following materials
A A statement of income tax collected from employment income or retirement income,etc., for the last three months (a copy of the statement with the receipt date)
B A copy of a material certifying that the special due date has been approved(if applicable)(Note) The "applicant" means a foreign national who wishes to enter or live in Japan. Certificatesissued in Japan must be submitted within three months from the date of issue. Other materials
may be required in the course of regulatory examination.
Source (Ministry of Justice)
http://www.moj.go.jp/ONLINE/IMMIGRATION/ZAIRYU_NINTEI/shin_zairyu_nintei10_13.html<Reference> (Immigration Services Agency of Japan)
https://www.isa.go.jp/en/applications/index.html
Materials to be submitted and other details related to an "application for extension of period of stay" and"application for change of status of residence" for the status of residence "Intra-company Transferee" canbe found on the following websites.
"Application for extension of period of stay"
http://www.moj.go.jp/ONLINE/IMMIGRATION/16-3-1.html"Application for change of status of residence"
http://www.moj.go.jp/ONLINE/IMMIGRATION/16-2-1.html

31

(4) Status of Residence "Startup Visa" (Foreign Entrepreneurship Promotion Project)
1) Structure of Startup Visa
In December 2018, the Ministry of Economy, Trade and Industry established a new program (commonly
known as the "Startup Visa Program") jointly with the Ministry of Justice to facilitate business startup byforeign nationals, based on the "Future Investment Strategy 2018" (Cabinet decision of June 15, 2018).
Under the new program, specified foreign entrepreneurs* can enter and live in Japan for up to one year
for startup preparation activities by going through examinations by a local government**, which is theimplementing body of the program, and the Immigration Bureau even if they do not meet the requirements
for the status of residence "Business Manager." (Their status of residence will be "Designated Activities.")(*) The term "specified foreign entrepreneurs" refers to those who prepare for business startup based onthe "plan for managing and supporting business startup activities of foreign nationals" implemented
by a local government in the program.
(**) Local governments having a "plan for managing and supporting business startup activities of foreign
nationals" certified by the Minister of Economy, Trade and Industry are subject to the program.
Under the new program, if a foreign national is likely to start a business within one year, he/she will be
granted the status of residence "Designated Activities" for up to one year. The status of residence is granted
once every six months: when applying for confirmation of the business startup preparation plan and when
applying for confirmation of renewal of the plan. If a foreign national satisfies the prescribed criteria within
one year from the start of the preparation for the business and continues to live in Japan to manage thebusiness, he/she needs to change his/her status of residence to "Business Manager."32

Figure 7S tructure of Startup Visa

Outline of the system for the Foreign Entrepreneurship Promotion Project・With the aim of attracting foreign entrepreneurs, a system has been launched to allow foreign entrepreneurs who receive startup support from local
governments to enter and live in Japan for up to one year in accordance with a public notice issued by the Ministry of Economy, Trade and Industry.
・The Minister of Economy, Trade and Industry certifies management and support programs of local governments, and the Regional Immigration Bureau
grants the status of residence "Designated Activities."

・Local governments
Development and implementation of management andsupport programs and selection of foreign nationals
・Ministry of Economy, Trade and Industry
Certification of management and support programs preparedby local governments
・Regional Immigration Bureau
Examination of the status of residence (Designated Activities)
and adoption judgment, etc.

If the Minister of Economy, Trade and Industry considers that a local government hasa system to implement the following program, the Minister certifies the program.
Management/Support Program< Local governments >< Foreign entrepreneur >(1) Submit a "business startup
preparation plan."(2) Examine whether the requirementsof the public notice are satisfied.
Seek advice from external experts.

Current (Special zone system)
Business Manager (6 months)(Startup activities)"Business
Manager"

New system
Startup activities carried out under the management
and support of local governments
Status of residence "Designated Activities"(6 months) (6 months)
It is expected that theforeign national will
start a business within
one year.

