Corporate Immigration 2023 Comparisons

Japanese immigration policy is shaped at the highest level by the Japanese legislature (the Japanese Diet), which determines the broad strokes of the law, and is supplemented by guidelines issued by the Japanese Immigration Services Agency (ISA) and detailed rules issued under ministerial ordinances promulgated by the Ministry of Justice and other ministries, treaties and related laws. The Immigration Control and Refugee Recognition Act is the main source of immigration law in Japan and was enacted to establish rules regarding entry and departure procedures for Japanese citizens and foreign nationals, a residency management system for managing the residence of mid- to long-term foreign nationals, and procedures for refugee certification.

Japan suffers from labour shortages cutting across all industries and sectors due to various factors, including an ageing population and a low birth rate. In response, the Japanese government has taken measures to expand options for greater market access to foreign labourers in white-collar and blue-collar positions alike.

Most recently, Japan introduced two new statuses of residence to attract highly skilled professionals and highly educated graduates to Japan under two systems rolled out in April – J-Skip and J-Find.

Under the new J-Skip System (Japan System for Special Highly Skilled Professionals), certain highly compensated, highly skilled professionals may obtain the highly coveted Highly Skilled Professional status and qualify to apply for permanent residence after just one year, a change that provides opportunities for more senior, skilled talent that may not qualify under the existing point system.

Meanwhile, Japan has also introduced a new job search status for graduates of certain high-ranking universities. Under the new J-Find System (Japan System for Future Creation Individual Visa), qualifying graduates may spend up to two years in Japan engaged in a job search to secure employment in Japan and/or prepare to set up a business in Japan.

Media reports indicate that Japanese government officials are also examining ways to allow certain foreign remote workers to live and work in Japan as “digital nomads” in the future, a change that would break from the traditional rules generally requiring a local sponsor to acquire a visa to work in Japan. If such a broad category were introduced, we would expect that many foreign nationals would take advantage of the opportunity to work remotely in Japan, although as this potential path is still in the discussion phase, details are necessarily scant.

As a general rule, work permission (work status) is issued only for sponsor-based employment. In some cases, discussed in 2.2 Unsponsored Work and Investment Visas, permission may be issued to freelancers or investors who are actively engaged in the management of a business in Japan, but generally, Japanese Immigration requires that the foreign national engage in work in Japan under an executed employment contract with a sponsor in Japan.

The most common work permissions for white-collar professionals are:

• Engineer/Specialist in Humanities/International Services (ESHIS)
• Intra-company Transferee (ICT)
• Business Manager (BM)
• Highly Skilled Professional (HSP)

ESHIS covers most of the types of corporate work a white-collar foreign national will be engaged in in Japan. ICT covers the same types of work, but allows foreign nationals who do not otherwise meet the educational or work requirements for ESHIS to reside and work in Japan provided other requirements are satisfied. BM covers the running and management of a business in Japan and is usually appropriate for foreign nationals who will be working as presidents and CEOs, directors on a board of directors, branch managers or, in large companies, lower-level managers in Japan. HSP covers the same types of work, but can also cover research and permit engagement in multiple areas. HSP is available to highly skilled professionals who attain a sufficient number of points under the associated point system (based on salary, education, years of experience, etc) or those admitted under the new J-Skip System, covered in 1.2 Upcoming Policy Changes.

Work permissions are also issued on a limited basis for skilled manual labour in the following industries, where the Japanese government has recognised a labour shortage:

• Nursing care
• Building cleaning
• Machine parts and tooling
• Industrial machinery, and electronics and information
• Construction
• Shipbuilding and machinery
• Automobile repair and maintenance
• Aviation
• Hospitality
• Agriculture
• Fishery
• Food and beverages
• Food service

For skilled labour in the above categories, the following work permissions are generally available:

• Technical Interns (TI)
• Specified Skilled Workers (SSW)

Employers of Technical Interns are limited to employing only those who can be adequately supervised, and there are limits on the number of Specified Skilled Workers who may be employed in some industries.

