Japan to Raise Business Manager Visa Capital Requirement to $200,000

(JAPAN) Japan will raise the minimum capital requirement for its Business Manager Visa from ¥5 million (about $35,000) to ¥30 million (about $200,000) in mid-October 2025, a sweeping shift that will reshape how foreign founders enter the market. The Immigration Services Agency confirmed the plan in August 2025, with the revised ordinance to be issued in early October and take effect a few weeks later. Officials say the change is meant to bring in growth-focused businesses and ensure real job creation; critics warn it will shut out many small firms and solo founders.

Under the new policy, applicants will need to show both money and hiring, not one or the other. The visa will require at least one full-time resident employee in Japan and proof of ¥30 million in paid-in capital. On top of that, applicants must meet stronger qualifications and submit a business plan that has been assessed by a management expert. As of August 26, 2025, authorities have not announced a grace period. People already holding the visa can stay until their current status ends, but renewals after the effective date are expected to face the new rules.

The move marks a clear break from the older framework, which let applicants choose between capital or hiring two full-time workers. Tokyo is now closing what it sees as a loophole for residency without real business activity and signaling higher standards across business immigration. Policymakers also cite alignment with systems in nearby markets, including South Korea and the United States 🇺🇸, where investor and manager routes typically expect larger commitments.

Policy changes — key points

According to the government timeline, the revised rule will be promulgated in early October 2025 and take effect in mid-October 2025. Key elements include:

• Minimum capital: Increase from ¥5 million to ¥30 million (about $200,000).
• Employment: Hire at least one full-time resident employee in Japan; this is now required together with the capital.
• Qualifications: Either a graduate or professional degree in management or a related field, or three years or more of management or administrative experience, including certain setup activities carried out in Japan.
• Business plan review: A qualified management expert must review the plan.
• Documentation: Broad evidence will be needed, including capital proof, payroll records, and proof of residency for the hired employee.
• No confirmed grandfathering: Existing holders can remain until their current stay ends; renewals are expected to meet the new criteria.

Officials say the goal is to attract founders who plan to scale and to ensure foreign-run firms contribute to local jobs and regional economies. The tougher standard follows reports of misuse of the earlier rule and concerns that some applicants were forming paper entities without real operations. At the same time, the government has tried to widen its pre-visa runway for founders by growing the Startup Visa program, which now grants up to two years to prepare for the Business Manager Visa.

Sectors and impact

The impact will be uneven across sectors:

• Capital-light services, consultancies, creative studios, and freelancers that once cleared the lower bar may now find the new minimum capital out of reach.
• Companies that depend on early revenue rather than upfront investment will face a tougher choice: delay entry, switch to a longer preparation path, or forgo a Japanese entity altogether.
• VisaVerge.com reports that global Employer of Record providers are already pitching setups that allow hiring staff in Japan without launching a local company — a stopgap some firms may consider.

Supporters argue the higher threshold will screen in better-funded ventures and improve accountability. They say requiring a real employee helps address labor shortages and ensures foreign-run businesses add to local teams. Consultants who back the reform suggest it may also reduce low-activity entities that have strained oversight.

Critics counter that the sixfold jump will lock out honest small firms and solo founders, dampen diversity in Japan’s startup scene, and push would-be founders to other hubs. Advisors warn the new paperwork burden — expert review, expanded payroll proof, and tighter checks — adds cost and risk at the exact moment a young company needs flexibility.

Timeline, transition, and planning

The August 2025 announcement prompted urgent planning among foreign entrepreneurs eyeing Japan. For many, the mid-October 2025 effective date forces fast decisions: incorporate and apply under current rules now, or pause and pursue alternative routes.

• Authorities have signaled current holders can keep their stay until the end of their approved period.
• With no formal grace period announced, those planning to renew after the switch should prepare to show both the higher minimum capital and payroll for at least one resident staff member.

Policy context matters:

• In January 2025, Japan expanded its Startup Visa nationwide, allowing foreigners up to two years to plan, test the market, and build early traction before shifting to the Business Manager Visa.
• Officials also pressed banks to ease account-opening rules so Startup Visa holders can open business accounts — a common obstacle for new residents.

Advisors expect the Startup Visa to become the main entry point for early-stage founders, with the Business Manager Visa reserved for those that can prove scale with headcount and capital.

