The status of residence “Business Manager” (the Business Manager visa), which allows foreign nationals to run a company in Japan, changed dramatically with the reform of October 2025. “JPY 5 million in capital is enough,” “a sole director is fine,” “Japanese language is not tested” — these assumptions, once correct, no longer hold. You must now satisfy all six requirements: JPY 30 million in capital, employment of at least one full-time staff member, Japanese language ability, management experience, a business plan verified by a qualified professional, and an independent office. In this article, an administrative scrivener (gyoseishoshi) well-versed in foreign companies’ entry into Japan explains, in plain terms, the six post-reform requirements, how the status differs from others such as the “Intra-company Transferee,” the application flow, and the transitional measures for existing holders (through October 16, 2028).
What you’ll learn in this article
- How “Business Manager” changed under the October 2025 reform (what it was, and what it has become)
- The differences among Business Manager / Intra-company Transferee / Engineer-Specialist in Humanities-International Services, and how to identify which status your company needs
- The six post-reform requirements, and points to watch when entering Japan
- Transitional measures for existing holders (October 16, 2028), the application flow, and the preparation you need
- First, Confirm: Is “Business Manager” the Status Your Company Needs?
- The Six Requirements of the Business Manager Visa [Updated for the October 2025 Reform]
- If You Already Hold “Business Manager” — Transitional Measures and Renewal
- Options When You Cannot Immediately Meet the “Business Manager” Requirements
- Before That — the Entry Point to “Business Manager” Splits into Three by Situation
- The Application Flow and Rough Timeline
- Handling the New Hurdle of a “Professionally Verified Business Plan” Through a Single Point of Contact
First, Confirm: Is “Business Manager” the Status Your Company Needs?
It is tempting to assume that “a foreign company entering Japan needs the Business Manager visa,” but that is not necessarily correct. A status of residence is determined by “what you will do in Japan (the nature of your activities).” Whether you are an owner-manager who runs and owns the company yourself, a specialist dispatched for a defined period, or a locally hired professional — the appropriate status differs by your position. Let’s start by comparing the three most common statuses.
| Status of residence | Who it is for | Capital | Period of stay (new grants often start at 1 year) | Entry pattern |
|---|---|---|---|---|
| Business Manager | Owner-managers and officers who run and own the company themselves | JPY 30M or more | 3 months – 5 years | Pattern B |
| Intra-company Transferee | Transferring specialist staff from the head office, etc., to a subsidiary or branch for a defined period | None | 3 months – 5 years | Pattern A |
| Engineer / Specialist in Humanities / International Services (“Gijinkoku”) | Locally hired professionals, or specialists who do not meet the Intra-company Transferee requirements | None | 3 months – 5 years | Supplements Pattern A |
The most important distinction — “sending a manager” vs. “dispatching specialist staff”
The key point to grasp here is the difference in role between Business Manager and Intra-company Transferee. If your main activity in Japan is managing the company as a director, “Business Manager” applies. The Intra-company Transferee, by contrast, is a system for dispatching specialist staff for a defined period; it is not a means of sending in someone to manage a subsidiary. In other words, the Intra-company Transferee cannot be used as a workaround for the Business Manager’s JPY 30 million capital requirement — keep this in mind.
Note, too, that whether a case falls under “Business Manager” is judged not by whether you “own” the company, but by whether you actually carry out management activities in Japan. For example, if the owner of a Japanese subsidiary established through the parent company’s ODI (outward direct investment) comes to Japan and manages it in person, that individual falls under “Business Manager” even though the shareholder is the foreign parent company (and here, too, the Intra-company Transferee cannot be used to send in a manager).
Applying this to the “3-pattern entry diagnosis” in the overview article: for Pattern A — running a Japanese subsidiary by dispatching head-office staff — the Intra-company Transferee is the basic option; for Pattern B — the founder/owner coming to Japan to manage in person — Business Manager is the basic option (for Pattern C — market research only, i.e., a representative office — no work status of residence is generally involved). Because the manager of a foreign company does not always come to Japan in person, identifying “which of A, B, or C is our case” is the starting point for choosing a visa. For how to choose the entry form itself, see the “comparison of entry forms” article; for Kabushiki-Kaisha vs. Godo-Kaisha, see the “Kabushiki-Kaisha vs. Godo-Kaisha” article.
