Japan is poised to enact its most comprehensive reforms to the Business Manager residence status (commonly called a “Business Manager status”) 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 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 status must comply with markedly tougher requirements. The central features of these reforms include:

Minimum Capital Requirement

The capital threshold rises sixfold—from 5 million yen to 30 million yen. This is more than symbolic; businesses will need thoughtful financial planning to meet this new baseline.

Mandatory Employment

At least one full-time employee must be hired, and only Japanese nationals, permanent residents, or individuals with specified residency statuses count toward this quota.

Management Experience or Education

Applicants must demonstrate three years of relevant business management experience, or hold a master’s degree or above, which may be from an overseas institution.

Japanese Language Ability

Either the applicant or the full-time employee is generally required to possess Japanese language proficiency, raising expectations for operational capability and communication.

Business Plan Certification

In many cases, business plans will now need vetting and certification by a public accountant or SME management consultant, ensuring greater scrutiny of business viability.

Independent Office Requirement

Home offices are not acceptable unless they are fully separated with an independent door, passage, and space. A dedicated commercial office is essential and subject to heightened scrutiny.

Renewal, Transitional Measures, and Deadlines

To ease the transition, the government has introduced a three-year transitional period for existing Business Manager status holders as of October 16, 2025. Until October 16, 2028, renewals will not require full compliance—provided there is clear evidence of progress and concrete plans to meet the new standards.

Renewals will undergo case-by-case evaluation, assessing:

• Actual business operations, growth, and performance
• Tax and social insurance compliance
• Staffing and wage adherence
• Proof of steps toward raising capital, formalizing employment, or securing compliant office space

Applicants must include a detailed Activity Details Statement outlining business activities, finances, compliance history, and supporting documentation.

Permanent Residency and Status Changes: No Shortcuts After Transition

The reforms significantly affect broader immigration pathways. Even those applying for Permanent Residency under the Highly Skilled Professional (HSP) points system must meet all standard Business Manager requirements at the time of examination—currently about 18 months after application.

Applicants pursuing PR through the Business Manager category must adjust their corporate structure and hiring immediately; waiting until the traditional three-year mark is no longer viable.

The message is unequivocal: PR will only be granted to business owners operating substantial, compliant, and sustainable enterprises.

Real Business, Real Scrutiny: Enhanced Compliance Reviews

Japan’s immigration authorities will now apply far greater scrutiny to verify the substance of an applicant’s business. Companies that exist “on paper,” fail to maintain proper tax or insurance compliance, or operate from non-compliant office spaces will be at serious risk of non-renewal.

Every renewal requires a holistic review of:

• Strategic direction
• Financial performance
• Legal compliance
• Employee management
• Office legitimacy

The era of “check-the-box” renewals has effectively ended.

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

Foreign entrepreneurs currently in Japan should begin preparing immediately. Key steps include:

• Planning capital increases to meet the 30 million yen requirement
• Recruiting qualified full-time employees who meet status criteria
• Securing a compliant commercial office space
• Consulting professionals in corporate finance, tax, and HR structuring

Taking decisive action well ahead of the October 2025 deadline reduces legal and business risks. Delaying can severely limit available options as the transitional window narrows.

Conclusion: A Defining Moment for International Entrepreneurs in Japan

Japan’s revised Business Manager status requirements mark a pivotal shift—raising expectations for foreign-owned enterprises and reinforcing Japan’s commitment to substantive economic activity. While more demanding, the new framework positions Japan as a high-potential, forward-looking destination for global business leaders willing to adapt and invest accordingly.

About the Advisor

Junko Ishibashi is a seasoned professional with over 18 years of experience in Japanese immigration law, licensed both as a registered Gyosei Shoshi (Immigration Specialist) in Japan and as a California lawyer. She has an extensive track record assisting foreign entrepreneurs and their families with visas, residence certificates, and cross-border business incorporations. For personalized guidance on navigating Japan’s updated Business Manager status, contact Junko for expert support.