Money Required to Setting Up a Company for the Business Management Visa

The 5-million-yen investment required for the Business Management Visa

One of the main requirements for a Business Management Visa is that your business reaches a certain scale, and if your company reaches any of the following three conditions, it will be recognized to reach the scale requirement.

1. In addition to the Business Management (the applicant), the company hires 2 or more full-time employees (not including ones with residence status in Appendix 1 of this law) who reside in this country (Japan).
2. The investment of the company is 5 million yen or more.
3. The scale of operation is considered to be equivalent to A or B

While having a 5-million-yen investment is not the only way to meet the scale requirement, many foreigners may still want to choose it over hiring employees or proving the scale of operation in other ways.

To meet the requirement, not only do you need to prove you have the money in your account, but you also need to prove you acquired the investment properly.

(1) The investment came from your savings.

If the investment is contributed from your savings, you may be asked to prove that the savings were legitimately accumulated.

We recommend that you prepare documents such as salary slips, passbook records, tax filings, etc.

Note that if you are bringing in cash of over one million yen directly into Japan, you are required to declare it at customs.

(2) You borrowed from your parents or other family members

You need to provide documents like a Birth Certificate to prove the relationship of the lender to you.

If you receive the money from your family overseas, depending on your situation, the Japanese Gift Tax may apply, so be sure to research it beforehand.

You may also be asked to provide a future repayment plan and proof that the lender’s funds were obtained legitimately. It is recommended that you prepare a loan agreement, passbook records, etc.

Other important fees and costs required to apply for a Business Management Visa

While the official requirement of a Business Management Visa is 5 million yen, it is assumed it is enough for the initial operation of your business.

If your actual business operation requires more than 5 million yen of initial investment, you then need to prepare that amount.

Conversely, if your actual operation turns out does not meet the scale requirement, even if you have the 5-million-yen investment, and your visa application is approved, it will still be a problem later when you renew your Business Management Visa.

Office-related Cost

One of the more important prerequisites of the Business Management Visa is to secure an office in Japan, so you will also need to prepare funding for that.

While the previous 5-million-yen investment is used for the operation of your business and technically can be used to pay rent etc., due to the flow of procedures of the Business Management Visa Application, you are likely required to secure your office first before applying for the visa, so you still need to prepare the office-related cost separately.

For more about the office requirements when applying for a Business Management Visa, please read our previous article on the matter.

• Rent for office space (rent, administrative fees, etc.)
• Equipment needed for the office (computer, desk, chair, printer, etc.)

Procedural Fees for Establishing a Company

• Company incorporation fees (registration tax, revenue stamps, etc.)

Operating costs

• Company website creation costs
• Fees for obtaining the necessary permits and licenses for the business
• Fees for tax accountants
• Social insurance fees

Summary

This time, we explained the money required for a Business Management Visa by starting a company in Japan. Not only do you need to prepare for the listed 5-million-yen investment and prove you got the money properly, but you also need to have the funding to ensure the smooth operation of your business. Additionally, you will need to separately prepare funding for your office, as that step came before the visa application itself.

Starting a company in Japan and applying for a Business Management Visa can be quite complicated for foreigners. Our office is experienced with the Business Management Visa application, and matters related to setting up a company. If you are considering starting your company in Japan, or have any concerns, please do not hesitate to contact us.

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We are Yanagi group, which have offices in Osaka (Abeno and Tennoji), and our affiliated offices in Tokyo (Shibuya and Ebisu) are also available for an on-site consultation. We have handled many applications for permanent residence permits, naturalization permits, work visas, college student visas, management visas, etc., as well as visa renewal procedures related to the status of residence with the Immigration Bureau (Immigration Bureau) as a one-stop service. Our experienced administrative scriveners are also available to help you with any problems you may have.

We also have staff members who can speak each of the native languages and can assist you in obtaining a visa.

※If you wish to be consulted in Nepali or Bengali, please inform us in advance via our website or social media, and the translator will contact you ahead of time.

Please feel free to contact us if you have any questions about your status of residence or visa, even if they are trivial.

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