The Six Requirements of the Business Manager Visa [Updated for the October 2025 Reform]
Under the reformed “Business Manager,” you must satisfy all six of the following requirements. First, here is a table of the differences from the old criteria; then we will look at each one, with its content and points to watch when entering Japan.
| Requirement | Old criteria (through Oct 15, 2025) | New criteria (from Oct 16, 2025) |
|---|---|---|
| ① Capital, etc. | JPY 5M or more | JPY 30M or more (roughly a 6-fold increase) |
| ② Full-time staff | JPY 5M capital OR 2+ full-time staff (either one) | JPY 30M capital AND 1+ full-time staff (both required) |
| ③ Japanese ability | Not required | The applicant or a full-time staff member must be at B2 level (equivalent to JLPT N2 or above) |
| ④ Experience / education | Not required for the manager themselves | 3+ years of management experience, OR a master’s / doctoral / professional degree in a related field |
| ⑤ Business plan | Submission required, but no professional verification needed | A business plan verified by an SME management consultant, a certified public accountant, or a certified tax accountant is mandatory |
| ⑥ Office | Relatively lenient | Securing an independent office is mandatory (virtual offices, etc., are generally not accepted) |
① Capital of JPY 30 million or more
For a company, this is judged by the paid-in capital or total investment; for a sole proprietorship, by the total amount invested in the business — and that amount must be JPY 30 million or more. Raised roughly six-fold from the former JPY 5 million, this is the change that symbolizes the reform.
Points to watch when entering Japan
To remit and pay in capital from abroad, you first need a Japanese corporate bank account — but opening an account for a foreign-owned, newly established company is heavily scrutinized, so payment-in and account-opening tend to become a “chicken-and-egg” problem. Design the remittance and payment-in steps early. Given exchange-rate fluctuations, it is also wise to leave a margin so the yen equivalent does not fall below JPY 30 million.
② Employ at least one full-time staff member
Before the reform, it was enough to satisfy “JPY 5 million or more in capital, OR 2 or more full-time staff,” so establishing the company with zero employees was possible. After the reform, this “either/or” choice was abolished, and both JPY 30 million or more in capital and the employment of at least one full-time staff member became mandatory.
Points to watch when entering Japan
For this employment requirement, those who count as “full-time staff” are limited to Japanese nationals and people with status-based residence such as Permanent Resident, Long-Term Resident, or Spouse of Japanese National. Foreign nationals working under activity-based (work) statuses such as Engineer/Specialist in Humanities/International Services are not included in the full-time staff for this requirement. You need to confirm from the recruitment stage onward who you must hire to satisfy it (note also that the scope of “full-time staff” differs from that of the ③ Japanese-language requirement — consult a professional for details).
③ Japanese language ability (B2 level)
Japanese language ability, not tested before the reform, has become a new requirement. What is required is B2 on the “reference framework for Japanese language education” — in practice, a level equivalent to JLPT N2 or above. The key point is that the manager themselves need not necessarily meet it: it is enough if either the applicant or a full-time staff member reaches this level. Concrete benchmarks cited include JLPT N2 or above, a BJT Business Japanese Proficiency Test score of 400 or more, graduation from a Japanese university, or completion of Japanese compulsory education plus high-school graduation (Japanese nationals and Special Permanent Residents are outside the scope of verification).
Points to watch when entering Japan
While the full-time staff counted for the ② employment requirement are subject to status-of-residence restrictions, the full-time staff who satisfy this Japanese-language requirement are not — that is the accepted reading. Because the same term “full-time staff” covers different scopes and is easy to confuse, it is safer to clarify in writing “who satisfies which requirement.” As the finer details of verification follow the latest guidelines, please confirm the specifics with a professional case by case.
④ 3+ years of management experience, or a degree in a related field
Before the reform, hired managers were required to have experience, but there was no education or work-history requirement for the manager themselves. After the reform, the applicant must satisfy one of the following: 3 or more years of practical experience in business management, OR a master’s, doctoral, or professional degree in business management (MBA, etc.) or a field related to the intended business. Equivalent degrees obtained abroad are also accepted. Note that time spent under the “Designated Activities” status for startup preparation can also be counted toward this work history.
Points to watch when entering Japan
This education/experience requirement accepts overseas degrees, but the verification of the ⑤ business plan (below) must be done by a Japanese-qualified professional. If you assume “having an overseas accountant or professional verify it will do,” you will not meet the requirement — so be careful about the difference between the two.
⑤ A business plan verified by a professional
The reform made it mandatory for the submitted business plan to be verified — for its specificity, reasonableness, and feasibility — by a third party with specialized management knowledge. As of the effective date, the “professionals who can verify” are three: SME management consultants, certified public accountants, and certified tax accountants (all Japanese qualifications; overseas qualifications are not accepted). The aim is said to be to screen out plans that are mere formalities and to distinguish those backed by genuine substance.
