Due to revisions to the Business Manager Visa requirements, foreign entrepreneurs are now required more than ever to “actually be running a business.”

Even when people think they understand the details of the system, it’s not uncommon during actual consultations to hear comments like, “I had a slight misunderstanding,” or “I simply believed the information I found online.”

In this article, we’ll introduce five common pitfalls for foreign entrepreneurs, as seen from an expert’s perspective.

① Assuming that “hiring just one employee meets the requirements”

This is the most common misconception.

While the new system places great emphasis on the presence of full-time employees,

it is not as simple as “just hiring one person.”

For example,

• whether the employee is actually working,
• whether working conditions are appropriate,
• whether wages are being paid properly,
• and whether the employee is necessary for the company’s business operations

—the actual circumstances of the employment are crucial.

Simply meeting the minimum headcount requirement is not sufficient if the actual circumstances do not match.

Additionally, at least one of the full-time employees must be a Japanese national, a permanent resident, the spouse of a Japanese national, or a long-term resident.

Japanese language proficiency has also been added as a new requirement.

If the business owner’s Japanese language proficiency is not high, the requirement can be met if the employees possess sufficient Japanese language skills.

Keep this in mind when considering what kind of person would be appropriate.

② Believing that social insurance enrollment can be postponed

“We can enroll in social insurance once the company is up and running.”

Some foreign business owners think this way.

However, since there is a legal obligation to enroll in social insurance once a company is established, it is necessary to complete the enrollment procedures at the appropriate time.

Enrollment in social insurance is also a key indicator that the company is complying with the law.

Delays in enrollment may result in late payment penalties on insurance premiums, which can become a significant financial burden later on.

③ Believing that focusing solely on immigration matters is sufficient

The Business Manager Visa is a system based on the Immigration Control Act.

However, as long as you are operating a company, various laws other than the Immigration Control Act are also relevant.

• Labor Law
• Social Insurance System
• Taxation
• Corporate Law

If you run your company with only your visa in mind, problems may arise in unexpected areas.

It is important to take a holistic view of “overall company management.”

④ Relying solely on information found online

There is a wealth of information available on the internet.

However, many articles like the following are also published:

• Articles written before system revisions
• Articles written about other types of residence statuses
• Personal anecdotes

Now that the system has changed, information from several years ago may no longer apply.

It is especially important to verify the latest regulations and consult experts when making critical decisions.

⑤ Thinking that obtaining the visa is the end of the process

The Business Manager Visa is not the goal.

Rather, it is the starting point for continuing your business in Japan.

To grow your company, you must consistently carry out the following:

• Proper labor management
• Social insurance procedures
• Maintaining good relationships with employees
• Compliance with laws and regulations

When applying for renewal, your company’s operations up to that point will be scrutinized.

Preparing with a view toward “operations after obtaining the visa” is key to continuing your business in Japan for the long term.

Summary

Under the new system, it’s not enough to simply meet the requirements; this aspect has become crucial.

“Is the company being operated appropriately on an ongoing basis?”

All five points introduced here are issues we frequently encounter in actual consultations.

By correctly understanding the system and preparing early on, you can secure future visa renewals and foster the growth of your business.

Professionai Tips

If I were to describe this system revision in a single phrase, I would say it represents a shift from “formality to substance.”

The trend is moving away from simply ensuring “all documents are in order” toward placing greater emphasis on “whether the company is actually being operated appropriately.”

Therefore, it will become increasingly important in the future to ensure the entire company is in order—not just residency status, but also tax, labor, and social insurance matters.