[Preliminary Explanation] Business Management Visa to Become Stricter from October 16, 2025 (Thorough Explanation of Old and New Requirements and New Routes)

On October 10, 2025, a ministerial ordinance was promulgated to revise the criteria for the status of residence “Management and Administration”. For foreign nationals who wish to start a business in Japan, this will have an extremely significant impact on their future plans.

In addition to the tightening of requirements that had been discussed for some time, it was finalized that a Japanese language proficiency requirement will be added to this revision.

In this article, based on the promulgated ministerial ordinance and the guidelines issued by the Immigration and Immigration Control Agency, the following four points will be explained in an easy-to-understand manner.

• 1.[Fully Fixed] What will the new rules change?
• 2.[Rush application] What happens to applications filed before the effective date?
• 3.[Very Important] What about renewal for those who already have a business administration visa?
• 4.[New High Road] From “Start-up Visa (2 years)” to “Management/Administration” Visa

[Fully Fixed] What will the new rules change?

With this revision, the criteria for approval of the business administration visa have been substantially revised. According to the Immigration and Immigration Control Agency, the requirements will be tightened in five main areas

Comparison of Amendments

Item	Current Rules	New rule (from October 16, 2025)
(1) Capital/Investment	5 million yen	30 million yen
(ii) Background and education of the manager	None in particular	At least 3 years of business or management experience or a master’s degree or higher in a related field is required.
(iii) Obligation to hire staff	No obligation (employment of at least 2 persons as a capital replacement requirement)	Obligation to hire at least one full-time employee
Japanese language ability	None in particular	Either the applicant or a full-time staff member must have a considerable level of Japanese language ability.
5) Confirmation by experts	None in particular	Expert confirmation is required for new business plans.

Detailed explanation of each point

• (1) Capital and capital contribution

The business size standard will be raised to 30 million yen, six times the current standard.

• (ii) Background and education of the manager

The applicant himself/herself is required to prove objective ability as a manager. The “more than 3 years of management experience” includes preparatory activities for starting a business under the status of residence “Designated Activities”. (*This point will be explained in detail later.)

• (iii) Obligation to employ staff

Apart from the capital requirement, the employment of one or more full-time employees is mandatory. In principle, these “full-time employees” must be Japanese nationals, special permanent residents, or permanent residents with status-related residency status such as “Permanent Resident.

• Japanese Language Proficiency

Either the applicant himself/herself or a full-time employee must have a considerable level of Japanese language proficiency (CEFR B2 equivalent, JLPT N2, etc. are assumed). Full-time employees” for the purpose of meeting this Japanese language proficiency requirement may also include foreign nationals working under other work visas.

• (5) Confirmation of business plan by experts

In order to objectively demonstrate the feasibility of the business plan, confirmation by a person with expertise in management (e.g., SME diagnostician) will be mandatory (except for listed company size, etc.).

[Important] “Actual Activities as a Manager” to be questioned.

In addition to the above changes in requirements, at the root of this revision is a strong will to strictly question “substantial involvement in the business. The guidelines published by the Immigration Bureau clearly indicate the following two points. This will have a particularly large impact on business models that outsource operations, such as the operation of private accommodations.

• (1) Outsourcing and actual activities

z If the activities of a manager are not sufficiently recognized, such as outsourcing business, it will be treated as if the applicant is not considered to be engaged in activities that fall under the status of residence “Management/Administration”.

This refers to cases in which almost all daily operations, such as cleaning and guest relations, are left to the agency. Unless the manager himself or herself is proactively involved in marketing strategies and profit improvement, he or she will not be recognized as a “manager. In the future, it will be extremely difficult to acquire or renew a new business plan if the business plan is simply handed over to a contractor.

• (2) Departure from Japan while residing in Japan

z If you have left Japan for a period of time during your period of stay without justifiable reason, you will be deemed to have no actual activities in Japan and will not be granted permission for extension of the period of stay.

This is another problem that tends to occur in outsourcing-type businesses. If the management of the business is left to a contractor and the business owner rarely stays in Japan, as a “ghost business owner,” the business is considered to have no actual activities. If the business owner leaves Japan for an extended period of time without a valid reason, such as a business trip, the renewal of the visa will not be approved.

2.[Rush application] What happens to applications filed before the effective date?

The new rules will go into effect on October 16, 2025, but if an application is filed before then, the current rules will apply as a transitional measure.

• Application deadline

If the application is submitted by October 15, 2025, it will be reviewed under the pre-amendment criteria.

