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Can I start another business while holding the 経営・管理 visa?

Foreigners Employment Support Organization (FESO) / Published  / Last updated

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)

Answer

If you hold 在留資格「経営・管理」 (Business Manager), you can start a new business separate from your current one. This status of residence covers "activities to operate a business or to engage in the management of that business", and it is not limited to a single business only. You do need, however, to check whether a notification is required, and to explain that you are substantively involved in each business as its manager.

What is this enquiry about?

An enquiry from someone who wants to start a new business alongside an existing one, and to have a spouse holding 「家族滞在」 help with it.

May I run several businesses at the same time?

You may. 「経営・管理」 is not a status of residence limited to a single business only.

If you hold 「経営・管理」, you can start a new business separate from your current one, that is, run businesses in parallel or expand into several businesses.

This status of residence covers "activities to operate a business or to engage in the management of that business", and it is not necessarily limited to a single business only. Indeed, your ability as a businessperson, and the managerial skill of diversifying your sources of income, are sometimes assessed as a positive in screening.

It is important, however, to follow the proper procedures and to stay within the scope of the status of residence you have been granted.

What should I watch out for when starting a new business?

5 points: checking whether a notification is required, securing business premises, financial stability, substantive involvement as a manager, and licences and permits.

Whether a notification about the change in the business is required

If you start a completely new business that was not described in the business plan you submitted when you obtained 「経営・管理」, a notification, and in some cases an 在留資格変更許可申請 (Application for Change of Status of Residence), may be required.

What matters here is the continuity and the consistency of your business activities. If there is some connection between the original IT consulting business and the new craft-selling business, such as using the know-how built up in IT consulting to build and run an online shop, it will be understood more smoothly. Even if you start a business with no connection at all, there is no problem provided you can explain clearly that each business can be carried on stably.

In practical terms, the surest course is to consult the Regional Immigration Services Bureau with jurisdiction over your area first, and to check whether a notification is enough or whether an 在留資格変更許可申請 is required.

Securing and managing business premises

When you start a new business, you need to secure a place where that business will be carried on, such as an office, a shop or a warehouse. If you set up business premises at a location other than your head office, that information also has to be properly notified. Even if you use part of your home as an office, be ready to explain that the space is sufficient for the business activities.

Financial stability

Even after you start a new business, it is a fundamental precondition that you have the economic means to support your whole household stably, taking the existing business and the new one together. Prepare a new business plan (or a supplement to, or a revised version of, the existing business plan) that clearly shows the profitability, stability and continuity of both businesses, and set out concretely how the initial investment and the working capital will be covered. At the close of each financial year, you will submit documents proving that the financial position of the company, taking both businesses together, is sound, such as financial statements.

The reality of the business activities

「経営・管理」 is granted for activities in which you actually engage in the management or the administration of a business. Even where you run several businesses, you need to show that you are substantively involved as a manager in each of them. So that you are not regarded as merely lending your name, or as simply making an investment, make clear what you do in each business, the scope of your responsibility, and how much time you devote to it.

Checking licences and permits

The new craft-selling business may require particular licences or permits, such as 古物商許可 (a second-hand dealer licence) or 食品販売許可 (a licence to sell food). Before you start the business, check with the competent administrative authority which licences are needed, and obtain them.

Can a spouse holding 家族滞在 help with the business?

Helping without payment is no problem, but if your spouse receives remuneration, 資格外活動許可 (Permission to Engage in Activity Other Than That Permitted) is needed.

As a rule, a person holding 「家族滞在」 is not permitted to work for remuneration.

If your spouse helps with the business, pay the closest attention to whether they are paid and to what they do, and manage it strictly so that it does not stray beyond the scope of the 資格外活動許可.

In summary, what do I need to keep in mind?

4 points: the plan for the new business, financial stability, substantive involvement, and notification.

  1. Make the business plan for the new business clear
  2. Show a financial position in which both businesses together can support a stable livelihood
  3. Be substantively involved as a manager in each business
  4. Make a notification to, or consult, the Regional Immigration Services Bureau with jurisdiction over your area as necessary

Expanding into several businesses is sometimes assessed positively, as diversification of the business. To keep the effect on your own status of residence to a minimum and to expand smoothly, please consult a specialist such as a registered certified administrative procedures legal specialist before you start the new business.

Frequently Asked Questions

Does running several businesses on the 経営・管理 visa affect my status of residence?

There is no problem if you follow the proper procedures. Indeed, the managerial skill of diversifying your sources of income is sometimes assessed as a positive in screening. It is a precondition, though, that you are substantively involved as a manager in each business.

When I start a new business, is an application for change always required?

Not necessarily. A notification may be enough, so the sure course is to consult the Regional Immigration Services Bureau with jurisdiction over your area first and check whether a notification suffices or whether an 在留資格変更許可申請 is required.

Is it all right to start a business with no connection to my original one?

It is. A connection makes it easier for the plan to be understood smoothly, but even where there is none, there is no problem provided you can explain clearly that each business can be carried on stably.

Is there any problem with a spouse holding 家族滞在 helping without payment?

There is no problem if the help does not involve remuneration. Packing goods or updating the website would fall into this category. If they work for remuneration, 資格外活動許可 is needed. Under that permission they cannot do work connected with 風俗営業 and the like, but there is otherwise no restriction by industry or occupation, and so-called unskilled work is also open to them, provided it is within 28 hours a week.

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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.