Options for unsponsored work are limited. Japanese Immigration sometimes approves applications for work permission by freelancers under the ESHIS status, but such individuals must prove that they have sufficiently large contracts with clients based in Japan, and one of those clients must effectively “sponsor” their application. In such cases, the freelancer is not employed by the client, but Immigration still requests that the client serve in the capacity of “sponsor” for purposes of the application.

The investment route offers greater options. Under BM status, a foreign national may run or manage a subsidiary or corporate presence in Japan. This status requires a physical office, a feasible business plan and, in most cases, an investment of at least JPY5 million, and requires the foreign national to actively participate in the management of the entity. For small companies, the foreign national will usually serve as the representative director of the company. For larger companies, the foreign national may serve in such capacity or in a different position, such as a regular member of the board of directors or a lower-level management position. For larger companies, there is no need for the applicant to personally invest JPY5 million in the business, but the applicant should have at least three years of relevant management experience (time spent in business school on an MBA programme may also be credited for this requirement).

Visitors travelling to Japan under the Japanese visa exemption programme (visa waiver programme) or under a valid short-term visa to Japan may engage in sightseeing and tourist activities, recreation and sports, and visit relatives.

In addition to these permitted non-business-related activities, visitors may also:

• inspect or visit plants, trade fairs, etc;
• attend trainings, lectures, explanatory meetings, etc conducted by educational institutions, businesses, etc;
• give lectures or speeches for no compensation;
• participate in conferences or other gatherings; and
• liaise with business contacts, attend business meetings and negotiations, sign contracts, provide after-sales services, conduct marketing research and engage in other short-term commercial activities,

but may not work in Japan.*

(*As a general rule, a foreign national may not work in Japan, for remuneration or otherwise, without proper status. However, in the limited cases specified above, a foreign national may be able to travel to Japan to engage in the above activities as part of his or her job while continuing to receive remuneration for such work from his or her employer abroad. Foreign nationals may be questioned about their specific purpose of travel when entering Japan, so we strongly recommend that any foreign national considering visiting Japan under the visa exemption programme or other short-term visa for the purpose of engaging in any of the business-related activities set forth above (i) consult with a Japanese immigration specialist in advance to ensure the activities fall squarely within the activities permitted under a short-term visa and (ii) prepare a “back-pocket letter” in advance in case he or she is questioned about his or her intended activities in Japan at a port of entry.)

Remote work is not permitted as a general rule in Japan. The expectation in most cases is that the employee will work at the address of the employer except where the remote work is a function of the job itself. An applicant must specify his or her place of work in the application for work status itself, and this should typically be the address of the employer or an office of the employer.

However, during the COVID pandemic, many foreign nationals in fact worked remotely, and many companies are moving to a hybrid work format whereby employees may work certain days remotely. Given this growing trend both in Japan and abroad, it is possible that Japanese Immigration may be more welcoming of these arrangements in the future, but please be aware that arrangements involving remote work are adjudicated on a case-by-case basis and are not permitted as a general rule, and therefore any such arrangement should be carefully explained to Immigration in the foreign national’s application for work status to ensure transparency and compliance.

Japanese immigration law prescribes no language requirements for most statuses. However, foreign nationals must demonstrate a certain level of proficiency in Japanese to qualify as a Specified Skilled Worker or a care worker working under the status of Technical Intern. Foreign nationals seeking points for Japanese language skills under an application for the Highly Skilled Professional status must also provide proof that they passed the requisite exam to claim such points, but language skills are not a requirement of the Highly Skilled Professional status itself if the applicant otherwise has a sufficient number of points to qualify. Applicants for permanent residence can also benefit from greater Japanese language skills, as they are one indication of the applicant’s level of interest in Japanese culture and integration into Japanese society, but they are not required and many foreign nationals in fact acquire permanent residence with limited or no Japanese ability.

