Japan Business Manager Visa After the October 2025 Reform: ¥30 Million Capital and the 6 New Requirements, Explained by an Administrative Scrivener

The Business Manager visa (officially, the "Business Manager" status of residence) is the status of residence for foreign nationals who run a company in Japan or engage in the management of a business. It succeeded the former "Investor / Business Manager" visa and is the central status of residence for foreign nationals aiming to start a business in Japan.

Let us begin with the most important fact in this article: the Business Manager visa was fundamentally tightened by the ministerial ordinance reform (partial amendment of the Landing Criteria Ordinance and the Enforcement Regulations) effective October 16, 2025. The internet is still full of outdated guides written on the assumption of the pre-reform "¥5,000,000 capital" standard. If you prepare based on the old information, your application is certain to fail. This article explains the current, post-reform standards (in effect since October 16, 2025).

What Is the Business Manager Visa? — The Standards Were Fundamentally Reformed in October 2025

Behind this reform is the goal of preventing abuse of the status of residence through the establishment of shell companies with no real substance. The very character of the system has shifted: from a visa obtainable by formally setting up a company, to a visa for people conducting business activities with real substance.

Here is a side-by-side comparison of the requirements before and after the reform:

| Item | Before (until Oct 15, 2025) | After (from Oct 16, 2025) | |---|---|---| | Business scale | Capital, etc. of ¥5,000,000 or more or 2 or more full-time employees (either/or) | Capital, etc. of ¥30,000,000 or more and 1 or more full-time employees (both required) | | Japanese proficiency | No requirement | The applicant or a full-time employee at B2 equivalent or higher (new) | | Background (education/experience) | Not required for business operators (experience requirement only for managers) | Master's degree or higher, or 3+ years of business management experience (new) | | Business plan | Submission only | Verification by a Certified SME Management Consultant, CPA, or Certified Tax Accountant mandatory (new) | | Home doubling as office | Possible under conditions | Not permitted in principle (made explicit) |

As you can see, this is not a mere increase in the monetary threshold: multiple entirely new requirements — Japanese proficiency, professional background, and expert verification — have been added.

This article explains the 6 post-reform requirements one by one, and concludes with a detailed explanation of the transitional measures (until October 16, 2028) for those already residing in Japan under the Business Manager visa. The new standards apply in full to new applications, while renewals by existing holders benefit from transitional measures — so the conclusions differ greatly between "people about to obtain the visa" and "people who already hold it." Please keep in mind which position you are in as you read.

Requirement 1: Capital, etc. of ¥30,000,000 or More (a Sixfold Increase From ¥5,000,000)

For new applications, this is the requirement with the greatest impact. The scale of the business must now involve capital, etc. (the total amount of assets devoted to the business in the application) of ¥30,000,000 or more. That is a full sixfold increase from the pre-reform ¥5,000,000.

What "¥30,000,000" concretely refers to differs between corporations and sole proprietors:

• Corporations — For a stock company (kabushiki kaisha), it means the paid-in capital (the amount of capital as registered); for general, limited, or LLC-type partnerships (gōmei, gōshi, gōdō kaisha), it means the total amount of contributions.
• Sole proprietors — Since there is no concept of registered capital, the judgment is based on the total amount invested in operating the business: securing business premises, employee salaries (one year's worth), capital expenditures on equipment, and so on. This is proven with the most recent fiscal year's financial documents and similar materials.

A point requiring special attention: "combining" is not allowed. As made explicit in the ISA's official Q&A, capital reserves, capital surplus, and retained earnings do not count as capital, etc. Nor can you reach ¥30,000,000 by adding together employee salaries and office maintenance costs. For a corporation, you need a full ¥30,000,000 purely as registered capital (total contributions).

Furthermore, even if you run multiple companies, their capital cannot be combined. A single company on its own must meet the ¥30,000,000 threshold. And even if you apply as a "manager" rather than a "business operator," the business itself must still satisfy this capital requirement.

Note that proving the source (formation process) of the funds has been required in practice since before the reform, and funds whose origin cannot be explained — so-called "window-dressing money" (misekin) — remain just as unacceptable after the reform.

Requirement 2: Employing 1 or More Full-Time Employees (New — With Restrictions on Status of Residence)

Before the reform, you could apply with zero employees as long as you had ¥5,000,000 or more in capital. After the reform, in addition to the ¥30,000,000 in capital, etc., it is now mandatory to employ at least 1 full-time employee at the company the applicant operates. It is "and," not "or."