Points to watch when entering Japan
The professional’s “verification” here and the “preparation/submission” of the application documents to Immigration are separate roles. The business-plan verification is handled by an SME management consultant, a CPA, or a certified tax accountant, while the preparation and submission of the status-of-residence application is handled by an administrative scrivener. Because coordination among several professionals is the premise, it is smoother to sort out who handles which role at the very start.
⑥ Securing an independent office
You are required to have secured an independent office in Japan for conducting the business. Under the reform’s policy of confirming that management activity has real substance, this point is scrutinized especially closely. The premises must be clearly separated from a residence and available for continuous use for that business; virtual offices, rental meeting rooms, and short-term shared spaces are, in principle, not accepted as an office.
Points to watch when entering Japan
At the stage before arriving in Japan, when you have no address here, securing a lease or the premises itself is a hurdle in its own right. Because the office address bears on company registration, visa screening, and bank-account opening alike, you need to plan early how you will secure “premises with real substance.”
If You Already Hold “Business Manager” — Transitional Measures and Renewal
For those who already held “Business Manager” before the reform, transitional measures are provided. For those already residing as of the effective date (October 16, 2025), for renewal applications made by the day three years after the effective date — October 16, 2028 (Reiwa 10) — even where the case does not meet the new criteria, it will not be denied outright; the decision is made comprehensively, taking into account the management situation, the prospect of meeting the new criteria, and so on. Even if the increase to JPY 30 million is not completed in time for the next renewal, a path to renewal remains.
That said, this does not mean “you may do nothing until 2028.” The transitional measure is a comprehensive judgment, not an automatic renewal. Whether you can show that the management situation is sound, that tax obligations are being properly fulfilled, and that there is a prospect of meeting the new criteria by the next time will be examined — and even during this transitional period, you may be asked to submit documents assessed by a management professional (SME management consultant, CPA, or certified tax accountant). And for renewal applications made after October 16, 2028, conformity with the new criteria will, in principle, be required.
What matters is to use these three transitional years as a “preparation period.” Unless you move early on plans to increase capital, secure full-time staff, sort out who meets the Japanese-language requirement, and build a track record on taxes and social insurance, you may be at a disadvantage at your next and later renewals. Note, too, that the Highly Skilled Professional (i)(c) type, which presupposes “Business Manager” activity, is likewise premised on meeting the Business Manager criteria.
Options When You Cannot Immediately Meet the “Business Manager” Requirements
The post-reform requirements set a high bar, and there will be cases where “preparing JPY 30 million now, hiring staff, and setting up an independent office right away is difficult.” Here we sort out several options to consider in that situation.
Intra-company Transferee (recap)
If you will run the Japanese subsidiary by dispatching head-office staff, the Intra-company Transferee — which has no capital requirement — is realistic. Its requirements include: having worked continuously for at least one year immediately before the transfer at an overseas head office, affiliate, etc. (combining periods at multiple companies, or counting a period of intra-company transfer within Japan, may be permitted); duties in Japan that qualify as the specialist work of the Gijinkoku category; remuneration at least equal to that of a Japanese national; and a capital relationship between the sending and receiving entities. However, as noted above, if the main activity is company management, the case falls under Business Manager rather than Intra-company Transferee — so it cannot be used to “send in a manager.”
Engineer / Specialist in Humanities / International Services (“Gijinkoku”)
For professionals hired locally in Japan, or specialists who do not meet the Intra-company Transferee’s “one year of employment” or “capital relationship,” Gijinkoku is an option. It requires relevant education/work history and specialist job content (simple labor is not eligible). This is covered in more detail in the "hiring employees" article.
Highly Skilled Professional
This is a status for highly skilled human resources, converting education, work history, annual income, and so on into points and reaching a set threshold. It offers advantages in period of stay and permanent-residence approval, but note that the type premised on “Business Manager” activity (type (i)(c)) is itself premised on meeting the Business Manager criteria.
Startup visa (Designated Activities)
This is a system that lets prospective founders who cannot immediately meet the Business Manager requirements stay in Japan for a set period to prepare their startup. With support from a local government, you can use it as an “entry point” to prepare a business plan while getting the requirements in order — and this startup-preparation period can be counted toward the ④ management experience (work history) of Business Manager.
Which status of residence is appropriate varies with the position and background of the person coming to Japan, the nature and scale of the business, and the funding plan. Proceeding on your own judgment, only to find later that a requirement is not met, is a large loss of time and cost. We recommend consulting a professional early and comparing several options.
