Japan’s Business Manager Visa Faces a Historic Turning Point

— New, stricter requirements to take effect on October 16, 2025

Japan’s key residence status for foreign entrepreneurs — the Business Manager Visa — is approaching a historic turning point.
A new system, drastically tightening the requirements, will officially take effect on October 16, 2025.

Highlights of This Article

✓ The new requirements for the Business Manager Visa will take effect on October 16, 2025.
✓ Applications filed before that date will continue to be examined under the pre-revision criteria.
✓ The new mandatory conditions include:
– A minimum capital of 30 million yen,
– The employment of at least one full-time staff member, and
– Additional requirements such as three years of management experience or equivalent education, Japanese language proficiency, and certification of the business plan by a professional expert.
✓ Home offices will, in principle, no longer be permitted.
✓ At the renewal stage, compliance with tax and social insurance obligations will be more strictly examined.
✓ Transitional measures of three years (until October 16, 2028) will apply for existing Business Manager visa holders.
✓ The tightening aims to prevent system abuse and attract higher-quality entrepreneurs, marking a clear policy shift “from quantity to quality.”
✓ Depending on financial resources and background, alternatives such as the new Business Manager Visa, Startup Visa, or Highly Skilled Professional Visa should be carefully considered.
✓ Given the system’s growing complexity, consulting with licensed specialists such as administrative scriveners (gyoseishoshi) is the key to success.

This reform symbolizes Japan’s strategic transformation regarding the kind of foreign entrepreneurs it seeks to attract. This article provides a detailed explanation of these major changes.

1. What Will Change from October 16, 2025? — Five Key Revisions

The 2025 reform does more than raise the capital threshold. It introduces four additional obligations that test the entrepreneur’s competence and the credibility of their business.
Here are the main points:

① Capital Requirement Raised to “30 Million Yen or More”

The minimum capital requirement will rise from 5 million yen to 30 million yen.

  • For corporations:

    • In joint-stock companies (kabushiki kaisha), the paid-in capital applies.

    • For partnerships or limited liability companies, the total investment applies.

  • For sole proprietors:

    • The total amount required for business operations — including rent, one year’s worth of wages, and equipment investment — is counted.

This increase clearly expresses the government’s intent to attract entrepreneurs with a solid, sustainable financial base and a proven ability to operate long-term businesses.

② Mandatory Employment of at Least One Full-Time Worker

Previously, employing two full-time staff members was an alternative to the capital requirement.
Under the new rules, both must be satisfied:

30 million yen in capital and at least one full-time employee.

Eligible employees include:

  • Japanese nationals,

  • Permanent residents,

  • Long-term residents, or

  • Spouses of Japanese nationals or permanent residents.

③ Japanese Language Proficiency Required (New)

To ensure smooth business operations, either the applicant or one of the full-time employees must have sufficient Japanese proficiency, proven by one of the following:

  • JLPT (Japanese Language Proficiency Test) Level N2 or higher

  • BJT Business Japanese Test score of 400 or higher

  • Graduation from a Japanese university

  • Completion of Japanese high school (after compulsory education in Japan)

The applicant need not personally meet this condition if a qualified employee satisfies it.

④ Proven Management Experience or Academic Background (New)

Applicants must now demonstrate managerial or professional competence by meeting at least one of the following:

  • Holding a master’s, doctoral, or professional degree (including from overseas) in a relevant management or technical field, or

  • Having at least three years of experience in business management or administration.

⑤ Stricter Rules on Office and Business Plan Verification (New)

To ensure business legitimacy, two new requirements are added:

  • Independent office space —
    Home offices will no longer be accepted in principle.

  • Certification of the business plan —
    Business plans must be verified by a qualified professional, such as a small business consultant, certified public accountant, or tax accountant.

2. Why the Tightening? Government Rationale and Policy Background

The primary goal of this reform is to prevent abuse and attract higher-quality entrepreneurs.

Japan’s current 5 million yen threshold is low by international standards, earning the Business Manager Visa the unfortunate nickname “a visa you can buy.” This leniency allowed the creation of shell companies with little or no real business activity.

The new policy marks a decisive shift from quantity to quality.

Combating Abuse and Hollow Applications

The old standard had remained unchanged since the “Investor/Business Manager Visa” era. With inflation, yen depreciation, and global comparisons, 5 million yen became trivial — and the visa was increasingly exploited.
Reports of fake companies and illegal “short-term business visas” proliferated, prompting a full-scale policy response.

Restoring Public Confidence

The visa’s association with unlicensed lodging operations (so-called “shadow minpaku”) fueled negative media coverage. The reform seeks to restore social trust in the system.

Aligning with Global Standards

The reform also brings Japan’s visa framework closer to those of other advanced economies, where applicants must demonstrate substantial investment and feasibility. Japan aims to attract entrepreneurs who can genuinely contribute to the national economy.

