Can a company that has just been set up employ a foreign national?
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
For a newly set-up company, the "stability and continuity of the business" is examined most strictly. A business plan that goes as far as the volume of work and the work schedule is essential. Where the owner gives instructions remotely from overseas, there is a risk that the business will be judged unclear in substance. Apply only after the company has been set up and any necessary licences and permits have been obtained.
What is this enquiry about?
An enquiry from a person living overseas who wants to set up a company in Japan and employ a foreign national.
Type of enquiry: 在留資格「技術・人文知識・国際業務」 (Engineer/Specialist in Humanities/International Services)
Application type: new application (在留資格認定証明書交付申請 (Application for Certificate of Eligibility))
Situation: A Japanese national in their 50s living overseas. Plans to set up a company in Japan whose main business is interpreting and guiding for foreign tourists. For about 5 years after setting it up, they want to give instructions to staff and run the company remotely from overseas. Their residence record is still in Japan, and there is no problem with social insurance payments. The business is due to start in about half a year. The person they want to employ is already decided, and speaks Spanish, English and Japanese.
Question: What else should be checked in a Certificate of Eligibility application by a newly set-up company? Does running the company by remote instruction from overseas affect the screening? When is the best time to apply?
What should a newly set-up company check?
5 points: the business content, the profit outlook, the need for the employment, the reality of the office, and licences and permits.
Clarity of the business content Show specifically which customers you are targeting and what services you will provide.
Profit outlook Prepare an income and expenditure plan (sales, costs, profit) for the first few years after setting up, and show that the business can pay its way.
The need for the employment Explain clearly why you need to employ that person, and how their specialised knowledge will contribute to the business.
The reality of the office Check that the place where the business is carried on matches the head office address on the registration, and that it is suitable for the business. With a rented office or a virtual office, what matters is whether there is real substance, such as a private room being secured.
Licences and permits Make clear whether the licences and permits the business needs have been obtained, or are still being applied for.
For a newly set-up company, a business plan that sets out in detail even the volume of work and the work schedule is essential.
Does it affect the screening if the owner is overseas?
It may. There is a risk that the business will be judged unclear in substance.
With 在留資格「経営・管理」 (Business Manager), there are cases where permission is given even though the representative lives overseas, by employing a manager. However, where a foreign national is employed under 「技術・人文知識・国際業務」 and the owner gives instructions remotely, there is a risk that the business will be judged unclear in substance.
The 出入国在留管理庁 (Immigration Services Agency of Japan) examines strictly whether the environment is in place for a foreign employee to work steadily in Japan. If the owner is not permanently based in Japan and cannot give direct guidance and management, doubts may arise about the stability and continuity of the business.
What you can do
Even where instructions are given remotely, explain clearly the specific means of communication (video meetings, chat and so on) and the management structure
So far as possible, set out in a 理由書 (written explanation) a plan for the representative to return to Japan regularly to guide and manage the business
When should I apply?
After the company has been set up and the necessary licences and permits obtained.
After the company is set up You cannot apply unless the company actually exists as a legal entity. First complete the incorporation and obtain the certificate of registered matters
After the licences and permits are obtained They are a precondition for carrying on the business, and without them you cannot prove that the business is lawful and stable. Submit a copy of the licence or permit when you apply
Where there is a gap before the business starts The gap itself is not a problem, but explain the reason for it clearly (for example, that entry procedures for the employee and a training period are needed). It is important to set out the schedule up to the start of the business specifically
For an interpreting and guiding business, registration as a travel agency is a precondition. The licences and permits needed differ with the business, so please check in advance.
Frequently Asked Questions
Can a company that has just been set up make an application?
It can. However, the stability and continuity of the business is examined most strictly, so a detailed business plan is essential.
Is a virtual office all right?
What matters is whether there is real substance as a place of business, such as a private room being secured. If it is judged to have no substance, this counts against you.
Will the application be denied if the owner is overseas?
It is not necessarily denied, but there is a risk that the business will be judged unclear in substance. It helps to explain the management structure and to set out a plan for returning to Japan regularly.
Can I apply before obtaining the licences and permits?
Where a licence or permit is a precondition for the business, please apply after obtaining it. You will be asked to submit a copy of the certificate.
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.
