Japan Overhauls Business Manager Visa: What Foreign Entrepreneurs Need to Know
Japan is fundamentally reshaping its landscape for foreign entrepreneurs. In a landmark move, the Immigration Services Agency (ISA) has announced a sweeping overhaul of the Japan Business Manager visa (経営・管理), with the changes set to take effect on October 16, 2025. These new visa requirements represent the most significant tightening of the rules in over a decade, effectively ending the era of the low-cost startup visa. For any foreign entrepreneur dreaming of launching a venture in Japan, understanding these changes is not just important—it is critical for survival. The message from the Japanese government is clear: the focus has shifted decisively from quantity to quality, and the barrier to entry is now substantially higher.
The End of the ¥5 Million Startup Dream
A Shift in National Strategy
For years, the Japan Business Manager visa was widely perceived as one of the most accessible routes for an entrepreneur to establish a foothold in a developed economy. The unwritten but commonly accepted standard of a ¥5 million (approx. $35,000 USD) capital investment created a pathway for a wide range of small-scale businesses, from tech startups and consulting firms to restaurants and guesthouses. This low barrier to entry fueled a vibrant influx of foreign talent and innovation.
However, this accessibility also led to perceived misuse of the system. The government noted an increase in underfunded businesses that struggled to become sustainable, as well as shell companies established for purposes other than genuine commercial activity. The new visa requirements are a direct response to these concerns. They are designed to ensure that applicants are serious, well-capitalized, and possess the skills and resources to build viable, long-term businesses that contribute meaningfully to the Japanese economy. This overhaul signals a strategic pivot towards attracting established professionals and significantly funded ventures over grassroots startups.
The Five Core Pillars of the New Visa Requirements
The new Japan Business Manager visa now demands a substantial ¥30 million capital requirement, a six-fold increase that redefines financial commitment for the foreign entrepreneur.
The changes are comprehensive, touching every aspect of the application. Five new pillars form the foundation of the updated visa, each creating a significant new hurdle for prospective applicants.
1. The ¥30 Million Capital Requirement
A six-fold increase in financial commitment.
The most impactful change is the dramatic increase in the minimum capital or investment scale.
New Minimum: Applicants must now prove a capital amount or total investment sum of at least ¥30 million (approx. $210,000 USD).
Verification for Corporations: For a kabushiki kaisha (KK) or godo kaisha (GK), this refers to the paid-in capital amount listed on the company registry.
Verification for Sole Proprietors: For an individual business owner, this refers to the total sum invested in the business. This includes funds for securing the office, one year of staff salaries, equipment, and other essential startup costs.
This change alone will filter out a vast number of would-be entrepreneurs, reserving the visa for those with substantial financial backing or a proven track record that can attract significant investment.
2. Mandatory Full-Time Employee
Your business can no longer be a solo operation.
Previously, it was possible to obtain the visa without hiring staff. The new rules now mandate the employment of at least one full-time staff member. Crucially, the definition of an eligible employee is very specific.
Who Qualifies: The employee must be a Japanese national, a Special Permanent Resident, or a holder of a "Table 2" visa (e.g., Permanent Resident, Spouse of a Japanese National, Long-Term Resident).
Who Does Not Qualify: Foreigners on other work visas (e.g., Engineer, Specialist in Humanities) do not count toward this requirement.
This rule adds a significant and immediate financial and administrative burden, requiring the entrepreneur to navigate Japan's labor laws and incur salary and social insurance costs from day one.
3. The Japanese Language Hurdle
Proficiency in Japanese is now a formal requirement.
For the first time, the Japan Business Manager visa will have a formal language requirement. The applicant must demonstrate a "considerable" level of Japanese proficiency, defined as Level B2 on the Common European Framework of Reference for Languages (CEFR).
Meeting the Requirement: This can be satisfied by either the entrepreneur themselves or a full-time employee (including foreign staff on work visas in this specific case).
Accepted Proof:
Passing the Japanese Language Proficiency Test (JLPT) N2 or higher.
