Measures against Legal Revision] "Management and Administration" Visa for Sole Proprietorship: How should the 30 million yen "total amount of property" standard be met?

With the legal revision, the figure of "30 million yen" has taken on a life of its own, and we are increasingly hearing from foreign business owners who are currently doing business in Japan as sole proprietors that they are anxious about whether they too must immediately prepare 30 million yen in capital.

Conclusion,There is no need for sole proprietors to prepare 30 million yen in the form of "capital. In addition, for those who have been in residence before the amendmentGenerous grace period and comprehensive consideration mechanismare available.

In this issue, we will explain the correct way to understand this new standard and the key points to consider when updating it in an easy-to-understand manner.

1. what exactly is "¥30 million" for sole proprietorships?

Unlike the "capital" prepared by a corporation, in the case of a sole proprietorship, the 30 million yen required by the Landing Standards Ordinance refers to "the total amount of property used for the business related to the application.

Specifically, as indicated in the guidelines, the following "total expenses actually invested in operating the business" will be used to determine

• Expenses for securing and maintaining business offices(e.g., store or office rent)
• Salaries of hired personnel(For one year)
• Capital Expenditure(PCs, vehicles, manufacturing machinery, interior costs, etc.)
• Other direct expenses incurred for the project

This means that even if you do not have a cash (cash) pile of ¥30 million on hand, the accumulation of tangible and intangible assets that you are investing to maintain and expand your business will be subject to evaluation.

2. a "3-year deferment" and relief measures for those who have been in Japan since before the amendment

Many of you may be concerned that, "Even so, the total amount may not reach 30 million yen at our current business scale. ......." However, there will be no rigid operation that will result in a uniform denial of the application.

From the effective date of the amendment to the lawFirst application for permission to extend the period of stay after 3 yearsIn the case of a foreign national who does not meet the new standard (30 million yen), if the following conditions are met, a decision will be made based on a comprehensive consideration of the status of residence.

Main points for overall consideration:

The standard is expected to be met by the time of the next renewal.(Have a specific business plan and sales projections)

Must be in good business condition(The company is not continuously in the red and has business continuity and stability)

Proper fulfillment of tax obligations.(Income tax, inhabitant tax, and other taxes are paid without delay.)

Thus, just because "less than 30 million yen",There is no uniform, mechanical disallowance.

3. "Accompanying" renewal measures to be prepared now

From a practical point of view as an administrative scrivener, I would like to tell you that this revision is not simply a "hurdle raised," but rather "an opportunity to firmly prove the soundness and growth of your business with documentation.

The following three actions should be taken by sole proprietors facing renewal in the future.

• Visualization of invested property: Accurately identify and tally how much money (rent, labor, equipment) is currently being invested in the business.
• Ensure compliance: Manage tax and social insurance payments more appropriately than ever before.
• Creating a compelling business plan: Prepare a concrete and feasible business plan to convince the examiner that "the criteria are expected to be met by the time of the next renewal.

• Creating a compelling business plan: Prepare a concrete and feasible business plan to convince the examiner that "the criteria are expected to be met by the time of the next renewal.

Visa renewal is not just a procedure, but an important strategy to protect your valuable business and your life in Japan. Let's not get caught up in clearing formal numbers, but carefully substantiate your current business situation and your vision for the future.

If you are concerned about whether your current business meets the criteria, or if you are struggling to make a concrete plan for your next renewal, please do not hesitate to contact us. We will work with you to develop your business.