Japan Tightens Foreign Resident-Related Procedures: Business Manager Visa and Foreign License Conversion Updates
Japan Tightens Foreign Resident-Related Procedures: Business Manager Visa and Foreign License Conversion Updates
Japan is tightening several procedures related to foreign nationals, including foreign driver’s license conversion and the Business Manager status of residence. The key issue is no longer only whether documents are prepared, but whether the actual activity and compliance behind them can be clearly explained.
Key Points
- Japan is moving toward stricter and more transparent operation of systems related to foreign nationals.
- Foreign driver’s license conversion has become stricter, especially in address confirmation, knowledge checks, and driving skill checks.
- The Business Manager status of residence now requires stronger evidence of capital, full-time employees, Japanese language support, business plans, and actual business activity.
- For future immigration applications, actual activity, compliance, and clear documentation will matter more than ever.
On May 2, 2026, Sankei News reported that the Japanese government had published the progress of stricter measures related to foreign nationals. According to the report, the pass rate for foreign driver’s license conversion dropped significantly, and the monthly number of applications for the Business Manager status of residence decreased sharply.
This development should not be understood simply as a general restriction against foreign nationals. Rather, it reflects a broader policy trend toward proper use of systems related to foreign residents, including immigration, driving licenses, taxes, social insurance, medical services, and land acquisition.
Many foreign nationals live, work, and run businesses in Japan in good faith. For that reason, it is becoming increasingly important to distinguish between proper use of the system and cases where the actual situation is unclear or inconsistent with the purpose of the system.
1. Japan Is Promoting Well-Ordered Coexistence with Foreign Nationals
The Cabinet Secretariat has established the Office for a Society of Well-Ordered and Harmonious Coexistence with Foreign Nationals. The office is intended to comprehensively advance policies for a society where foreign nationals and Japanese citizens can coexist under clear and fair rules.
The important point is that the issue is not a simple question of whether Japan accepts foreign nationals or not. Japan continues to accept foreign residents, workers, business owners, students, and family members. At the same time, the government is placing more emphasis on preventing improper use of systems and confirming whether the actual situation matches the submitted documents.
In future immigration applications, the authorities may look more closely at whether the documents match the actual situation, whether the applicant is genuinely active in Japan, and whether tax, social insurance, labor, and other legal obligations are being properly handled.
2. Foreign Driver’s License Conversion Has Become Stricter
Japan revised the operation of foreign driver’s license conversion from October 2025. The procedure has become stricter in terms of address confirmation, the knowledge check, and the driving skill check.
According to media reports, the pass rate for the knowledge check dropped from 92.5% in 2024 to 42.8% during the three months from October to December 2025 after the stricter operation began. The pass rate for the driving skill check also reportedly dropped from 30.4% to 13.1%.
Foreign license conversion itself is not the main focus of immigration application work. However, the stricter confirmation of address, rules, and actual ability reflects the same general trend seen in immigration procedures: actual residence, actual activity, and compliance with Japanese rules are becoming more important.
3. The Business Manager Visa Now Requires More Than Formal Preparation
The Business Manager status of residence has also changed significantly. The Immigration Services Agency announced amendments to the criteria for the Business Manager status of residence, which took effect on October 16, 2025.
The revised criteria include, among other points, the employment of at least one full-time employee, capital or investment of at least 30 million yen, a certain level of Japanese language ability by the applicant or a full-time employee, relevant academic background or experience, and a business plan reviewed by a qualified expert.
| Main Point | Practical Consideration |
|---|---|
| Capital / investment | The amount itself is not enough. The source of funds, use of funds, and consistency with the business plan are also important. |
| Full-time employee | The actual employment relationship, salary payment, and social insurance arrangements may be reviewed. |
| Business office | The office must function as an actual place of business. A home office or very small shared space may require careful explanation. |
| Japanese language support | The applicant or a full-time employee must be able to support business operations in Japanese. |
| Business plan | The plan should be concrete, reasonable, and feasible, including sales, customers, licenses, employment, and financing. |
4. What the Reported 96% Decrease Means
According to the report, the monthly number of applications for the Business Manager status of residence decreased by about 96% compared with the period before the revised operation. This indicates that applicants and advisers are now treating the Business Manager status much more carefully.
This does not mean that the Business Manager status has disappeared. The system still exists. However, merely establishing a company, securing an office, and preparing formal documents may no longer be sufficient. The applicant must be able to show that the business is real and that the business operation matches the purpose of the status of residence.
There are transitional considerations for those who are already residing in Japan under the Business Manager status. However, at the time of renewal, the authorities may review the business situation, actual activity, prospects for meeting the revised criteria, and supporting documents such as expert evaluations.
5. What Foreign Nationals and Companies Should Review
For future immigration applications, it is important to review the case from four perspectives: the applicant, the employer or business office, the supporting documents, and the current screening trend.
For foreign nationals
- Check whether your actual activities match your current status of residence.
- Review your address, workplace, income, taxes, and social insurance status.
- If you have had long absences, job changes, or business changes, prepare a clear explanation.
- Organize documents that show your actual residence and activity in Japan.
For companies and business operators
- Review employment contracts, working conditions, salary payments, and social insurance enrollment.
- Confirm that the foreign employee’s duties are within the scope of the relevant status of residence.
- For Business Manager cases, review the office, full-time employees, capital, and actual business activity.
- Check whether required licenses, tax filings, and labor management are properly handled.
6. Stricter Rules Should Be Understood as Proper System Operation
These developments should not be seen simply as exclusionary measures against foreign nationals. They can also be understood as efforts to create clearer boundaries so that foreign nationals and companies that follow Japanese rules are not disadvantaged by improper use of the system.
The key is to confirm not only the name of the status of residence, but also the actual activity, supporting documents, and compliance situation. During a period of stricter operation, early preparation and accurate explanation are more important than ever.
Immigration, Business Manager Visa, and Foreign Employee Support
Tommy’s Legal Service supports applications for status of residence, Business Manager visa cases, foreign employee hiring, Specified Skilled Worker matters, and Registered Support Organization-related services. When rules are changing, early review of your situation is especially important.