Scoring 400 or more on the BJT Business Japanese Proficiency Test.
Having graduated from a Japanese university or high school.
Having resided in Japan for 20 years or more.
This formalizes the need for genuine integration and the ability to conduct business effectively in the local language.
Placement for Outbound Link 1: Place a link here to the official website of the Japanese-Language Proficiency Test (JLPT) for information on testing dates and levels.
4. Stricter Experience and Education Criteria
Applicants must have a proven track record.
Meeting the new visa requirements means proving your expertise. Applicants for the Japan Business Manager visa must now show relevant degrees or at least three years of management experience.
The new rules require applicants to demonstrate a higher level of professional qualification. The applicant must meet one of the following criteria:
Academic: Hold a Master's, PhD, or professional degree in a field relevant to the business.
Professional: Possess at least three years of experience in business management or administration. This includes time spent on the "Startup Visa" (Specific Activities) preparing the business.
This requirement aims to ensure that the person leading the company has the requisite expertise to manage it successfully.
5. Professional Verification of Your Business Plan
Your strategy will now be externally audited.
Submitting a compelling business plan has always been part of the process, but its viability will now be assessed by a certified third-party professional.
Mandatory Review: The business plan must be reviewed and validated by one of the following licensed professionals in Japan:
Small and Medium Enterprise Consultant (中小企業診断士)
Certified Public Accountant (公認会計士)
Certified Tax Accountant (税理士)
This professional must attest that the plan is concrete, rational, and feasible. This adds another layer of scrutiny and cost to the application process, requiring applicants to create a truly robust and defensible business strategy.
New Operational Mandates: The Bar is Higher
Beyond initial approval, the "Open" sign comes with new responsibilities. The Japan Business Manager visa now mandates dedicated office space and strict compliance with all tax and social insurance obligations.
Beyond the five core pillars, the ISA has tightened day-to-day operational requirements, closing loopholes and demanding a higher standard of compliance.
The End of the Home Office
A dedicated business space is now essential.
Under the new rules, using a residential address as the company's official office will generally not be permitted. Applicants must secure a separate, dedicated office space appropriate for the scale and nature of their business operations.
Mandatory Compliance: Taxes and Social Insurance
There is zero tolerance for non-payment.
The renewal process will now involve a forensic review of the company’s and the applicant’s fulfillment of their public obligations. Immigration will strictly verify the proper payment and filing of:
Labor Insurance: Employment Insurance (雇用保険) and Workers' Accident Insurance (労災保険).
Social Insurance: Health Insurance (健康保険) and Employee Pension (厚生年金保険).
Corporate & Personal Taxes: All national and local taxes, including corporate tax, consumption tax, and income taxes.
Failure to comply perfectly with these obligations will be grounds for non-renewal.
The Transition Period: A Lifeline for Existing Visa Holders
The government has provided a grace period to allow current visa holders to adapt to the new visa requirements.
3-Year Grace Period: Those already holding a Japan Business Manager visa before the October 16, 2025 implementation date will have until October 16, 2028, to meet the new standards.
Renewals During Grace Period: During this three-year window, renewal applications will be judged on a case-by-case basis. Immigration will consider the company's overall health, its profitability, its compliance record, and its progress toward meeting the new criteria.
After the Grace Period: From October 17, 2028, all renewal applications must fully meet the new standards.
For applications submitted before October 15, 2025, the old rules will apply for the initial granting of the visa, but the holder will still be subject to the 3-year transition period for their first renewal after the law takes effect.
This transition period is a critical window for existing foreign-owned businesses to restructure, secure new funding, or hire staff to ensure they can meet the new, much higher bar for continued residence. The changes will also block the path to Permanent Residency for those on a Business Manager visa who fail to meet the new criteria.
Navigate Japan's New Visa Landscape with Confidence
The overhaul of the Japan Business Manager visa creates significant new challenges. The Delphi Network specializes in providing strategic guidance on immigration, corporate structuring, and compliance to ensure your venture succeeds in this new environment. Contact us for a consultation to assess your eligibility and plan your next steps.