It is certain that theforeign national will
start a business within
six months.

(3) Issue a certificate of confirmation of
the business startup preparation plan.
(4) Submit the certificate to the
Regional Immigration Bureau, and the
Bureau grants the status of residence"Designated Activities (6 months)."(5) Carry out management andsupport for 6 months.
(6) Renew a "business startup
preparation plan.""Business
Manager"(7) Examine whether the requirementsof the public notice are satisfied.
Seek advice from external experts.
(8) Issue a certificate of confirmation of
the business startup preparation plan(for renewal).

(10) Carry out management andsupport for 6 months.

(9) Submit the certificate to the
Regional Immigration Bureau, and the
Bureau grants the status of residence"Designated Activities (6 months)."(11) When the requirements for the status of residence"Business Manager" are satisfied, the Regional
Immigration Bureau grants the status of residence

Source " Public Notice on Foreign Entrepreneurship Promotion Project" (Ministry of Economy, Tradeand Industry)
https://www.meti.go.jp/policy/newbusiness/startupvisa/index.html<Reference>https://www.meti.go.jp/english/policy/economy/startup_nbp/startup_visa.html

332) Requirements for Status of Residence
According to the "Public Notice on Foreign Entrepreneurship Promotion Project" (Ministry of
Economy, Trade and Industry), requirements for the recognition of the status of residence are as follows.
<At the time of application confirmation of the business startup preparation plan> (excerpt)
At the time of application confirmation, the business must fall under all of the following requirements.
1) The scale of the business pertaining to startup preparation is likely to fall under any of the following
within one year after landing or changing the status of residence.
(a) The business is run by at least two full-time employees living in Japan (excluding those who livein Japan under the status of residence listed in the left-hand column of Appended Table 1 of the
Immigration Control Act) in addition to those who operate or manage the business.
(b) The amount of stated capital or the total amount of contributions is five million yen or more.
(c) The scale of the business is equivalent to the scale listed in (a) or (b).
2) An establishment for the business pertaining to startup preparation is likely to be secured in Japan
within one year after landing or changing the status of residence.
3) The applicant falls under any of the following requirements.
(a) Having graduated from university or acquired an equivalent or higher education(b) Having completed a specialized course at a special training school in Japan(c) Having at least three years' practical experience in services related to the subject field of thebusiness to start(d) Having engaged in the operation or management of a business related to the relevant field in aforeign country for one year or more(e) The scale of the business pertaining to startup preparation is expected to fall under (a), (b), or (c)in (1) above, and an establishment pertaining to startup preparation is likely to be secured in Japan
within six months after landing or changing the status of residence.
<At the time of application confirmation of renewal of the business startup preparation plan> (excerpt)
At the time of application confirmation of renewal, the business must fall under all of the following
requirements.
1) The scale of the business pertaining to startup preparation is likely to fall under any of the following
within six months after extension of the period of stay.
(a) The business is run by at least two full-time employees living in Japan (excluding those who livein Japan under the status of residence listed in the left-hand column of Appended Table 1 of the
Immigration Control Act) in addition to those who operate or manage the business.
(b) The amount of stated capital or the total amount of contributions is five million yen or more.
(c) The scale of the business is equivalent to the scale listed in (a) or (b).
2) An establishment for the business pertaining to startup preparation is likely to be secured in Japan
within six months after extension of the period of stay.

34

4"Points-based System for Highly-Skilled Foreign Professionals"
and Status of Residence "Highly Skilled Professional"

After the "Points-based System for Highly-Skilled Foreign Professionals" (Status of residence:"Designated Activities") was introduced in May 2012, a new status of residence "Highly Skilled
Professional" was established in 2015 to replace "Designated Activities." These were established topromote the acceptance of foreign nationals with advanced skills and qualifications (highly skilled foreign
professionals) who are expected to contribute to Japan's economic growth and the creation of new demandand employment.

