Notes on Borrowing Capital from Parents in Japan

December 30, 2019

Question:

I am a Chinese who is staying in Japan with a “Study Abroad” visa to go to a Japanese university. After graduating, I plan to establish a foreign trading company and manage it, and I will receive capital from my parents in China. As this support from my parents is not my personal fund, I heard that a Business Manager visa will not be permitted. How about this?

Answer:

Even with capital borrowed from parents, Business Manager visas are permitted. However, you will need a detailed explanation and the appropriate documents regarding the funds.

Explanation:

One of the most important points in establishing a new company and acquiring a Business Manager visa is that there are conditions for the establishment fund (capital). This capital does not have to be self-funded and there is no problem with borrowed money, but you will be asked for a detailed explanation of the source of the fund.

For example, if you borrow from your parents, you will need a financial loan agreement, payment transfer details, and document proving your relationship with your parents. Whereas, if you borrowed from a country or a bank, although quite difficult at the time of establishment, you will be needing the financial loan agreement and other documents.