The "One Year or More of Continuous Employment" Requirement and Capital Relationship for Intra-company Transferee｜Scope of Overseas Subsidiaries and Affiliates
Introduction
The typical reasons an Intra-company Transferee visa is denied are insufficient proof of “one year or more of continuous employment immediately prior to the transfer” and of “the capital relationship between the business offices.” These two are core requirements unique to the Intra-company Transferee status, and correctly addressing them is the shortcut to approval.
This article takes a deeper look at these two major requirements.
This article is prepared based on Appended Table I (2) of the Immigration Control Act, the Ministerial Ordinance on Landing Standards (the section on Intra-company Transferee), and publicly available information from the Immigration Services Agency.
Requirement 1: “One Year or More of Continuous Employment” Immediately Before the Transfer
The Ministerial Ordinance on Landing Standards sets out a requirement for Intra-company Transferee to the following effect.
Immediately before the transfer to which the application relates, having been continuously engaged for one year or more in work that falls under Engineer/Specialist in Humanities/International Services, at a head office, branch office, or other business office located abroad
Here are the important points organized below.
| Issue | Content |
|---|---|
| What “immediately before” means | It must be immediately before the transfer. Even if you worked for one year in the past, if you then moved to a different company, you are in principle not eligible |
| What “continuously for one year or more” means | Working without interruption for one year or more within the same corporate group |
| What “work falling under Engineer/Specialist in Humanities/International Services” means | Not simple labor, but white-collar work corresponding to technical positions, humanities knowledge, or international services |
For example, you cannot bring over an employee who has worked at an overseas subsidiary for only six months through an intra-company transfer. In addition, even if the person is employed, if the work mainly consists of simple tasks, it may not be recognized as “work falling under Engineer/Specialist in Humanities/International Services.”
Main Documents Used for Proof
- Certificate of employment (clearly stating the period of employment)
- A document stating the job duties, position, and remuneration
- Pay statements or the employment contract
Requirement 2: The “Capital Relationship” Between the Japanese and Overseas Business Offices
Intra-company transfer presupposes a movement within “the same organization.” The business office in Japan and the business office abroad must have one of the following relationships.
| Relationship | Example |
|---|---|
| The same legal entity | A transfer from the head office of a foreign corporation that has a branch in Japan to that Japanese branch |
| Parent company / subsidiary | A secondment from an overseas parent company to a Japanese subsidiary, or vice versa |
| Affiliated company / related company | A secondment between group companies connected by a capital relationship |
Caution When the Capital Relationship Is Weak
A “transfer” from a business partner or from a trading partner with no capital relationship does not qualify as an intra-company transfer. In addition, even where a capital relationship exists, if the equity ratio is low or the relationship is indirect, additional proof may be required. It is important to clearly demonstrate the capital connection through the group’s organizational chart and the certificate of registered matters of each company.
Note: The assessment of a capital relationship differs from case to case and is confirmed individually in the examination by the regional Immigration Services Bureau. In the case of a complex group structure, we recommend consulting a specialist in advance.
Main Documents Used for Proof
- The certificate of registered matters for each of the Japanese and foreign entities (or an equivalent official document)
- The group’s organizational chart and capital relationship diagram
- Materials showing the investment relationship (shareholder registry, certificate of investment, etc.)
Don’t Forget the Remuneration Requirement
In addition to the two requirements above, you must also satisfy the remuneration requirement of “an amount equal to or greater than the remuneration a Japanese national would receive for the same work.” If you transfer the person while keeping their overseas-level salary, the remuneration may fall below the requirement and result in a denial. The remuneration must be set with the cost of living in Japan in mind.
Frequently Asked Questions
Q. I have only worked at an overseas subsidiary for 10 months. Can I apply? A. Since the requirement is one year or more of continuous employment immediately before the transfer, in principle you cannot apply. We would consider applying once you have reached one year.
Q. Is a transfer from an outsourcing partner with no capital relationship possible? A. It is not eligible for intra-company transfer. We would consider another status of residence such as Engineer/Specialist in Humanities/International Services.
Q. Does a structure where the parent company is overseas and the sub-subsidiary is in Japan still qualify? A. It can qualify if you can prove the capital connection, but an indirect relationship is examined individually. It is important to clearly demonstrate it with an organizational chart.
How Our Office Supports You
Proving “one year or more of continuous employment” and “the capital relationship” is the most important point that determines the success or failure of an intra-company transfer. Kaneko Hidetaka Administrative Lawyer Office provides precise support, from organizing complex group structures to preparing overseas documents.
- A 98% approval rate track record
- Supported languages: Japanese, Chinese, Vietnamese, and English
- Free initial consultation