When the elite class currently working in Japan under a Highly Skilled Professional visa (Type 1-A or 1-B) aspires to start a business, the first thing they consider is “switching to a Business Manager Visa.” However, this seemingly easy status change could actually be the biggest landmine preventing the shortest route to permanent residency. This is because the Highly Skilled Professional visa offers overwhelming preferential treatments that a standard Business Manager visa does not. This article explains the legal strategy for starting a business without relying on a Business Manager visa, while maintaining or even upgrading your Highly Skilled Professional status.
1. The Risk of a “Downgrade” by Switching to a Business Manager Visa
Many foreigners misunderstand this, but the requirements for permanent residency under a standard Business Manager Visa are significantly stricter compared to a Highly Skilled Professional visa. You must logically analyze the following risks.
① Severing the Fast-Track Permanent Residency Route
If you hold 80 points as a Highly Skilled Professional, you can apply for permanent residency just one year after arriving in Japan. However, if you switch to a standard Business Manager visa and cannot prove 80+ points again under the calculation at that time, you risk being pulled back to the general requirement of “10 years of continuous residence.”
② Loss of Privileges for Accompanying Parents and Domestic Workers
Privileges such as “bringing parents” or “bringing domestic workers (maids),” which are only permitted for Highly Skilled Professionals, do not exist under a standard Business Manager visa. The moment you switch your visa to start a business, a fatal deadlock occurs where it becomes difficult for your family to stay in Japan.
2. Strategic Option A: Transitioning to Highly Skilled Professional (Type 1-C)
If you want to start a business and manage it yourself, your goal should not be a “Business Manager Visa,” but rather transitioning to a **”Highly Skilled Professional Type 1-C (Advanced Business Management Activities).”** This allows you to maintain all the privileges of a Highly Skilled Professional while operating as an entrepreneur.
However, transitioning to Type 1-C requires not only the “investment of 5 million JPY or more and securing an office” similar to a standard Business Manager visa, but also re-proving your “points as a Highly Skilled Professional (70/80 points).” A strict financial design is required to determine whether you can maintain your points solely with the executive compensation paid by your new company.
3. Strategic Option B: Becoming an “Owner” While Maintaining Current Status
If you are a Highly Skilled Professional Type 1-B (Advanced Specialized/Technical Activities) and wish to start a business as a side project while continuing to work for your existing employer, there is an option to own a company (become an owner) “within the scope of your current activities” without changing your visa.
Under Japanese law, as long as you do not substantially engage in “management” (execute practical business operations) outside the scope of your visa, there are no restrictions on becoming a shareholder (owner) of a company or receiving dividend income. This is a defense strategy where you entrust on-site operations to other directors and grow the business as an owner while maintaining your primary job.
4. Strategic Option C: The Royal Route of Waiting for “Permanent Residency”
Unless there is a pressing reason why you must start a business right now, the most highly recommended ultimate strategy is to **”wait 1 year (or 3 years) to secure your permanent residency before starting a business.”**
The Privilege that Completely Destroys Visa Restrictions
Once you become a permanent resident, all Immigration hurdles such as “5 million JPY in capital” and an “independent office” disappear. You can legally start a business with just one PC at home and 1 JPY in capital. Furthermore, there is no risk of being expelled from Japan even if your business runs a deficit, and you can secure startup loans from banks under the same conditions as Japanese citizens.
*Note: The Time Lag in Screening
The only trap is the “screening period.” Even if you earn the right to apply after 1 year, the current permanent residency screening by Immigration takes about 10 to 14 months. In other words, you must factor into your business plan the time lag that you will actually be able to freely start a business as a permanent resident “about 2 years after arriving in Japan.”
Conclusion: Changing Visas Leads to a “Time Loss in Life”
In the challenge of starting a business, a mistake in selecting a visa leads to an irreversible loss of time. Discard the simple thought process of “Becoming a President = Business Manager Visa,” and draw a roadmap that provides a bird’s-eye view of your current point status, financial strength, and the shortest distance to permanent residency. We strongly recommend receiving strategic consulting from an expert to solve the complex legal puzzles and ensure the success of your business in Japan with the optimal status.
For startup schemes maintaining the Highly Skilled Professional Visa or strategies for switching to Permanent Residency, please check the guide portal below.
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