2025-09-24

Foreigners working in Japan generally require a work visa. But do sole proprietors also need a work visa when hiring foreign workers? We explain this point in detail.

What is a Work Visa?

Foreigners working in Japan require a “status of residence.” Among these statuses, there are categories commonly referred to as “work visas.” However, “work visa” is merely a colloquial term; in reality, they are classified into several types, such as “Engineer/Specialist/Humanities/International Services,” “Skilled Labor,” and “Business Management/Administration.”

Work visas are intended for jobs requiring specialized skills and do not apply to so-called “unskilled labor.” For example, if a foreigner works as a chef in a restaurant, they would generally qualify for a “Skilled Labor Visa.” However, if they work in customer service roles like waitstaff, a work visa would not be granted.

Furthermore, when applying for a work visa or renewing it before expiration, the appropriateness of the employment contract, job duties, salary level, etc., is reviewed. Therefore, employers hiring foreigners must fully understand whether the job content and compensation meet legal requirements.

Can Sole Proprietors Hire Foreigners on Work Visas?

Can sole proprietors hire foreigners on work visas? To answer directly: yes, even sole proprietors can employ foreigners on work visas.

However, the hurdles for obtaining a work visa are higher compared to corporations. This is because sole proprietorships are more likely to face scrutiny regarding business scale, revenue stability, and similar factors.

The Immigration Bureau, which reviews work visa applications, places significant emphasis on whether the business is operating continuously and whether the business owner can reliably pay the foreign worker’s salary. Therefore, during the work visa review process, the business owner must submit documents such as tax returns, income and expenditure statements, employment contracts, and business plans to prove the business is soundly managed.

For example, a privately owned restaurant hiring a foreign chef may generally qualify for a “Skilled Labor Visa,” which requires specialized culinary skills. However, it would not be permitted for simple part-time work. Therefore, “what specific duties will be assigned upon hiring” is paramount. Furthermore, the alignment between the type of work visa and the actual job duties is also critically important.

What are the key points for sole proprietors hiring
foreign nationals?

The key points for sole proprietors hiring foreign nationals are as follows:

First, the foreign national’s current residence status must match the business activities conducted by the sole proprietor. Even if the foreign national holds a work visa, if the actual work performed does not align with that visa, it is considered unauthorized activity. This can result in legal liability for the sole proprietor.

Second, ensure fair treatment of foreign workers. Do not hire them at lower wages simply because they are foreign nationals. It is essential to set their salary at a level equal to or higher than that of Japanese employees. To avoid scrutiny regarding the stability of the business during the review process, the sole proprietor must demonstrate stable business performance and consistent revenue to secure approval.

Third is providing a supportive environment for foreign workers, including living assistance and Japanese language resources. In essence, success in hiring foreign workers hinges on two key points: strict compliance with laws and regulations, and the creation of a supportive workplace environment.

Summary

Even when a sole proprietor hires a foreign national, a work visa is required. However, the actual work must utilize the foreign national’s specialized skills. Furthermore, even for sole proprietors, if business stability or workplace conditions are inadequate, obtaining a residence status may not be possible.