And this requirement contains the biggest trap of all: there are restrictions on the status of residence of the employees who count. Only persons falling under one of the following count toward this employment requirement:

• Japanese nationals
• Special Permanent Residents
• Foreign nationals holding the 'Permanent Resident' status of residence
• Foreign nationals holding the 'Spouse or Child of Japanese National' status of residence
• Foreign nationals holding the 'Spouse or Child of Permanent Resident' status of residence
• Foreign nationals holding the 'Long-Term Resident' status of residence

In other words, foreign nationals holding work-related statuses of residence (Appended Table I of the Immigration Control Act), such as Engineer / Specialist in Humanities / International Services (the work visa), do not count toward this 1-employee requirement — no matter how many you hire. If your business is built around foreign staff, you may need to rethink your hiring plan itself.

The criteria for what counts as "full-time" are also spelled out concretely in the official Q&A: working 5 or more days per week and 217 or more days per year, with weekly working hours of 30 or more; being insured under employment insurance; and so on. Also, personnel on secondment, dispatched (temp agency) workers, and subcontracted personnel are not regarded as full-time employees. Direct employment by your own company is required.

If you have multiple full-time employees, submitting documents for one employee who meets the criteria is sufficient.

Requirement 3: Japanese Proficiency (Applicant or a Full-Time Employee at B2 Equivalent or Higher)

One of the requirements newly established by the reform is Japanese proficiency. Either the applicant or a full-time employee must possess Japanese proficiency of B2 equivalent or higher under the "Reference Framework for Japanese Language Education."

What matters here is the scope of "full-time employee" for this requirement. A full-time employee fulfilling the Japanese proficiency requirement may hold a work-related status of residence under Appended Table I of the Immigration Control Act, such as "Engineer / Specialist in Humanities / International Services" (made explicit in the official Q&A). Note that this scope differs from the employment requirement in Requirement 2. In other words, the "employee who satisfies the employment requirement" and the "employee who fulfills the Japanese proficiency requirement" may be different people.

The methods of proving Japanese proficiency (for persons other than Japanese nationals and Special Permanent Residents) are the following 5:

• Certification at N2 or higher on the Japanese-Language Proficiency Test (JLPT)
• A score of 400 or higher on the BJT Business Japanese Proficiency Test
• Having resided in Japan for 20 years or more as a mid- to long-term resident
• Having graduated from a Japanese university or other higher education institution (including vocational schools and colleges of technology; excluding foreign-language programs and correspondence programs)
• Having completed compulsory education in Japan and graduated from a Japanese high school (transferring in from junior high school does not qualify)

The official Q&A also gives examples of qualifying staffing combinations. For instance, a two-person setup of "a Permanent Resident employee (no proof of Japanese) + an Engineer/Humanities/International Services employee (with JLPT N2)" clears the standards: the Permanent Resident employee satisfies the employment requirement (Requirement 2), while the work-visa employee fulfills the Japanese proficiency requirement. Conversely, with "only an Engineer/Humanities/International Services employee (with N2)," the Japanese requirement can be met but there is no employee who counts toward the employment requirement — so the standards are not met.

Requirement 4: Background — A Master's Degree or Higher, or 3+ Years of Business Management Experience (New)

Before the reform, no education or work history was required to apply as a business operator (an experience requirement existed only for applications as a "manager"). After the reform, the applicant must meet one of the following:

• Holding a doctoral, master's, or professional degree in a field related to business management or to the technology or knowledge required for the business in the application (including equivalent degrees awarded abroad)
• Having 3 or more years of experience in the operation or management of a business (including periods of business startup preparation activities under the "Designated Activities" status of residence)

An important caution: a bachelor's degree does not satisfy the degree route. What is required is a master's or higher; if you hold only a bachelor's degree, you must qualify via the route of 3+ years of business management experience.

Requirement 5: Expert Verification of the Business Plan Is Now Mandatory (New)

Under the reform, the business plan submitted at the time a status of residence is determined (Certificate of Eligibility applications and change-of-status applications) must now be verified by a person with specialized knowledge of business management, who evaluates the plan's specificity, rationality, and feasibility. This verification is mandatory.

As of the effective date, the "persons with specialized knowledge" qualified to do this are holders of the following 3 Japanese national qualifications:

• Certified Small and Medium Enterprise Management Consultant (chūshō kigyō shindanshi)
• Certified Public Accountant (kōnin kaikeishi)
• Certified Tax Accountant (zeirishi)

All of these are limited to Japanese qualifications. The official Q&A makes explicit that equivalent foreign qualifications — such as a US CPA (USCPA) — are not accepted.

Also, officers and employees of the applicant's own company cannot serve as the evaluator, for reasons of objectivity. On the other hand, an external accountant or tax accountant engaged as an outside advisor is considered acceptable.

Note that this requirement is not a matter of "just getting an expert's stamp." Since the framework is that an independent expert evaluates specificity, rationality, and feasibility, what is substantively required is a business plan built to a standard that convinces the expert.

Requirement 6: A Real Office and "Real Management Activity"

The treatment of business premises was also clarified by the reform. Using your home as your business premises is, in principle, not permitted. The stated reason is the need to secure premises suited to conducting management activities at the post-reform scale of business. As for virtual offices, they were already not accepted in practice before the reform from the standpoint of the real existence of business premises — and that remains the case after the reform.

