On October 10, 2025, a ministerial ordinance revising the standards for the status of residence “Business Manager” was promulgated. For foreign nationals planning to start a business in Japan, this change will have an extremely significant impact on their future plans.
In this revision, in addition to the stricter requirements that had already been under discussion, it was ultimately confirmed that a Japanese language proficiency requirement would also be added.
In this article, based on the promulgated ordinance and the guidelines announced by the Immigration Services Agency, we clearly explain the following four key points.
- Finalized: What exactly is changing under the new rules?
- Last-minute applications: What happens if you apply before the effective date?
- Very important: What happens when people who already hold a Business Manager visa renew it?
- The new standard route: From the “Startup Visa (2 years)” to the “Business Manager” visa
※In this article, for ease of understanding, the status of residence “Business Manager” is referred to as the “Business Manager visa.”
- Video Explaining the New Requirements
- 1. Finalized: What Exactly Is Changing Under the New Rules?
- 2. Last-Minute Applications: What Happens If You Apply Before the Effective Date?
- 3. Very Important: What Happens When People Who Already Hold a Business Manager Visa Renew It?
- 4. The New Standard Route: From the “Startup Visa (2 Years)” to the “Business Manager” Visa
- Summary
Video Explaining the New Requirements
1. Finalized: What Exactly Is Changing Under the New Rules?
With this revision, the approval standards for the Business Manager visa have been substantially revised. According to the Immigration Services Agency, the requirements will become stricter mainly in the following five areas.
Comparison of the Revised Rules
| Item | Current Rule | New Rule (from October 16, 2025) |
| ① Capital / Total Investment | 5 million yen | 30 million yen |
| ② Manager’s Professional Background / Education | None | At least 3 years of management/administrative experience or a master’s degree or higher in a related field is required |
| ③ Employee Hiring Requirement | No obligation (hiring 2 or more employees as an alternative to the capital requirement) | Hiring at least 1 full-time employee is mandatory |
| ④ Japanese Language Ability | None | Either the applicant or a full-time employee must have a sufficient level of Japanese ability |
| ⑤ Confirmation by a Professional Expert | None | Professional confirmation of the new business plan will be mandatory |
Detailed Explanation of Each Point
- ① Capital / Total Investment
The business scale threshold will be raised sixfold, from the current amount to 30 million yen.
- ② Manager’s Professional Background / Education
The applicant must objectively prove their ability as a business manager. The “at least 3 years of management/administrative experience” requirement includes startup preparation activities conducted under the “Designated Activities” status of residence. (This point is explained in more detail below.)
- ③ Employee Hiring Requirement
Separate from the capital requirement, hiring at least one full-time employee will become mandatory. In principle, this “full-time employee” is limited to a Japanese national, Special Permanent Resident, Permanent Resident, or a person holding a similar status-based residence status.
- ④ Japanese Language Ability
Either the applicant or a full-time employee must have a sufficient level of Japanese proficiency (CEFR B2 equivalent, JLPT N2, etc. are expected benchmarks). In addition, it is stated that, for the purpose of satisfying this Japanese language requirement, the “full-time employee” may also include a foreign national working under another work visa.
- ⑤ Professional confirmation of the business plan
To objectively demonstrate the feasibility of the business plan, confirmation by a person with specialized business knowledge (such as a certified small and medium enterprise management consultant) will become mandatory, except in cases such as listed-company scale businesses.
Important: Actual Involvement as a Business Manager Will Be Closely Examined
In addition to the changes above, at the core of this revision is a clear intent to strictly examine whether the applicant is substantively involved in the business.
The guidelines published by immigration clearly state the following two points. These will have a major impact, especially on business models such as private lodging operations, where work is outsourced externally.
- ① Outsourcing and the actual nature of activities
If business operations are outsourced and the applicant’s actual activities as a manager cannot be sufficiently recognized, the person will not be treated as engaging in activities that fall under the status of residence “Business Manager.”
This refers to cases where almost all day-to-day operations—such as cleaning and guest communication—are completely outsourced to an outside service provider. Unless the business manager is actively involved in areas such as marketing strategy and profit improvement, they will not be recognized as a true “manager.” Going forward, both new applications and renewals will become extremely difficult if the business plan is based on simply handing everything off to a third party.
- ② Departure from Japan during the period of stay
If a person leaves Japan for an extended period during their period of stay without a justifiable reason, renewal of the period of stay will not be approved on the grounds that there is no actual activity being conducted in Japan.
This is also a common issue in outsourced business models. If the business is left to a service provider and the manager themself rarely stays in Japan, creating a kind of “ghost manager” situation, immigration may determine that there is no real business activity. If the person has been away from Japan for a long period without a valid reason such as a business trip, renewal will not be approved.
2. Last-Minute Applications: What Happens If You Apply Before the Effective Date?
The new rules will take effect on October 16, 2025, but if you file your application before then, the current rules will apply as a transitional measure.