Short-term pathways for firms that can’t meet ¥30 million

Industry advisors describe three short-term options:

1. Use the expanded Startup Visa as a launch pad to test and build toward the higher bar.
2. Work with an Employer of Record (EOR) to hire staff in Japan without setting up a local company, while keeping operations offshore.
3. Delay establishing a Japan entity until fundraising or revenue supports the higher minimum capital, meanwhile building partnerships or pilot projects.

Compliance, evidence, and enforcement

Compliance will become a key filter. Applicants should expect closer review of the substance of their plans, including:

• Detailed budgets and hiring timelines.
• Proof that the paid-in capital sits in a Japanese business bank account.
• Evidence that the employee on payroll holds resident status.

Advisors recommend founders keep clear records from day one, including:

• Contracts
• Invoices
• Tax filings
• Payroll records
• Residency certificates for hired staff

Enforcement is likely to tighten across investor, manager, and skilled worker categories. Founders should expect closer scrutiny at renewal, especially on payroll, taxes, and the reality of business operations. Compliance mistakes — missing payslips, stale capital records, or gaps in local filings — could threaten status. Many firms are adding local accounting and HR support early, even before first revenue.

Process basics and estimated timelines

The process remains familiar but with a higher bar. A typical path after incorporation will include a business plan review, capital deposit, hiring, and the application for a Certificate of Eligibility (CoE) with all supporting materials.

Estimated timelines (subject to variation):
– Certificate of Eligibility (CoE): about 1–3 months after a complete file is lodged.
– Visa stamping: roughly one week at a Japanese embassy or consulate if paperwork is in order.
– Timelines can shift during busy periods; incomplete files may face delays.

Step-by-step outline based on the announced 2025 rules:

1. Incorporate a company in Japan.
2. Prepare a detailed business plan and obtain a review by a qualified management expert.
3. Secure and deposit at least ¥30 million into the company’s Japanese bank account.
4. Hire one full-time resident employee (in addition to the applicant).
5. Compile documents: capital proof, payroll records, employee residency certificate, and degree records or proof of three years’ management experience.
6. Apply for a Certificate of Eligibility with the Immigration Services Agency.
7. After CoE approval, submit the visa application at a Japanese embassy or consulate in your country of residence.
8. Wait for processing: 1–3 months for CoE, about one week for the visa sticker if no issues arise.
9. Enter Japan and start business operations, keeping thorough records for future renewals.

Advisors note the qualifications standard matters as much as money. Candidates without a graduate or professional degree in business will need to show three or more years of management or administrative work. Preparatory tasks in Japan — such as office search, supplier meetings, or incorporation steps — may count toward experience under the government’s description, but applicants should document dates and activities carefully.

Enforcement will likely tighten. Founders should expect closer scrutiny at renewal, especially on payroll, taxes, and the reality of business operations.

Practical advice for founders

• Plan early and build evidence of activity and financial backing.
• Keep meticulous records of capital deposits, payroll, contracts, invoices, and tax filings.
• Consider hiring local accounting and HR support to manage compliance.
• Use the Startup Visa to test the market and build toward the ¥30 million target if needed.
• Evaluate EOR options if immediate local hiring is required but a local entity is not viable.

Official resources and contacts

Official guidance is available on the Immigration Services Agency website, which publishes updates on visa policy and procedures. For authoritative information and notices, visit the Immigration Services Agency of Japan at www.moj.go.jp/isa/.

The Foreign Residents Support Center (FRESC) also provides help to residents and applicants. Contact details:
– Address: Yotsuya Tower 13F, 1-6-1 Yotsuya, Shinjuku-ku, Tokyo, 160-0004
– Phone (Japan): 0570-011000
– Phone (overseas): +81-3-5363-3013

Outlook and closing notes

Stakeholders across Japan’s startup and small business community will watch how these changes affect new company formation, hiring, and regional growth.

• Supporters believe the new rules will draw in founders able to scale and pay steady wages.
• Critics caution that cost and risk at the entry stage could shrink the pipeline and reduce sector diversity.

For now, the government has not signaled further adjustment, but observers expect close monitoring of investment and company growth data after the mid-October 2025 launch.

For entrepreneurs, the message is clear: plan early, build evidence, and be realistic about capital. The Business Manager Visa in Japan is moving to a higher standard. The expanded Startup Visa can help founders prepare for that leap, but it is not a free pass. Clear paperwork, a credible hiring plan, and steady progress toward the ¥30 million target will be essential to make the transition and keep status at renewal.