(1) Structure of "Points-based System for Highly-Skilled Foreign Professionals"
In this system, activities are classified into three categories: "advanced academic research activities,""advanced specialized/technical activities," and "advanced business management activities." In eachcategory, points are set according to the items, such as "academic background," "professional career,""annual salary," and "research achievements," based on the characteristics of the activities (See Figure 8).
Those who acquire a certain score (70 points) or higher are recognized as "highly skilled foreign
professionals," and given preferential immigration treatment. Highly skilled foreign professionals whoenter Japan for the first time are granted the status of residence "Highly Skilled Professional (i)," and those
who have engaged in activities for three years or more under such status of residence are granted the statusof residence "Highly Skilled Professional (ii)" with higher privileges.
Figure 8P oints Calculation Standards
Advanced academic research
activities
Holder of a doctor's degree(excluding professional
degrees)30

Holder of a doctor's degree(excluding professional
degrees)30

20

Holder of a doctor's degree(including professional
degrees) (Note 7)

20

Holder of a bachelor’s degree
or acquisition of an educationequivalent thereto or higher(excluding holders of a
doctor's degree or master’s
degree)10

Holder of a bachelor’s degree
or acquisition of an educationequivalent thereto or higher(excluding holders of a
doctor's degree or master’s
degree)Holder of doctor's degrees,master’s degrees orprofessional degrees in
multiple areas

5

7 years or more

15

5 years or more
3 years or more

Holder of a doctor's degree(including professional
degrees)Academic
background

Professional
career(practicalexperience)(Note 1)

Advanced specialized/technicalactivities

Holder of a doctor's degree ora master’s degree (Note 7)20

10

Holder of a bachelor’s degree
or acquisition of an educationequivalent thereto or higher(excluding holders of a
doctor's degree or master’s
degree)10

Holder of doctor's degrees,master’s degrees orprofessional degrees in
multiple areas

5

Holder of doctor's degrees,master’s degrees orprofessional degrees in
multiple areas

5

10 years or more

20

10 years or more

25

7 years or more

15

7 years or more

20

10

5 years or more

10

5 years or more

15

5

3 years or more

5

3 years or more

10

30 million yen or more

50

25 million yen or more

40

20 million yen or more

30

15 million yen or more

20

10 million yen or more

10

4010

The lower limit of the annual
salary to which points areawarded, will differ
depending on the age group.
For further details, refer to (2).

4010

Up to 29 years of age

15

Up to 29 years of age

15

Between 30 and 34 years of age

10

Between 30 and 34 years of age

10

Between 35 and 39 years of age

5

Between 35 and 39 years of age

5

Bonus Point (1)(Research
For further details, refer to (3).
Achievements)

2520

For further details, refer to (3).

15Annualsalary(Note 2)Age

The lower limit of the annual
salary to which points areawarded, will differ
depending on the age group.
For further details, refer to (2).

Advanced business management
activities

35

Representative director or
representative executive
officer10

Director or executive officer

510Work for an organization
which receives support
measures for the promotionof innovation separately
specified by the Minister ofJustice in a public notice(Note 3).

10

5

Bonus Point(2)(Position)
Holder of a Japanese national
qualification related to thework (5 points per
qualification)

Bonus Point(3)

Bonus Point(4)

Work for an organization
which receives support
measures for the promotionof innovation separately
specified by the Minister ofJustice in a public notice(Note 3).

10

10Work for an organization
which receives support
measures for the promotionof innovation separately
specified by the Minister ofJustice in a public notice(Note 3).

Bonus Point(5)

Employed by a small or
medium-sized enterprise
whose research anddevelopment expenses add
up to more than 3% of total
revenue.

5

Employed by a small or
medium-sized enterprise
whose research anddevelopment expenses add
up to more than 3% of total
revenue.

5

Employed by a small or
medium-sized enterprise
whose research anddevelopment expenses add
up to more than 3% of total
revenue.

