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Business Succession and Foreign Employees | What’s Required: Notification, Not a Change

無地の木のプレート2つを前後に並べ、その下に留め具でまとめた無地の紙束を置いた俯瞰イメージ。看板が変わっても足元の書類はそのままであることを象徴。

The business was acquired, the representative changed, or the company name changed. At such times, the question arises: “Can the foreign staff we employ continue to work as they are from tomorrow?”

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To state the conclusion first, the Status of Residence of the foreign national will not be invalidated or expire simply because the business owner or company name has changed. What is required in this situation is not an Application for Change of Status of Residence, but a “notification”. Misunderstanding this can lead to preparing unnecessary applications and missing the truly required notification within 14 days. We will clarify this for both the foreign national and the HR professional of the accepting company.


1. Conclusion: Status of Residence Does Not Automatically Expire. What is Required is a “Notification,” Not a “Change”

First, let’s summarize the key points.

  • The system is not designed for a Status of Residence to be revoked or expire solely due to a change in business owner or trade name.
  • What determines “can they work from tomorrow” is not whether the procedures for changing the business owner have been completed, but rather whether the foreign national’s Period of Stay is still valid.
  • The procedure required in most cases is not an Application for Change of Status of Residence, but a “notification regarding the affiliated (contracting) organization” (Immigration Control and Refugee Recognition Act (hereinafter, Immigration Control Act) Article 19-16, Paragraph 2).
  • This notification must be made within 14 days from the date the event occurred, and the person obligated to notify is the mid- to long-term resident themselves. The company is not obligated to do so on their behalf.
  • However, whether the event constitutes a notification requirement in the first place depends on the form of Business succession. The conclusion differs depending on whether it is a stock transfer, a change of trade name, or if a separate corporation becomes the employer.
  • There is another notification requirement for companies (Immigration Control Act Article 19-17), but organizations obligated to notify Hello Work of the employment status of foreign nationals are excluded.

2. First, Distinguish: “Can They Work?” is a Matter of Period of Stay

The date the business owner changed and the expiration date of the Period of Stay have no relation. The first thing to check is the Period of Stay on the Residence Card.

  • Period of Stay remains → You can continue to work as is. Notification is required, but not making the notification does not mean you cannot work during that time.
  • Period of Stay is nearing expiration / Application for Extension already submitted → Check the status of the Application for Extension of Period of Stay. If a decision is not made by the expiration date, there is a system called the special grace period.

Regarding the special grace period, the Immigration Services Agency states that “until the time the said disposition is made or the day two months have passed from the expiration date of the Period of Stay, whichever comes first,” one can reside with the previous Status of Residence and engage in previous activities. What should be noted here is that the starting point is “from the expiration date of the Period of Stay,” not “from the date of application.” The understanding that “there are two months because I applied” is not accurate.

2-1. Important Note for HR Professionals: Do Not Only Look at the Back of the Residence Card

The Immigration Services Agency’s guidance states that when an Application for Extension of Period of Stay or similar is submitted, the “Application for Extension of Period of Stay, etc. field” on the back of the Residence Card will indicate that the application is pending. However, it includes a parenthetical note: “excluding cases of online applications.”

If an extension application is submitted online, the back of the Residence Card will not show “application pending.” Do not judge eligibility for employment based solely on the card’s entry.

If HR personnel see a Residence Card with an expired Period of Stay on the front and conclude, “It’s expired, they cannot work,” it would mean stopping the employment of someone who is actually legally eligible to work. Immediately after a Business succession, there will be a situation where Residence Cards are inspected all at once, so please adopt a practice of not judging solely by the card’s entry, but confirming the application status with the individual.

The timing of applications and the required documents for renewal themselves are covered in detail in separate articles.

3. What is Required is a “Notification Regarding the Affiliated (Contracting) Organization”

Immigration Control Act Article 19-16, Paragraph 2 obligates notification within 14 days when there has been a change in the name or location, the dissolution, the termination of the contract with, or the conclusion of a new contract with the public or private organization in Japan that is the contracting party.

