Introduction

From the perspective of an administrative scrivener specializing in international matters, many entrepreneurs and foreign business owners in Japan feel uneasy about renewing their Business Manager Visa if their company’s financial statements show a deficit. This article explains in detail whether renewal is possible with a deficit, using up-to-date information from public sources such as the Immigration Services Agency of Japan. The content focuses on key strategies and easy-to-understand advice for anyone considering renewal.

Overview of the Business Manager Visa

The Business Manager Visa is required for foreigners who wish to engage in business management or administration in Japan. The most critical point in the review process is proving the “stable and continuous operation of the business”.

Is Renewal Possible Even with a Deficit?

In conclusion, a deficit alone does not automatically result in rejection. The applicant must demonstrate business stability and continuity by explaining why there is a deficit, whether it is ongoing, whether the company is insolvent, and what specific improvement measures exist. These factors are evaluated comprehensively.

Deficit after Initial Start-up Year

• It is common to show a deficit in the first year due to initial investments, but approval for the first renewal is likely if a feasible business plan clearly explains the reasons and future prospects.

Single-Year Deficit (No Insolvency)

• Even after the second year, renewal is possible if the reasons for the deficit and business improvement measures are clearly presented, along with objective documents (financial statements, improvement plans), or third-party evaluations.

Continuous Deficits and Insolvency

• When there are continuous deficits or persistent insolvency, the continuity of the business is questioned, resulting in stricter scrutiny. In such cases, you must present a fundamental restructuring plan, evidence of increased capital or financing, and third-party (e.g., certified public accountant or SME consultant) support.

Key Points to Prevent Rejection

1. Enhance Your Business and Improvement Plans
   • Clearly explain the reasons for the deficit and specific measures for revenue improvement.
2. Submit Objective Evidence
   • Contracts, investment certificates, expert evaluations, banking support—documents demonstrating the continuity and stability of the business.
3. Ensure Legal Compliance
   • Certify full payment of taxes/social insurance and acquisition of required permissions and filings.
4. Secure Your Living Expenses (Appropriate Executive Compensation)
   • Prove a stable personal financial foundation for the business manager.
5. Improve the Precision of Application Documents
   • Carefully detail the realities of your office, funding plan, and business model, maintaining consistency throughout.
6. Consult Experts
   • Consult an administrative scrivener or other specialists ahead of time for a smoother application process.

Example

In the case of a business established for two years, showing continuous deficits due to initial investments, renewal can still be approved if the applicant submits an improvement plan showing concrete steps such as successful fundraising or acquiring new clients. Conversely, if insolvency persists with no specific improvement measures and an apparent lack of funds, the risk of rejection is high. Examples in this article are based on general trends and not specific firm results.

Conclusion

Even with a deficit, you do not need to give up on renewal. The essential point is to clarify the reasons, provide objective evidence and a concrete plan for continuity. Consulting a professional in advance is highly recommended. By preparing sufficiently and presenting the future outlook of your business, you increase your chances of a successful renewal of your Business Manager Visa.