“Permanent Residency for Business Owners in Japan｜How Directors Can Qualify Despite Deficits or Salary Fluctuations”

Why Is It Said That Permanent Residency Is Difficult for Business Owners?

When a company owner or corporate director applies for permanent residency in Japan, the evaluation criteria differ from those for employees.
The Immigration Services Agency focuses on personal financial stability and social credibility — not only the company’s performance but also how the applicant maintains a stable lifestyle.

Key Evaluation Points	Description
Personal Income Stability	Whether executive compensation is paid regularly
Tax Record	Status of income, residence, and corporate tax payments
Social Insurance	Enrollment and payment status for health and pension insurance
Relation with Corporation	How company performance affects the applicant’s personal livelihood

Because business owners are not “employees,” they must prove income through executive remuneration instead of salary slips.
Even during financially unstable years, those who continue paying taxes and maintaining social insurance coverage can still have a strong chance of approval.

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Can Permanent Residency Be Granted Even with a Deficit?

Many people believe that “a company in deficit cannot obtain permanent residency.”
In reality, however, it is possible if personal income remains stable and taxes are properly paid.

Situation	Evaluation in PR Screening
Regular monthly executive remuneration	✅ Considered stable income
Proper payment of income tax, residence tax, and social insurance	✅ Highly reliable
Temporary deficit due to investment or depreciation	⚙️ Acceptable with explanation
No or extremely low remuneration	❌ Considered unstable or unclear livelihood

The focus is not on the corporate deficit itself but on how the applicant demonstrates personal stability.
Supporting documents such as bank balance certificates, family income statements, or brief business plans can further strengthen the application.

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Executive Remuneration and the “Stable Income” Requirement

Under Article 7-2, Paragraph 2 of the Immigration Control and Refugee Recognition Act, an applicant must demonstrate a stable and continuous means of livelihood.
For business owners, this stability is proven through executive remuneration.

✅ Key Points

• The remuneration level should be reasonable compared to company performance, industry standards, and household expenses.
• If the amount fluctuates by year, submit a written explanation for the reason.
• These three documents should always be submitted together:

Document	Purpose
Withholding Slip (Gensen Chōshūhyō)	Shows total annual payment and taxes withheld
Tax Return Copy	Official proof of personal income
Corporate Financial Statements	Confirms source and legitimacy of payments

If remuneration was reduced in a given year, attach a brief statement explaining business strategy or reinvestment decisions.
Immigration officers value honest and transparent explanations over the numbers themselves.

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Social Insurance and Pension Enrollment Are Always Reviewed

Even for company owners, participation in social insurance (health and pension) is a major indicator of reliability during the PR review.

Enrollment Type	Evaluation
Employee Health & Pension Insurance	✅ Ideal — legally required for corporate representatives
National Health or Pension System	⚠️ Acceptable with a written explanation
Non-enrollment or payment delay	❌ Major negative factor

If the company is not yet enrolled in social insurance, prepare a written statement (e.g., “currently preparing for enrollment” or “small-scale exemption”) and move toward compliance.
If there are unpaid contributions, attach proof of payment completion to demonstrate sincerity.
In short, faithful tax and insurance compliance is one of the strongest factors in approval.

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Required and Supporting Documents for Business Owners

Compared to regular workers, company owners must submit more documents to show both personal and corporate stability.

Basic Documents (Common)

Document	Notes
Application Form & Statement of Reason	Must be signed in Japanese
Residence Card & Passport	Present originals + submit copies
Tax Certificates (No.1–No.3)	Income, residence, and corporate taxes

Corporate Documents

Document	Description
Certificate of Registered Matters	Confirms corporate representative and address
Financial Statements (Last 3 Years)	Verifies income and remuneration trends
Corporate Tax Payment Certificate	Proof of proper tax payment

Recommended Supporting Documents

• Executive remuneration slips and withholding records
• Bank balance certificates
• Business plan or financial forecast
• Explanation of family support and household expenses

If you manage multiple corporations, clearly specify which company pays your remuneration and where taxes are filed.

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Common Reasons for Rejection

In many cases, business owners are denied not because of missing documents, but because of inconsistencies or insufficient explanations.

❌ Typical Rejection Factors

• Delayed or partial tax payments
• Inconsistency between financial statements and personal tax returns
• Irregular or unreasonably low remuneration
• Lack of enrollment or payment in social insurance or pension

Even if these issues exist, correction and reapplication are possible after settlement.
What matters most is transparency and sincerity toward the process.

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Key Points to Overcome PR Screening for Business Owners

Based on real application experience, the following three points determine success in PR applications by business owners:

Key Point	Explanation
① Document Consistency	Ensure corporate and personal figures match exactly
② Business Stability	Present evidence of upcoming sales or projects
③ Credibility Proof	Demonstrate sincerity through tax and insurance records

Permanent residency screening is not about perfection, but about demonstrating a truthful and stable life.
Working with an administrative scrivener (Gyoseishoshi) helps ensure your documents and explanations are consistent and credible.

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Conclusion｜Permanent Residency Is Fully Achievable for Business Owners

For company owners and directors, obtaining permanent residency in Japan is absolutely possible — provided that:

• Executive remuneration is stable
• Corporate and personal records are consistent
• Taxes and social insurance are properly managed

Temporary deficits or income fluctuations are not fatal if the applicant demonstrates a steady livelihood and honest documentation.
With the right preparation and professional support, business owners can successfully secure permanent residency in Japan.

Ishinagi Administrative Scrivener Office

“I want to obtain permanent residency quickly and securely.” “I’m worried about preparing all the documents.”
If this sounds like you, please feel free to contact our office in Osaka (Yodogawa-ku). We support clients from all over Japan, providing the most effective assistance based on our extensive experience with immigration procedures.

If you want to secure your permanent residency smoothly and confidently, contact our office today.

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