Business Manager Visa: New regulations you should keep in mind

In October 2025, Japan enacted the most significant overhaul to its Business Manager Visa since the category was created. For years, this visa served as the primary gateway for foreign entrepreneurs looking to live and run companies in Japan. Today, the bar for entry has been drastically raised.

If you hold this visa or are planning to apply, the regulatory landscape has fundamentally shifted. Here is a breakdown of exactly what changed, why the government tightened the rules and what foreign business owners need to do to survive the transition.

What is the Business Manager Visa?

This visa is a residence category that allows foreign nationals to run a company in Japan. Originally launched in 2015 as the Investor / Business Manager Visa to attract foreign direct investment, it is designed for entrepreneurs who are substantially engaged in corporate management or administration.

Beyond allowing foreigners to operate businesses for renewable periods of one to five years, it also permits them to sponsor their spouse and children as dependents. While historically some investors assumed purchasing investment property in Tokyo was enough to secure status, real estate ownership alone has never directly granted residency — and the new rules make the distinction between passive asset holding and active business management even sharper. As of Oct. 16, 2025, the days of securing this visa with a modest initial investment are officially over.

Major changes: Old vs new

The new regulations introduce stricter financial, educational and operational requirements designed to ensure that applicants are conducting legitimate, economically impactful business.

• Minimum Capital or Investment
  • Old: 5 million yen or two full-time staff.
  • New: 30 million yen.
• Employee Requirements
  • Old: Not required if the 5 million yen capital investment was met.
  • New: Mandatory hiring of at least one full-time employee who is a Japanese national, permanent resident or special permanent resident.
• Japanese Language Proficiency
  • Old: No language requirement.
  • New: Proficient Japanese language ability is now required for either the applicant or the full-time employee. Acceptable proof includes JLPT N2 (equivalent to CEFR B2), a BJT score of 400 or higher, graduation from a Japanese university, completion of compulsory Japanese education or proof of residing in Japan for more than 20 years.
• Education and Experience
  • Old: No specific requirement.
  • New: A master’s, doctoral or professional degree in a relevant field or more than three years of managerial experience.
• Business Plan Verification
  • Old: A business plan was required.
  • New: The business plan must now be formally verified by a small and medium enterprise management consultant, a CPA or a licensed tax accountant.
• Physical Office Space
  • Old: Required, but historically lenient in practice.
  • New: The business must have a dedicated office of an appropriate scale. Registering a business out of a private residence is no longer permitted.

Note: Applications submitted prior to Oct. 16, 2025, are being reviewed under the old requirements. These new rules also apply to renewal and status-change procedures for other executive visa types, such as Highly Skilled Professionals.

Why the crackdown?

Japan is wrestling with an aging population and a severe labor shortage. While the original intent of the Business Manager Visa was to invite foreign innovation and strengthen Japan’s international competitiveness, the Ministry of Justice found that the system’s leniency was being exploited.

For some bad actors, the visa had become a backdoor method for immigrating to Japan without actually contributing to the economy. By setting up ghost or shell companies, individuals could maintain residency while generating little to no domestic economic activity.

The new framework aims to close these loopholes entirely. By mandating a 30 million yen capital threshold and the hiring of local, full-time staff, the government is ensuring that only genuinely operational businesses — those that create jobs and contribute meaningfully to the Japanese economy — are granted residency privileges. Furthermore, the new language requirement is intended to strengthen social cohesion and ensure that foreign business owners can smoothly navigate Japan’s corporate environment.

The fallout: Impacts on the ground

The immediate impact of these regulations has been severe for foreign-owned small businesses. According to a survey by Tokyo Shoko Research Ltd., 45% of foreign-owned companies stated the tougher rules would negatively impact their operations, while 5% indicated they were considering closing their businesses entirely.

The chilling effect is most visible in the volume of applications at the Immigration Services Agency (ISA). Before the revision, the agency received an average of 1,700 Business Manager Visa applications per month. Following the October 2025 overhaul, that number plummeted to about 70 applications a month.

This massive decrease underscores a harsh reality: the new capital and hiring mandates are erecting insurmountable barriers for many solo operators and bootstrapped startups. For entrepreneurs who cannot meet the 30 million yen threshold, exploring local Startup Visa initiatives may serve as a crucial stepping stone to build capital and operational history before transitioning. Japan’s Business Manager Visa was originally designed to welcome foreign entrepreneurs. While these reforms may succeed in weeding out shell companies and attracting higher-tier corporate investment, for thousands of small business owners already operating in Japan, the clock is ticking.

FAQ

What happens to current Business Manager Visa holders? 

Current visa holders have been granted a three-year transitional period to meet the new conditions. When they are due to renew their visas, they will face significantly stricter verification checks regarding their social insurance enrollments, tax obligations and the operational status of their business. Staying compliant for three or more years is critical for those eventually planning to transition to permanent residency. Because these procedures vary heavily based on individual circumstances, consulting the ISA or a licensed immigration lawyer is strongly recommended.

What if I cannot secure the 30 million yen capital before my next renewal? 

According to the ISA, falling short of the 30 million yen threshold does not automatically guarantee rejection during the three-year transitional period (which ends in October 2028). However, applicants must present a credible, verified business plan demonstrating exactly how they intend to meet the new standards by their subsequent renewal.

Where can I find official updates on visa regulations? 

To stay informed on future immigration policy changes, rely on primary sources such as:

• The Immigration Services Agency of Japan
• The Ministry of Foreign Affairs of Japan
• Japan’s Digital Residency Portal
• The official website of your local Japanese embassy