The Immigration Services Agency’s procedural guidance summarizes the key points of this notification as follows:

ItemContent
Legal Basis for ProcedureImmigration Control Act Article 19-16, Paragraph 2
Applicable Status of ResidenceHighly Skilled Professional (i) (a) or (b), Highly Skilled Professional (ii) (a) or (b), Researcher, Engineer/Specialist in Humanities/International Services, Nursing Care, Entertainer (limited to those engaged in activities based on a contract with an affiliated organization), Skilled Labor, Specified Skilled Worker
Notification PeriodWithin 14 days from the date the event occurred
NotifierMid- to long-term resident themselves
Notification MethodElectronic notification system / In-person submission at a counter / Mail
Attached Documents“Submission of documents proving the notified matters is not required” (Immigration Services Agency guidance)
FeeThere is no prescribed Fee for the notification itself

There are two practical points to keep in mind.

One is that the person obligated to notify is the individual themselves. Even if the company attempts to act on their behalf in good faith, the individual is the subject of the obligation. In the context of Business succession, the company’s involvement will be to inform the individual that “this notification is required within 14 days” and to support the procedure, including registration for the electronic notification system.

Another is that no documents are required to be submitted. The Immigration Services Agency explicitly states that the submission of documents to prove the notified matters is not necessary. Please ensure that you do not exceed the 14-day period by attempting to collect registration certificates or transfer agreements before submitting the notification.

4. Which Scheme Applies to Your Company: Three Patterns of Application

This is the most practical part of this article. Even though it’s broadly referred to as “Business succession,” the conclusion changes depending on whether the contracting party (Corporation) changes or not. Typically, it can be categorized into the following three patterns:

Form of SuccessionCounterparty to Employment ContractApplication to Notification Grounds (Typical Example)Reference Form
Stock Transfer Type (only shareholders change, legal entity remains the same)Does not changeDoes not fall under notification grounds = No notification required—
Trade Name Change (same Corporation changes only its name)Same CorporationChange of name of contracting organization1-1
Different Corporation becomes employer due to Business transfer, etc.ChangesTermination of contract + Conclusion of new contract1-7 (Forms 1-4 and 1-5 can also be submitted separately)

The stock transfer type is the most easily misunderstood. Even if the owner and representative change, and the company atmosphere changes significantly, if the Corporation that is the counterparty to the employment contract remains the same, the notification grounds referred to in Article 19-16, Paragraph 2, have not arisen. A notification solely due to a change in representative is not provided for in this article.

Conversely, if a different Corporation becomes the employer due to a Business transfer or company split, from the individual’s perspective, it means “the contract with the previous company ended, and a new contract was concluded with a new company.” This has the same structure as changing jobs. The Immigration Services Agency’s guidance states that Reference Form 1-7 is convenient when notifying both the termination of a contract and the conclusion of a new contract simultaneously.

An overhead image of a single string dividing into three on the right side on a blank sheet, each reaching a plain wooden block. Symbolizing that even with the same Business succession, there are three patterns of application.

4-1. This Table is a Starting Point, Not a Conclusion

The table above shows how it can typically be organized. The actual application is determined by the combination of the succession scheme (stock transfer, Business transfer, merger, company split) and how the employment contract was succeeded. In mergers and company splits, the handling of employment contracts depends on individual agreements, and even with the same “Business transfer,” the design of employee treatment differs for each case.

Furthermore, when the employer changes, issues arise that go beyond mere notification. This is the question of whether the scope of work under the new employer falls within the activities permitted by the current Status of Residence. This is a separate matter from notification; if it does not fall within the scope, an Application for Change of Status of Residence will need to be considered. It is necessary to examine the actual contracts and registration documents to determine which applies to your company.

5. Do Not Confuse Type 1 and Type 2: Even the Forms Are Different

Notifications under Article 19-16 of the Immigration Control Act are divided into Type 1 (Notification concerning the affiliated (activity) organization) and Type 2 (Notification concerning the affiliated (contracting) organization), depending on the Status of Residence. Since both are referred to as “notification of affiliated organization,” they are easily confused.