Bonus Point(6)

Holder of a foreign
qualification, etc., related to
the work

5

Holder of a foreign
qualification, etc., related to
the work

5

Holder of a foreign
qualification, etc., related to
the work

5

Bonus Point(7)

Acquisition of a degree from aJapanese institution of higher
education

10

Acquisition of a degree from aJapanese institution of higher
education

10

Acquisition of a degree from aJapanese institution of higher
education

10

Bonus Point(8)

Acquisition of Level N1 of theJapanese Language
Proficiency Test (Note 4), or aperson who graduated from aforeign university having
majored in Japanese
language15

Acquisition of Level N1 of theJapanese Language
Proficiency Test (Note 4), or aperson who graduated from aforeign university having
majored in Japanese
language15

Acquisition of Level N1 of theJapanese Language
Proficiency Test (Note 4), or aperson who graduated from aforeign university having
majored in Japanese
language

15

Bonus Point(9)

Acquisition of Level N2 of theJapanese Language
Proficiency Test (Note 5)(excluding points acquired
through Bonus Points (7) or
(8))

10

Acquisition of Level N2 of theJapanese Language
Proficiency Test (Note 5)(excluding points acquired
through Bonus Points (7) or
(8))

10

Acquisition of Level N2 of theJapanese Language
Proficiency Test (Note 5)(excluding points acquired
through Bonus Points (7) or
(8))

10

Bonus Point(10)

Work on an advanced projectin a growth field (limited to a
project recognized by the
Minister of Justice)

10

Work on an advanced projectin a growth field (limited to a
project recognized by the
Minister of Justice)

10

Work on an advanced projectin a growth field (limited to a
project recognized by the
Minister of Justice)

10

Bonus Point(11)

Graduation from a university
separately specified by the
Minister of Justice in a public
notice10

Graduation from a university
separately specified by the
Minister of Justice in a public
notice10

Graduation from a university
separately specified by the
Minister of Justice in a public
notice10

Bonus Point(12)Completion of the training
separately specified by the
Minister of Justice in a public
notice (Note 6)

5Completion of the training
separately specified by the
Minister of Justice in a public
notice (Note 6)

5Completion of the training
separately specified by the
Minister of Justice in a public
notice (Note 6)

5

Investment of 100 million yen
or more in the business the
person manages

5

Required score

70

Bonus Point(13)
Required score

36

70

Required score70

(1) Required minimum annual salary
An annual salary of at least 3 million yen is required for advanced specialized/technical activities or advanced business
management activities(2) Annual salary points allocation table
Up to 29 years of age

Between 30 and 34 yearsof ageBetween 35 and 39 yearsof age40 years of age or above

10 million yen

40

40

40

40

9 million yen

35

35

35

35

8 million yen

30

30

30

30

7 million yen

25

25

25

-

6 million yen

20

20

20

-

5 million yen

15

15

-

-

4 million yen

10

-

-

-

Research achievements*(3) Research achievements

Advanced academic
research activities

Advanced specialized/
technical activities

Patented invention: 1 item or more

20

15

Record of engaging in research using a grant funded by a public agency prior
to entry into Japan: 3 items or more

20

15

Past record of research papers (limited to those for which the applicant is thecorresponding author), which appeared in an academic magazine registered inan academic research paper database used by Japanese national organizations:3 papers or more

20

15

For items other than the above: in cases where the applicant submits a researchrecord equivalent to the above items (such as a record of winning a
distinguished award), the Minister of Justice will determine whether to give
points to the applicant on a case-by-case basis, after listening to the opinions of
the heads of the relevant administrative organs.