Generally, there are no requirements for medical certificates or vaccinations in Japan, but employees applying for status as a Specified Skilled Worker or Technical Intern are required to undergo medical examinations before being admitted into Japan. Also, Japanese labour law requires employers to cause their employees to undergo an annual mandatory health check and requires employees to undergo such health check.

Proof of vaccination from COVID or proof of a negative PCR test was required for entry into Japan until 29 April 2023 as one of the border protection measures implemented by the government in response to the COVID pandemic, but is no longer required. However, please note that entry into Japan may be denied for health reasons generally, including if there is concern regarding the potential spread of an infectious disease.

Salary: Employees should receive a salary that is equal to or greater than the salary of a similarly-situated Japanese employee of the sponsor engaged in the same role or position. Salary cannot be reduced on the basis of national origin or other characteristics. Salary should also comply with labour law requirements, which require the payment of at least minimum wage, which varies from location to location. Salary should also be sufficient for the foreign national to support himself or herself and his dependants in Japan and for them not to become a public charge.

Work activities: The general rule for the main professional work statuses – ESHIS, ICT, BM and HSP – is that the work activities must be white-collar work, not menial labour, and require special knowledge, skills, expertise and/or experience in the relevant area. Different rules apply for skilled labourers – those with TI and SSW status – but these also require a certain level of expertise, skill and/or experience in the designated area.

Qualifications: The basic requirement to obtain ESHIS status in Japan is that proposed work activities fall within the activities permitted under ESHIS status and the foreign national have a college, university or higher degree (junior college is also acceptable) sufficiently related to the proposed work activities the foreign national will engage in in Japan or at least ten years of work experience in a related area (although a period of at least three years of work experience is sufficient for those involved in translation, interpretation or other “International Services”). Foreign nationals who do not meet this threshold but have worked at least the immediately preceding year at a related foreign company of the sponsor in Japan can usually apply for ICT status (provided the work they will engage in is permitted under the ESHIS status). The requirements for HSP status vary, but applicants for HSP must obtain at least 70 points under the associated point system and satisfy the underlying requirements for the type of work they will engage in as an HSP. HSPs who will engage in work falling under the ESHIS category must also satisfy the underlying requirements for ESHIS status described above, and HSPs wishing to engage in work as a Business Manager must satisfy the underlying requirements for that status set forth in 2.2 Unsponsored Work and Investment Visas. HSP status is not available for those engaged only in “International Services”.

In Japan, some work permissions are tied to a specific employer while others are not.

A foreign national with ESHIS status who is terminated or resigns from his or her current employer is typically free to move into a position with another employer provided that the activities the foreign national proposes to engage in at such employer are permitted under the ESHIS status. Foreign nationals with category 2 HSP status (described below) are also allowed to switch employers without applying for any particular change of status.

However, under certain work permissions, foreign nationals are limited to work for one specific sponsor. For example, the HSP category is divided into category 1 and category 2 HSPs (a category 1 HSP can apply to obtain category 2 HSP status after one or three years, depending on the number of points such HSP attained under the associated point system). Category 1 HSPs may not work for another employer without first applying for change of status, whereas a category 2 HSP is free to move into a position with another employer, like foreign nationals with ESHIS. Intra-company Transferees, Specified Skilled Workers and Technical Interns, meanwhile, must apply for a change of status to work for a different employer, like category 1 HSPs. The failure to do so can subject the foreign national and employer to a range of penalties and subject the foreign national to possible deportation.

Processing times for applications for work permission/status in Japan vary depending on a number of variables, including the office where the application is lodged, the time of year when the application is filed, the number of other applications the office is handling, the complexity of the application, and any errors or issues identified during screening.

