Proving the 'Continuity and Substance of the Business' at the Renewal of a Business Manager Visa (For Chinese and Taiwanese Managers)

In short: at the renewal of the "Business Manager" status of residence, what is examined is not, as at the new application, "whether you can start a business," but "whether the business is actually continuing and there is substance to the management." The materials for the judgment are the most recent settlement of accounts, the payment status of public dues such as corporation tax, consumption tax and inhabitant tax, enrollment in social insurance, the real existence of an independent office, and the business plan going forward. The settlement in particular is viewed, in line with the Immigration Services Agency's thinking on the continuity of a business, by the profit and loss of the last two fiscal years and whether there is an excess of liabilities. The basis is Appended Table I-2 "Business Manager" of the Immigration Control and Refugee Recognition Act and the Ministerial Ordinance setting the criteria under Article 7, paragraph 1, item 2 of that Act. Furthermore, the reform effective 16 October 2025 (Reiwa 7) added new criteria such as capital or total investment of 30 million yen or more, but there is a transitional measure for the renewal of those already residing, until 16 October 2028 (Reiwa 10). This article is general information and does not judge or guarantee whether a given renewal will be permitted. The filing to Immigration is handled by the administrative scrivener of the Yotsuba group as an independent business; the filing of corporation tax and settlement is by a tax accountant; registration such as officer changes is by a judicial scrivener; social-insurance and employment-insurance procedures are by a labor and social security attorney; and office premises are handled by real estate, a separate business. You contract with each separately.

What changes at the renewal of a Business Manager visa compared with the new establishment?

The "Business Manager" status of residence corresponds to the activity in Appended Table I-2 of the Immigration Control and Refugee Recognition Act, "to operate a trade or other business, or to engage in the management of that business, in Japan." At the new application (certification/change), the focus was on "whether you can start": whether you set up a company, secured an office, and whether the business plan holds up. At renewal, the focus moves to "whether it is continuing": whether sales are being made, taxes and social insurance are being paid, and the manager is personally running the business day to day. The center of gravity of the materials shifts from the plan to the settlement of accounts and tax-payment certificates.

In addition, the reform effective 16 October 2025 (Reiwa 7) raised the criteria themselves. The full picture of the requirements for a new establishment is organized in how a Chinese or Taiwanese entrepreneur obtains the "Business Manager" status of residence, but in relation to renewal the following points matter.

Phase	What is mainly examined
New (certification/change)	Securing an office, feasibility of the business plan, formal requirements such as capital/total investment
Renewal	Continuity and substance of the business, the recent settlement, payment of public dues/social insurance, the manager's personal involvement
Reform of 16 October 2025	Capital/total investment of 30 million yen or more, one or more full-time employees, Japanese ability (B2 level or above) of the applicant or a full-time employee, three or more years of management experience or a degree, and expert confirmation of the business plan
Transitional measure	For the renewal of those already residing, a renewal is not refused solely because the new criteria are not met, until 16 October 2028 (Reiwa 10)

What materials prove the "continuity and substance of the business"?

What is checked at renewal is substance over form. In the Immigration Services Agency's materials, if most of the work is outsourced and the manager does not run the business day to day, it is said not to fall under "Business Manager," and the office is, in principle, not allowed to be shared with the residence. Fulfillment of public dues is also emphasized, and the enrollment and payment of employment and workers'-accident insurance and health and employees'-pension insurance, and the payment status of national and local taxes (corporation tax, consumption tax, corporate inhabitant tax, corporate enterprise tax, etc.), are confirmed.

What you want to prove	Representative materials
That the business is moving	Recent settlement (balance sheet and profit-and-loss statement), copy of the tax return
That taxes are paid	Tax-payment certificates for corporation tax, consumption tax, inhabitant tax, etc.
That social insurance is fulfilled	Records of enrollment and payment of health/employees'-pension and employment/workers'-accident insurance
That the office really exists	Lease contract, photographs of the location, signboard/nameplate, materials showing independence
That it will continue	Business plan going forward, materials supporting expected earnings

These are viewed not just by a single year's figures but by the trend over two fiscal years. If the business requires permits, materials showing their acquisition status are also requested. Staying outside Japan for a long period without a legitimate reason may cast doubt on the manager's involvement and can be a negative factor.

