Corporate Immigration 2024 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.

*Note: Any opinions expressed herein are those of the author and do not reflect the official views of Delolitte Tohmatsu Immigration and License Company.

Building on the momentum from 2023, when Japan introduced new residence statuses for highly compensated and highly skilled professionals (under the new J-Skip system) and for highly educated graduates (under the J-Find system), Japan introduced in March 2024 the new “Digital Nomad Visa”, which allows qualifying digital nomads and eligible family members to visit Japan for up to six months for the purpose of working remotely for their home country employer in Japan. Details on this new work status are provided in 2.2 Unsponsored Work and Investment Visas and 2.4 Remote Working.

Meanwhile, media reports indicate that Japanese government officials are also in the process of finalising a new visa for “angel investors”, which may be rolled out as early as this fiscal year. The work status, which will apply to 13 national strategic special zones, is intended to attract additional capital to Japan, and specifically the start-up market, by allowing qualified investors to live in and actively work as an angel investor in Japan for up to five years initially. Applicants for the visa will be required to submit investment proposals as well as proof of their past performance, the level of assets owned, and other relevant information. This work status offers an option beyond the typical Business Manager status for business owners and operators, but is intended to target larger, more established investors and will therefore likely be out of reach for many small to mid-sized entrepreneurs.

Finally, on the policy front, this year the Japanese government approved a key change to its immigration law that allows for the revocation of a foreign national’s permanent residence in the event of the non-payment of taxes, including health insurance and pension payments. Previously, foreign nationals who became financially insecure after successfully obtaining permanent residence were able to obtain welfare benefits, like Japanese nationals, without risk of losing their permanent residency, but under the new rule, foreign nationals risk losing their status if they become unable to pay their taxes, including health insurance and pension payments. The rule is limited to the “intentional non-payment” of these taxes, so there may be some allowances made for failure to pay due to error or the government may limit its implementation of the rule to the most serious cases, but the change is something that all permanent residences should bear in mind, as the only way to reobtain permanent residence after revocation is to satisfy the requirements anew, which usually requires at least ten years of continuous residence in Japan.

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 or to digital nomads who are working remotely in the country for a limited period, 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); and
• 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 J-Skip System.

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; and
• food service;

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

• Technical Interns (TI)*; and
• 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.

*The Japanese government has announced that it intends to retire the Technical Intern system. The Technical Intern system will be replaced by a similar system to be rolled out in 2027 with better protections for technical interns and an easier pathway to permanent residence.

Options for unsponsored work have historically been limited. Traditionally, foreigners seeking to work in Japan without a sponsor – ie, freelancers – must prove that they have sufficiently large contracts with clients based in Japan, and one of those clients must effectively serve as their “sponsor” for purposes of 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.

However, in late March 2024, the Japanese government introduced a new “Digital Nomad Visa” to allow a foreign national without a local sponsor to work in Japan for a limited period. Under the visa, foreign nationals employed abroad are permitted to engage in their home country work in Japan without a local sponsor on a temporary basis by laptop, computer, or other digital means provided they are providing services or sales to people outside of Japan for remuneration. Foreign nationals must (i) have nationality in a country or region that has a tax treaty and a visa waiver/exemption agreement in place with Japan, (ii) have an income of at least JPY10 million, and (iii) be enrolled in insurance covering death, injury, and illness for the period the applicant resides in Japan in order to qualify for the visa. 

Foreign nationals on the Digital Nomad Visa may also bring their spouse or children (who may be involved in everyday activities, but not work) provided such spouse and children (i) are nationals of a country or region that has a visa waiver/exemption agreement in place with Japan and (ii) are enrolled in insurance covering death, injury, and illness for the period they reside in Japan. The drawback is that the maximum stay under the visa is six months of every 12-month period, which means that foreign nationals seeking to engage in longer periods of unsponsored work in Japan will have to apply the traditional route or seek employment through a sponsor in Japan.

The investment route offers greater options. Under BM status (which is also available in a special version offering perks for foreign nationals who qualify as Highly Skilled Professionals), 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). BM status can often be difficult to obtain without local support on the ground in Japan; therefore, the government offers a special start-up visa for certain national strategic special zones to enable investors to reside in Japan for a certain period of time before applying for the BM status to acquire the necessary office space, local bank account, and complete other company set-up-related activities.

As mentioned in 1.2 Upcoming Policy Changes, Japanese government officials are also in the process of finalising a new visa for “angel investors”, which may be rolled out as early as this fiscal year. The work status, which will apply to 13 national strategic special zones, is intended to attract additional capital to Japan and specifically the start-up market by allowing qualified investors to live in and actively work as an angel investor in Japan for up to five years initially. Applicants for the visa will be required to submit investment proposals as well as proof of their past performance, the level of assets owned, and other relevant information. This work status offers an option beyond the typical Business Manager status for business owners and operators but is intended to target larger, more established investors and will therefore likely be out of reach for many small to mid-sized entrepreneurs.

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 certain limited trainings (ie, lecture-based training and not on-the-job training or other training involving actual work), 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 market 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-19 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.

Also, the Japanese government has explicitly approved remote work for foreign nationals working in Japan under the new “Digital Nomad Visa” described in 2.2 Unsponsored Work and Investment Visas. Foreign nationals working under this status are free to work remotely from anywhere in Japan provided they are compliant with the requirements of the visa.

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 (see 2.1 Sponsor-Based Employment Visas). 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 (see 2.1 Sponsor-Based Employment Visas) 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-19 or proof of a negative PCR test 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 or her 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 (see 2.1 Sponsor-Based Employment Visas) 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 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 foreign national’s 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 (see 2.1 Sponsor-Based Employment Visas), meanwhile, must apply for a change of status to work for a different employer, like category 1 HSPs. 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 (as a decision must be made on these applications by no later than two months after the expiration of the foreign national’s residence card, at the very latest). Applications for COE and permanent residence, meanwhile, can take significantly longer. As of June 2024, screening for applications for permanent residence in Tokyo is taking, on average, at least a year and, in many cases, longer.

Please note that filing times in 2024 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 following the end of the pandemic in 2023. Filing times have also been affected by growing pains associated with the roll-out of further improvements to the online application system by Japanese Immigration.

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 residence 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 and, at least since 2023, in many cases, actual screening times have significantly exceeded the average screening times provided on the Japanese Immigration website.

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, as well as the kind of application (ie, application for COE, change of status, extension, or permanent residence) . Since 2023, screening times have also been affected by the staffing Japanese Immigration has available at any given time to process filed applications.

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 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; and
• 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.