Due to the revision of the ministerial ordinance promulgated on October 10, 2025, the hurdles for obtaining a renewal of a business administration visa are now much higher than before. Even if you have taken the trouble to obtain a business administration visa, it will all be for naught if your renewal application is denied.
To obtain “permission for renewal of business administration visa” in the future, you need to keep in mind
There are two important points
are as follows.
Point 1] Satisfy (or prove the prospect of meeting) the new requirements.
Point (2)] Satisfy the existing screening items, which have been made more stringent.
This article will discuss each of these two points in detail.
The official name of the Business Management Visa is the status of residence “Management and Administration,” but this article will use the commonly known name “Business Management Visa” to explain it.
- [Point 1] Satisfy the new requirements (or prove that you expect to do so).
- Point 2] Satisfy the more stringent traditional screening requirements.
- Finally.
[Point 1] Satisfy the new requirements (or prove that you expect to do so).
Although a grace period has been established, in order to obtain a renewal of the Business Management Visa, you must meet the new requirements set forth in this revision.
The new requirements must be met in principle
In principle, it is necessary to meet the new requirements.
The new requirements and grace period will be explained in detail.
[New requirement] Check 5 items.
Due to a revision of the ministerial ordinance, effective October 16, 2025, the criteria for approval of the Business Administration Visa have been significantly increased. This is an important change that will require conformity not only for new applications, but also for future renewal applications.
(i) Employment of full-time staff
The applicant is now required to employ at least one full-time employee at the company he or she manages.
(Note) “Full-time employees” here are limited to Japanese nationals, special permanent residents, or foreigners with status of residence such as “permanent resident” or “spouse or child of Japanese national.
(2) Amount of capital, etc.
The size of the business must be at least 30 million yen in capital, etc.
(Note: In the case of a corporation, it refers to the amount of capital or the total amount of investment. In the case of a sole proprietorship, it refers to the total amount invested for the business (office expenses, personnel expenses, capital investment, etc.).
3) Japanese Language Proficiency
Either the applicant or a full-time staff member must have a reasonable level of Japanese language proficiency (e.g., equivalent to N2 of the Japanese Language Proficiency Test).
(Note: “Full-time employees” for purposes of this requirement include foreign nationals working on other work visas.
(4) Background (education and employment history)
The applicant must have at least three years of work experience in business management or administration, or a master’s degree or higher related to business administration.
(Note: This “work experience of 3 years or more” includes the period of preparatory activities for starting a business on a start-up visa (specified activities).
(5) Confirmation of business plan by experts
Business plans are now required to be confirmed as “feasible” by management experts such as small and medium-sized enterprise diagnosticians, certified public accountants, and certified tax accountants.
Super Important] 3-year transitional measures and “prospective” certification
Many of you may feel, “I already have a visa, but I can’t suddenly meet these criteria.” For this reason, there are important
transitional measures
have been established.
Three-Year Grace Period (Until October 16, 2028)
If an existing visa holder applies for renewal within this period, even if he/she does not meet the new standards, a comprehensive decision will be made based on his/her business situation and “prospects of meeting the new standards”.
Caution: If there is no “prospect”, go to disapproval.
This “expected to conform” part is very important. This does not mean that “the current situation will be fine for the next three years,
It means that the applicant will be examined to see if he/she has concrete plans and actions in place to meet the new standards for the next three years.
Without a plan, renewal will not be granted.
Measures to be taken during the grace period
During these three years, they are required to develop and implement a financial plan to increase capital, a plan to recruit human resources, and a plan to improve their Japanese language skills.
After the grace period (on and after October 17, 2028)
As a general rule, renewals after this date must conform to the new standards. However, even if the company is not in compliance, if the company is in very good business condition, has fulfilled its tax obligations, and has a strong prospect of being in compliance by the time of the next renewal, there is still a possibility that an exception will be made.
Point 2] Satisfy the more stringent traditional screening requirements.
Next, we will explain the items that have been subject to examination in the past, but that are now subject to even stricter and clearer examination under the current revision. These are important points that relate to the actual status of the business itself.
Stricter Examinations: “The Reality of Being a Manager” Questioned
Business Activities and Actual Activities
The company will be judged on whether it is not a paper company and whether its business activities are properly conducted.
