This article is written by a Japanese local.
In the course of global corporate restructuring, it is common for an outstanding employee dispatched on an Intra-Company Transferee (ICT) visa to be promoted to an “executive” or “board member” position at the Japanese subsidiary or branch.
However, HR and legal departments frequently fall into a fatal compliance trap. The legal fact is: allowing a foreign national to execute statutory corporate management duties while holding an ICT visa constitutes a violation of the Immigration Control Act (engaging in activities outside the scope of permitted status). The ICT visa is strictly designated for “employees” engaging in specific professional duties; it does not cover the activities of a “business manager.”
This article comprehensively outlines the legal boundaries that necessitate a visa change, the strict examination requirements for the “Business Manager” visa, and the exact operational timeline to align corporate registration with immigration applications, ensuring the new executive is completely shielded from illegal work risks.
1. Conclusion: Statutory Executives Must Upgrade to a Business Manager Visa
Under Japanese immigration law, visa statuses are strictly categorized based on the actual activities the foreign national performs in Japan.
- Intra-Company Transferee Visa: Designed for “employees” dispatched from an overseas office to perform specialized/technical duties under the direct supervision and orders of the headquarters.
- Business Manager Visa: Designed for “executives and administrators” who operate the business or manage the Japanese corporate entity.
When a foreign employee joins the corporate decision-making body and assumes a position to determine management policies or execute business operations, their primary role completely shifts from “employee labor” to “business management.” Therefore, upon promotion to a statutory executive role, they must promptly file an “Application for Change of Status of Residence” with the regional Immigration Bureau to acquire the Business Manager visa.
2. The Clear Legal Boundary: Who Needs to Change Visas?
In practice, a promotion in internal corporate title does not automatically dictate a visa change. The dividing line depends on whether the individual becomes a “statutory executive under the Companies Act” and whether they actually perform management duties.
① [Visa Change Mandatory] Statutory Executives Registered at the Legal Affairs Bureau
If the employee assumes any of the following roles and their name is recorded in the company’s official corporate registry (Commercial Register), a change to the Business Manager visa is absolutely required without exception:
- Representative Director (CEO/President)
- Director / Board Member (Internal or External)
- Auditor
- Representative in Japan (For a Japanese branch of a foreign corporation)
② [Status Quo Maintained] Titles with Strong “Employee” Characteristics
Conversely, even if internal titles such as “Executive” or “Head” are used, if the individual is not a statutory registered director and merely oversees a specific department under the orders of the Board of Directors or the Representative Director, they will likely be able to maintain their current ICT visa.
- Executive Officer (Shikko Yakuin): Unless concurrently serving as a statutory Director, this role is legally positioned as the highest tier of employees, allowing the ICT visa to be maintained.
- General Manager / Branch Manager (of a domestic office): If they lack ultimate corporate decision-making authority and manage a department within a given budget, they are treated as employees.
3. Requirements for the Business Manager Visa
When upgrading from an ICT visa, the Immigration Bureau strictly examines whether the Japanese entity has the scale and substance to host a foreign executive. While the hurdle is lower than establishing a brand-new company, the following criteria must still be documented and proven:
- Independent Office Space: The Japanese corporation must continuously secure a clear, physical office space to conduct business (virtual offices are prohibited).
- Business Scale: The total capital/investment must be at least 5 million JPY, OR the company must employ at least two full-time staff residing in Japan (such as Japanese nationals or permanent residents).
- Substance of Management: The foreign executive must substantially engage in business management or administration (e.g., attending board meetings, holding final approval authority), not merely act as a figurehead.
- Executive Compensation: Remuneration equal to or greater than what a Japanese national would receive for the same role must be lawfully resolved at a shareholders’ meeting.