Points to Consider When a Spouse on a Dependent Visa Gets Involved in Business Management#

Foreign nationals working in Japan under a work visa often have spouses residing in the country under the “Dependent” (Family Stay / Kazoku-taizai) status of residence. As the family’s life in Japan stabilizes, it is not uncommon for the spouse to consider engaging in business activities, such as helping with a side business or participating in the establishment of a new company, to increase household income.

However, there is a complex legal conflict between the original purpose of the Dependent visa and the act of “business management” under the Immigration Control and Refugee Recognition Act. Carelessly registering a spouse as a corporate officer or allowing them to engage in management duties can lead to the rejection of visa renewals or, in worst-case scenarios, charges of engaging in activities outside the scope of their permitted status. This article explains the legal boundaries and necessary precautions when a spouse on a Dependent visa becomes involved in business.

Principles and Scope of the Dependent Visa#

First and foremost, the “Dependent” visa is a status of residence granted for the purpose of being supported by a primary provider (the main visa holder) while living in Japan. In principle, working or engaging in income-generating activities is not permitted.

To work, the spouse must apply for and receive “Permission to Engage in Activity other than that Permitted under the Status of Residence Previously Granted” (commonly known as Shikakugai-katsudo permission). Obtaining this permission allows for part-time work of up to 28 hours per week. However, it is crucial to understand that this permission is intended to allow for supplementary income activities that do not interfere with the primary purpose of being a dependent; it does not authorize full-time employment or full-scale business management aimed at independent financial subsistence.

The Critical Distinction Between “Labor” and “Management”#

The most significant issue arises from the distinction between general “part-time labor” and “business management as a corporate officer.”

1. Contradiction Between the 28-Hour Rule and Directorship#

The Permission to Engage in Activity other than that Permitted generally covers “labor” based on an employment contract. In contrast, serving as a Representative Director or Director of a company involves “management.” Management duties are often viewed as incompatible with the strict time management of “28 hours per week.” A business manager typically bears responsibility for the company 24 hours a day. Therefore, claiming that “management duties are confined to within 28 hours per week” is often difficult for the Immigration Services Agency to accept.

2. The Issue of Director’s Remuneration#

If a spouse is registered as a Director and receives “Director’s Remuneration” (Yakuin Hoshu), the risk increases significantly. Under Japanese corporate practice and tax law, Director’s Remuneration is payment for the mandate of management, not wages for labor calculated by hours. Receiving a fixed monthly executive remuneration implies that the individual is engaged in management on a constant basis. This is highly likely to be judged as exceeding the permissible scope of the Dependent visa.

Furthermore, if a spouse who is supposed to be a “dependent” receives high executive compensation and becomes financially independent, they may no longer satisfy the core requirement of the Dependent visa, which is “to be supported financially.”

Safe Boundaries for Involvement#

Does this mean a spouse cannot be involved in a company at all? Not necessarily. Involvement may be legally permissible in the following forms, provided strict conditions are met.

Passive Investor (Shareholder)#

If the spouse merely provides capital as a shareholder (investor) and receives dividends at the end of the fiscal year without participating in any management or operational duties, this is considered asset management. This activity does not violate immigration laws. However, if they are making management decisions in reality, it constitutes a violation regardless of their title.

Part-Time Employee (Even in a Spouse’s Company)#

A spouse can work in a company established by their partner, provided they are hired as an employee (part-time staff), not an executive officer. In this case, they must adhere strictly to the 28-hour limit, their work hours must be recorded (e.g., via time cards), and they must receive a wage based on hours worked, not a fixed executive salary.

Employee-Director (Shiyonin-Kenmu-Yakuin)#

In rare cases, a person may be registered as a director but work primarily as an employee (e.g., a store manager or department head). If they are paid an “employee salary” rather than director’s remuneration and their working hours are strictly managed within the 28-hour limit, it might be explainable to immigration authorities. However, this is a gray area and requires meticulous documentation to prove that the “management” aspect is minimal or non-existent.

Switching to “Business Manager” Status for Serious Entrepreneurship#

If the spouse wishes to engage in business management proactively without worrying about the 28-hour restriction, they should consider changing their status of residence from “Dependent” to “Business Manager” (Keiei-Kanri).

Acquiring a Business Manager visa allows one to focus on management without restrictions on working hours. However, the hurdles are significant: one must typically secure a dedicated office space and invest capital of at least 5 million yen (or hire two full-time employees). Additionally, it is important to consider that once a spouse switches to a Business Manager visa, if the business fails, reverting to a Dependent visa may involve strict scrutiny regarding the genuineness of the marital relationship and financial stability.

Conclusion#

When a spouse holding a Dependent visa becomes involved in a family business, superficial solutions such as “registering as a director in name only” or “setting a low director’s remuneration” are fraught with legal risks. The Immigration Services Agency examines not just the formal title but the substance of the activities: who is actually running the company, and do the activities fall within the scope of the visa?

To protect the family’s residency status in Japan, it is essential to establish a clear strategy before taking action. Decide whether the spouse will support the business as a part-time employee within the 28-hour limit under their current visa, or whether the family is ready to meet the requirements for a visa change to allow full-scale business management. Compliance with these rules is the foundation of a stable life in Japan.