20

15*In the field of advanced academic research activities, 25 points will be awarded in cases where the applicant falls under two or more of the above.
(Note 1) Limited to practical experience pertaining to the work in which the applicant intends to engage.
(Note 2) *1 A nnual amount of compensation from the principal accepting organization.
*2 In the case of transfer from an overseas institution, including the annual amount of compensation received from such institution.
*3 Bonuses are also included in the annual salary.
(Note 3) An additional 10 points will be awarded in cases where the organization employing the applicant is a small or medium-sized enterprise.
(Note 4) Including applicants with equivalent proficiency which was certified through testing (for example, a score of 480 or more in the Business Japanese
Language Proficiency (BJT) Test).
(Note 5) Including applicants with equivalent proficiency which was certified through testing (for example, a score of 400 or more in the Business Japanese
Language Proficiency (BJT) Test).
(Note 6) In the case of the training in a Japanese institution of higher education, excluding those who acquire points through Bonus Point (7).
(Note 7) An additional 5 points will be awarded in cases where the applicant is the holder of a professional degree in business management (MBA, MOT).

Source "Points-based Preferential Immigration Treatment for Highly-Skilled Foreign Professionals"
(Revised on April 26, 2017) Immigration Bureau, Ministry of Justice
http://www.moj.go.jp/isa/content/930001655.pdf
https://www.isa.go.jp/en/index.html

37

(2) Activities of and Preferential Treatment for "Highly Skilled Professional"
Normally, foreign nationals are allowed to engage in activities under a status of residence, but those wholive in Japan with the status of residence "Highly Skilled Professional" are allowed to engage in activities
that cover multiple statuses of residence, such as research activities at a university and operation of related
businesses. There are various other preferential treatments related to the period of stay, spouse's
employment, accompanying parents, etc.
Activity"Highly Skilled Professional (i) (a)" (advanced academic research activities):
Activities of engaging in research, research guidance, or education based on a contract
entered into with a public or private organization in Japan"Highly Skilled Professional (i) (b)" (advanced specialized/technical activities):
Activities of engaging in work requiring specialized knowledge or skills in the field of
natural science or humanities based on a contract entered into with a public or privateorganization in Japan

Highly Skilled Professional (i)"Highly Skilled Professional (i) (c)" (advanced business management activities):
Activities of engaging in the operation or management of a public or private organization in
Japan

38

<Preferential treatment>
1) Permission for multiple purposes of activities
Even without obtaining a permission to engage in activities outside the scope of the resident
status or permission to change the status of residence, foreign nationals with this status ofresidence are allowed to engage in activities involving multiple statuses of residence.
e.g. In the case of "Highly Skilled Professional (i) (a)" (advanced academic research
activities)
In addition to educational activities at universities and other educational institutions andresearch activities at private companies' research institutes, etc., foreign nationals withthis status of residence are allowed to start and manage a business using educational andresearch achievements.
e.g. In the case of "Highly Skilled Professional (i) (b)" (advanced specialized/technicalactivities)
Foreign nationals with this status of residence are allowed to engage in services that
require specialized knowledge and skills in the fields of natural sciences and humanities(e.g. product development as an engineer as well as sales promotion and planning at acompany to which the person belongs). In addition to these activities, foreign nationals
with this status of residence are allowed to start and manage a business related to these
activities.
e.g. In the case of "Highly Skilled Professional (i) (c)" (advanced business management
activities)
In addition to the operation and management of a company, law firm, auditing firm, etc.,
foreign nationals with this status of residence are allowed to start and manage a business
related to the businesses of the company or firm.
2) Uniformly granting the "five years" period of stay, which is the longest under the law
The period of stay under a resident status with permission to work is from three months tofive years. However, the maximum of five years is uniformly granted to "Highly Skilled
Professional" (the period can be extended).
3) Easing of requirements for permanent residenceIn principle, a period of stay in Japan necessary to obtain a permanent residence permit is atleast 10 years, but the period for "Highly Skilled Professional" is shortened to three years or
one year, depending on the activity results.

