- ■ Introduction: A Seismic Shift in Japan’s Business Manager Visa System
- ■ Overview of the Business Manager Visa Reform — What Has Changed?
- ■ What the Numbers Reveal — The Significance of a 96% Decline
- ■ A Field Perspective From Our Office — Real Numbers From Our Practice
- ■ Surge in Renewal Consultations — Entrepreneurs Being Left Behind
- ■ Options Foreign Entrepreneurs in Japan Should Consider Now
- ■ A Message to Business Owners and HR Managers Employing Foreign Nationals
- ■ A Professional Word of Advice
- ■ Conclusion
■ Introduction: A Seismic Shift in Japan’s Business Manager Visa System
On May 8, 2026, a striking news report was released. According to sources at the Ministry of Justice, the number of new applications for the “Business Manager” residence status — a visa designed for foreign entrepreneurs starting businesses in Japan — has dropped by approximately 96% since the requirements were tightened in October 2025 (Yahoo! News).
In the five months prior to the change, an average of approximately 1,700 new applications were filed per month. In the five months following the revision, that figure plummeted to roughly 70. These numbers indicate that the regulatory revision was not a minor adjustment, but rather a fundamental restructuring of the pathway by which foreign entrepreneurs enter the Japanese market.
As a Gyoseishoshi (immigration specialist) handling visa applications on a daily basis, I would like to provide a detailed explanation of how this change is affecting foreign entrepreneurs residing in Japan and the Japanese companies that employ foreign nationals, drawing on first-hand observations from the field.
■ Overview of the Business Manager Visa Reform — What Has Changed?
[Sharp Capital Increase and Mandatory Employment Requirement]
In October 2025, the requirements for the Business Manager visa were significantly revised. The principal changes are as follows:
- Capital Requirement: From 5 million yen to 30 million yen (a sixfold increase)
The 5 million yen capital threshold, long regarded as the standard minimum hurdle for foreign entrepreneurs, has been raised to 30 million yen. - Mandatory Employment of Full-Time Employees
The requirement to employ full-time employees in Japan has been explicitly clarified. - Stricter Examination of Business Plans
Beyond formal documentation, examiners now scrutinize the substance, sustainability, and profitability of the business more rigorously.
The tightening was introduced in response to documented misuse of the visa: cases where applicants established shell companies (so-called “paper companies”) solely to obtain residence status, without conducting genuine business operations. The Ministry of Justice’s stated policy goal is to eliminate such abuse and support foreign entrepreneurs who genuinely contribute to the Japanese economy.
■ What the Numbers Reveal — The Significance of a 96% Decline
[A Dramatic Shift in the Applicant Demographic]
According to Ministry of Justice sources, those approved since the tightening are reportedly predominantly executives at the level of listed company directors. In other words, the demographic that previously utilized this visa — small and mid-sized foreign entrepreneurs — has been largely shut out.
The shift from 1,700 applications per month to 70 is not merely a “tightening of approval standards.” It represents a near closure of the pathway for foreign entrepreneurship in Japan, leaving access effectively limited to a small group of major capital holders and corporate executives.
■ A Field Perspective From Our Office — Real Numbers From Our Practice
[The View From a Gyoseishoshi Office]
Statistics alone may not fully reflect the reality of this change. Allow me to share concrete figures from our office.
Until October last year, our office handled approximately 10 to 15 new Business Manager visa applications per year. Most of our clients were foreign entrepreneurs planning to launch restaurants, trading firms, IT-related businesses, consulting practices, and similar ventures in Japan.
Since October 2024, however, we have received only one new application. The 96% decline reported in the news closely matches the reality we are experiencing on the ground.
In place of new applications, what is sharply increasing now is the number of inquiries regarding visa renewals.
■ Surge in Renewal Consultations — Entrepreneurs Being Left Behind
[ The Challenge of the 2028 Transitional Period]
While new applications have effectively halted, holders of existing Business Manager visas are subject to a transitional period extending until 2028, during which they must comply with the new criteria — including the 30 million yen capital requirement and the mandatory employment of full-time staff.
