In 2025, Japan’s management visa requirements will become stricter

Japan’s 2025 Overhaul of the Business Manager Visa: A New Era for Foreign Entrepreneurs

Introduction
In 2025, Japan will introduce sweeping reforms to its Business Manager Visa—known in Japanese as the “経営・管理ビザ.” Designed to attract and regulate foreign entrepreneurial talent, the existing framework has allowed for relatively accessible entry into Japan’s business environment. However, critics cite misuse and exploitative practices. In response, the government will substantially tighten qualification criteria in mid-October 2025—marking a pivotal shift in policy. This article offers a detailed and nuanced overview of the changes, their rationale, timelines, and implications.

1. What Is the Business Manager Visa?

The Business Manager Visa is a status of residence that enables foreign nationals to establish, operate, and manage a business in Japan. It facilitates long-term residency—typically up to five years—and allows for renewal. The visa also serves as a potential pathway to permanent residency after approximately ten years of qualifying status, with at least five years on a work.

Current eligibility (pre-reform):

• Either have capital investment of ¥5 million (~US $33,800) OR hire two full-time employees who are Japanese citizens or permanent residents;

• Secure a legitimate physical business office in Japan;

• Submit a feasible business plan;

• No formal educational or managerial experience requirements.

This framework has allowed startups, lean ventures, and solo founders to enter the Japanese market.

2. Key Changes in the 2025 Reform

Effective mid-October 2025, following promulgation in early October, the new requirements will radically raise the bar.

Major changes include:

1. Capital requirement: Raised to ¥30 million (~US $200,000–204,000) from ¥5 million—a six-fold increase.

2. Employment requirement: Applicants must now hire at least one full-time employee. Previously, the option was “capital OR staff,” but now both capital and staffing are mandatory.

3. Applicant’s credentials: Must have either at least three years of business-management experience OR hold a Master’s degree or higher in a relevant field (business, management, or a field related to the planned enterprise).

4. Professional review of business plan: The submitted business plan must be evaluated and endorsed by a qualified professional—such as a Certified Public Accountant (CPA), Tax Accountant, or SME management consultant—to ensure feasibility and credibility.

Summary Table:

3. Timeline and Legislative Process

• August 2025: The Immigration Services Agency (ISA) released the draft amendments via a ministerial ordinance; accompanying public consultation followed, running until September 24.

• Early October 2025: Expected promulgation of the ordinance.

• Mid-October 2025: Official enforcement begins, applying to new visa applications and, potentially, renewals.

This means that applicants still have a brief period—until enforcement—to apply under the existing, more accessible system.

4. Policy Rationale

Several interrelated reasons prompted the reform:

• Prevent misuse of the system: The relatively low ¥5 million threshold made it possible to exploit the visa for residency, not genuine entrepreneurship. Shell companies and minimalist minpaku rentals exemplified the problem.

• Restore program credibility: Media coverage and public criticism of visa abuse pressured the government to tighten scrutiny and ensure true business activity.

• Align with international norms: ¥30 million more closely matches thresholds in other advanced economies for entrepreneur visa.

• Emphasize economic substance: Mandatory employment and business-plan vetting demonstrate a clear intent to drive tangible local economic activity and job creation.

• Political dynamics: Pressure from anti-immigration factions after the July 2025 Upper House election influenced the government’s decision to tighten.

  

5. Impact and Implications

a. For New Applicants

• Access becomes harder: Entrepreneurs with limited capital or no formal management experience may find the new thresholds prohibitively high.

• Higher startup costs: A requirement of ¥30 million plus hiring staff boosts upfront financial burden and operational overhead.

• Need for stronger documentation: Educational or experiential proof, and a professionally reviewed plan, raise administrative and advisory costs.

• Potential shift to other visa routes: Applicants may explore alternatives like the Startup Visa or Highly Skilled Professional visa, each with distinct.

b. For Current Visa Holders (Renewals)

• Uncertainty remains about grandfathering: Some may face renewal scrutiny under new criteria; authorities could apply new rules during extensions.

• Many current holders—only ~4% of whom meet the ¥30 million capital threshold—are potentially at risk.

c. For Japan’s Business Ecosystem

• Selectivity increases: The shift may favor well-funded ventures with robust business strategies, potentially elevating the overall quality of foreign-led enterprises.

• Risk of reduced diversity: Lean startups and small-scale entrepreneurs may be discouraged, potentially narrowing innovation sources.

• Strategic clarity: The reform signals Japan’s preference for foreign entrepreneurs who bring capital, managerial experience, and job-creating potential.

  

6. What Applicants Should Do Now

1. Act fast—apply under the current rules before mid-October 2025 if eligible.

2. If applying under new rules, prepare thoroughly:

   • Ensure capital of ≥ ¥30 million.

   • Hire at least one full-time employee, with documentation.

   • Gather degree certificates or records proving ≥ 3 years of management experience.

   • Have your business plan professionally reviewed by a vetted expert.

3. Consult specialists early, such as gyoseishoshi (judicial scriveners), immigration lawyers, or SME consultants for optimal preparation.

4. Current visa holders should monitor renewal policies closely to respond to any changes in criteria or enforcement procedures.

   

Conclusion

Japan’s reform of the Business Manager Visa in 2025 represents a strategic recalibration—from “ease of entry” toward “substantive entrepreneurship.” By raising capital requirements sixfold, mandating employment and stronger applicant credentials, and introducing business-plan vetting, the government signals clear intent to promote serious, long-term investment.

While promising for well-resourced entrepreneurs, the new regime undeniably adds complexity and cost. As a result, timing is critical: those planning to apply should act before mid-October. For those adjusting to the new framework, early and expert guidance will be essential.

Ultimately, this policy shift may redefine Japan’s entrepreneurial landscape—favoring fewer but more sustainable, impactful ventures that align with national economic goals.

I hope this article helps you understand the full scope and nuances of the 2025 policy reform. If you’d like to explore differences with the Startup or Highly Skilled Professional visas—or need help customizing this article further—just let us know.