Qualifying non-traditional (internet / online) livelihoods for naturalization

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I sometimes get correspondence and communication from internet-based entrepreneurs who live in Japan, often with a Japanese spouse, who make an income from sources that have no brick-and-mortar or human presence within Japan. They are either internet-based businesses or they work for a company whose headquarters is overseas. Sometimes they describe business is described as a "start-up" or they are self-employed or a "serial entrepreneur"; they are sometimes the proprietors of their business and if they do have partners or employees, these relationships are not well-defined in terms of contracts, payroll, or legally recognized shares of a company.

The fourth of the six requirements for naturalization is:

4. 自己又は生計をjiko mata wa seikei o一にする配偶者その他の家族のichi ni suru haigūsha sono ta no kazoku no​資産又は技能によってshisan mata wa ginō ni yotte生計を営むことができること。seikei o itonamu koto ga dekiru koto.

   which roughly translates to:

   Being able to make a living through his/her own assets or abilities, or through those of a spouse or of another relative who is making a living.

Can a remote/telecommuting job or online business / startup qualify for the naturalization livelihood requirement?

Generally, yes. However, non-traditional employment is subject to the same forms of verification that a person who works within traditional employment paradigms. The stability and proof of your income, assets, and liability are not determined by the presence of a web site, a set of business cards, or paperwork from overseas authorities. They are determined by the corresponding domestically recognized paper trail as well as registration and papers and bank accounts they can verify: which means domestic (Japanese) bank accounts, domestic (Japanese) company registrations, domestic tax returns.

In some cases, overseas documentation will suffice and is acceptable. If the documentation isn't convincing enough or they have no way of independently verifying the documentation — that is, they can't tell if the company is not simply a shell company (ex. a post office box or home address with no office space) or an account was temporarily set up and money shuffled around to give the illusion of stable assets and revenue/income, they will likely demand more substantial proof.

The reason they ask for a map to one's place of employment (as well as home), for example, is not because inspectors want to talk to your neighbors and co-workers and determine if they like you. They ask for this information because they want to determine if the information you provided on paper is real and you actually live and work where you say you do and your lifestyle that you put on paper roughly matches your real life.

The length of time one's business has been in operation, its provable capital, its size (both in employees and customers) will also be used as variables which provide weight towards one's proof of means of livelihood. After all, most startups and one-man businesses, no matter how good the idea is and whether the business starts in Silicon Valley in California or Bit Valley in Tokyo, fail after a few years without making any money or worse, leaving the founders in debt. The viability of one's livelihood, as well as your skills, need to be documented through evidence.

Formally declaring your income earned overseas and/or in foreign currency in Japan

Remember that to live in Japan you must actually physically reside in Japan (not just have registered residency or a Status of Residence that entitles one to physical residency) for five continuous years with no long-term and not many medium term absences outside of Japan's territory.

And anybody who is in Japan for years is probably considered to have "permanent establishment" not necessarily in the eyes of immigration, but in the eyes of the National Tax Agency (税務署 {zeimusho}) — without having ever applied for a Permanent Resident Status of Residence (永住者在留資格 {eijūsha zairyū shikaku}) with the Ministry of Justice. The NTA rules state that once you have PE, you must declare (and are possibly liable for Japanese taxes after exceptions have been calculated) on income earned not just in Japan, but overseas as well.

Thus, if you are applying for non-simplified naturalization, you will have obviously been in Japan for at least five years and the inspectors will determine the legitimacy of your foreign or online business by the formal Japanese personal and business annual income, assets, and liabilities you have declared with the Japanese government as well as the taxes you have paid.

Your ability to provide for your livelihood will be judged/proved almost entirely by the history of your Japanese income tax records

If you can document and account for your 100% of your livelihood via official Japanese government sources (for instance, the Japanese tax agency, your local Japanese city hall, or your local legal affairs bureau), who have vetted and certified your foreign-based income and work and/or online business or work, this will serve as proof to the Ministry of Justice regarding your proof of ability to provide for your livelihood in Japan.

Because you are applying for naturalization, it is understood that you intend to be a resident of Japan for life and thus there is no excuse for this proof or proper documentation to only reside offshore.

How to get other Japanese government organizations besides the divisions in charge of nationality and naturalization — 法務省国籍課 {hōmushō kokuseki-ka} (MoJ Nationality Section) — to recognize your livelihood and how you earn a living is case-by-case, can be complex, and is beyond the scope of this website. I would recommend contacting an account or lawyer who is certified to practice in Japan for more advice.