Our office is currently receiving a steady stream of consultations from individuals who originally obtained their visas through other firms or filed applications on their own.
A serious pattern emerges from these consultations:
- Revenue is being generated, but there is no capacity to increase capital to 30 million yen
- The current scale of operations cannot support the employment of full-time staff
- The business has not yet fully recovered from the impact of the COVID-19 pandemic
- There appears to be no realistic prospect of meeting the new criteria by 2028
Among these clients, many are facing painful decisions: giving up on renewal, considering a career change, or exploring transition to a different residence status.
■ Options Foreign Entrepreneurs in Japan Should Consider Now
[Planning Begins With an Accurate Assessment]
For those concerned about the renewal of their Business Manager visa, I recommend organizing the current situation through the following steps:
- Objective Analysis of Current Business Operations
Compile data on revenue, profit, assets, and employment, and make an objective assessment of the likelihood of meeting the new criteria. - Feasibility Study for Capital Increase and Workforce Expansion
Identify concrete pathways to compliance, including securing investors, identifying funding sources, and recruiting prospective employees. - Examination of Alternative Residence Statuses
Consider transition to other categories such as “Engineer / Specialist in Humanities / International Services,” “Highly Skilled Professional,” or “Designated Activities,” depending on the individual’s career background and qualifications. - Family-Based Pathways
If your spouse holds Japanese nationality or permanent residency, alternative residence routes may be available. - Repatriation or Relocation as a Last Resort
Where unavoidable, plan a structured business wind-down and orderly return to your home country, or relocation to a third country.
■ A Message to Business Owners and HR Managers Employing Foreign Nationals
[Are Your Foreign Talent Members Secure?]
For Japanese companies employing foreign nationals, this issue is far from irrelevant to your business.
Please pay particular attention to the following:
- Status of Directors and Executives Holding the Business Manager Visa
You should ascertain the renewal timing and compliance progress of foreign directors within your company, as well as those at affiliated companies and key business partners. - Preparation for “Unforeseen Repatriation” Risk
The sudden loss of residence status by a key employee or executive represents a significant business continuity risk. Successor development and standardization of operations are essential risk-mitigation measures. - Support for Transition to Alternative Residence Statuses
In some cases, by entering into an employment relationship with your company, an individual may transition to “Engineer / Specialist in Humanities / International Services” status. Hiring foreign entrepreneurs as employees may be a viable option. - Reassessment of Recruitment Strategy
The pathway for inviting new foreign entrepreneurs to launch affiliated businesses in Japan has, in practical terms, become significantly more limited. Building alternative talent strategies is now essential.
■ A Professional Word of Advice
[ Early Consultation Expands Your Options]
Visa matters are highly time-sensitive.
There is a significant difference between acting only after concluding “it may already be too late” and developing a strategy with sufficient lead time. If your Business Manager visa renewal is less than a year away, or if you have any concerns about meeting the new criteria, please consult a qualified specialist as soon as possible.
We Gyoseishoshi are not merely “document preparation agents.” We are partners who work alongside our clients about their lives, their businesses, and the future of their families, and who work to identify the best possible course of action.
The regulatory barriers have indeed become higher. With knowledge and strategy, however, a path forward can often still be found. Please do not face this alone. Even simply organizing your current situation can transform what you see ahead.
■ Conclusion
The tightening of the Business Manager visa marks a major turning point in Japanese immigration administration. For foreign entrepreneurs genuinely committed to contributing to the Japanese economy, and for the Japanese companies that operate alongside them, this change is far from minor.
Yet, with accurate information and sound strategy, it is fully possible to navigate this challenging period.
Our office is available to consult with foreign entrepreneurs residing in Japan and with companies employing foreign nationals. Confidentiality is strictly maintained, and we provide an initial assessment during the first consultation.
The first step is understanding how the new framework affects your specific case.
Reference: Yahoo! News, “[Exclusive] Tightening of Approval Criteria for the ‘Business Manager’ Residence Status — New Applications Down 96% from October 2025 to March This Year”
https://news.yahoo.co.jp/articles/5cdc2121860cfa3ac92cda9d246ed4067a888460
