Japan Visa Self Sponsorship
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JAPAN VISA – SELF SPONSORSHIP FOR ENTREPRENEURS AND OTHERS WHO WANT TO LIVE IN JAPAN

{The following is based on an article originally written for inclusion in the newsletter of the Japan Foreign Lawyers Association (RBA).}

Background – Why You May Need To Self Sponsor

Most foreigners working in Japan have a contractual relationship with an organization in Japan. Typically, that organization is the Japanese company which employs them.

However, this type of employee-employer relationship may not be suitable for everyone. This article focusses on how to use your own company to self-sponsor a visa.

Establishing a Company In Japan

What Type of Company Should We Establish?

A detailed explanation of the various types of Japanese entities is beyond the scope of this article. However, typically the choice is between a Kabushiki Kaisha (“KK”) and a Godo Gaisha (“GK’). 

This article contains some useful guidance about Choosing a Japan Entity: KK, GK, Japan Branch and Representative Office.

A KK is the traditional choice and some argue that it has a stronger commercial image than the alternatives. This can be important if you wish to do business with large, traditional Japanese companies. 

A GK may be preferred when a U.S. person is involved since it can simplify the filing of U.S. taxes. This is due to the application of the United States Internal Revenue Service’s “check-the-box” rules.

Anyone subject to U.S. taxes should seek advice from a U.S. tax professional prior to starting any business outside the United States.

Important Considerations When You Incorporate

From the viewpoint of self-sponsoring a Japan visa, there are two issues that will be important, regardless of the type of entity that is established:

  • Paid in Capital: Paid in capital is the amount initially invested in the company in exchange for shares.
    In order to maximize the chances of a successful visa application, the initial paid in capital should be as high as possible. In any case, the initial paid in capital should not be less than JPY 5 million. 
    Note that the money you invest in your company as paid in capital can be used to pay business expenses after the incorporation has been completed.

  • Office: The authorities prefer a separate business office as evidenced by a lease agreement and possibly photos. Typically, a virtual office or a home office will not be acceptable. A serviced office may be an option.

After the New Company Is Established

Once the new company is legally established, additional filings must be made with the Japanese tax authorities. Payroll registrations may also be needed. At this stage, you will require the assistance of a Japanese tax accountant (zeirishi in Japanese – see below for more on zeirishi).

Applying For a Japan Visa

Once the company is fully established and initial tax filings have been completed, it is possible to apply for a Japan visa. This will usually be a  Japan Investor / Business Manager Visa. 

It is strongly recommended that the services of an experienced certified immigration professional (gyoseishoshi) be engaged for this purpose.

Professional Assistance When Self-Sponsoring a Japan Work Visa

Two types of Japanese professional will be important for anyone considering the visa self-sponsorship route in Japan.

a. A Certified Immigration Attorney (gyoseishoshi): As noted above, we strongly recommend obtaining professional assistance when applying for a visa. In addition to providing expertise, a Japanese professional will project a professional image to the Japanese immigration authorities.

b. A Japanese Tax Accountant (zeirishi): A zeirishi is able to assist with the financial and tax aspects of establishing and running your business. Their key functions include:

  • Handling the actual incorporation: Most zeirishi are able to undertake the incorporation for their clients either directly or via a relationship with a law firm.
  • Making initial corporate tax filings after the company has been legally established. These filings are essential and, if not handled correctly, may lead to serious visa and tax problems.
  • Handling ongoing tax and other compliance matters for your new company. Even a modest business will need to file annual tax returns. In addition, payroll for Japanese employees is complex and requires deductions for taxes, social insurance, and labor insurance. A zeirishi will manage these tasks as well as the associated reporting to the authorities.
  • Helping with Japanese individual tax: As a company owner, it is likely that you will need to file a Japan individual tax return.

Contact JAPAN VISA™ to learn how we can assist you to self-sponsor a visa in Japan.

The above is provided for general information purposes only and does not constitute advice to undertake or refrain from undertaking any action. Only qualified Japanese professionals are able to advise on Japan immigration, legal, and tax matters.