Highly Skilled Professional (i)4) Easing of working conditions for the spouse of a highly skilled foreign professionalIf a spouse who is staying in Japan under the status of residence "Dependent" intends towork, he/she can only work within the scope of "activities outside the scope of the resident
status" unless he/she satisfies the requirements relating to academic background andprofessional career, and obtains the applicable status of residence.
On the other hand, if a spouse enters Japan as a "working spouse of a highly skilled
professional," he/she can work even if he/she does not satisfy the requirements relating toacademic background and professional career, as long as his/her activities fall under the
status of residence "Instructor" or "Engineer/Specialist in Humanities/International
Services." Unlike activities outside the scope of the resident status, there are no restrictions
on work hours, such as 28 hours per week, and a spouse is allowed to work full time under
the status of residence "Designated Activities*."(*) The spouse must live with a foreign national living in Japan under the status of residence"Highly Skilled Professional" and receive compensation equivalent to or greater thanthat for Japanese nationals.
5) Permission for parent(s) to accompany the highly skilled foreign professional
There is no status of residence for the parent(s) of a foreign national living in Japan under aresident status with permission to work. However, the parent(s) of a foreign national living
in Japan under the status of residence "Highly Skilled Professional" or his/her spouse’s
parent(s) are permitted to enter and live in Japan if they fall under any of the following
cases.
- If raising a child under seven years of age of a person living in Japan under the status ofresidence "Highly Skilled Professional" or his/her spouse- If assisting a person living in Japan under the status of residence "Highly Skilled
Professional" or his/her spouse who is pregnant(Note) Certain requirements must be satisfied, such as living with a person who lives inJapan under the status of residence "Highly Skilled Professional" and having ahousehold income (incomes of a person living in Japan under the status of residence"Highly Skilled Professional" and his/her spouse) of eight million yen or more.
6) Permission for a domestic worker to accompany the highly skilled foreign professional
Employment of a foreign domestic worker is only allowed to a limited number of foreign
nationals who live in Japan under the status of residence "Business Manager," "Legal/
Accounting Services," etc. However, those who live in Japan under the status of residence"Highly Skilled Professional" are allowed to be accompanied by a domestic worker
employed in their home country and to employ a foreign domestic worker if they meet thefollowing requirements.
- The annual household income of the person living in Japan under the status of residence"Highly Skilled Professional" is 10 million yen or more.
- More than 200,000 yen of compensation is planned to be paid per month to a domestic
worker7) Preferential processing of entry and residence procedures
Immigration procedures (application for certificate of eligibility) for "Highly Skilled
Professional" will be handled within 10 days from the acceptance of the application inprinciple (usually two weeks to three months), and residence procedures (application forextension of period of stay, application for change of status of residence) will be handledwithin five days from the acceptance of the application in principle.

39

Highly Skilled Professional (ii)Highly Skilled Professional (ii) is for foreign nationals who have engaged in activities of"Highly Skilled Professional (i)" for three years or more (no classification such as (a), (b), or(c)).
<Requirements>
 The activities to be carried out fall under any of the following three types ((a), (b), (c)).
 The total score (based on academic background, annual salary, etc.) is 70 points or more.
 Good behavior and conduct The foreign national’s stay in Japan is recognized as being in the interests of Japan.
 Activities to be carried out in Japan by the foreign national are not considered to beinappropriate in terms of the impact on Japanese industry and the lives of the people.

40<Preferential treatment>
1) Permission for multiple purposes of activities
In conjunction with the activities of "Highly Skilled Professional (i)," permitted to engage inalmost all of the activities of statuses of residence. Specifically, activities permitted under
the following statuses of residence can be carried out, in addition to one or more of theactivities of "Highly Skilled Professional (i) (a), (b), and (c).""Professor," "Artist," "Religious Activities," "Journalist," "Legal/Accounting Services,""Medical Services," "Instructor," "Engineer/Specialist in Humanities/International Services,""Entertainer," "Skilled Labor"2) Granted an indefinite period of stay (no further extension of the period of stay is required).
(However, unlike "Permanent Resident," if the foreign national has not engaged in activities
as a highly skilled professional for six months or more, he/she will be subject to revocationof the status of residence due to failure to engage in the intended activities.)
3) Easing of requirements for permanent residence4) Easing of working conditions for the spouseof a highly skilled foreign professional
Preferential treatments for 3) to 6)5) Permission for parent(s) to accompany theare the same as those for "Highly
highly skilled foreign professional
Skilled Professional (i)."6) Permission for a domestic worker toaccompany the highly skilled foreign
professional

