Japan is poised to enact its most comprehensive reforms to the Business Manager residence status (commonly called a “Business Manager visa”) in decades. Effective October 16, 2025, the new rules dramatically raise both the barriers to entry and the standards for ongoing visa eligibility. For ambitious entrepreneurs seeking to launch or maintain their businesses in Japan, these sweeping legal amendments bring both new challenges and opportunities.

With these reforms, Japan signals a strategic shift: prioritizing “quality over quantity” to encourage serious, well-resourced, and forward-looking foreign entrepreneurs, while deterring passive investment or insufficiently substantiated ventures. This article provides a detailed, practical roadmap for current and future Business Manager visa holders, summarizing official guidelines and best-practice navigation strategies.

Key Legal Amendments: The New Business Manager Visa Framework

Beginning October 16, 2025, foreign nationals applying for (or renewing) a Business Manager visa must comply with markedly tougher requirements. The central features of these reforms include:

Minimum Capital Requirement: The threshold rises sixfold, from 5 million yen to 30 million yen. This is more than a symbolic change: it will take careful planning and resources for existing businesses to reach this new baseline.
Mandatory Employment: At least one full-time employee must be hired, with only Japanese nationals, permanent residents, or those with specified residency statuses counting toward this quota.
Management Experience or Education: Applicants must demonstrate at least three years of relevant business management experience, or hold a master’s degree or above (the degree may be from an institution overseas).
Japanese Language Ability: Either the applicant or the full-time employee must typically possess Japanese language proficiency, raising the bar for effective operational communication and management.
Business Plan Certification: In most cases, business plans may now require vetting and certification by a public accountant or SME management consultant, tightening the standard for business substance and viability.
Independent Office: Home offices are no longer acceptable in principle. A dedicated, independent commercial space is now mandatory, reflecting Japan’s heightened scrutiny on genuine operational infrastructure.

Renewal, Transitional Measures, and Deadlines

Recognizing the significant leap in requirements, Japanese authorities have instituted a three-year transitional period for current Business Manager visa holders as of October 16, 2025. During this window (until October 16, 2028), renewals will not mandate absolute, immediate compliance—provided you can demonstrate substantive progress and concrete plans to meet the new conditions.

Renewals within this transitional phase will undergo a rigorous, case-by-case assessment. Authorities will evaluate:

• Ongoing business operations, growth, and performance
• Tax and social insurance payment records
• Staffing and wage compliance
• Tangible steps taken toward raising capital, formalizing employment, and relocating or establishing a compliant office

Applications must include a detailed Activity Details Statement, outlining business activities, financials, compliance, and supporting documentation for all operational milestones and relevant legal obligations.

After October 16, 2028, all renewals will require full, demonstrated compliance with every new requirement. No further grace period will be granted; meeting progressing plans will no longer suffice—only concrete, actual fulfillment of all legal standards will justify renewal.

Permanent Residency and Status Changes: No Shortcuts After Transition

Japan’s new legal framework also impacts broader immigration pathways. From October 2028, a Business Manager residence holder who cannot demonstrate full compliance with the revised visa criteria will be ineligible for permanent residency or for status changes (such as switching to Highly Skilled Professional categories). The message is clear: only those operating substantive, compliant, and sustainable enterprises will be invited to become long-term residents.

Real Business, Real Scrutiny: Enhanced Compliance Reviews

Immigration authorities will now apply far greater scrutiny to issues of business substance, not merely formal paperwork. Companies set up primarily on paper, or those failing to maintain up-to-date tax and social insurance obligations, will be at significant risk. Likewise, businesses lacking genuine office space—even those operating effectively from a home address—will be ineligible for renewal except under very limited circumstances.

Every renewal now requires a holistic review: strategic direction, financial performance, compliance, staff management, and location. The days of simple box-ticking are over.

What Should Business Owners Do? Strategic Planning for the New Era

For the thousands of foreign entrepreneurs currently running businesses in Japan, decisive action is needed. Begin planning for capital restructuring, hiring qualified employees who meet the national status requirements, and securing a compliant commercial office space as soon as possible. Consult with professional advisors not just on visa filing, but on corporate finance, tax compliance, and HR structuring.

Early, proactive steps taken now—well before the October 2025 deadline—will dramatically increase your options and reduce business and personal risks. Conversely, those who delay face both practical and legal jeopardy as the transitional window closes.

Conclusion: A Defining Moment for International Entrepreneurs in Japan

Japan’s new Business Manager visa requirements mark a fundamental change in approach—effectively raising the bar for what it means to operate a foreign-owned enterprise in Japan. For current and aspiring business owners, now is the time to seek expert advice and put concrete compliance plans in place. From October 16, 2025, the Business Manager visa will be more demanding, but for those willing to rise to the challenge, Japan remains an attractive and high-potential destination for global business leaders.

About the Advisor

Junko Ishibashi is a seasoned professional with over 16 years of experience in Japanese immigration law, holding licenses both as a registered Gyosei Shoshi (Immigration Specialist) in Japan and as a California lawyer. Junko has a proven track record in assisting foreign entrepreneurs and their families to smoothly secure visas, residence certificates, and navigate business incorporations in Japan and the US. For personalized guidance and the most up-to-date strategies for compliance with Japan’s evolving Business Manager visa, do not hesitate to reach out to Junko today!