Furthermore, even if the business premises physically exist, if the business operator's own activity lacks sufficient substance, the activity will not be recognized as falling under "Business Manager." The official Q&A gives examples such as outsourcing the bulk of operations to external parties, or the operator not personally understanding the business's content or financial situation.

Long absences from Japan also require caution. If, out of the period of stay granted, you have been outside Japan on re-entry permits (including special re-entry permits) for a cumulative period exceeding half of that period of stay, this is evaluated negatively in the extension review unless there is a legitimate reason.

[For Current Holders] The Transitional Measures Until October 16, 2028

From here, the explanation is aimed at those already residing in Japan under the Business Manager visa. The conclusions differ from new applications, so please read this as a distinct case.

First, the boundary of application: applications accepted before the effective date (through October 15, 2025) are subject to the pre-reform standards (the criterion is the date of acceptance).

On that basis, for extension of period of stay applications filed by those already residing under the "Business Manager" status within 3 years of the effective date — that is, by October 16, 2028 (Reiwa 10) — non-conformity with the new standards alone will not result in denial. The decision is made comprehensively, taking into account the state of the business and the prospects of coming into conformity with the new standards.

What happens after the 3-year transition period ends? Renewals after the 3 years will, in principle, require conformity with the new standards. However, according to the official Q&A, where the business is in good condition, corporate tax and other payment obligations are being properly fulfilled, and there is a prospect of meeting the new standards by the next renewal, this will be considered comprehensively along with the rest of the residence record. In other words, having capital below ¥30,000,000 will not by itself uniformly result in denial. A rumor circulating in some quarters — "if you can't raise ¥30,000,000 within 3 years, your only option is to go home" — has been officially denied by the Immigration Services Agency. There is no need for excessive anxiety.

That said, the transitional measures are not a "grace period where you can do nothing." Even during the transition period, the following items are strictly reviewed:

• Compliance with labor-related laws and regulations
• Enrollment in social insurance, employment insurance, and workers' compensation insurance, and payment of premiums
• Payment of taxes
• The status of permits and licenses required for the business

The official Q&A indicates that there have been cases where problems in these areas led to denial of renewal regardless of the transitional measures. Note also that even in renewal reviews during the transition period, you may be asked to submit documents evaluated by a business management expert.

And for existing holders, the most commonly overlooked blind spot is the impact on permanent residency applications. After the effective date, if you do not conform to the post-reform standards, permanent residence permission will not be granted from the "Business Manager" status (or from Highly Skilled Professional (i)(c) / (ii) statuses premised on business management activities). While renewals of the period of stay have transitional measures, permanent residency applications have no transitional measures. For anyone with future permanent residency in view, this difference is critically important. See also the requirements examined in the permanent residence review.

Finally, a note on how the reform applies to startup-visa arrangements. For changes from the Startup Visa (Designated Activities No. 44) to Business Manager, the old standards apply if the confirmation certificate was issued on or before October 15, 2025; after that, the new standards apply. For Designated Activities No. 51 (Future Creation Individuals), the old standards likewise apply to applications and residence predating the effective date.

Summary: The 6 Post-Reform Requirements for the Business Manager Visa

To recap the requirements for the Business Manager visa after the October 16, 2025 reform:

1. Capital, etc. of ¥30,000,000 or more — Registered capital (total contributions) for corporations; total invested in the business for sole proprietors. Reserves, surplus, and combining across companies do not count
2. Employment of 1 or more full-time employees — Only Japanese nationals, Special Permanent Residents, and family-based statuses (Permanent Resident, Spouse or Child of Japanese National, Spouse or Child of Permanent Resident, Long-Term Resident) count. Work-visa employees do not
3. Japanese proficiency — The applicant or a full-time employee at B2 equivalent or higher (5 methods of proof, such as JLPT N2)
4. Background — A master's degree or higher (foreign degrees included) or 3+ years of business management experience
5. Expert verification of the business plan — Verification by a Certified SME Management Consultant, CPA, or Certified Tax Accountant (all Japanese qualifications) is mandatory
6. Real premises and real management — Home-office doubling not permitted in principle. "Management in name only" that relies on outsourcing is excluded

Existing holders have transitional measures until October 16, 2028, but there are no transitional measures for permanent residency applications. Now that the bar has been raised so substantially, it is essential — before applying or renewing — to understand accurately where your situation stands against the new standards. Start by checking your current position with our free AI assessment.

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Disclaimer: This article is intended to provide general information and does not constitute legal advice. Whether a Business Manager visa is granted depends on individual circumstances; before actually applying, please consult a specialist such as an administrative scrivener handling immigration matters. This article was prepared based on materials published by the Immigration Services Agency of Japan (the revised guidelines effective October 16, 2025 and the official Q&A).