In a typical year, the screening of an application for a Certificate of Eligibility (or “COE”, the document issued by a regional office of the Immigration Services Agency reflecting their determination that the applicant meets the requirements for the desired status and the first document required in the application process) will take anywhere from one to three months. The applicant must then apply for an entry visa to enter Japan, which can take anywhere from a few days to over a week, depending on the jurisdiction.

Processing times for other applications vary. Applications for changes of status and extensions tend to be the fastest. Applications for permanent residence take the longest – typically anywhere from six months to a year.

Please note that filing times in 2023 have been unpredictable, erratic, and in many cases significantly longer than usual as Japanese Immigration has had to allocate resources to ports of entry to handle the substantial increase in foreign visitors resulting from the reopening of the borders following the government’s announcement of the end of the pandemic earlier this year. Filing times have also been affected by growing pains associated with the rollout of further improvements to the online application system by Japanese Immigration, including most recently the issuance of electronic COE which can be immediately sent to applicants abroad after issuance in lieu of a physical, paper COE.

For foreign nationals living abroad, there are no restrictions on the applicant’s travel to Japan after an application is filed. However, applicants should note that once their application is approved and a COE is issued, they must typically return to their home country or country of residence to obtain a re-entry permit to enter Japan under their new status. Applicants travelling to Japan on the visa exemption programme (visa waiver programme) and wishing to change their status to work status after the COE is issued (a so-called “in-country conversion”) should note that, as a general rule, Japanese Immigration will not approve such a change of status unless there is an unavoidable reason why such change is necessary. If an application for in-country conversion is denied, the applicant will be required to exit and re-enter the country to obtain their residency card.

There is no system for expediting or fast-tracking applications in Japan. Japanese Immigration has complete control over the timing and process for the screening of applications, and although Japanese Immigration provides average screening times on its site as a rough guide for applicants, it is under no obligation to render a decision within such time frames.

Japanese Immigration has a legal mandate to fast-track applications for HSP as a way to enhance the value of the status and attract more high-skilled talent to Japan, but this mandate is only aspirational and not enforced. At the end of the day, screening times will depend on the kind of variables discussed in 4.1 Visa Processing Times, such as the office where the application is lodged, the time of year when the application is filed, the number of other applications the office is handling, the complexity of the application, and any errors or issues identified during screening.

After a COE is issued, the foreign national must obtain an entry visa at the Japanese embassy or consulate or the foreign national’s home country or country of residence and enter Japan with the issued COE, entry visa and a valid passport (the only exception to this is when the applicant applies for an “in-country conversion” – see 4.2 Travel Restrictions Once Application Filed for more information). Assuming the foreign national enters Japan through a major port of entry (such as one of the major airports in Japan), the foreign national will then be issued a residence card bearing, among other things, a picture of the foreign national and information on their work status and the expiration date of such status (for those who enter through minor points of entry, their residence card will be sent to them separately). Foreign nationals are who are issued a residence card are required to carry the card with them at all times and are subject to a penalty for failure to do so. Foreign nationals must also register their address with their local ward office or city hall within two weeks after deciding their permanent address in Japan or risk losing their work permission for failure to register.

The Japanese government charges no fees in connection with an application for COE or entry visa. A fee of JPY4,000 is charged in connection with applications for change of status and extensions.

There are no rules governing who can pay these fees.

Enforcement actions may be taken by the immigration authorities against individuals and sponsors in the event of a violation of immigration law.

In the event of an enforcement action against an individual where, after investigation, the decision is made to remove the individual from the country for a violation (either because the foreign national does not have the appropriate work or residence status or because the individual never had or no longer has the right to reside in Japan legally), arrangements will be made for deportation. In less serious cases where, for example, a violation is self-reported, Japanese Immigration will often provide the individual with the status of Specified Activities for a brief time to prepare to leave the country. Individuals subject to removal in this situation may in some instances qualify to apply for Special Permission to Stay in Japan, which allows foreign nationals with special familial or other attachments to Japan to remain in Japan despite grounds for removal.