(3) Application Method
Application forms and procedures required to live in Japan under the status of residence "Highly Skilled
Professional" are as follows.
1) Application Form to be Submitted
a. Foreign nationals who intend to enter Japan
Application for certificate of eligibility
b. Foreign nationals who are already living in Japan
Foreign nationals who are living in Japan as highly skilled foreign professionals and intend to extend
their period of stay
Application for change of status of residence orapplication for extension of period of stay2) Application Flow
Figure 9 shows the application flow.
Figure 9

Application Flowa. Application for certificate of eligibility

Step (1)Application at a Regional Immigration Bureau○ Apply for a certificate of eligibility* related to "Highly Skilled Professional (i)" ((a), (b) or (c)).
(*)A person of an organization that accepts a foreign national who will enter Japan
can make an application.
○ Submit a points calculation sheet for the activities to be engaged in and materials
proving the points, and apply for recognition as a highly skilled foreign professional.

Step (2)Examination by the Immigration Services Agency

The Agency examines the "conformance to landing conditions" set forth in Article 7,paragraph (1), item (ii) of the Immigration Control Act pertaining to the application.
(Points are calculated at this time.)

Qualify for the status of residence
and conform to landing conditions

Not qualify for the status of residence
and/or not conform to landing conditions

Issuance of certificate ofeligibility

No issuance of certificate ofeligibility*If the landing conditions for otherstatuses of residence withpermission to work are satisfied, acertificate of eligibility pertaining to
the relevant status of residence will
be issued if the applicant wishes.

Step (3)Issuance of certificate of eligibility

The examination of the conformance to the landing conditions is made with theapplication. A visa will therefore be issued smoothly by presenting a certificate ofeligibility when applying for a visa at a Japanese embassy or consulate overseas.
Landing examination procedures will also be carried out smoothly by possessing thecertificate and visa at the time of landing examination at the airport or seaport of entry
into Japan.

Entry and residence

b. Application for change of status of residence and application forextension of period of stay

Step (1)Application at a Regional Immigration Bureau

In either case of an application for change of status of residence or an application for

41

The examination of the conformance to the landing conditions is made with theapplication. A visa will therefore be issued smoothly by presenting a certificate ofeligibility when applying for a visa at a Japanese embassy or consulate overseas.
Landing examination procedures will also be carried out smoothly by possessing thecertificate and visa at the time of landing examination at the airport or seaport of entry
into Japan.

Entry and residence

b. Application for change of status of residence and application forextension of period of stay

Step (1)Application at a Regional Immigration Bureau

In either case of an application for change of status of residence or an application forextension of period of stay, submit a points calculation sheet for the activities to beengaged in and materials proving the points.

Step (2)Examination by the Immigration Services Agency

The Agency examines whether or not the foreign national is qualified as a highly
skilled foreign professional.
Points○ The activities to be engaged in are those of a highly skilled foreign professional.
○ The total score is 70 points or more.
○ The living condition of the foreign national is satisfactory.
When satisfying the requirements
such as 70 points or more

When not satisfying the requirements,
such as less than 70 points
Not permitted(For an application for change ofstatus of residence, the foreign
national is allowed to continue tostay in Japan under the current
status of residence if he/she has
stayed in Japan for a period undersuch status of residence.)

