Introduction

Whether a foreign worker can obtain a Specified Skilled Worker (SSW) residence status when the sponsoring business is running a deficit is a question of significant concern for both businesses and applicants. With system updates in April 2025, both application operations and review criteria have been partially revised. This article clearly explains, using official sources like the Immigration Services Agency and the Ministry of Justice, whether residence permits are still possible even if the business records a deficit, and what applicants should pay close attention to.

Key Points of the Specified Skilled Worker System and the 2025 Revision

There are two categories within SSW: Type 1 and Type 2. Type 1 allows stays for up to five years; Type 2 targets highly skilled workers and offers unlimited renewals and family accompaniment. The April 2025 revision expands target sectors and streamlines procedures, clarifying requirements for businesses and applicants.

What Effect Does a Business Deficit Have on Applications?

According to official standards, operating at a deficit alone is not, in itself, a reason for denial. The main point reviewed is whether the business shows prospects for continued operation. Temporary deficits are expected in business activity, so “deficit = automatic denial” does not apply. However, certain points must be explained:

• Whether the business has realistic, ongoing continuity and plans
• Whether it can continue paying wages to employees
• Whether labor laws are followed and appropriate social insurance is in place

References: Ministry of Justice’s “Clarification of Criteria for Residence Status of Foreign Business Managers,” Immigration Services Agency “SSW Program Guidelines”

Points to Note for Applications

If a business with a deficit can demonstrate solid plans for cash flow and recovery, and provide documentation to support that the loss is temporary and financial stability remains, permit issuance is still possible.

• Clear presentation of funding and recovery plans
• Explanations for the losses and realistic prospects for improvement
• Proper setup of support systems and compliance with all application document requirements

April 2025 changes include updated forms and potential modifications to required documents, so always check the latest official information.

Example

For instance, Construction Company A (about 20 employees) ran a deficit in 2024, but had secured a major contract for the following year and maintained healthy cash flow. The company included future plans, revenue forecasts, and a documented wage payment system in their application, and the SSW permit was granted. If prospects and continuity can be objectively shown, a deficit does not automatically result in denial.

Conclusion

A business running a deficit is not, by itself, an immediate ground for denial of a Specified Skilled Worker residence permit. The main points are whether the company can realistically continue business, and whether support and salary payment systems are in place. By understanding revised requirements and preparing documentation accordingly, SSW visa application success is possible. If uncertain, consult with a professional administrative scrivener familiar with the system.