Business Manager Visa Reform Japan 2025 – New Requirements Explained
Business Manager Visa Reform Effective October 16, 2025
New Requirements and Transitional Measures
On October 16, 2025, Japan implemented major changes to the eligibility criteria for the Business Manager status of residence.
The new criteria include JPY 30 million or more in capital or investment, at least one eligible full-time employee, Japanese language ability equivalent to B2, management experience or a relevant degree, and more detailed review of the business plan.
This article explains the key points for foreign entrepreneurs, current Business Manager visa holders, and those planning to establish a company in Japan.
What this reform means
The Business Manager visa is a status of residence for foreign nationals who operate or manage a business in Japan.
Before the reform, many explanations focused on the JPY 5 million capital requirement or the alternative of hiring two full-time employees. Since the October 16, 2025 reform, however, Japan now requires stronger evidence of a real and sustainable business, employment structure, financial capacity, Japanese-language operational ability, and management background.
Key new requirements
| Item | Main requirement after the reform | Practical point |
|---|---|---|
| Full-time employee | The company or business operated by the applicant must employ at least one full-time employee. | The eligible employee must generally be a Japanese national, special permanent resident, permanent resident, spouse or child of a Japanese national, spouse or child of a permanent resident, or long-term resident. Foreign nationals with Table I statuses such as Engineer, Student, or Dependent do not count for this requirement. |
| Capital or investment | The total amount of property used for the business must be JPY 30 million or more. | For corporations, this is generally judged by paid-in capital or total capital contribution. Ordinary office rent or employee salaries cannot simply be added to meet the JPY 30 million threshold. |
| Japanese language ability | Either the applicant or an eligible full-time employee must have Japanese language ability equivalent to B2. | If the foreign founder does not personally meet the Japanese language standard, it may be necessary to consider whether an eligible full-time employee can satisfy it. |
| Management experience or degree | The applicant must have a master’s-level or higher degree related to business management or the business field, or at least three years of practical management experience. | Incorporating a company alone is not enough. The applicant must be able to explain why he or she can realistically manage the business. |
| Business plan | In some cases, applicants may be asked to submit a document evaluated by a business or management professional. | A simple self-prepared business plan is no longer sufficient in practice. Sales basis, funding plan, hiring plan, contracts, permits, and financial projections should be concrete and evidence-based. |
Meeting the JPY 30 million capital requirement alone does not guarantee approval. Immigration will also review the office, full-time employee, Japanese-language system, management background, and realistic business plan as a whole.
Transitional measures for current Business Manager visa holders
For those already residing in Japan under the Business Manager status, renewal applications filed during the three-year period until October 16, 2028 may still be judged by considering the actual business situation and the prospect of meeting the new criteria, even if the applicant does not yet fully satisfy the new standards.
However, this does not mean that current visa holders can ignore the reform for three years. The transitional period should be understood as a preparation period for building business performance and moving toward compliance with the new standards.
- Keep evidence of real business operations, such as sales, contracts, invoices, payments, and expenses.
- Be ready to explain the actual office, business activities, and how the office is used.
- Maintain compliance with taxes, social insurance, labor insurance, and salary payments.
- Consider how to meet the JPY 30 million capital requirement, full-time employee requirement, and Japanese-language operational structure.
- Start preparing business records and supporting documents well before renewal.
Special caution after October 16, 2028
After three years from the effective date, in other words for renewal applications filed on or after October 16, 2028, applicants must meet the revised criteria.
In addition, from October 16, 2025 onward, if the revised Business Manager criteria are not met, this may affect applications to change from Business Manager to Highly Skilled Professional 1(c) and applications for permanent residence by Business Manager visa holders.
Current Business Manager visa holders should not treat the transitional period as a simple grace period. If you are considering renewal, permanent residence, or Highly Skilled Professional status in the future, capital planning, employment structure, Japanese-language capacity, and business planning should be reviewed early.
Impact on new applicants and company formation plans
If you are planning to establish a company in Japan and apply for a Business Manager visa, the old idea of simply incorporating a company with JPY 5 million in capital is no longer realistic.
New applications now require careful planning around the following points.
- Company structure based on JPY 30 million or more in capital or investment
- Hiring plan for at least one eligible full-time employee
- Confirmation of B2-level Japanese language ability by the applicant or an eligible full-time employee
- Confirmation of the applicant’s management experience or relevant degree
- Securing a real and independent office or business premises
- Preparing a concrete business plan that can withstand professional review
- Checking whether business licenses or permits are required
Common misunderstandings
1. Is JPY 30 million enough for approval?
No. Capital is important, but it does not guarantee approval. Immigration will review the business substance, office, employee structure, Japanese-language system, applicant’s management ability, and business plan.
2. Can any foreign employee count as the full-time employee?
No. The eligible full-time employee is generally limited to Japanese nationals, special permanent residents, permanent residents, spouses or children of Japanese nationals, spouses or children of permanent residents, and long-term residents. Foreign nationals with Table I statuses do not count for this requirement.
3. Does the transitional period mean nothing needs to be done until 2028?
No. Even during the transitional period, immigration will examine the actual business situation and the likelihood of future compliance with the revised criteria. Preparing supporting documents and business records is essential.
4. Is a home office acceptable?
The Business Manager visa requires a real business office. A home office or virtual office may raise serious issues depending on the business model and actual use. This should be reviewed carefully before applying.
How our office can help
Tommy’s Legal Service provides support based on the revised Business Manager visa criteria, including:
- Initial planning for new Business Manager visa applications
- Review of company formation, business purpose, and permits before incorporation
- Planning for the JPY 30 million capital requirement
- Review of the full-time employee requirement
- Document planning for B2-level Japanese language ability
- Support for business plans, explanation letters, and activity reports
- Renewal and transitional-measure support for current Business Manager visa holders
- Review of permanent residence or Highly Skilled Professional pathways
Please also check the latest information published by the Immigration Services Agency of Japan.
Immigration Services Agency of Japan: Revision of the standards for the Business Manager status of residence
Immigration Services Agency of Japan: Notice for Business Manager status holders
Please consult us about the new Business Manager visa criteria
After the October 16, 2025 reform, the Business Manager visa requires much more than company incorporation.
If you are planning to start a business in Japan, renew your Business Manager visa, or prepare for permanent residence or Highly Skilled Professional status, early review is strongly recommended.
Gyoseishoshi Registration No.: 21080644 / Immigration Application Agent No.: 行-132021200250 / Registered Support Organization No.: 26登-013083
