If losses continue, can the 「経営・管理」 visa not be extended?

This article is a translation of the Japanese original. Where the two differ, the Japanese version prevails. Read the Japanese original（日本語版を読む）

What is this enquiry about?

A person running a company that keeps making losses asks whether the 「経営・管理」 visa can be extended, and what the options are if it is denied.

Is an extension refused where results are poor?

There is a real possibility that it will not be granted, but the possibility remains if you can show the causes and the steps to improve convincingly.

To give the conclusion first, where the company's results are poor (losses continuing and so on), there is a real possibility that your period of stay will not be extended.

The 「経営・管理」 visa is intended for a foreign national to manage or administer a business in Japan, with that business activity contributing to the Japanese economy. For that reason, that the business is continuing and stable is the most important requirement for permission for an extension.

Even where losses continue, if you can explain the causes and concrete steps to improve in detail in a convincing business plan and written explanation, the possibility that the extension will be permitted is not zero. But where results are simply poor, the risk of being judged unable to continue the business, and of denial, rises.

What documents are looked at in screening?

3 kinds of documents are examined strictly: the company's financial position, the reality of the business, and the manager's efforts to improve.

• The company's financial position　The most recent financial statements (balance sheet, profit and loss statement and so on)
• The reality of the business　Documents showing that business activities are properly carried on (the office lease agreement, invoices and contracts showing your trading record, and so on)
• The manager's activities　Documents showing what efforts you have made as a manager to improve the business (the business plan and so on)

The 地方出入国在留管理局 (Regional Immigration Services Bureau) examines these documents strictly and judges the continuity of the business.

How do the amended criteria affect an extension?

Transitional measures apply until the day on which 3 years have passed from the date the amendment came into force; after that, the amended criteria for permission must be met.

Where a person already residing under 「経営・管理」 files an 在留期間更新許可申請 (Application for Extension of Period of Stay) before the day on which 3 years have passed from the date the amendment came into force (16 October 2028, 令和10年10月16日), the decision on whether to permit is made in the light of the state of the business and the prospect of coming into line with the amended criteria for permission, even where the amended criteria are not met.

Note that in screening you may be asked to submit a document that has been assessed by an expert in business management. An 在留期間更新許可申請 made after 3 years have passed from the date the amendment came into force must meet the amended criteria for permission.

What happens if the extension is denied?

It does not mean you must leave at once: there are the options of changing to 「特定活動」, changing to another work-related status of residence, and applying again.

1. Change to 「特定活動」
   As a relief measure allowing you to stay on in Japan for a time, 在留資格「特定活動」 may be permitted. It is often granted as a period in which to prepare — to wind up the business, to return home, or to look for another job — and the period is usually 1 month, or from a few months to about half a year.
2. Change to another work-related status of residence
   If you find a job that makes use of your own specialism (your education and work experience), you can consider changing to a different status of residence (for example 在留資格「技術・人文知識・国際業務」 (Engineer/Specialist in Humanities/International Services)).
3. Applying again
   You can also clear up the reason for the denial, review your business plan and file a fresh application for extension. However, a case that has once been denied is examined more strictly, so you need to consult a specialist such as a certified administrative procedures legal specialist (gyoseishoshi) and prepare carefully.
4. Preparing to leave
   Where these options are difficult, you will in the end need to leave Japan.

What should I do towards the extension?

Analyse the causes of the losses accurately, draw up a well-founded improvement plan, and explain it in detail in a written explanation.

1. Analyse the current state of the business accurately
   Please analyse in detail why the losses are continuing and what is causing them.
2. Draw up a convincing improvement plan
   Please draw up a business plan, based on concrete figures and grounds, showing how you will rebuild the business and generate revenue from here on.
3. Explain it in detail in a written explanation
   Where the cause of the losses is an external factor, state that clearly, and explain by linking the market outlook from here on to your steps to improve.

The continuity and stability of the business are requirements that lie at the root of the 「経営・管理」 visa. When you apply for an extension, rather than hiding the deterioration in results, it is important to explain the causes and concrete steps to improve clearly. If you are anxious, please consult a specialist such as a gyoseishoshi.

Frequently Asked Questions

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This article provides general information. Immigration rules change, and outcomes depend on individual circumstances. Please check the Immigration Services Agency website or consult a qualified specialist.
This page is a translation of the Japanese original. Where the two differ, the Japanese version prevails.