Japan Business Manager Visa Reform: Strict New Rules for Entrepreneurs
Japan has introduced a major reform of the Business Manager visa, which took effect 16 October 2025. The new framework significantly increases entry requirements for foreign entrepreneurs and reflects a policy shift towards ensuring meaningful business activities, local employment, and stronger financial commitment. The Ecovis experts from ECOVIS AKIA Tax Consultants explain the changes and their significance.
The most significant change is the higher business scale requirement. Applicants must now show at least JPY 30 million in capital or an equivalent business investment, which is a substantial increase from the previous threshold. For companies, this is generally measured by paid-in capital; for sole proprietors, it is based on the total funds committed to business operations.
In addition, applicants are now required to employ at least one full-time employee in Japan. Importantly, the employee must be a Japanese national or a foreign resident with an unrestricted work status (e.g., permanent resident, spouse or child of Japanese national, spouse or child of permanent resident, or long-term resident), reinforcing the government’s focus on local job creation.
New qualification requirements for entrepreneurs
In future, applicants must have either at least three years of management experience, which includes the period of activities conducted under the status of residence “Designated Activities” (this refers to activities individually designated by the Minister of Justice for each foreign national, particularly where such activities do not fall under any other existing status of residence) for the purpose of commencing a business, such as securing a business office, or a relevant advanced degree, such as a doctoral, master’s, or professional degree in a business-related field, including equivalent degrees awarded by educational institutions outside Japan.
And at least the applicant or one full-time employee must possess Japanese language proficiency at CEFR B2 level or higher (e.g., JLPT N2).
Business plans must be reviewed
Another key change is the requirement for a professionally reviewed business plan. Plans must now be evaluated by qualified experts such as certified public accountants, licensed tax professionals or a certified SME consultant to ensure feasibility and sustainability.
As the revised standards require securing a business office suitable for management activities, using a residence as a business office is generally not permitted.
For existing visa holders, a transitional period is in place until 16 October 2028. During this period, renewals may still be granted even if all new criteria are not yet met, but decisions will depend on business performance, compliance, and the likelihood of meeting the new standards in the near future.
Commitment, capital resources, and compliance will be essential for the Business Manager visa in the future. We can assist you in meeting these new requirements and obligations.
Yoko Hara, Labor Consultant, ECOVIS AKIA Tax Consultants, Yokohama, Japan
Rules for startups
For early-stage ventures, alternative routes such as the Startup Visa (Designated Activities) may still provide a preparatory pathway. However, they should not be treated as automatic routes to Business Manager status, as conversion to Business Manager may be subject to the revised criteria depending on the timing of the startup-related certification.
The significance of the reform
Overall, the reform positions Japan as a more regulated market for foreign entry. While opportunities remain attractive, overseas headquarters should approach expansion in Japan with careful planning across finance, HR and compliance, as substance and long-term viability are now central to approval outcomes.
For further information please contact:
Yoko Hara, Labor Consultant, ECOVIS AKIA Tax Consultants, Yokohama, Japan
Email: yoko.hara@ecovis.jp
