Introduction

The “Engineer/Specialist in Humanities/International Services” status of residence (hereafter, “Engineer/Humanities/International”) is essential for foreign nationals to work in Japan using their specialized knowledge and skills. However, when the employer is running a deficit, many applicants worry about the risk of visa refusal. This article explains, based on the latest official guidelines from the Immigration Services Agency and the Ministry of Justice, what measures can be taken to prevent refusal in such cases.

Screening Criteria for the Engineer/Humanities/International Visa

The “Engineer/Humanities/International” visa is granted to foreign nationals engaged in work requiring specialized knowledge in fields such as science, engineering, law, or economics, or in activities utilizing cultural sensitivity. Key screening points include:

• The job duties meet the requirements of the visa category
• The applicant’s academic background or work experience meets the criteria
• A valid employment contract with the Japanese employer
• Salary is at least equivalent to that of Japanese employees in the same position
• The employer’s business is stable

Of these, the company’s business condition is especially important, as it relates to the employer’s ability to pay salaries and provide a stable working environment.

Screening Points for Deficit Companies

Companies with continued deficits or excess liabilities are subject to stricter scrutiny regarding their ability to pay salaries and maintain business continuity. Especially if the company has been in deficit for two consecutive years or is in excess liabilities, detailed explanations and supporting documents are required.

However, a deficit alone does not automatically mean refusal. If the reasons for the deficit and the prospects for business continuity can be explained rationally, approval is still possible.

Measures to Prevent Refusal

1. Prepare a Detailed Business Plan and Explanation

• Clearly explain the reasons for the deficit or excess liabilities
  • Example: Upfront investment in development, temporary impact of COVID-19, depreciation costs, etc.
• Show prospects for business improvement and profitability
  • Example: New contracts, cost reduction measures, planned capital increase, etc.
• Provide evidence of the company’s ability to pay salaries
  • Include details such as current cash holdings, funding plans, or support from parent companies.

2. Submit Supporting Documents

• Latest financial statements (profit and loss statement, balance sheet)
• Tax payment certificates
• Business license, certificate of registered matters
• Cash flow statements or financial projections
• (If necessary) Written support from parent companies or investors

These documents should be used to objectively prove business continuity and the ability to pay salaries.

3. Ensure Appropriate Salary Levels

• Set salaries at or above the level of Japanese employees in the same position and clearly indicate the basis for this.
• Ensure compliance with minimum wage laws and submit employment contracts and salary regulations.

4. Use External Expert Opinions

• Attach business improvement plans or expert opinions from certified public accountants or SME consultants to enhance credibility.

5. Explain the Applicant’s Qualifications and Job Duties

• Clearly describe the relationship between the applicant’s academic/work background and the job duties to emphasize their expertise.

Example

For example, IT startup Company A, in its second year, had consecutive deficits due to upfront investment in development. The company wanted to hire a foreign engineer and applied for the “Engineer/Humanities/International” visa. Company A explained in its business plan and supporting documents that the deficit was temporary due to new service development, that contracts with major clients had been secured, and that funding support from the parent company was available. The company also submitted proof of cash reserves and a letter of support from the parent company. As a result, the immigration office recognized the company’s business continuity and ability to pay salaries, and the visa was approved.

Conclusion

Even if your employer is running a deficit, you can avoid refusal of the “Engineer/Specialist in Humanities/International Services” visa by providing reasonable explanations and sufficient supporting documents. It is especially important to objectively prove business continuity and salary payment ability using business plans, financial projections, and expert opinions. Prepare carefully based on the latest guidelines from the Ministry of Justice and the Immigration Services Agency.