Comparison ItemType 1 (Activity Organization)Type 2 (Contracting Organization)
Main Status of ResidenceProfessor, Business Manager, Legal/Accounting Services, Medical Services, Instructor, Intra-company Transferee, Technical Intern Training, Student, Trainee, etc.Researcher, Engineer/Specialist in Humanities/International Services, Nursing Care, Entertainer (if based on contract), Skilled Labor, Specified Skilled Worker, etc.
Description of Notification GroundsChange of name/location of organization, dissolution, departure/transfer from said organizationChange of name/location of organization, dissolution, termination of contract with said organization/conclusion of new contract
Reference Forms (Contract/Affiliation Related)1-2 / 1-3 / 1-61-4 / 1-5 / 1-7
Forms for Name Change, Location Change, Dissolution1-1 (Common)1-1 (Common)

What can be confusing in the context of Business succession is the case where the president themselves is a foreign national holding a “Business Manager” Status of Residence. In this case, it falls under Type 1, while employees (Engineer/Specialist in Humanities/International Services, Specified Skilled Worker, etc.) fall under Type 2. It can happen that within the same company, different articles and forms are used depending on the position.

Please note that form numbers may be subject to change. When actually submitting, please check the latest forms on the relevant page of the Immigration Services Agency (sources are listed at the end of this article).

6. Is Notification Required from the Company Side: “Not Required” for Many Businesses

Up to this point, we have discussed the obligations of the foreign national themselves. Companies also have a system for “Notification concerning the acceptance of mid- to long-term residents” under Article 19-17 of the Immigration Control Act. However, many general businesses are exempt from this notification.

The Immigration Services Agency’s guidance explicitly states regarding eligible organizations: “Organizations obligated to notify the status of foreign employment based on the Act on Comprehensive Promotion of Labor Policies are excluded.” In other words, businesses that submit foreign employment status notifications to Hello Work do not need to submit notifications under Article 19-17 of the Immigration Control Act. If a business is covered by employment insurance, it typically falls under this category.

Additionally, the list of Status of Residence subject to Article 19-17 does not include Specified Skilled Worker, Technical Intern Training, Artist, Religious Activities, or Journalist. Accepting organizations for Specified Skilled Worker have notification obligations under a separate framework, so please do not confuse them.

6-1. Regarding Failure to Submit Notification

The Immigration Services Agency states regarding Article 19-17, “Even if a notification is not submitted, no criminal penalties will be imposed; however, the Immigration Services Agency may conduct a careful review, such as confirming factual circumstances, during the Application for Extension of Period of Stay or other permission applications for foreign nationals affiliated with the organization.” It is practical to understand the explanation that there are no criminal penalties and the explanation that a careful review may be conducted during extension applications as a set.

On the other hand, the notification under Article 19-16 by the individual is a separate obligation. It does not mean that “since there is no penalty for the company not submitting the notification, the individual’s notification can also be postponed.”

An overhead image of two plain envelopes placed separately, with a plain wooden block next to only one of them. This symbolizes that the individual's notification and the company's notification are distinct, and the company's notification may not always apply.

7. Option When Uncertainty Remains: Certificate of Authorization for Employment (Optional)

There are cases where it is difficult for a company to determine whether the scope of work after succession falls within the activities permitted under the current Status of Residence. In such cases, the option is the Certificate of Authorization for Employment (Immigration Control Act Article 19-2).

ItemContent
PositioningApplication for issuance of a document certifying activities permitted under one’s Status of Residence
Fee2,000 yen upon approval (1,600 yen for online applications)
Standard Processing PeriodSame day (1 to 3 months if the workplace has changed, etc.)
Method of AppealNone
If the workplace has changedSubmission or presentation of documents detailing the new workplace and activity content is required

Please note that this fee is not subject to the revision of Immigration Services Fee on October 1, 2026.

Acquisition is optional. It does not mean that employment is impossible without a Certificate of Authorization for Employment. Immigration Control Act Article 19-2, Paragraph 2 stipulates that when the activities that can be engaged in are clear, a foreign national shall not be treated disadvantageously for not presenting or submitting this document. Since the provision includes the condition “when clear,” it is not accurate to interpret it as “requesting presentation itself is illegal.” It is practical to position it as one of the optional verification methods.

