What documents does the company need to renew a visa for a foreign employee? A Thorough Guide

In recent years, an increasing number of companies are hiring foreign nationals as regular or contract employees. However, one thing that must not be forgotten when hiring foreign employees is the "visa (status of residence) renewal.
If the employee does not renew his/her visa before it expires, he/she will be in the country illegally, and the company will also (crime of) encouraging illegal employment The employee may be asked to renewal process, as well as the employees themselves,Documents to be prepared by the company There are also numerous
This article details the preparation process and points to note, focusing on the company's documentation required for visa renewal for foreign employees. Please read this article if you are in charge of human resources or general affairs.
1. basics of visa renewal procedures
What is an application for permission to extend the period of stay?
Each status of residence held by a foreigner has a set period of stay, such as one year, three years, or five years. When the expiration date approaches, an application for permission to extend the period of stay is filed.
Time of renewal procedure
- Expiration date of stay Can be applied for 3 months in advance
- Preparation should begin at least one month before the deadline.
Key Points for Renewal Review
- Whether the person's activities match his/her status of residence
- Do you have a stable income and livelihood?
- Are there any problems with the business condition of the company you work for?
2. main documents to be prepared by the company
Although the required documents differ depending on the type of status of residence, there are some commonalities in the documents required by companies.
(1) Certificate of employment
- A document certifying that the foreign employee is currently employed by the company.
- Include employment status, job description, and start date.
(ii) Contract of employment or notice of working conditions
- Indicates that employment will continue under the same conditions after renewal.
- Specify hours of work, amount of pay, and duties.
- The conditions should be equivalent to those of Japanese employees.
(iii) Certificate of company registration
- Basic documents that prove the entity's existence.
- Must be prepared within the latest 3 months.
(iv) Financial documents (most recent income statement and balance sheet)
- Documents that show the business condition of a company.
- A deficit increases the risk of disallowance, so a supplemental explanation is required.
(5) Gensen Choshu (withholding tax) and payroll statements
- It is verified that foreign employees are properly paid.
- Withholding tax books are often submitted for the year and pay stubs for the most recent several months.
6) Certificate of tax payment (corporate tax, consumption tax, etc.)
- Documents certifying that the company has properly paid its taxes.
- Can be obtained at the tax office.
(vii) Business description (if necessary)
- Include a description of the company's business, clients, number of employees, etc.
- This is especially required in the case of newly established companies and loss-making companies.
Differences in Required Documents by Status of Residence
For technical, humanities, and international services
- employment contract
- certificate of employment
- certificate of company registration
- Financial statements and tax certificates
- Documentation showing that the employee's job duties are specialized
For management and administration
- Company business plan
- Financial statements and tax certificates
- Business partner documentation showing business continuity
- Office Lease Agreement
For highly specialized positions
- In addition to the above, documents certifying education, employment history, and annual income
- Documentation showing that the point system is met
4. common problems in document preparation
Delayed cooperation on the part of the company
- Cases in which the general manager is not aware of renewal deadlines for foreign employees.
- Delayed submission leads to the risk of illegal residence.
Risk of disallowance due to financial loss
- Deficit does not necessarily mean disapproval, but documentation of continuity is required.
Incomplete employment contract
- Cases where the job description is ambiguous and could be misunderstood as "simple labor".
- Sales" and "sales" alone are weak; specificity is needed, such as "sales operations utilizing foreign languages.
Practical measures to be taken by companies
- Manage residency deadlines with employee lists
- Manage the expiration date of each employee's residency in Excel, etc., and remind them of the renewal schedule.
- Maintain document formats
- A standard format should be prepared for the certificate of employment and the employment contract.
- Routine preparation of financial statements and tax certificates every year
- Save them after the close of each fiscal year so that there is no panic at the time of renewal.
- Collaboration with Gyoseishoshi Lawyer
- Since there are subtle differences in renewal documents from case to case, it is safe to ask an expert to check them.
6. advantages of hiring an administrative scrivener
- Can pre-diagnose the risk of disapproval.
- Prevent incomplete paperwork and listing errors.
- Can reduce the burden on the company
- Can request renewals for multiple employees in bulk.
summary
In renewing visas for foreign employees,Documents prepared by the company as well as the employees themselves are important screening materials. This will be the case. Many of these items take time to prepare, such as proof of employment, employment contracts, company financial documents, and tax certificates, so it is essential to allow plenty of time for preparation.
In order to avoid the risk of non-permission and to ensure that foreign employees can continue to work with peace of mind, it is essential that companies have a management system and professional support.
Our office provides comprehensive services from preparation of the necessary documents to application support for renewal of status of residence for foreign employees. If your company has an employee with an expiration date approaching, please contact us as soon as possible.
