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【Q5】 I heard that with the Highly Skilled Professional residence status, it is possible to establish a company on your own. I understand that this differs from establishing a company for the purpose of obtaining the residence status of Business Manager, which requires various conditions such as capital requirements. What kind of restrictions apply?

【Q6】 If I establish my own company and then resign from my current employer, or if I resign first and then establish a company, what residence status can I obtain in order to manage my company?

【Q5】
I heard that with the Highly Skilled Professional residence status, it is possible to establish a company on your own. I understand that this differs from establishing a company for the purpose of obtaining the residence status of Business Manager, which requires various conditions such as capital requirements. What kind of restrictions apply?

Answer:
Regarding establishing a company on your own and engaging in its management under the residence status of Highly Skilled Professional (i)(b), there are several aspects that must be accurately understood.

Scope of permitted activities under Highly Skilled Professional

The residence status of Highly Skilled Professional is designed, based on a point system, to promote the activities of foreign nationals who possess highly specialized or technical skills in Japan. Highly Skilled Professional (i)(b) is defined as activities to engage in work that requires knowledge or skills in the field of natural sciences or humanities, based on a contract with a public or private institution in Japan.

However, Highly Skilled Professional status permits multiple types of activities, and explicitly includes management of related business operations as part of permitted activities. Therefore, within the scope designated by the Minister of Justice, it is possible to engage in certain activities that ordinarily require separate permission for “activities outside the scope of residence status” (such as those under Business Manager) without needing a separate permit.

Differences and restrictions compared to Business Manager

The residence status Business Manager is designated for conducting business management or administration in Japan and requires:

• securing an actual business facility,
• investment of 5 million yen or more in capital, or
• employing at least two full-time staff members.

On the other hand, when engaging in activities at a self-established company under Highly Skilled Professional, these strict scale requirements, including capital or employment size, do not apply directly.

However, whether the activities qualify remains subject to review. Specifically, when engaging in business management operations related to Highly Skilled Professional (i)(b), the business must involve activities that require knowledge or skills in the field of natural sciences or humanities, and must be considered likely to contribute to Japan’s academic research or economic development.

Even if not related to Japan’s academic research, the business must relate to Japan’s economic development. A business that contributes only to economic development in another country would be regarded as violating residence status.

Therefore, at a minimum, to establish your own company while maintaining Highly Skilled Professional status, the business must:

1. Have relevance to the category definitions (e.g., Highly Skilled Professional (i)(b) requires activities involving knowledge or skills in natural sciences or humanities), and
2. Be considered as contributing to Japan’s economic development.

The relationship between the company’s business activities and the activities permitted under Highly Skilled Professional is an essential evaluation point.

Reference provision from the Immigration Control Act (excerpt with emphasis added)

【Q6】
If I establish my own company and then resign from my current employer, or if I resign first and then establish a company, what residence status can I obtain in order to manage my company?

Answer:
If your primary activity is managing your own company after its establishment, remaining under Highly Skilled Professional status without further action may constitute violation of activities outside the scope of your residence status.

In general, you will need to obtain the Business Manager residence status.

In some cases, Highly Skilled Professional (i)(c) (business management category) may also be considered. However, even in that case, documentation proving the business scale (capital, business office, etc.) similar to Business Manager is required unless the business falls under the field of law or accounting, where certain requirements may be exempted.

Required documents for Business Manager

Depending on the activities planned in Japan, documents listed under the items for residence statuses in the appendix of the Immigration Control Act Enforcement Regulations must be submitted.
(Refer to the required documents listed on the application pages for each residence status.)

Documents to prove business scale (examples):

• Documents proving payment of wages to two or more full-time employees and resident records,
• Certificate of company registration,
• Other documents evidencing the scale of business.

Documents to prove existence of business facility:

• Real estate registry record,
• Lease agreement,
• Other supporting documents.

If you resign first and then establish a company

If you resign from your current company and then pursue establishment and management of your own business as your new activity, in order to continue residing in Japan, you must maintain your current Highly Skilled Professional status while preparing company formation and then submit an application for permission to change your residence status to Business Manager as soon as preparations are complete.

In doing so, you must meet the requirements for Business Manager (capital, office, business plan, etc.).

If you establish the company first and then resign

If you establish a company while still employed, and attempt to begin business activities in parallel, this may violate your residence status. It is advisable to limit your actions to preparatory activities, and if possible, temporarily designate another partner as representative.

Once permission for Business Manager is granted, you may resign from your primary employment.

If the activities at your self-established company can clearly be recognized as related to the activities permitted under Highly Skilled Professional, theoretically it may be possible to maintain the current status; however, changing to Business Manager is generally required, and conducting activities prior to approval may constitute unauthorized activities.

Conclusion

If your primary activity is to manage a company that you have established, the residence status Business Manager is the most appropriate, and you must meet its requirements.

If the business clearly relates to expertise under Highly Skilled Professional, maintaining that status may be marginally possible, but resigning before permission is granted would constitute unauthorized activities.

This is our answer at this moment.

The procedures before and after resignation, your next activities, permanent residency application, company establishment—all are important decisions concerning your future life in Japan.

If you are considering the “Business Manager” or “Highly Skilled Professional(i)(c)” visa, a consultation based on your specific circumstances (such as the business activities of the planned company and future income projections) is necessary.

If you require support when proceeding with the actual procedures, please let us know.