Obtaining a Business Manager Visa for an IT Consulting Firm! Overcoming the “SES Assignment Trap” and “Dummy Capital Suspicion”

There is an increasing number of cases where foreign engineers and project managers who have gained experience in the Japanese IT industry become independent by establishing their own “IT Consulting” or “System Development” companies and obtaining a Business Manager Visa.

However, the IT consulting business, which can technically be run with just a single laptop and one’s own brain, faces “unique hurdles distinct from other industries” during the screening process by the Immigration Services Agency (Immigration). If you apply using the same standard theories applied to restaurants or trading companies, there is a high risk of unexpected rejection.

This article thoroughly explains the “two fatal traps” that IT consultants often fall into when transitioning to independence from an existing working visa (Engineer/Specialist in Humanities/International Services), and the legal approaches to logically refute these traps with objective evidence to securely win Immigration’s approval.

1. Trap 1: “Low Initial Costs” Inviting Suspicion of a 30 Million Yen “Dummy Capital”

To obtain a Business Manager Visa, an “investment (capital) of 30 million yen or more” is required in principle. In the case of a restaurant, 30 million yen is quickly consumed by interior construction and kitchen equipment; for a trading company, it goes into purchasing inventory. However, because an IT consulting business does not require physical inventory or large-scale facility investments, Immigration will hold a strong suspicion: “Why does this business need a massive sum of 30 million yen?”

If your business plan simply states, “I have 30 million yen sitting in my bank account for now,” it will likely be deemed as “dummy capital” (a temporary loan intended to be withdrawn after the visa is granted), resulting in a high probability of rejection.

The Breakthrough: Objectively Proving “Use of Funds” Unique to IT Consulting

To dispel this suspicion, it is necessary to present clear, quantified uses of funds (investment plans) specific to an IT business within the financial section of your business plan.

• Costs for Building a High-Security Environment: Account for equipment investments beyond a standard office, such as dedicated server contracts, VPN setups, and the installation of biometric security doors to protect client confidential information.
• Initial Outsourcing Fees for Offshore Development: Initial commencement fees and deposits based on outsourcing contracts to delegate programming and testing tasks to IT companies overseas (such as in your home country).
• Expensive Software Licenses and Advertising Costs: Annual license fees for enterprise-grade development tools required for business operations, and costs for B2B lead generation (web marketing, exhibiting at trade shows).

It is crucial to submit these based on actual quotes and contracts, proving that “the 30 million yen is capital that will be definitively invested to scale the business.”

2. Trap 2: Office Requirement Violations and “Manual Labor” Labeling due to SES (On-Site Assignments)

In the Japanese IT industry, “SES” (System Engineering Service / on-site client assignments), where engineers work at the client company’s office, is common. However, if a company president holding a Business Manager Visa works on-site at a specific client’s office 5 days a week performing consulting or development, it constitutes a violation of the Immigration Control Act for the following two reasons:

• Failure to Fulfill the Office Requirement: The Business Manager Visa mandates securing an “independent, physical business office (your own company office).” If the president is stationed at a client’s site, Immigration will deem that “the leased company office is not functioning at all (it is a dummy office).”
• Being Labeled as a Disguised Freelancer (Manual Laborer): Working on-site at a single specific company to develop systems is judged practically as “employment labor that should be conducted under a working visa,” rather than independent corporate “management and administrative operations.”

The Breakthrough: Proving “In-House Projects” and “Project Management”

To maintain a Business Manager Visa as an IT consulting firm, you must prove through contracts that your work consists of “contracted (in-house/take-home) consulting and development,” not on-site SES.

In the “Outsourcing Agreement” signed with clients, eliminate clauses specifying working hours or on-site locations (which raise suspicions of disguised employment), and clearly state the scope of work as “delivery of deliverables” or “several meetings a month and system requirements definition conducted at your own office.” Furthermore, the greatest defense against being labeled a manual laborer is to incorporate a workflow into your business plan showing that the president remains in the company office and “manages the project” by issuing directives for actual coding tasks to domestic and international outsourcing partners.

3. Summary: Checklist for Obtaining a Business Manager Visa in IT Consulting

Being an excellent IT engineer and being recognized as a “business manager” under the Immigration Control Act are entirely different matters. To obtain a visa with an IT consulting company, the following shifts in mindset are essential.

• Logical Consumption of Capital: Do not rely solely on a single laptop; clarify the “use of the 30 million yen for business expansion,” including security and outsourcing costs.
• Prohibition of On-Site Work (Utilization of Own Office): Do not use SES contracts; instead, sign contracted/consulting agreements with multiple companies based out of your own office.
• Graduating from a “Player” Role: Establish a system where you do not write the code yourself, but rather “manage and supervise” subcontractors and employees.

Commercial practices in the IT industry (such as SES) often collide directly with the concept of “business management” demanded by the Immigration Control Act. Before registering the establishment of your company, we strongly recommend consulting a professional, such as an Administrative Scrivener well-versed in IT visa applications, to undergo a legal check on whether your business model complies with Immigration laws.