Japan is Cheap, 5 Million Yen…” Wealthy Chinese Easily Obtain Resident Status or “Management Visa

It is true that as long as you have money, you will be fine.”

There have been a number of reports that foreigners from China and other countries are moving to Japan for as low as 5 million yen. These foreigners are granted visas to stay in Japan for “management and administration,” but in some cases, they do not actually run their own businesses.

It is true that as long as you have money, you will be fine, as long as you can temporarily prepare 5 million yen and have someone in Japan to help you.

Kenji Nishiyama, an administrative scrivener who is familiar with this issue, says, “It is true that as long as you have the money, you will be fine. Gyoseishoshi (administrative scriveners) assist foreigners in the application process when they apply for residence at the Immigration Bureau.

It has been pointed out that behind the increase in “immigration” is the existence of brokers who promote Japan’s excellent social security system, including medical care, as well as its favorable living environment. It is said that obtaining a similar visa in the U.S. requires an investment of several tens of millions of yen, while Japan is “inexpensive” in comparison.

In the midst of these reports, Prime Minister Shigeru Ishiba submitted the following government “reply” to the Diet in early April.

I am aware that there have been reports that the number of wealthy foreigners residing in Japan under the status of “business manager/administrator” is increasing, and that there have been cases in which the actual status of business related to this status of residence cannot be confirmed.

This is the government’s response to the “Written Inquiry into the Actual Situation of Foreign Immigrants Abusing the “Management/Administration” Status of Residence” submitted to the Diet by Senator Sohei Kamiya, a member of the House of Councillors of the Kansei Party. According to the person in charge of Councilor Kamiya’s office, the question was based on reports in the Sankei Shimbun and the Yomiuri Shimbun.

The questionnaire pointed out that fraudulent acquisition of management and administrative visas and other forms of visas has become a serious problem. In particular, the report states that there has been an increase in the number of wealthy Chinese who have established companies in Japan and obtained these visas to immigrate to Japan in order to enjoy high-quality medical services at a low cost.

According to immigration statistics, the number of foreign nationals residing in Japan for management and administration has increased rapidly over the past decade or so, and as of the end of June last year, more than half of them were Chinese.

On the other hand, the prime minister responded in his written answer that the Legal Affairs Bureau is properly conducting commercial and corporate registration affairs in accordance with the Commercial Registration Law and other related laws and regulations.

The Sankei Shimbun reported in an online article on March 15, “The reality of the ‘business administration visa’ targeted by wealthy Chinese: Establishing a fictitious company and getting a ‘free ride’ on medical expenses. The article reported that “brokers who are Chinese compatriots and who are trying to help Chinese immigrate to Japan are showing them materials showing how comfortable life in Japan is and offering to help them obtain a business management visa.

The Yomiuri Shimbun reported in an online article on March 1 that “5 million yen is a low price” for a business/management visa and that Chinese SNS are overflowing with immigration know-how…the middle class is also settling in Japan. Chinese social networking sites are reportedly flooded with posts explaining how to immigrate to Japan as a homestay manager with a business/administration visa.

Loophole-ridden status of residence and understaffed immigration and visa control bureaus

What is a “Management Visa”?

It is a visa required for foreigners to establish a company in Japan, and the requirements for this visa have recently been eased in order to encourage foreigners to start businesses in Japan. For example, the aforementioned Mr. Nishiyama cited a common case of “inneepa,” or a Nepalese who runs an Indian restaurant in Japan.

While the period of stay for a typical work visa is one year, a new short-term visa for a few months has been established for the Management/Administration visa. As a result, Mr. Nishiyama says, many people apply for a business/administrative visa for “four months for now. In addition, if an application for permission to extend the period of stay is submitted after that, it is often approved, and a total stay of 16 months, including the first four months and one year, can be “manageable.

In order to apply for a business administration visa, there are various requirements, including the need to employ two full-time employees, including unemployment insurance, in addition to 5 million yen in capital. However, it is said that if one can come up with 5 million yen, he or she can “get by,” and this has become a problem.

According to Nishiyama, the immigration bureau will examine whether the applicant’s business has substance, whether he or she has or plans to prepare a proper business document, and whether the business is sustainable for a certain period of time.

The procedure itself to fulfill these requirements is “tedious,” according to Nishiyama. Of the 400 or so types of status of residence, “the examination period is by far the longest for work-related status of residence, and it takes that long.

On the other hand, however, Nishiyama says, “If you have prepared documents and other information that can be explained in response to the examination, it is easy to pass the examination.

I believe there are many foreigners who have established companies in Japan and have been granted such a 16-month visa,” Nishiyama said.

This is because there are many “loopholes” in the business and management visa system.

Even if they do not have 5 million yen in capital, it is believed that there are cases where they temporarily borrow money from their compatriot friends to make ends meet, and return the money after the company is established. This is an illegal practice called “sham money,” and is one of the loopholes in the system, Nishiyama explains.

Furthermore, in the case of “Innepa” mentioned above, for example, the reality was that a number of Nepalese were brought to Japan and introduced to work there. However, when it came time to renew their period of stay, if they were found to be human resource brokers and not actually running an Indian restaurant, they were naturally denied permission and had to return to their own country.

The problem with these cases, however, is that even after returning home once, they can come to Japan again by applying for the same management/administration visa as before.

If you did not do anything illegal during your previous stay in Japan, it will not be an issue at the next examination, even if you did not have your original business situation there,” said Nishiyama. In other words, the applicant will be examined again with a “clean slate,” and the management visa can be issued as many times as necessary.

There is still a loophole. If you do not engage in the activities you were originally scheduled to do for 90 days, your status of residence can be revoked,” said Nishiyama. However, the staff at the Immigration and Residency Management Bureau is very busy, so they rarely go to check, except for sex-related activities, and they only check the status at the time of renewal,” he said. In other words, they only check the status at the time of renewal.

Mr. Nishiyama believes that the current situation is a transitional one, as the Immigration and Immigration Bureau’s business practices may change drastically in the near future.

This is because Japan is aiming to introduce the “JESTA” system based on the “ESTA” electronic travel authorization system introduced by the U.S. for anti-terrorism and other purposes. Mr. Nishiyama says, “If this system is introduced, it will eliminate the need for a large number of immigration inspection staff, and the staff will move toward inspections.

It is constantly pointed out that the business and management visas are full of loopholes. Prime Minister Ishiba explains that the authorities are taking appropriate measures, but when will the “loopholes” in the immigration and visa management system and operations be eliminated?