Permission for a change of status of residence or extension of period of stay

Source " Points-based Preferential Immigration Treatment for Highly-Skilled Foreign Professionals"(Immigration Services Agency of Japan)
http://www.moj.go.jp/isa/publications/materials/newimmiact_3_index.html<Reference>
http://www.moj.go.jp/isa/publications/materials/newimmiact_3_procedure_index.html

42Procedures for Establishing a Business Base and Living in Japan5

The general procedures necessary for establishing a business base in Japan (Japanese subsidiary,
Japanese branch office), for which a foreign national serves as a representative, and procedures for living
in Japan are as follows. (Refer to Figure 4 "Flow of Landing Permission Procedures" as well)<Procedures in Japan>

1Enter Japan under the status of residence "Temporary Visitor"2

Prepare for establishing a business base (surveys, securing properties, etc.)3Establish a business base (preparation of articles of incorporation, registration, etc.)4Application for certificate of eligibility he method of application varies depending on whether the foreign national who intends to establish
Ta business base in Japan has already been staying in Japan with an appropriate status of residence atthe time of application or does not yet have any status of residence. In principle, the foreign national
should appear and apply, but when applying for a certificate of eligibility, he/she generally has notentered Japan, so he/she is not able to go to the Immigration Bureau. In that case, a legal
representative will make an application.
Methods to obtain a "certificate of eligibility" are as follows.
(a) If a foreign national who wishes to obtain the status of residence "Business Manager" is abroadA legal representative in Japan specified by the Immigration Control Act will apply for and obtaina certificate of eligibility, and send documents to the foreign national abroad.
Where to apply: The Regional Immigration Bureau that has jurisdiction over the place of planned
residence/the location of the accepting organization(b) If the foreign national is staying in Japan under the status of residence "Temporary Visitor," etc.
The person will apply for a certificate of eligibility while he/she is staying in Japan. If thecertificate is issued during his/her short-term stay, he/she will apply for change of status ofresidence from "Temporary Visitor" to "Business Manager," using the certificate. However, as a
general rule, it is not permissible to change the status of residence from "Temporary Visitor" toany other status of residence, so even if a certificate of eligibility is issued, an application forchange of status of residence to "Business Manager" may not be accepted. Make sure to make anapplication in advance in the case where you are required to leave Japan once and return again.

<Procedures outside of Japan>

5

Application for a working visa (Japanese embassy or consulate overseas) working visa is granted at a Japanese embassy or consulate overseas by presenting a "certificate ofAeligibility" obtained in 4 (a) above.*43(*) F oreign nationals having a "certificate of eligibility" can be issued a visa at a Japanese embassy or
consulate within the standard processing period (five business days from the day following theacceptance of application). (However, as mentioned above, possession of a "certificate ofeligibility" does not guarantee the issuance of a visa.)<Procedures in Japan>

6

Entry into Japan

Present your passport and visa at the port of landing, submit your "certificate of eligibility," andreceive a seal of verification for landing in your passport (a "certificate of eligibility" is valid for threemonths from the date of issue).
End

44

MIPRO Trade and Business Startup Consultation Desk

Consulting services for trade & starting business
Consultation available weekdays from 10:30 A.M. to 4:30 P.M.
TEL: 03-3989-5151
https://www.mipro.or.jp/

This document has been prepared based on the information as of April 30, 2020
and with the utmost care regarding accuracy. However, when actually starting abusiness in Japan, please inquire with the relevant public offices concerning
necessary documents, matters, etc. or consult with an administrative attorney orother specialists.
MIPRO shall not be liable for any direct or indirect damage arising from the use of
information and other materials presented in this document.
*Unauthorized reproduction of this document is prohibited.
This material has been prepared by receiving subsidies for FY2020 Promotion Business Expenses from the Foundation forInternational Trade and Industrial Co-operation, a general incorporated foundation.

Manufactured Imports and Investment Promotion Organization (MIPRO)

6th Floor, World Import Mart Bldg., 3-1-3, Higashi-Ikebukuro, Toshima-ku, Tokyo 170-8630, Japan
TEL.03（3971）6571 FAX.03（3590）7585
URL：https://www.mipro.or.jp/

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