How do a deficit settlement or an insufficient office reality affect the renewal?

A deficit does not immediately lead to refusal. The Immigration Services Agency's "On Clarifying the Status-of-Residence Criteria for Foreign Managers" (formulated August 2005, revised August 2020) organizes the view of the continuity of a business according to the last two fiscal years' settlements. The main points, in a table:

Settlement status of the last two fiscal years	Treatment of business continuity
Gross profit exists and no loss carried forward at the end of the most recent term (surplus exists, or neither surplus nor deficit)	Continuity is recognized. Even with a net loss for the term, acceptable if no loss carried forward arises
Gross profit exists, but there is a loss carried forward and no excess of liabilities	In principle recognized. Submit a one-year business plan and expected-earnings materials; a third-party evaluation if needed
Excess of liabilities only at the end of the most recent term (not at the end of the prior term)	A document in which a third party such as a small-business consultant or CPA evaluates, including a prospect of resolving the excess of liabilities within one year, is required
Excess of liabilities at the end of both the most recent and the prior term	In principle, continuity is not recognized
No gross profit in both the most recent and the prior term (gross loss)	In principle, continuity is not recognized

The point is whether, even in deficit, you have not reached an excess of liabilities, or, if you have, whether you can show a prospect of resolving it within one year by a third-party evaluation. As for the office, sharing with the residence or a name-only address is apt to be seen as lacking substance, and securing an independent office is a premise. A form in which the work is outsourced wholesale and the manager is not involved in management also works against you at renewal.

Who can handle the submission documents for renewal/change and the filing?

The renewal of the period of stay is, in principle, applied for by the person themselves to the regional immigration bureau with jurisdiction over the place of residence, before the current period of stay expires. An administrative scrivener, as a filing administrative scrivener who has notified the Immigration Services Agency, can handle the filing—submitting the application and materials on behalf of the person—under Article 1-3 of the Administrative Scriveners Act. This is a system to spare part of the person's appearance and does not guarantee the permission itself.

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Example of documents	Content
Period-of-stay renewal application and photograph	Prescribed form; category by the activity content
Settlement documents and copy of the tax return	Most recent term (and the prior term if needed)
Tax-payment certificates and social-insurance materials	Fulfillment status of public dues and social insurance
Certificate of registered matters and office materials	Existence of the company and the real existence of the office
Business plan and expected-earnings materials	Where you reinforce continuity

Even during the transitional-measure period, you may be asked to submit an evaluation document by a management expert. If you have permanent residence in view, a record of continuously fulfilling taxes and social insurance will tell. For the thinking on permanent residence, please also see how a Chinese or Taiwanese professional applies for permanent residence in Japan.

Where do you draw the line between the immigration filing (administrative scrivener) and tax, registration and labor?

Because the professionals involved differ, the basis is that you contract with each as an independent business, separately. The administrative scrivener of the Yotsuba group handles, as an independent business, the preparation of the application documents and the filing for the renewal/change of the period of stay.

Who to ask	Main role
Administrative scrivener (our office)	Preparation and filing of the period-of-stay renewal/change application (Article 1-3 of the Administrative Scriveners Act)
Tax accountant	Filing of corporation tax, consumption tax and the settlement; the tax underlying tax-payment certificates
Judicial scrivener	Commercial registration such as officer changes and head-office relocation
Labor and social security attorney	Procedures for health/employees'-pension and employment/workers'-accident insurance
Real-estate agent (our company, a separate business)	Selection of premises for an independent office, lease brokerage, important-matters explanation
Small-business consultant / CPA, etc.	Third-party evaluation of the business plan and continuity

Please also see our Services, Engagement Flow and Fee Schedule. You contract with each professional as an independent business, and we receive no referral fee from one another. The content of the settlement and the determination of the tax amount are for the tax accountant, and the final judgment of permission is by the Immigration examination.