In cases where the employer changes due to business transfer or similar, and the work content also changes, the standard processing period will be 1 to 3 months instead of the same day. It is necessary to act early in accordance with the succession schedule.

8. Procedures for Accepting Companies

Once the effective date of succession is determined, following the steps below will help prevent omissions.

  1. List Residence Cards (name, Status of Residence, Period of Stay expiration date, number). Prioritize those with an approaching expiration date.
  2. Identify individuals whose Application for Extension of Period of Stay is pending. For online applications, information is not printed on the back of the card, so confirm with the individual.
  3. Determine your company’s succession scheme. Is it a stock transfer, a change of trade name, or a change in the corporation that will be the employer? Confirm with contracts and registration.
  4. If the employer changes, instruct the individual to submit a notification within 14 days. Since user registration for the electronic notification system may take time, provide guidance before the effective date.
  5. Check if the work content falls within the scope of the Status of Residence. If there is a possibility that it does not, it is necessary to consider an Application for Change of Status of Residence separately from the notification.
  6. Confirm the necessity of the company’s notification. If the business is obligated to submit a notification of foreign employment status to Hello Work, the notification under Article 19-17 is not required.

The basics of foreign employment, such as managing the risk of illegal employment and how to read Residence Cards, are covered in separate articles.

9. Frequently Asked Questions

Q1. The Representative Director has changed. Is a notification for employees required?

If the corporate entity remains the same and the counterparty to the employment contract has not changed, the notification event referred to in Immigration Control Act Article 19-16, Paragraph 2, typically does not arise. There is no provision in the same article that requires notification of a change in representative itself. However, if a change of trade name or business transfer has occurred in conjunction with the change of representative, separate consideration is required.

Q2. The 14-day deadline for notification has passed. What should I do?

Even if the deadline has passed, it is generally better to submit the notification promptly rather than not submitting it at all. The status of the notification may be checked during the subsequent review of the Application for Extension of Period of Stay. Depending on the circumstances, individual judgment may be required, so please consult our office.

Q3. Can the company submit the notification on behalf of the individual?

The reporting obligor under Article 19-16 is the mid- to long-term resident themselves. There is no system for companies to assume this obligation. In practice, it is realistic for companies to guide the necessity, and support the registration for the electronic notification system and the confirmation of the entered information.

Q4. My employer will change due to a business transfer. Is an Application for Change of Status of Residence necessary?

The change of employer itself is handled by notifying the termination of the contract and the conclusion of a new contract. However, if the job duties under the new employer do not fall within the scope of activities permitted by your current Status of Residence, you will need to consider filing an Application for Change of Status of Residence. If it is difficult to determine whether the duties fall within the scope, an Application for Certificate of Authorization for Employment is also an option.

Q5. How much is the fee for renewal?

The Immigration Services Fee was revised from October 1, 2026. The applicable amount will vary depending on the application acceptance date, so please check the separate article.

Q6. Will my Residence Card be rewritten after submitting the notification?

The notification regarding the contracting organization is not a procedure to rewrite the information on your Residence Card. It is a separate procedure from the notification of changes to Residence Card particulars (changes in name, date of birth, gender, or nationality).

Q7. How long does the examination take?

Since notifications are not procedures for determining permission or Denial, the concept of an examination period does not apply. The standard processing period for an Application for Extension of Period of Stay is said to be 2 weeks to 1 month. Trends in actual processing times are covered in a separate article.


10. Summary

  • The Status of Residence of the foreign national themselves will not be invalidated simply because the business owner or company name has changed.
  • Whether you “can work” is determined by your Period of Stay. If an extension application is pending, there is a special period system, and the starting point is the expiration date of the Period of Stay.
  • If you apply for an extension online, “Application Pending” will not be written on the back of your Residence Card. Do not judge work eligibility solely based on the card’s description.
  • What is required is not a change of Status of Residence, but a notification regarding the affiliated (contracting) organization (Article 19-16, Paragraph 2 of the Immigration Control Act, within 14 days, the reporting obligor is the individual themselves, and submission of documents proving the reported matters is not required).
  • Typically, a stock transfer type does not constitute a reporting event, a trade name change is a change of name, and if a separate Corporation becomes the employer, it is a termination of contract and conclusion of a new contract. However, the specific application must be confirmed with the actual contract and registration documents.
  • The notification under Article 19-17 by the company is not applicable to organizations that are obligated to submit the “Notification of Foreigner Employment Status” to Hello Work.
  • If you are unsure whether your job duties fall within the scope of your Status of Residence, you have the option of obtaining a Certificate of Authorization for Employment (2,000 yen / 1,600 yen online; acquisition is optional).

