Navigating the New Business Manager Visa Requirements Effective 16 October 2025

Legal basis. Ordinance Specifying Standards under Article 7(1)(ii) of the Immigration Control and Refugee Recognition Act and related Enforcement Regulations (Business Manager category).

On 10 October 2025, the Government of Japan unveiled significant revisions to the Business Manager visa framework, reinforcing the requirement that foreign entrepreneurs demonstrate genuine management involvement and a sound business foundation.

The number of foreign nationals holding this visa reached approximately 41,000 in 2024, marking a 50% increase over the past five years. Amid this growth, immigration authorities have reported a rise in applications submitted through so-called “paper companies” lacking substantive commercial activity, prompting concerns that the category was becoming an “easy pathway” to residence rather than a tool for legitimate business investment.

To address these issues, the revised framework introduces more stringent eligibility standards.

 Key measures include:

·         Raising the minimum capital requirement to JPY 30 million;

·         Requiring the employment of at least one qualified full-time employee;

·         Introducing an advanced Japanese-language proficiency requirement;

·         Clarifying academic and professional experience criteria for the applicant; and

·         Mandating independent professional verification of the business plan.

These changes will take effect for all new applications submitted on or after 16 October 2025, with transitional arrangements available for renewals filed within the following three years.

1. NEW BUSINESS MANAGER VISA REQUIREMENTS 

1.1.       Employment of at least One Qualifying Full‑Time Employee

The business must have at least one full‑time employee on staff. For this headcount, immigration only counts people who fall into one of the following: Japanese citizens, Special Permanent Residents, or foreign residents who hold one of these long‑term categories: Permanent Resident, Spouse or Child of Japanese National, Spouse or Child of Permanent Resident, or Long‑Term Resident. Employees under other, ordinary work visas do not count for this purpose.

1.2.       Capital or Equivalent Funding of JPY 30,000,000 or More

The business must have capital or equivalent funding of at least JPY 30 million. The applicable measure depends on the operating structure:

• For incorporated entities, immigration authorities assess the paid-in capital stated in the commercial registry (for joint-stock companies) or total contributions (for partnerships and LLCs).

• For sole proprietors, the assessment covers the total funds already invested and required to operate the business—such as costs to secure business place, one year of employee salaries, and equipment or similar expenses.

  
  

1.3.       Advanced Japanese Language Ability

The applicant or a full-time employee must possess advanced Japanese language proficiency equivalent to B2 level or higher. This level reflects an upper-intermediate ability to conduct business discussions independently.

In case the full-time staff is not a Japanese citizen or Special Permanent Resident, Japanese proficiency shall be evidenced through one of the following:

• JLPT N2 or higher;

• BJT score of 400 or above;

• 20 or more years of residence in Japan as a mid- to long-term resident;

• A degree from a Japanese higher-education institution (e.g. Japanese university); or

• Completion of compulsory and secondary education in Japan.

For this requirement, the person meeting the criterion may be a foreign national holding an ordinary work status, provided they are a full-time employee.

1.4.       Academic or Managerial Background

The applicant must meet one of the following qualifications:

• Possession of a doctoral, master’s, or bachelor degree (including equivalent foreign degrees) in a field relevant to business administration or to the technical/knowledge area of the business to be managed; or

• At least three years of experience in business management or administration. Periods previously spent under a “Designated Activities” status for startup preparation may be counted toward the three years.

  
  

1.5.       Professional Confirmation of the Business Plan

The business plan submitted with the application must be reviewed and confirmed by a qualified professional who evaluates whether the plan is specific, reasonable, and feasible. As of the enforcement date, confirmation may be performed by:

·         a Small and Medium Enterprise Management Consultant,

·         a Certified Public Accountant, or

·         a Licensed Tax Accountant.

2.IMMIGRATION REVIEW AFTER APPLICATION

Upon submission, immigration authorities assess the following:

• Substance of managerial activity — Applications may be rejected if essential functions are excessively outsourced and the applicant does not perform genuine management duties.

• Business premises — A dedicated office suitable for the business scale is required; residential premises are not acceptable.

• Eligibility for permanent residence or category transition — Failure to meet the revised criteria disqualifies applicants from using the Business Manager or related Highly Skilled Professional categories for permanent residence or advancement from (i)(c) to (ii).

• Continuity of domestic activity — Extended absences from Japan without legitimate reason may result in refusal of status extension.

• Compliance verification — At extension, immigration will verify the business due enrollment and payment of labor and social insurance and confirm tax filings and payments for all applicable taxes (national and local).

• Licenses and permits — Where relevant, documentation confirming acquisition of required licenses must be submitted. If a license cannot be issued before visa is granted, a written explanation must be provided, and the permit shall be presented at the next renewal.

 3. TRANSITIONAL HANDLING AROUND THE ENFORCEMENT DATE

Applications filed on or before 15 October 2025 will be reviewed under the pre-revision criteria.

Holders of the Business Manager status who apply for extension on or before 16 October 2028 may be assessed under transitional measures, allowing flexibility if reasonable progress toward the new standards is demonstrated. After 16 October 2028, all renewals must meet the revised requirements; however, limited discretion remains where the business shows sound performance and tax compliance.

The same approach applies to Highly Skilled Professional (i)(c) holders engaged in Business Manager activities.

Applicants transitioning from Designated Activities (51): Future-Creating Talent (Startup Preparation) to Business Manager are subject to the new criteria if applying on or after the enforcement date.

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LPA Tokyo remains available to provide further clarification or tailored strategic advice on how these changes may impact your organization, as well as assist with the implementation of the necessary compliance measures.