• Already have a Certificate of Eligibility (COE)

If you have a Certificate of Eligibility (COE) issued under the current rules, you may enter Japan (apply for landing) within 3 months from the date of issuance.

Important】Notes regarding rush applications

This tightening of the system is also intended to prevent abuse of the system. For this reason, it is expected that the screening process will become even stricter for so-called “rush applications” submitted just before the effective date of the program. Even if an applicant meets the current criteria, the actual status, stability, and continuity of the business will be examined more carefully than before. Since there is a risk that a business plan that is merely formalized will be rejected, adequate preparation is essential.

Super Important] What about renewal for those who already have a business administration visa?

Transitional measures are provided for renewal applications for those who are already active on a business administration visa to avoid sudden changes.

Three-year grace period (~October 16, 2028)

Renewal applications filed three years after the effective date, i.e., by October 16, 2028, will not be immediately denied, even if they do not meet the new standards. A comprehensive decision will be made based on the current business situation and the likelihood of meeting the new standards in the future.

However, during the review process, you may be asked to submit documents that have been evaluated by a management expert.

After the end of the grace period ( 2028 Year October October October 17 (From October 17, 2028)

After the three-year grace period has expired, renewal applications must, in principle, meet the new criteria.

[Exceptions

However, even after the end of the grace period, there is still a possibility that a permit will be granted if the following requirements are met, even if the new standards cannot be met.

1. Good business standing.
2. Proper fulfillment of corporate and other tax obligations
3. The new standard is expected to be met by the time of the next renewal application.

These factors will be considered in totality and a final decision will be made.

New High Road] From “Start-up Visa (2 years)” to “Management/Administration” Visa

Now, the requirements for the new “business administration” visa, especially the “three years or more of management/administrative experience” is a very high hurdle. However, a new major route to clear this requirement is the “Designated Activities” status of residence, commonly known as **”Start-up Visa “**.

Why wasn’t the start-up visa used before?

The start-up visa is a program that allows a person to stay in Japan for up to two years to prepare for starting a business. However, obtaining this visa required prior screening by local authorities and other authorities. Until now, the “Management/Administration” visa was rarely used because the hurdles were so low that there was little advantage in going to the trouble of choosing a start-up visa.

Why will start-up visas be important in the future?

The situation will change drastically. It is extremely difficult for foreigners without a foundation in Japan to meet the requirements of the new Business Management Visa from the start. This is where the start-up visa comes in.

• Countedas “management/administrative experience“ The most important aspect of this amendment is that the period of time spent working on a start-up visa will be recognized as part of “three or more years of management/administrative experience.
• A step-by-step approach will be possible. Even if you do not have ¥30 million in capital or management experience from the start, you can take a step-by-step approach, first obtaining a start-up visa with a feasible business plan, and then working in Japan while preparing for the “management and administration” visa requirements.

Future entrepreneurial routes (assumed)

1. Step 1] Submit a business plan to the local government, etc. and obtain a **Start-up Visa (maximum 2 years)**.
2. Step 2] Stay in Japan and conduct preparatory activities for starting a business, such as establishing a corporation, raising funds, and securing human resources (this period will serve as management experience).
3. Step 3] As soon as you are ready, apply for a change of visa status to “Management/Administration” visa.

Thus, it is envisioned that the start-up visa, which has not been utilized in the past, will be widely used in the future as an important system for foreigners who wish to start a business in Japan, both as a substantial preparation period and to gain management experience.

summary

This revision of the Business Management Visa is not merely an increase in requirements, but a major shift in the nature of the system itself. Finally, we would like to reiterate some important points.

1. New applications will be made much stricter. After October 16, 2025, extremely high hurdles will be set, including capital of 30 million yen and at least 3 years of management experience. In addition, “managers in name only,” who leave business operations to contractors, will not be permitted, as they are considered to have no actual activities.
2. Rush applications are possible, but be careful. If you apply by October 15, the old standards will apply, but you can expect to be examined more strictly than usual regarding the actual status of your business.
3. Three-year grace period for renewal If you already have a visa, the transitional measures will apply until October 16, 2028. After that date, however, the new criteria must be met in principle.
4. Start-up visa becomes the new route From now on, the new royal route for foreign entrepreneurs will be to first gain experience in activities and management in Japan with a “start-up visa” and then move on to a “management and administration” visa.

This revision is a clear message that Japan will be evaluating foreign business owners on the basis of “quality over quantity. If you are considering starting a business in Japan, we recommend that you carefully consider which route to choose, in light of your own situation, and with the help of experts.