Before That — the Entry Point to “Business Manager” Splits into Three by Situation
Even within the same “Business Manager,” the entry point of the procedure is decided by two questions. (Q1) Is the person already in Japan? (Q2) If abroad, is there a “collaborator” in Japan (someone who handles the company-establishment procedures on the person’s behalf)? These two questions split the cases into the following three types.
| Situation | Status-of-residence procedure | Order of “establishment” and “arrival” | Name used in the sequencing article |
|---|---|---|---|
| ① The person is already in Japan (residing under another status) | Application to change status of residence | Already arrived → change after establishment | (A change, since the person is already in Japan — a different entry point from Routes A and B below) |
| ② The person is abroad, with a collaborator | Application for a Certificate of Eligibility (COE) | The collaborator establishes first → once the company meets the requirements, arrive on the COE | Route B (collaborator type) |
| ③ The person is abroad, without a collaborator | First obtain a 4-month “Business Manager” via COE and arrive → establish → renew the period of stay | Arrival first (a preparatory status) → establish → renew | Route A (applicant-first type) |
On ③. The 4-month “Business Manager” is also obtained from abroad, so it goes through the same multi-stage path of COE → visa → arrival (it is not a shortcut that skips the COE). Moreover, after the October 2025 reform, even this 4-month visa requires substantive preparation premised on the new criteria (business plan, draft articles of incorporation, etc.), and the old approach of “just get in first and sort it out later” has become hard to use. Since which requirements to line up at the application stage versus at the post-establishment renewal stage is highly case-specific, please confirm with a professional early. Note that instead of ③, you can also use a local government-supported startup visa (Designated Activities) as the entry point (in which case you change status after establishment), and this preparation period can be counted toward the ④ management experience.
On ②. You can leave the establishment to a collaborator, but a form in which the person never gets involved and outsources the “shell” wholesale invites doubt about the very substance of the management and becomes a core risk of denial (→ the "parallel work & sequencing" article).
Cost, too, tends to be highest for ③, which becomes a two-stage process (→ the "entry cost" article). Which to do in sequence and which to run in parallel is explained in detail in the "parallel work & sequencing" article.
The Application Flow and Rough Timeline
When bringing a manager who is abroad into Japan, the procedure generally proceeds in the following order.
- Applying for a Certificate of Eligibility (COE) You apply to the Immigration Services Agency of Japan for a “Certificate of Eligibility (COE),” a document that certifies in advance that the intended activity in Japan meets the status-of-residence requirements. The rough screening time is about 3–4 months (it has tended to lengthen since the October 2025 reform).
- Issuance of the visa Attaching the issued COE, you receive the visa at the Japanese embassy or consulate in your home country.
- Arrival and issuance of the Residence Card You arrive on the visa, and a Residence Card is issued on entry.
For new cases, the period of stay often starts at a short “1 year” and is renewed based on the business track record (the rough renewal-screening time is about 1–2 months; grants of 1 year often continue for the time being even after renewal). Those switching from another status of residence held in Japan file an application to change status, not a COE.
* The periods are rough estimates and vary with the business content and the workload of the screening authority. The reason the whole schedule slips unless company establishment, licensing, and account-opening are advanced in parallel is explained in detail in the "parallel work & sequencing" article.
Handling the New Hurdle of a “Professionally Verified Business Plan” Through a Single Point of Contact
The part of this reform that is especially burdensome is ⑤, the “business plan verified by an SME management consultant, a CPA, or a certified tax accountant.” This is a gateway under the new criteria, and the professionals involved are split: the business-plan verification (management professional), the registration (judicial scrivener), the status-of-residence application (administrative scrivener), and the tax matters (certified tax accountant). Arranged separately, it easily becomes a state in which no one is watching the whole.
Touch Administrative Scrivener Corporation, as an administrative scrivener firm specializing in international work, coordinates with its partner CPAs, SME management consultants, certified tax accountants, judicial scriveners, and labor and social security attorneys to support you through a single point of contact — from preparing the business-plan verification document, to company establishment, to the status-of-residence application (Business Manager / Intra-company Transferee, etc.). From the very first stage, we can design together which status of residence is appropriate and how to meet the six requirements.
Start with a free consultation (STEP 0: Free consultation)
Why not start by sorting out “whether what you (your company) need is Business Manager or Intra-company Transferee” and “how to meet the post-reform requirements”? At Touch Administrative Scrivener Corporation, the first consultation is free (STEP 0: Free consultation). We will hear about your current situation and entry plan, and lay out the most suitable direction for your status of residence and the overall picture of the procedures required.
If, as a result of the consultation, concrete support is needed, we will then propose a paid support plan appropriate to the content (initial consulting, etc.) and carefully explain the cost outlook. Please feel free to get in touch first.
Contact
Email: contact@touch.or.jp
Phone: Saitama Office 048-400-2730 / Tokyo Office 03-6825-0994









