Status of residence for foreign staff hired by the company

In order for foreign nationals to work in Japan, they must obtain a status of residence that allows them to work.

Even if the representative of the company is a foreigner, if the company is hiring a foreigner to work in Japan, the foreign staff must obtain a status of residence that allows them to work.

The status of residence in Japan is divided into different types according to the job description.

In principle, the status of residence for employment must be full-time employment.

In a part-time job, it will be difficult to obtain residency status for work.

If you want your foreign staff to work as a part-time, hire foreign students, people with family residence status, or people with residence status without work restrictions.

The common status of residence for employment is as follows.

Engineer/ Specialist of Humanities/ International Services

Intra-company Transferee

Highly Skilled Professional(1)

Engineer/ Specialist of Humanities/ International Services

There are a wide range of jobs that fall under this status of residence.

Specific examples include the following

  • Sales
  • advertising
  • Trade affairs
  • System Engineer
  • Design and development of precision machinery and equipment, etc.
  • designner
  • interpreter

Requirements of Engineer/ Specialist of Humanities/ International Services

1: There must be an employment contract between the employer and the foreign staff member.

If you work in a Japanese branch or representative office, you will sign a contract with a company in your home country.

2: One of the following conditions applies.

A: Knowledge relevant to the job description must have been acquired through college or university .

B: At least 10 years of work experience in the job description in which they are engaged.

 At least 3 years of work experience is required for some jobs such as interpretation and translation.

3: The remuneration must be equal to or greater than the remuneration received by Japanese workers

In Japan, the minimum wage is set by law.

Salaries below the minimum wage will not be allowed.

4: The state of the company’s operations

Companies are judged to see if they can hire and pay their employees.

If the business requires a business license, it will also be checked to see if it is legally licensed.

5:The behavior of foreign staff is good.

International students and foreigners with family stays can work up to 28 hours a week.

If it is found that they have been working more than the legally mandated hours, they will be deemed to be misbehaving.

If that happens, it will not be allowed.

Intra-company Transferee

If you are transferred from an overseas head office to a Japanese branch, subsidiary or representative office, you can apply for “Intra-company Transferee”.

The jobs that can be worked by “Intra-company Transferee” are those that fall under the category of “Engineer/ Specialist of Humanities/ International Services”.

Requirements for Intra-company Transferee

1: You have been working at an overseas head office for more than one year in a “Engineer/ Specialist of Humanities/ International Services” type of job.

2: The remuneration must be equal to or greater than the remuneration received by Japanese workers.

Highly Skilled Professional(1)

This is a status of residence for foreigners with advanced skills, knowledge and experience.

Compared to other residence statuses for work, there are various preferential measures.

There are three types of Highly Skilled Professional(1), depending on the nature of their work.

A: Advanced academic research activities

b: Advanced specialized/technical activities

C: Advanced business management activities

Requirements for Highly Skilled Professional(1)

1:You must have scored at least 70 points in the points table below.

2: Annual income of \3,000,000- or more

Preferential treatment for Highly Skilled Professional(1)

1. Permission for multiple activities

2. Grant of the “5 years”period of stay

3. Easing of requirements for permanent residence

4. Permission for the spouse of the highly-skilled foreign professional to work

5 .Permission for bringing a parent(s) to accompany the highly-skilled foreign professional to Japan under certain conditions

6. Permission for a domestic worker to accompany the highly-skilled foreign professional to Japan under certain conditions

7. Preferential processing of entry and residence procedures

Status of residence for foreign nationals at Japanese branches and representative offices

Which status of residence should foreign staff working in a Japanese branch or representative office apply for?

Working at the Japanese Branch

If the size and business volume of a Japanese branch is above a certain level and you are allowed to exercise discretion as a branch manager, you may apply for “Business Manager”.

If you are recognized as a highly-skilled foreign professional, you may apply for “Highly Skilled Professional”.

For the detail of “Highly Skilled Professional”, click here.

If the size of the Japanese branch is small and you are not allowed to exercise discretion as a branch manager, you may apply for “Engineer / Specialist in Humanities / International Services” or “Intra-company Transferee”.

For the details of these status of residence, click here.

Working in a representative office

It is common for foreign nationals working in representative offices to apply for “Engineer / Specialist in Humanities / International Services” or “Intra-company Transferee”.

If you are recognized as a highly-skilled foreign professional, you may apply for “Highly Skilled Professional”.

Business Manager-Join an existing company as an officer.

If you will be joining a company that already exists in Japan as a director, you will apply for the status of residence “Business Manager”.

If you have already obtained a status of residence in Japan, please check your current status first.

If you have the following residency status, you don’t have to change your status.

  • Permanent Resident
  • Spouse or Child of Japanese National
  • Spouse or Child of Permanent Resident
  • Long Term Resident

In addition, if you have acquired a status of residence as an “Highly Skilled Professional,” you do not have to change your status of residence depending on the nature of your business.

If you have any other status of residence, you will need to change your status to “Business Manager”.

“Business Manager” is granted to foreign nationals who are substantially involved in the management of a business.

Requirement 1: You have an office in Japan that is separate from your home.

It is necessary to secure an office separate from your home.

It doesn’t matter if the company rents it or owns it.

However, if it is a single-family dwelling and there is a perfect distinction between office and living space (office on the first floor, living space on the second floor, etc.), the same building is acceptable.

This office refers to the place where the business is actually conducted.

Therefore, the office needs to be equipped with the necessary equipment for the business, such as a telephone and a computer.

Please note that a “virtual office” is not allowed because it is not a place where you actually do business.

Requirement 2: The size of the business

The size of the business falls under one of the following A-C.

A: The company employs two or more full-time staff members.

B: The amount of capital and the total amount of contribution is 5 million yen or more.

C:On the same scale as A,B.

A: The company employs two or more full-time staff members.

This is a full-time position, so part-time employment is not acceptable.

In addition, when hiring foreign staff, depending on the type of status of residence, some of them may not be recognized as full-time staff, which is a requirement for obtaining business management.

B: The amount of capital and the total amount of contribution is 5 million yen or more.

A company’s capital or investment must be at least \5,000,000-.

A business management visa is effectively granted to a foreigner who “runs a business”.

Therefore, it is also necessary to consider how involved the applicant is in starting the business, such as the percentage of shares held by the applicant.

Requirement 3. Stability and continuity

If the business becomes unsustainable or difficult to realize, it will not be permitted.

If you are an existing business, your financial situation is important.

If the business is continuously insolvent, it is considered to be unstable and unsustainable.

If your company is in this financial situation, you should create a future business and financing plan to present stability and continuity in the future.

The stability and continuity of the business is very important.

There is a fixed period of stay for “Business Manager”.

At the time of renewal, the company’s financial status will also be reviewed, and if you continue to be insolvent, you may not be able to renew.

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