Changes to the Business Manager Visa in Japan: What Foreign Entrepreneurs Need to Know

Japan has long been a top destination for foreign entrepreneurs seeking business opportunities in Asia. The Business Manager Visa has been the primary pathway for foreigners to live and manage a business in Japan. Agency figures show the number of people holding a business manager visa more than doubled over 10 years, from about 18,100 at the end of 2015 to 41,600 by the end of 2024.

However, it has been officially decided that a new system with significantly stricter requirements will come into effect from October 16, 2025. The new rules introduce higher level requirements, making it essential for anyone planning to start or run a business in Japan to understand the updates and plan accordingly.

Key Changes to the Business Manager Visa

The Business Manager Visa is making significant changes to its requirements and prerequisites for qualification aiming to entice highly qualified candidates who will make a significant and meaningful contribution to Japan. Here’s what’s new:

1.　Capital Requirement Increased

• Minimum capital raised from 5 million yen to 30 million yen.
• For corporations, this refers to paid-up capital; for partnerships, the total investment; and for sole proprietors, the total cost required to run the business, including office and employee salaries.
• This change reflects Japan’s desire to attract high-quality, sustainable businesses.

2.　Mandatory Full-Time Employee

• In addition to the higher capital, businesses must employ at least one full-time employee.

• Eligible employees include Japanese nationals, permanent residents, spouses of Japanese nationals, or long-term residents.

3.　Japanese Language Proficiency Required

• Either the applicant or a full-time employee must demonstrate substantial Japanese proficiency, such as:
  • JLPT N2 or above
  • 400+ points on the Business Japanese Proficiency Test
  • Graduation from a Japanese university or completion of compulsory education in Japan

4.　Manager’s Career and Educational Background

• Applicants must prove business management capability through:
  • A related doctoral, master’s, or professional degree
  • At least three years of management or administration experience

5.　Business Location and Plan

• Home offices are no longer accepted; an independent office is required.
• Business plans must be reviewed by a certified expert, such as a management consultant, CPA, or tax accountant.

6.　Stricter Tax and Social Insurance Reviews

• During renewal, authorities will closely examine payment of taxes, labor insurance, and social insurance premiums.

7.　Transitional Period for Current Visa Holders

• Existing Business Manager Visa holders have a three-year transitional period (until October 16, 2028) to comply with the new standards.
• After this, applications and renewals will generally need to meet the new criteria.

Why Japan Is Tightening the Rules

The government’s goal is clear: shift from quantity to quality in foreign entrepreneurship. Previously, the low 5 million yen capital requirement had led to:

• Creation of shell companies and paper businesses
• Cases of visa abuse, including illegal lodging operations
• Negative media attention, damaging public trust

By raising standards, Japan aims to:

• Attract serious, high-quality entrepreneurs
• Ensure businesses make a real economic contribution through jobs and investment
• Align Japan’s requirements with global standards (similar to South Korea, the U.S., and Singapore)
• Restore social and public trust in the visa system

Options for Entrepreneurs After the Revision

Given the high new requirements, there are three main pathways for foreign entrepreneurs:

1. New Business Manager Visa (for well-capitalized entrepreneurs)

• Requires 30 million yen or more, one full-time employee, Japanese proficiency, and management experience.
• Focus areas: structured investment, validated business plan, and legal proof of funds.
• Employment obligations include labor contracts, social insurance enrollment, and payroll management.

2. Startup Visa (for innovative but capital-limited entrepreneurs)

• A “designated activities” visa allowing preparatory business activities for up to one year (or two in select municipalities).
• Local governments review your business plan first.
• Goal: raise capital, establish a business office, and then transition to a full Business Manager Visa.

3. Highly Skilled Professional Visa (fast-track for elite talent)

• For applicants with strong education, work experience, and annual income.
• Scoring 70+ points* under the Point System for obtaining Permanent Residency unlocks benefits:
  • Up to five years of stay
  • Spouses can work full-time
  • Eligibility for permanent residency after 1–3 years, instead of the usual 10+ years

* Points are awarded based on a variety of criteria, including academic background, work history, annual income, age, research achievements, specific qualifications, and Japanese language proficiency. 

What now？　Timing Is Critical

Applications submitted before October 16, 2025 will be reviewed under the old rules (capital of 5 million yen, fewer requirements).

All applications submitted AFTER October 16 are subject to the new rules listed above. 

However, it is important to note that if you already have the Business Manager Visa or you have been approved recently under the old guidelines, you will have to meet the current requirements by 2028. So you still have time to build capital, find at least one Japanese employee, etc. 

Tips for Navigating the New System

• Plan Ahead

Work with an administrative scrivener or immigration expert to map your strategy.

• Document Everything

Prepare comprehensive proof of capital, management experience, and Japanese proficiency.

• Understand Your Path

Decide whether you qualify for the new Business Manager Visa, a Startup Visa, or a Highly Skilled Professional Visa.

• Comply With Laws

Ensure timely payment of taxes, social insurance, and labor insurance, especially if you plan to renew in the transitional period.

Conclusion

The Business Manager Visa in Japan is evolving into a more stringent, higher-quality pathway for foreign entrepreneurs. While the hurdles have risen—particularly the 30 million yen capital requirement, full-time employee, and language and experience standards—strategic planning can still make Japan accessible for both well-capitalized investors and innovative startup founders.

If you are serious about starting a business in Japan, now is the time to consult experts, prepare your plan, and act strategically. These changes mark not just a regulatory shift but an opportunity for entrepreneurs who are ready to contribute meaningfully to Japan’s economy.