FAQ

Q. My most recent settlement was in deficit. Is renewal already impossible?
A. A deficit alone does not immediately lead to refusal. The Immigration Services Agency looks at the continuity of a business by the last two fiscal years' settlements, and even in deficit, if you have not reached an excess of liabilities, you may be able to reinforce it with a one-year business plan and the like. Even if you reach an excess of liabilities, a document in which a small-business consultant or CPA evaluates a prospect of resolving it within one year will be considered. Two consecutive terms of excess of liabilities or gross loss become, in principle, hard to recognize.

Q. Can I renew even if I share the office with my home?
A. The office is, in principle, not allowed to be shared with the residence. For Business Manager, the real existence of an independent office is a premise, and at renewal the substance is also confirmed by the lease contract and photographs of the location. If you merely borrow an address and lack substance, it works against you. Securing premises is handled by real estate, a separate business, and the content of the contract is explained as important matters by a licensed real estate broker.

Q. The October 2025 reform now requires capital of 30 million yen. Must I meet it at renewal even while already residing?
A. For the renewal of those already residing in "Business Manager," there is a transitional measure until 16 October 2028 (Reiwa 10). During this period, a renewal is not refused solely because the new criteria (such as capital/total investment of 30 million yen or more) are not met; it is judged comprehensively by the management status and the prospect of meeting them going forward. However, the substance of management, the fulfillment of taxes and social insurance, and securing an independent office are confirmed as before, separately from the transitional measure.

Q. Can the renewal only be done if the person goes to Immigration?
A. A filing administrative scrivener who has notified the Immigration Services Agency can handle the filing—submitting the application and materials on behalf of the person—under Article 1-3 of the Administrative Scriveners Act. This spares part of the person's appearance, but it is a procedural proxy and does not guarantee the permission itself. Permission is by the Immigration examination.

Sources (Primary Information)

• e-Gov Law Search / Immigration Services Agency, "Immigration Control and Refugee Recognition Act," Appended Table I-2 "Business Manager" (the activity of operating a business or engaging in its management in Japan), Article 21 (renewal of the period of stay) (accessed 2026-10-16)
• e-Gov Law Search / Ministry of Justice, "Ministerial Ordinance Setting the Criteria under Article 7, paragraph 1, item 2 of the Immigration Control and Refugee Recognition Act" (Ministry of Justice Ordinance No. 16 of 1990), the "Business Manager" item (after the reform effective 16 October 2025: capital/total investment of 30 million yen or more, one or more full-time employees, Japanese ability, management experience/degree, confirmation of the business plan) (accessed 2026-10-16)
• Immigration Services Agency, "On the Amendment of the Criteria for the 'Business Manager' Status of Residence (Q&A)" (effective 16 October 2025; the transitional measure = until the day on which three years pass from the effective date = 16 October 2028; treatment at the renewal of those already residing; the office may not be shared with the residence; confirmation of public dues/social insurance, etc.) (accessed 2026-10-16)
• Immigration Services Agency, "On Clarifying the Status-of-Residence Criteria for Foreign Managers" (formulated August 2005, revised August 2020), "2 On the Continuity of the Business" (the judgment of business continuity according to the last two fiscal years' settlements, excess of liabilities and gross profit) (accessed 2026-10-16)
• e-Gov Law Search / Ministry of Internal Affairs and Communications, "Administrative Scriveners Act," Article 1-3 (filing and related work) (accessed 2026-10-16)

This article is general information and does not judge or guarantee whether a given renewal will be permitted, or the necessary documents or the application of the transitional measure. The permission of a period-of-stay renewal is by the examination of the regional immigration bureau, and the concrete submission documents differ by the activity content and the case. The preparation of the application documents and the filing for the renewal/change of the period of stay are handled by the administrative scrivener of the Yotsuba group as an independent business; the filing of corporation tax, consumption tax and the settlement is by a tax accountant; commercial registration such as officer changes and head-office relocation is by a judicial scrivener; procedures for health/employees'-pension, employment and workers'-accident insurance are by a labor and social security attorney; and the selection of premises for an independent office, lease brokerage and important-matters explanation are by Yotsuba Real Estate Co., Ltd., a separate business, each contracted separately. Our office receives no referral fee. Individual judgements are made by a qualified professional after a meeting. Written by Joji Uramatsu, administrative scrivener and licensed real estate broker.