In particular, the amendment states
The guidelines clearly state, “If the actual activities of a business manager are not sufficiently recognized, such as outsourcing, the license will not be granted.
The guideline clearly states, “If the actual status of the business is not recognized, for example, by outsourcing, the license will be denied. Although the actual status of the business has always been subject to examination, from now on, for example, cases in which the operation of a private accommodation is completely outsourced to a contractor will face a much higher risk of being judged as “not engaging in management activities,” and the examination process will become even more severe.
office
A properly secured office for conducting business is also a key factor in the examination. In order to ensure that management activities are in line with the revised scale, combining a home and business office, which was previously allowed in some cases, is no longer permitted in principle. In addition, the size of the business office must also be taken into consideration, as the new requirements mandate the employment of full-time staff.A one-person rental office, which has been used by many foreign business owners in the past, is very likely to not be recognized as a place of business because it does not provide enough work space for the hired staff.
Settlement of Accounts
One guideline is that the company must not be insolvent in its most recent financial statements. Insolvency is a situation where a company’s liabilities exceed its assets. While a deficit in the most recent fiscal year is often acceptable, if the company is insolvent, it is necessary to submit a business plan and other documents that reasonably explain the continuity of the business to convince the examiner.
Fulfillment of public obligations (tax payment, social insurance)
It is an absolute requirement that the company, as well as the manager’s personal tax payments, have properly paid various taxes and social insurance premiums. At the time of renewal, the status of payment of labor insurance, social insurance, national taxes (corporate tax, consumption tax, etc.), and local taxes (corporate inhabitant tax, etc.) are strictly checked. If there is any non-payment, renewal will be extremely difficult.
Fulfillment of official obligations (notification under the Immigration Control and Refugee Recognition Act)
Also, something that is often overlooked is the fulfillment of notification obligations under the Immigration Control and Refugee Recognition Act. The Immigration Bureau will check to make sure that you have notified the Immigration Bureau of your place of residence, change of address, and organization (company) to which you belong without delay. Please be careful not to forget to submit various notifications inadvertently.
Departure from the country while in residence
The concept of screening for departure from the country during the period of stay has also changed significantly.
Previously, if (1) the company’s management was sound and (2) tax obligations were being fulfilled, the long-term departure of the manager tended to be a less direct reason for disapproval. However, with the recent amendment
“If a business owner has been out of the country for a long period of time without justifiable reason, the renewal of the permit will not be granted as if the business owner has no actual activities.
The amendment clarifies that “if the applicant has been out of the country for a long period of time without a valid reason, he/she will not be allowed to renew his/her visa. As a result, it will be extremely difficult to renew a business license even if the business is doing well, unless the manager himself stays in Japan and is actually engaged in management activities.
Required Documents for Application for Extension of Period of Stay (Example for Category 3)
The following documents are required to prove that these conditions are met
Basic Documents
- Application for extension of period of stay (1 copy)
- Photo 1 leaf
- Passport and resident card (to be presented at the time of application)
2. documents related to basic information and financial statements of the company
- Statutory record total of withholding tax for the employee’s salary income for the previous year (copy)
- Copies of financial documents for the most recent fiscal year
- A copy of the corporation’s certificate of registered matters (if applicable)
3. documentation of new requirements and actual activities
- Documents certifying acquisition of necessary permits and licenses for the business (copies of permits, etc.)
- Documentation that identifies at least one full-time staff member
- Materials that reveal Japanese language proficiency
- A document that specifically explains the content of activities related to the management or administration of the business during the most recent period of stay
Documents related to tax payment and taxes and public dues
- （Certificate of taxation and payment of inhabitant tax (for the individual applicant)
- （Materials that clarify the status of performance of taxes and public dues (of the organization to which the applicant belongs) (e.g., labor and social insurance payment status, various national and local tax payment certificates, etc.)
Finally.
The renewal of a Business Management Visa is a place where a comprehensive judgment is made as to whether the business operations during the period of stay were appropriate. Especially after the 2025 revision, the number of documents to be submitted has increased, and the actual status of the business itself will be examined in more detail.
The best way to ensure a smooth renewal is to keep the company in sound operation on a daily basis and properly fulfill tax and other obligations. If you have any concerns about the preparation of documents or your own situation, please contact our experts.
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