Individuals who violate Japanese immigration law may also be subject to a fine or imprisonment. Individuals who reside in Japan legally but engage in unauthorised work may be subject to up to one year’s imprisonment (with or without hard labour), a fine of up to JPY2 million, or both, for normal violations; and up to three years’ imprisonment (with or without hard labour), a fine of up to JPY3 million, or both, for egregious violations. Meanwhile, individuals who enter Japan illegally or overstay their residence status and engage in unauthorised work may be subject to up to three years’ imprisonment (with or without hard labour)

Sponsors are not usually subject to direct enforcement action, but organisations that employ foreign nationals without the required work status or other status of residence may be subject to a fine of up to JPY3 million. The following individuals may also be subject to up to three years’ imprisonment (with hard labour), a fine of up to JPY3 million, or both:

• Any person that causes a foreign national to engage in unauthorised labour.
• Any person that causes a foreign national to be under his or her control for the purpose of causing that foreign national to engage in unauthorised labour.
• Any person that arranges for the use of a foreign national in authorised labour as a business.

Even if a sponsor in violation of immigration law is not subject to the above penalties, the employment of foreign nationals without the required work status can impact the ability of such employer to obtain work status for foreign nationals in the future, as the immigration authorities consider not only the qualifications of the foreign national, but also any past violations by the sponsor, when determining whether to grant work status. The illegal employment of foreign nationals can also have significant extra-legal reputational and business impacts on the offending sponsor, as instances of violation of Immigration are often covered by newspapers as well as other media outlets and can tarnish the reputation and ability of the sponsor to generate and retain clients and recruit talent.

Employers are required to ensure that all foreign nationals in their employ have the appropriate work status to engage in the work they are engaged in. The penalties for failure to do so are set forth in 6.1 Enforcement Action Against Individuals and/or Sponsors.

Employers are also required to give notice of the hiring and termination or resignation of foreign nationals with Hello Work, the Japanese government’s employment service centre. Notice for new hires should be made by the end of the month during which the employee was hired, and notice of terminations and resignations should be made within ten days of such termination or resignation.

Japanese employers are required to check the residence status of foreign employees to confirm that they are:

• residing in Japan legally; and
• have the appropriate status to engage in the proposed work activities for the employer,

and have an ongoing duty to continuously monitor and confirm legal residence and appropriate status while employing a foreign national.

Japanese Immigration has released smartphone and PC-friendly apps designed to assist in this process. The apps read data stored on an IC chip located within a foreign national’s residence card to confirm the validity of the card, provide an image of the residence card on file with Japanese Immigration (which includes the duration of the individual’s permitted residence in Japan as well as a description of their residence status), and provide information on whether the foreign national has permission to engage in any activities outside of the scope of his or her residence status.

In the past, many employers conducted their own visual check of residence cards to confirm residence status or used an old online system offered by Japanese Immigration to confirm the validity of residence cards, but over the years, there has been a marked increase in the circulation of fraudulent residence cards, including cards that appear to be valid when searched under the old online system. It is therefore recommended that employers incorporate into their onboarding and ongoing compliance processes confirmation using one of the new apps offered by Japanese Immigration.

Opposite-sex spouses and children (including adopted children) are recognised for the purposes of Dependant status.

Same-sex spouses may, in some instances, be able to obtain status under the Specified Activities status, but Dependant status will not be granted to a same-sex spouse, as same-sex marriage is not recognised under Japanese law. In order for a same-sex spouse to obtain Specified Activities status, the same-sex marriage must be recognised in the home country of both spouses. This rule generally makes it difficult for a same-sex spouse of a Japanese to obtain Specified Activities status.

A Dependant visa alone will not allow a dependant to work. However, if the dependant applies for and obtains permission to engage in activities outside of their residence status (eg, part-time work), the dependant may work up to 28 hours a week (counted as up to 28 hours over any seven-day period) subject to certain restrictions on the type of work.