Japan Business Manager Visa Reform (Effective October 2025): New JPY 30M Capital Requirement Explained

If you are planning to start or manage a business in Japan as a foreign national, the rules have changed significantly. On October 16, 2025, the Immigration Services Agency of Japan (ISA) implemented sweeping reforms to the Business Manager visa (在留資格「経営・管理」) that affect both new applicants and current visa holders.

The five new requirements (higher capital, mandatory employees, Japanese language proficiency, management experience, and expert-verified business plans) apply immediately to new applicants. Existing holders have a three-year grace period until October 2028.

What Changed: Overview of the 2025 Reform

The amended ministerial ordinances, which took effect on October 16, 2025, introduced five major changes (Immigration Services Agency, “Amendment of the landing criteria ordinance for the Business Manager status of residence”, in Japanese):

Requirement	Before (Pre-Oct 2025)	After (Oct 16, 2025 onward)
Minimum capital	JPY 5 million (one of three ways to meet the business scale requirement)	JPY 30 million
Full-time employees	Not mandatory (the business scale requirement could be met by any one of: 2 or more full-time staff, JPY 5 million in capital, or a scale equivalent to either)	At least 1 required, in addition to capital
Japanese language ability	Not required	B2 level or above (applicant or a full-time staff member)
Management experience	None for business operators; 3+ years required only for applicants engaging in the administration of a business (managers)	3+ years or a relevant doctoral, Master’s, or professional degree
Business plan review	No expert verification required	Expert verification required

1. Capital Requirement: JPY 5 Million to JPY 30 Million

The most impactful change is a sixfold increase in the minimum capital investment, from JPY 5 million to JPY 30 million. The requirement is examined in yen, so the equivalent in other currencies changes with the exchange rate.

What counts as capital: For a corporation, the JPY 30 million refers to the paid-in capital of a stock company (shihon-kin) or the total contributions to a general partnership, limited partnership, or limited liability company. For a sole proprietor, it refers to the total amount invested as necessary to operate the business, such as securing an office, one year of employee salaries, and capital expenditure.

Note that you may be asked to explain the source of the capital (how the funds were accumulated), so we recommend preparing supporting documents in advance.

2. Employee Requirement: At Least One Full-Time Staff Member

New applicants must now hire at least one full-time staff member who holds one of the following statuses:

• Japanese national
• Special permanent resident
• Permanent resident
• Spouse or child of a Japanese national
• Spouse or child of a permanent resident
• Long-term resident

Note: Foreign nationals residing under an Appended Table 1 status of the Immigration Control and Refugee Recognition Act (activity-based statuses such as Engineer/Specialist in Humanities/International Services) do not count toward this requirement.

3. Japanese Language Proficiency

Either the applicant or a full-time staff member must have Japanese language ability at B2 level or above under the Reference Framework for Japanese Language Education. For persons other than Japanese nationals and special permanent residents, one of the following is checked:

• Japanese-Language Proficiency Test (JLPT) N2 or higher
• BJT Business Japanese Proficiency Test score of 400 or above
• 20 or more years of residence in Japan as a mid- to long-term resident
• Graduation from a Japanese university or other institution of higher education
• Completion of compulsory education in Japan and graduation from a Japanese high school

Note: For the language requirement, the “full-time staff member” definition is broader and includes Appended Table 1 visa holders (unlike the employee requirement in section 2).

4. Management Experience or Education

Applicants must demonstrate either:

• At least 3 years of experience in business management or administration (including time spent on business start-up preparation under the Designated Activities status), or
• A doctoral, Master’s, or professional degree in a field related to business management or to the skills or knowledge required for the business (including equivalent degrees awarded overseas)

5. Business Plan Expert Verification

Business plans submitted when the status of residence is determined must be reviewed and verified by one of the following qualified professionals (as of the effective date; exceptions apply to businesses of a scale equivalent to listed companies and similar cases):

• Small and medium enterprise management consultant (chusho kigyo shindanshi)
• Certified public accountant (CPA, konin kaikeishi)
• Certified tax accountant (zeirishi)

The expert assesses whether the plan is specific, reasonable, and feasible.

Note from ISA: Persons other than lawyers and gyoseishoshi (licensed specialists in Japanese government procedures, including visas) who prepare application documents for submission to government agencies as a business for compensation may be in violation of the Gyoseishoshi Act.

Additional Operational Requirements

• Physical office required: using your home as the business office is, in principle, not permitted. There is no fixed minimum size; the office must be large enough for business activities on the revised scale
• Active management required: where the applicant’s actual activity as a manager is not sufficiently recognized, for example because operations are outsourced, the activity is not treated as falling under the Business Manager status
• Extended absences from Japan without a justifiable reason: renewal is not permitted
• Labor insurance, social insurance, and national and local tax compliance is checked at renewal
• Documents showing that the permits and licenses necessary for the business have been obtained must be submitted
• Permanent residence and Highly Skilled Professional (ii): where the revised criteria are not met after the effective date, permanent residence from the Business Manager, Highly Skilled Professional (i)(c), or Highly Skilled Professional (ii) status (based on business management activities), and a change from Highly Skilled Professional (i)(c) to (ii), are not permitted

Transitional Measures

A three-year grace period applies from October 16, 2025 to October 16, 2028:

• Existing holders who apply for renewal during this period are assessed in light of their business conditions and their prospects of meeting the revised criteria, even if they do not yet meet them; failure to meet the new criteria alone does not result in refusal. You may be asked to submit a document evaluated by a business management expert
• After the grace period: compliance with the revised criteria is required. Even where the criteria are not met, the decision takes other circumstances into account comprehensively if the business is in good condition, corporate and other tax obligations are properly fulfilled, and the criteria are expected to be met by the next renewal
• Highly Skilled Professional (i)(c) holders engaged in business management activities are treated in the same way

What Should You Do Now?

For New Applicants

1. Secure sufficient capital: ensure you can demonstrate JPY 30 million in registered capital or total investment
2. Identify a qualified full-time staff member: begin recruitment of a resident-status holder early
3. Prepare for the language requirement: either achieve JLPT N2 yourself or ensure a qualifying employee meets the threshold
4. Document your management experience: gather evidence of 3+ years of management roles or a relevant doctoral, Master’s, or professional degree
5. Engage a certified expert for your business plan: connect with a shindanshi, CPA, or certified tax accountant well before filing

For Existing Holders

1. Assess your current compliance against all five new requirements
2. Use the grace period strategically: begin closing any gaps now rather than waiting until 2028
3. Consult a registered immigration specialist to evaluate your renewal outlook

Startup Visa Pathway

If you are not yet in a position to meet the new criteria, a Startup Visa (offered through certified local governments and private operators) allows you to prepare your business during a preparatory period before changing to a Business Manager visa. Note that the revised criteria, including the JPY 30 million requirement, apply at the time of the change to Business Manager where the confirmation certificate was issued on or after October 16, 2025.

How We Can Help

At AEGIS International Administrative Firm, we provide:

• English-language support for your application
• Guidance on the new requirements tailored to your business situation
• Coordination with certified business plan reviewers (shindanshi, CPAs, certified tax accountants)
• Compliance assessment for existing holders preparing for renewal under the new rules

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This article is provided for informational purposes only and does not constitute legal advice. Immigration rules are subject to change, and individual circumstances vary. Please consult a qualified professional before making decisions based on this content.