Social and Administrative Context

Legal experts point out another reason: the strain on public resources such as Japanese-language education for dependents of visa holders. By raising the bar, the government seeks to ensure that accepted entrepreneurs can fully support themselves and their families.

In short, the 30-million-yen threshold and employment requirement favor larger, employment-generating businesses — aligning with Japan’s national goal of attracting globally competitive talent and strengthening industrial innovation.

3. Applications Filed Before the Effective Date

Many applicants worry: Which rules apply if I submit before October 16, 2025?

The Immigration Services Agency has clarified:

Applications accepted by October 15, 2025 will be examined under the old standards.

Thus, applicants meeting the former 5-million-yen requirement can still qualify, as long as the application is officially received before the cutoff.

However, note that the screening process remains rigorous — focusing on the feasibility of the business plan, origin of funds, and reality of the business premises.

4. Renewals for Current Visa Holders — Three-Year Transition Period

A three-year grace period will be provided for existing Business Manager visa holders, until October 16, 2028.

  • Renewals filed before that date:
    Applications will be judged comprehensively — considering current business performance and progress toward meeting the new standards.
    Applicants may be asked to submit a business evaluation report by a certified expert.

  • Renewals filed on or after October 17, 2028:
    Applicants must fully comply with the new requirements, unless exceptional circumstances demonstrate strong business stability and full tax compliance.

Tax and Social Insurance Compliance

Renewal reviews will now include strict verification of tax and social insurance payments:

  • Labor insurance:
    Employment insurance registration and premium payment

  • Social insurance:
    Health and pension insurance enrollment and payments

  • Taxes:
    Corporate or individual income tax, consumption tax, and local taxes

Failure to comply will significantly increase the risk of non-renewal — even during the transition period.

5. Three Main Options After the Reform

The stricter capital and qualification requirements create distinct pathways:

Option 1: New Business Manager Visa (For Entrepreneurs with Strong Capital)

Those who can meet the 30-million-yen threshold must also demonstrate:

  • Realistic business plans proportional to investment scale,

  • Legal proof of funds, and

  • Solid human resource management, including lawful employment and insurance registration.

Option 2: Startup Visa (For Innovative but Low-Capital Founders)

The Startup Visa allows entrepreneurs to reside in Japan under a Special Activities (tokutei katsudō) status for up to one or two years, during which they can prepare to meet the full Business Manager Visa requirements.

Applicants must first submit a business plan to a designated local government (e.g., Tokyo, Aichi, Kyoto, Yokohama).
If approved, a confirmation certificate is issued, which then supports the visa application to the Immigration Bureau.

The goal is to transition to the Business Manager Visa within the permitted period.

Option 3: Highly Skilled Professional Visa (For Elite Applicants)

Entrepreneurs with high academic credentials, income, and experience can pursue the Highly Skilled Professional (HSP) Visa, Type 1 (c).
This pathway offers major benefits:

  • Five-year visa from the start

  • Spouse’s unrestricted work rights

  • Accelerated permanent residency eligibility — after 3 years (70 points) or even 1 year (80 points).

This category caters to globally competitive professionals capable of substantial contributions to Japan’s economy.

6. How Foreign Entrepreneurs Can Raise 30 Million Yen

Given the higher threshold, fundraising becomes critical. Two main routes exist:

① Japan Finance Corporation (JFC)

The Japan Finance Corporation (JFC) — a 100% government-owned financial institution — provides startup loans even to non-Japanese applicants.

Requirements:

  • A valid residence status allowing business activity

  • Loan repayment term within visa validity (or permanent status)

  • At least one-third self-financing (with verifiable savings records)

  • Preferably three years’ relevant business experience

Process:
Submit a business plan → Interview → Screening → Loan approval.
A strong, data-driven business plan is essential.

② Venture Capital and Angel Investors

Raising equity investment is another route, especially for high-growth startups.
Japan’s VC environment is expanding, and attracting investment from reputable VCs provides powerful credibility for visa purposes — proving market confidence in your business plan.

7. Conclusion

✓ The new Business Manager Visa requirements will take effect on October 16, 2025.
✓ Minimum capital: 30 million yen, plus one full-time employee.
✓ New obligations: management experience or degree, Japanese language ability, and expert-certified business plan.
✓ Home offices banned, tax and insurance scrutiny tightened, and three-year transition period granted.
✓ Aim: shift “from quantity to quality,” attracting credible entrepreneurs.
✓ Consider alternatives such as the Startup Visa or Highly Skilled Professional Visa.
✓ Early consultation with qualified immigration experts is crucial for success.

The tightened requirements represent a clear elevation of Japan’s expectations toward foreign entrepreneurs.
By setting higher thresholds — financial, linguistic, and managerial — Japan is signaling that it seeks stable, sustainable, and socially responsible business leaders.

To succeed under the new framework, foreign entrepreneurs must plan strategically, prepare robust documentation, and seek professional advice early.
In this new era of immigration policy, careful preparation is the key to unlocking opportunity in Japan.