When renewal of a Business Manager status becomes difficult, one question often arises: can the applicant become a dependent of a spouse who holds an Engineer/Specialist in Humanities/International Services status, obtain permission to engage in activities outside the status for up to 28 hours per week, and continue managing the company without receiving remuneration?
1. Conclusion: As a rule, no
Company law does not itself prohibit a foreign national from serving as a company representative. Immigration status, however, is a separate issue. Even with permission for activities outside the status under Dependent status, continuously managing a company as its representative is not automatically permitted.
2. The “28 hours per week” rule does not necessarily allow company management
General permission for activities outside the status is mainly intended for supplementary work such as part-time employment. Company management involves continuing managerial activities such as signing contracts, negotiating with business partners, supervising employees and making management decisions. The position of representative director itself also carries ongoing management responsibility, so the issue cannot be resolved simply by keeping the work within 28 hours per week.
3. “Unpaid means it is not work” is also risky
Under immigration law, what matters is not only whether remuneration is paid but also what activities are actually performed. Business Manager and Dependent are statuses based on different activities. Continuing the same management activities after changing status may therefore be regarded as unauthorized activity.
4. Practical points
Even if a person formally remains the representative, continuing to make management decisions or handle day-to-day management may cause problems. The actual situation needs to be reorganized—for example, by entrusting management to another person who has an appropriate status of residence.
5. Options to consider when renewal is difficult
Option A: Change to Dependent status and substantially withdraw from management, leaving representative duties to another person who can lawfully perform them.
Option B: Suspend business activities and place the company in a near-dormant state, while noting that maintaining a corporation still involves procedures and costs.
Option C: Transfer or sell the business through a business transfer or M&A.
Option D: Return home, rebuild the business structure and later seek Business Manager status again.
Immigration status and a person’s position under company law must be considered separately. Because the conclusion depends on the individual circumstances, it is important to review the actual activities before changing status.