Japan Tightens Business Manager Visa Rules Ahead of Oct 2025

(JAPAN) Japan has rolled out tougher rules for its Business Manager visa, with the new standards taking effect on October 16, 2025. Immigration authorities say the changes aim to curb sham companies and ensure only real, well-funded businesses receive approval.

The reforms raise the minimum capital threshold sixfold, require at least one full-time employee, add education or experience rules for managers, and set a clear language benchmark. They also create a three-year grace period for current holders and extend the new checks to some Highly Skilled Professional categories seeking extensions or status changes.

Policy changes — the essentials

• Effective date: All applications filed on or after October 16, 2025 will be assessed under the new rules.
• Grace period: Current Business Manager visa holders have a three-year grace period; extensions filed on or before October 16, 2028 may be approved under transitional considerations.
• Scope: Rules apply to first-time applicants, current holders seeking extensions, and some Highly Skilled Professional (i)(c) and (ii) applicants seeking extensions or status changes.

Funding: a much higher bar

• Minimum capital requirement increases from ¥5 million to ¥30 million (sixfold).
• For corporations: paid-in capital or total contributions on the books will be used.
• For individuals: essential business costs—such as rent, staff salaries, and equipment purchases—can be counted toward the capital figure, but must be clearly documented and tied to operations.
• Purpose: screen out paper companies and underfunded plans unlikely to survive their first year.

Staffing: no more sole proprietor route

• Every applicant must now employ at least one full-time worker who is allowed to work without restriction in Japan.
• Qualifying employees include:
  • Japanese national
  • Special Permanent Resident
  • Permanent Resident
  • Spouse or child of a Japanese national or Permanent Resident
  • Long-Term Resident
• Workers on typical work visas (e.g., Engineer/Specialist in Humanities/International Services) do not qualify.
• Effect: founders must build a team from day one; sole-proprietor filings are effectively eliminated.

Management credentials: experience or advanced degree required

Applicants must demonstrate one of the following:

1. Three or more years of business management experience, or
2. A master’s degree (or higher) in a related field such as business management, accounting, or a technical area essential to the business.

• This is a new requirement intended to ensure competent, hands-on leadership.
• Authorities will expect documented roles, responsibilities, and timeframes for experience claims, and clear links between advanced degrees and the business activities.

Language requirement: CEFR B2 or equivalent

• Either the applicant or one full-time employee must show Japanese language ability at CEFR B2 level or above.
• Accepted proof includes:
  • JLPT N2 or higher
  • BJT score of 400 or more
  • 20+ years of residence in Japan as a mid-to-long-term resident
  • Graduation from a Japanese university or higher education institution
  • Completion of compulsory education in Japan plus high school graduation
• Rationale: running payroll, contracts, taxes, and government notices often requires strong Japanese skills.

Professional review of business plans

• All business plans must be verified by a qualified expert such as a CPA, tax lawyer, or certified management consultant.
• These professionals will assess plan feasibility, financials, and whether operations are genuine rather than immigration-driven shells.

Impact on applicants — what changes in practice

Higher entry costs and documentation

• The ¥30 million threshold eliminates many lean startup approaches.
• Applicants using essential costs to meet the threshold must provide clear, traceable evidence: leases, staffing agreements, purchase orders, and related records.
• Plans verified by a qualified professional should match the documented expenses and operations.

Hiring and compliance obligations

• The full-time employee rule increases payroll liabilities and compliance duties (e.g., social insurance enrollment).
• Most foreign work-visa holders are excluded from counting toward this requirement, favoring local hiring and stable jobs.
• VisaVerge.com analysis suggests this change benefits companies integrated into Japan’s labor market.

Emphasis on active, local management

• Immigration officers will look for hands-on leadership: decision-making, strategy execution, and day-to-day supervision conducted from Japan.
• Companies heavily outsourcing core functions or with main players living abroad risk denial at renewal.
• Absentee directors or passive investors will face higher scrutiny.

Documentation for experience and education

• Applicants claiming three+ years of management experience must supply detailed documentation: roles, responsibilities, dates, and employer statements.
• Those relying on advanced degrees must show that the field of study is connected to the company’s business or core technology.

Language impacts hiring strategy

• Companies may have founders meet the CEFR B2 requirement personally or designate a senior staff member who qualifies.
• Early hiring decisions may prioritize candidates who can handle government filings, contracts, and compliance in Japanese.

Implementation, compliance checks, and what officers will request

• Cutoff: Applications submitted by October 15, 2025 will be assessed under the older standards.
• Three-year transition: Extensions filed by October 16, 2028 may be approved based on company health and likelihood of meeting new criteria at the next renewal.
• Compliance priorities for examiners:
  • Corporate tax payments
  • Social insurance contributions
  • Proof of payroll and employment enrollment
  • Office leases, vendor contracts, and bank records
  • Evidence of real business activity (not just paper filings)
• Gaps such as unpaid social insurance, late tax filings, or prolonged absences by the manager can jeopardize extensions.

Practical next steps for applicants and owners

Owners weighing their next steps should consider the following checklist:

1. Build a credible funding path to meet ¥30 million, with records showing sources and uses of funds.
2. Hire a qualifying full-time employee early and enroll them in social insurance.
3. Document hands-on leadership: board minutes, strategy documents, and evidence of day-to-day oversight from Japan.
4. Choose a qualified professional (CPA, tax lawyer, or certified management consultant) to review and verify the business plan before filing.
5. Align education or experience with the business model; gather diplomas, transcripts, or employer statements linking credentials to operations.
6. Plan for language needs: ensure the applicant or a key staff member holds JLPT N2 or other accepted proof matching CEFR B2 or higher.

Important: Consult official guidance from the Immigration Services Agency of Japan at https://www.moj.go.jp/isa/ for case-specific interpretation. Officers evaluate cases individually, but the overarching themes are clear: strong funding, real jobs, qualified leadership, workable plans, and active local management.

Bottom line

• The reforms will likely reduce application volumes in the short term as some founders fail to meet funding or staffing rules.
• For applicants who can meet the higher standards, the path remains available and more predictable.
• Japan’s intent is to attract entrepreneurs committed to building and staying: by tightening the money, people, plan, language, and leadership requirements, authorities aim to ensure new businesses contribute genuinely to the Japanese economy.