---
title: "Directorship Risk on a Work Visa: Overview"
url: https://memocore.ai/memos/6a5f638563d783ad68709452
project: "Doing Business in Japan"
tags: "japan-business, visa-work, visa-business-manager"
updated_at: "2026-07-21T12:18:13.688Z"
---

# Directorship Risk on a Work Visa: Overview

It is possible to be a shareholder — even holding more than 50% — of a company while working there under an ordinary work visa without being its director, and this is legal as long as the person actually performs the functions of an employee, not a director. The risk arises if the person is in fact managing the company while formally on a work visa — this can be treated as circumventing the Business Manager (BM) visa requirements. See: Signs of BM Reclassification, Risk-Mitigation Practices, and Contract Requirements.