What should a company have in place for a new work visa application?

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）

Who this article is forGuidance for companies taking on a foreign employee for the first time, and for companies set up only recently, on avoiding a denial on a new work visa application.

What is this enquiry about?

Guidance for companies taking on a foreign employee for the first time, and for companies set up only recently, on avoiding a denial on a new work visa application.

How does a company prove its stability?

You show it with 2 points: financial material such as the financial statements, and having business premises used solely for the business.

In order to confirm that the foreign national will be able to work in Japan on a stable, long-term basis, the 出入国在留管理庁 (Immigration Services Agency of Japan) checks the stability and continuity of the company's business strictly.

Sound finances

Particular care is needed for companies set up only recently (less than 3 years since establishment) and for companies that have gone on making losses.

• Documents to submit　You submit the most recent financial statements (profit and loss account, balance sheet). If the company has just been set up and has no accounts yet, you must submit a business plan and a company brochure, and show concretely that the business is likely to continue on a stable basis from here on.
• What to do if you are making a loss　Even if you are making a loss, you need to explain persuasively in a 理由書 (written explanation) that you hold enough in deposits and savings to cover it, or that you have a clear plan for rebuilding the business.

Business premises and the reality of the business

• Securing business premises　You need business premises used solely for the business, where employees can work at all times. Where the premises are also the home, the space used solely for the business must be clearly separate.
• The lease　Please check that the lease for the premises is concluded as "for business use" or "for residential and business use". A lease that is for residential use only may lead to a judgment that there is no real business.

How do you show that the work is appropriate?

You explain logically how the person's education (their field of study) and career history connect with the work they will do in Japan.

The education (field of study) and career history of the foreign national you hire must be connected, in a specialised or technical sense, with the contents of the work they will do in Japan.

• Example　You cannot hire someone who majored in economics simply as a worker on a production line. They must be engaged in specialised work such as accounting, planning or translation.
• Checklist　It is important to draw up a statement of reasons for hiring that sets out the contents of the work concretely, and to explain the connection logically, in a form the 出入国在留管理庁 can accept.

What level should the pay be?

It must be at least the same as the pay you would give a Japanese national doing the same work.

• Risk of denial　If you set the pay lower than for Japanese employees, you are regarded as "hiring foreign staff on unfair working conditions", and the application is denied.
• Proof　You must prove that the pay stated in the employment contract is appropriate compared with the salary level of the company's other Japanese employees.

What about the notification duties and the management system?

You are checked on whether past notifications were made within 14 days, and you need to make clear who is responsible for managing statuses of residence.

A company that employs foreign nationals bears various notification duties under the 入管法 (Immigration Control and Refugee Recognition Act). A company that does not meet these duties is regarded as an unsuitable place to accept workers.

• Meeting past notification duties　A company that has employed foreign staff in the past is checked on whether it made the notification when those staff left or were reassigned (the 中長期在留者の受入れに関する届出, the notification concerning the acceptance of a mid- to long-term resident) within 14 days. If notifications have been neglected, the company may be judged to have a low awareness of compliance, and this may count against the new application.
• Making clear who is responsible　You need to make clear which department or member of staff handles the application procedures and the management after the person joins, and to show that you have a system in place for managing your foreign employees' statuses of residence responsibly.

A new work visa application is examined from several angles: the stability of the company, whether the work is appropriate, and whether the pay is appropriate. For a first application in particular, and for a company set up only recently, clearing these standards unaided is not easy. The key to success is to check your finances and your hiring plan in advance, and to identify the risks of denial beforehand.

Frequently Asked Questions

Related Articles

• An employee resigns and goes home while an extension application is pending. What should the company do?
• We are dismissing an employee on a work visa. What happens to their status of residence?
• I have been asked to appear in person because of a long absence from Japan. What should I prepare?
• What are the benefits of 在留資格「高度専門職」? How it differs from an ordinary work visa

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. Because it is a translation, the meaning may differ from the original in places. Where something affects a decision you are making, please check the Japanese version or ask us. The supervision by a 行政書士 is of the Japanese version.