Japan’s New Business Manager Visa Rules: What Foreign Investors and Founders Need to Know
Japan has introduced significant revisions to the requirements for the Business Manager visa (経営・管理), one of the primary residence statuses used by foreign nationals seeking to establish and operate a business in Japan.
According to the Immigration Services Agency of Japan, amendments to the relevant ministerial ordinance were promulgated in October 2025 and came into effect on 16 October 2025.
These changes represent a clear shift in policy. The revised framework places greater emphasis on business scale, operational substance, and the capability of the applicant, and raises the threshold for entry compared to prior practice.
For foreign founders, investors, and companies considering entry into Japan, understanding these changes at an early stage is now essential.
Background and Direction of the Reform
The Business Manager visa has historically been one of the more accessible pathways for foreign entrepreneurs entering Japan. In particular, the ability to qualify with relatively modest capital or limited operational scale made it possible to establish small or early-stage businesses.
The revised rules indicate a move away from that approach.
The Immigration Services Agency now emphasizes that businesses must be operated at a scale and level of substance consistent with long-term, stable operations in Japan. The focus is no longer limited to formal thresholds, but extends to whether the business is genuinely functioning as an enterprise with real management activity in Japan.
Key Changes to the Business Manager Visa
1. Capital Requirement: JPY 30 Million
Under the revised framework, applicants must demonstrate capital or equivalent investment of at least JPY 30 million.
This represents a substantial increase from previous practice and is intended to reflect a business scale that can support sustained operations.
In practical terms, this requirement will affect:
The initial funding structure of the business
The timing of capital injection
The overall scale of the proposed operation
Applicants who do not meet this level may face increased scrutiny regarding the feasibility and sustainability of their business.
2. Employment Requirement: At Least One Full-Time Employee
Applicants must employ at least one full-time employee as part of the business structure.
The employee must be:
A Japanese national
A special permanent resident
Or a foreign national holding a status listed in Appended Table II (e.g. permanent resident, spouse of a Japanese national, spouse of a permanent resident, or long-term resident)
Importantly, this requirement is not an alternative to the capital requirement. Both elements are expected to be satisfied as part of demonstrating a viable business operation.
This reflects an increased focus on whether the business contributes to the domestic economy through employment.
3. Japanese Language Capability
The revised rules introduce a clearer expectation regarding Japanese language capability.
Either the applicant or a full-time employee must demonstrate proficiency at approximately CEFR B2 level or above.
Examples of acceptable evidence include:
JLPT N2 or higher
BJT Business Japanese Test score of 400 or above
Graduation from a Japanese educational institution
Other equivalent indicators, such as long-term residence in Japan
This requirement reflects the expectation that the business can operate effectively within the Japanese market and regulatory environment.
4. Applicant’s Experience or Academic Background
The revised framework introduces a formal requirement for the applicant’s qualifications.
Applicants must meet at least one of the following:
A master’s degree or higher in a relevant field, or
At least three years of experience in business management or administration
This change places greater emphasis on the capability of the individual responsible for running the business.
In practice, this means that the applicant’s professional history, education, and role within the business must be clearly aligned with the proposed activity.
5. Business Plan: Professional Confirmation and Substantive Review
The business plan is now a central component of the application.
Applicants must submit a plan that has been reviewed by a qualified professional with specialized knowledge in business management.
Examples include:
Certified management consultants
Certified public accountants
Tax accountants
In addition, the Immigration Services Agency expects the business plan to be:
Concrete
Rational
Feasible
This reflects a shift toward evaluating not only whether a business can be established, but whether it is likely to operate successfully in practice.
Additional Areas of Scrutiny
In addition to the formal requirements, the revised framework highlights several practical factors that are likely to be reviewed closely.
Active Involvement in Management
The applicant must be actively engaged in management activities in Japan.
If business operations are structured in a way that limits the applicant’s direct involvement—such as excessive outsourcing—the activity may not be recognized as qualifying under the Business Manager category.
Business Premises
The business must have an appropriate physical office or premises.
Given the scale expected under the revised rules, the use of a residence as a business office is generally not accepted. This reflects the expectation that the business has a clear and independent operational base.
Compliance and Ongoing Obligations
For visa renewals and related applications, authorities will review compliance with:
Tax obligations
Labor regulations
Social insurance requirements
In addition, prolonged absence from Japan without reasonable justification may negatively affect the assessment of whether the applicant is genuinely managing the business.
Incorporation vs. Visa Eligibility
It is important to distinguish between:
Company incorporation under Japanese law, and
Eligibility for a Business Manager visa
The October 2025 reform concerns the latter.
It remains possible, in principle, to establish a company in Japan under relatively flexible corporate law requirements. However, obtaining a visa to reside in Japan and operate that company is now subject to significantly stricter criteria.
This distinction is critical for foreign founders planning market entry.
Practical Implications for Market Entry
From a practical perspective, the revised framework changes how foreign entrepreneurs should approach entry into Japan.
Key considerations now include:
Whether the planned business can support JPY 30 million in capital
How to structure employment at an early stage
Whether the applicant’s experience and qualifications align with the business
How to prepare a credible and professionally reviewed business plan
How to establish real operational presence in Japan from the outset
These factors are interdependent and should ideally be addressed as part of a coordinated strategy, rather than sequentially.
Conclusion
The October 2025 revision to the Business Manager visa framework marks a significant evolution in Japan’s approach to foreign-led business establishment.
The new regime places clear emphasis on:
Scale — through higher capital requirements
Substance — through employment and operational expectations
Capability — through experience, education, and language
Credibility — through professionally validated business plans
For foreign investors and founders, the implication is clear: successful entry into Japan now requires more structured preparation, stronger alignment between the business model and immigration requirements, and a higher degree of execution readiness.
How Global Gateway Advisors Can Help
Global Gateway Advisors is a consulting firm with offices in Tokyo, Singapore, Malaysia, and Vietnam, supporting ASEAN and global companies in entering the Japanese market. Our work ranges from hands-on market entry execution — partner identification, incorporation, and go-to-market strategy — to consulting on Japan market mission tours for government trade agencies.
In March 2025, we were formally approved as an Enterprise Singapore (EntSG) certified partner, recognising our capability to support Singapore companies expanding into Japan.
If you are a Singapore -based company exploring Japan as your next market, we would welcome the opportunity to discuss how we can support your entry. Whether you are at the early research stage or ready to move, our team can help you navigate the process from start to execution.
If you need any helps in go to market support in Japan, please feel free to contact us.
If you are Singapore based company, looking at taking up Market Readiness Access Grant, please also see the JIP programme that we launched.