- Application deadline
If you submit your application by October 15, 2025, it will be reviewed under the pre-revision standards.
- For those who already have a Certificate of Eligibility (COE)
If you already hold a Certificate of Eligibility (COE) issued under the current rules, there is no problem as long as you enter Japan (apply for landing) within three months from the date of issuance.
Important Notes on Last-Minute Applications
One purpose of this tightening is to prevent abuse of the system.
For that reason, applications rushed in immediately before the effective date are expected to face even stricter scrutiny. Even if they satisfy the current standards, the actual substance, stability, and continuity of the business will likely be reviewed more carefully than ever before. A business plan that merely looks complete on paper risks being denied, so thorough preparation is essential.
3. Very Important: What Happens When People Who Already Hold a Business Manager Visa Renew It?
For people who are already engaged in activities under a Business Manager visa, transitional measures have been established for renewal applications in order to avoid sudden disruption.
Three-Year Grace Period (Until October 16, 2028)
For renewal applications filed by October 16, 2028, which is three years after the effective date, not meeting the new standards will not immediately result in denial. A comprehensive judgment will be made based on factors such as the current management situation and the likelihood of meeting the new standards in the future.
However, during the examination process, applicants may be required to submit documents that have been evaluated by a business management expert.
After the Grace Period Ends (From October 17, 2028)
Once the three-year grace period ends, renewal applications will, as a general rule, need to satisfy the new standards.
Exception
However, even after the grace period ends, there may still be a possibility of approval if the applicant cannot meet the new standards but satisfies the following requirements.
- The business is in good condition
- Tax obligations, including corporate tax, are being properly fulfilled
- There is a reasonable prospect of meeting the new standards by the time of the next renewal application
These factors will be considered comprehensively, and a final decision will be made.
4. The New Standard Route: From the “Startup Visa (2 Years)” to the “Business Manager” Visa
The new requirements for the “Business Manager” visa—especially the requirement of “at least 3 years of management/administrative experience”—are an extremely high hurdle.
However, the new major route drawing attention as a way to clear this hurdle is the status of residence “Designated Activities,” commonly known as the “Startup Visa”.
Why Was the Startup Visa Not Used Much Until Now?
The Startup Visa is a system that allows foreign nationals to stay in Japan for up to two years to prepare for starting a business. However, obtaining it requires prior screening by a local government or similar authority. Until now, because the hurdles for the “Business Manager” visa were relatively low, there was little advantage in deliberately choosing the more cumbersome Startup Visa, so it was rarely used.
Why Will the Startup Visa Become Important Going Forward?
The situation is changing completely. Under the new Business Manager visa requirements, it is extremely difficult for a foreign national with no established base in Japan to satisfy all conditions from the beginning.
In this context, the Startup Visa will serve the following functions.
- It will count as “management/administrative experience” The most important point in this revision is that the period of activity under the Startup Visa will be recognized as part of the “at least 3 years of management/administrative experience” requirement.
- It allows a phased approach Even without 30 million yen in capital or prior management experience from the start, applicants will be able to first obtain a Startup Visa based on a feasible business plan, then stay in Japan and gradually build the conditions needed for a “Business Manager” visa.
Expected Startup Route Going Forward
- Step 1 Submit a business plan to a local government or similar body and obtain a Startup Visa (up to 2 years).
- Step 2 Stay in Japan and engage in startup preparation activities such as company formation, fundraising, and securing personnel (this period counts as management experience).
- Step 3 Once preparations are complete, apply to change status to the “Business Manager” visa.
In this way, the Startup Visa, which had not been widely utilized until now, is expected to become broadly used in the future by foreign entrepreneurs seeking to start a business in Japan, both as a practical preparation period and as an important system for building management experience.
Summary
This revision to the Business Manager visa is not just a simple increase in requirements. It represents a major shift in the way the system itself operates.
Finally, here is a summary of the key points.
- New applications will become much stricter From October 16, 2025, extremely high hurdles will apply, including 30 million yen in capital and at least 3 years of management experience. In addition, nominal managers who simply outsource all business operations will be regarded as lacking actual business activity and will not be approved.
- Last-minute applications are possible, but caution is required If you apply by October 15, the old standards will apply, but the actual substance of the business is expected to be examined more strictly than usual.
- There is a three-year grace period for renewals For those who already hold the visa, transitional measures will apply until October 16, 2028. However, after that, the new standards will generally need to be met.
- The Startup Visa will become the new route Going forward, the new standard pathway for foreign entrepreneurs is likely to be first building business activity records and management experience in Japan through the “Startup Visa,” and then transitioning to the “Business Manager” visa.
This revision sends a clear message that Japan will evaluate foreign business managers based on quality rather than quantity. If you are considering starting a business in Japan, it is advisable to carefully compare the available routes with your own situation and consult with a professional before deciding which path to take.