Our office provides consultations from both foreign nationals and accepting companies, based on the latest institutional trends.

  • Review of Status of Residence procedures for foreign employees accompanying Business succession and organizational restructuring
  • Guidance on notifications regarding affiliated (contracting) organizations and confirmation of reported details
  • Consideration of whether job duties after succession fall within the scope of the Status of Residence, and utilization of the Certificate of Authorization for Employment
  • Scheduling for change of Status of Residence and extension, and preparation of Required documents

Please feel free to use our free consultation service first.

📩 Contact Us Here
📞 To book a phone consultation: 0985-68-0851

Before you submit, let us take a look.

Free Immigration Pre-Submission Check ›

For those who will apply for a status of residence at the Immigration Services Bureau by themselves. Before you submit, we check your application form and supporting documents and tell you about any missing documents and points to watch. We accept checks online (Google Meet, about 20 minutes) or via LINE.

・Eligible: applications for a Certificate of Eligibility, change of status of residence and extension of period of stay (applications for permanent residence are accepted only from residents of Miyazaki Prefecture). Naturalization is not covered.

・Online (Google Meet): once per application. Replies via LINE: available for the same application until you submit it.

・Our guideline for replies via LINE is, in principle, within 2 business days (we are closed on Saturdays, Sundays and public holidays; replies may take longer when we are busy).

・Please send copies of your documents by LINE or email. For your residence card, send the front side only; please do not send the side showing your My Number.

・What we tell you is our office’s opinion. It does not guarantee approval; the outcome depends on the decision of the Immigration Services Bureau.

・We only point out missing documents and points to watch. We do not prepare or rewrite your application documents for you or draft text for them, and we do not tell you whether your application is likely to be approved (if you would like to engage us, we will introduce the Self-Prep Course, the Light Plan and the Standard Plan).

・If we find that a document contains information that is not true, or that the application is not your own (or a family member’s), we will decline the check.

Book a Free Immigration Pre-Submission CheckApply via LINE

This article is written based on publicly available information as of September 2026. Details of the system and implementation dates may change in the future. For actual applications, please confirm with official information from the Immigration Services Agency or our office.

Author of this article: Administrative Scrivener Authorized to File Applications, Satoshi Nakayama
Representative, Administrative Scrivener Corporation Miyazaki International Legal Office
Location: Miyazaki City, Miyazaki Prefecture

Sources (Primary Information)

  • Immigration Services Agency “Notification of Affiliated (Contracting) Organization” https://www.moj.go.jp/isa/applications/procedures/nyuukokukanri10_00015.html
  • Immigration Services Agency “Notification of Affiliated (Activity) Organization” https://www.moj.go.jp/isa/applications/procedures/nyuukokukanri10_00014.html
  • Immigration Services Agency “What is the Special Period?” https://www.moj.go.jp/isa/applications/procedures/tokureikikan_00001.html
  • Immigration Services Agency “Application for Extension of Period of Stay” https://www.moj.go.jp/isa/applications/procedures/16-3.html
  • Immigration Services Agency “Application for Certificate of Authorization for Employment” https://www.moj.go.jp/isa/applications/procedures/16-9.html
  • Immigration Services Agency “Notification Regarding Acceptance of Mid- to Long-Term Residents” https://www.moj.go.jp/isa/applications/procedures/nyuukokukanri10_00017.html
  • e-Gov Law Search “Immigration Control and Refugee Recognition Act” (Articles 19-2, 19-16, 19-17) https://laws.e-gov.go.jp/law/326CO0000000319

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