- ■ Introduction: What Is Happening with the Business Manager Visa?
- ■ What Is the “Business Manager” Visa? A Clear Explanation of This Residence Status
- ■ Why Were the Requirements Tightened? The Background Behind the ¥30 Million Capital Threshold
- ■ The Full Picture: It’s Not Just About Capital
- ■ The Scale of Impact: 96% of Current Business Manager Visa Holders Fall Short of the New Standard
- ■ Transitional Measures: The Three-Year Grace Period and Case-by-Case Review Process
- ■ Seven Steps Foreign Business Owners Should Take Right Now
- 【Step 1: Make Your Business Substance Visible and Verifiable】
- 【Step 2: Ensure All Taxes and Social Insurance Premiums Are Paid—With Zero Arrears】
- 【Step 3: Establish a Full-Time Employment Structure】
- 【Step 4: Develop a Phased Capital Increase Plan】
- 【Step 5: Rebuild Your Business Plan With Professional Input】
- 【Step 6: Secure Your Japanese Language Certification Early】
- 【Step 7: Talk to a Specialist Who Will Understand Your Specific Situation】
- ■ What Employers and HR Managers Should Watch For
- ■ Issues Raised in the Diet: Fairness and Multicultural Coexistence
- ■ Conclusion: To Everyone Feeling Uncertain Right Now
■ Introduction: What Is Happening with the Business Manager Visa?
On April 14, 2026, the tightening of requirements for the “Business Manager” (経営・管理) residence status became a key topic of debate in Japan’s House of Councillors Committee on Judicial Affairs. Opposition lawmaker Sakura Uchikoshi urged Justice Minister Hiroshi Hiraguchi to restore the previous capital requirement, but the Minister firmly declined.
The change, enacted through a revised ministerial ordinance published in October 2025, raised the minimum capital requirement for foreign nationals starting a business in Japan from ¥5 million to ¥30 million—a sixfold increase.
When I first heard about this reform, my thoughts didn’t go to the legal details. It went to the people—the foreign business owners I’ve worked with over the years, the ones who built their companies from scratch in a country far from home.
This article provides a comprehensive overview of the background behind this policy change, its full scope of impact, the transitional measures in place, and the concrete, practical steps that foreign business owners and their employers should take right now. I’m writing this not just as a legal professional, but as someone who has stood alongside foreign entrepreneurs in Japan and seen firsthand how these changes affect people’s lives.
■ What Is the “Business Manager” Visa? A Clear Explanation of This Residence Status
The “Business Manager” visa allows foreign nationals to establish and operate a business in Japan or manage an existing enterprise. It is used by foreign entrepreneurs across a wide range of industries, including restaurants, trading companies, IT firms, and construction-related businesses.
Under the previous framework, the key requirements included:
- Capital of at least ¥5 million, or employment of at least two full-time staff members
- A physical office or place of business secured within Japan
- Demonstrated continuity and stability of the business
I often tell my clients: A visa is not a destination. It is the starting point—the foundation for building a business, a livelihood, and a life in Japan.
And that is exactly what so many foreign business owners have done. They have put down roots, created jobs, contributed to local economies, and become part of the fabric of communities across this country. When we talk about this visa category, we must never lose sight of the human beings behind the paperwork.
■ Why Were the Requirements Tightened? The Background Behind the ¥30 Million Capital Threshold
During the parliamentary session, Soichiro Naito, Deputy Commissioner of the Immigration Services Agency, explained the rationale for the stricter requirements.
First, Japan’s Business Manager visa requirements were considered relatively lenient compared to similar programs in other countries. Second, concerns had been raised that the system was being used as an immigration pathway rather than for genuine business purposes. Third, immigration reviews had uncovered cases where the so-called businesses had no actual operations.
In short, the capital requirement was raised substantially as a countermeasure against fraudulent use of the system, particularly the establishment of shell companies solely to obtain residence status.
Let me be straightforward here. As someone who works in this field every day, I know that some of these concerns are legitimate. There were cases of businesses with no real substance, nominal owners with no actual management involvement. These cases eroded trust in the entire system, and that is an unfortunate reality.
So the direction of reform—strengthening institutional integrity—carries a certain logic. I understand it.
But here is what troubles me.
Tightening a system because a minority abused it, while sweeping up the overwhelming majority who played by the rules—these are two very different things. Fixing the system and penalizing honest people should not be the same. And yet, for many foreign entrepreneurs, that is exactly what this feels like.
■ The Full Picture: It’s Not Just About Capital
One of the most overlooked aspects of this reform is that the capital increase is only part of the story. The revised requirements affect foreign business owners on multiple fronts. Here are the four key changes you need to understand:
① Capital: ¥5 million → ¥30 million
For corporations, this refers to paid-in capital. For sole proprietors, it refers to the total investment in business operations (office costs, employee salaries for one year, equipment, etc.). Capital reserves and retained earnings do not count.
② Full-Time Employee Requirement: Optional → Mandatory (1 or more)
Previously, the requirement was capital of ¥5 million or two full-time employees—a choice. Now, you need ¥30 million in capital and at least one full-time employee.
Importantly, eligible full-time employees are limited to: Japanese nationals, special permanent residents, permanent residents, spouses of Japanese nationals, spouses of permanent residents, and long-term residents. Foreign nationals on work visas typically do not qualify.
③ Japanese Language Requirement: Newly Added (B2 level / JLPT N2 or above)
Either the applicant or one of their full-time employees must demonstrate Japanese language proficiency at B2 level or above. This can be proven through:
- JLPT N2 or higher
- BJT Business Japanese Proficiency Test score of 400+
- 20+ years of long-term residence in Japan
- Graduation from a Japanese university or higher education institution
- Completion of compulsory education and high school in Japan
④ Mandatory Expert Evaluation of Business Plans
Business plans submitted with applications must now include an evaluation by a qualified expert such as a certified tax accountant, certified public accountant, or SME management consultant. At renewal, compliance checks on labor insurance, social insurance enrollment, and tax payment have also been significantly strengthened.
Taken together, this reform is not simply a financial hurdle. It is a comprehensive reassessment of what it means to be a legitimate foreign business operator in Japan—your business substance, your employment practices, your integration into Japanese society, and the soundness of your management. Understanding this full picture is essential for preparing effectively.
■ The Scale of Impact: 96% of Current Business Manager Visa Holders Fall Short of the New Standard
The figures cited during the parliamentary debate clearly illustrate the scale of this change.
Of all foreign nationals currently residing in Japan under the Business Manager visa, only approximately 4% meet the new ¥30 million capital threshold. This means that 96% of current visa holders do not satisfy the revised requirement.
Lawmaker Uchikoshi argued in the Diet: “Indian and Nepalese restaurants are thriving across the country. In times of rising prices, they offer delicious meals at reasonable prices. There are serious concerns that these establishments will be forced to close.”
As someone who has worked with foreign business owners for years, these words carry significant weight.
The potential impact extends far beyond restaurants. Foreign business owners in demolition, cleaning services, IT, and numerous other sectors that support local economies may all be affected.
And here is what we must never forget.
Many of these entrepreneurs have been dutifully paying taxes and social insurance premiums for years, raising their children in Japanese schools, and participating in local chambers of commerce. They are not statistics. They are people who chose Japan, committed to Japan, and became part of Japan.
Behind the number 96% are individual lives, individual stories, individual dreams. I work with regulations and legal frameworks every day, but I never lose sight of the fact that on the other side of every case file is a human being.
■ Transitional Measures: The Three-Year Grace Period and Case-by-Case Review Process
This is the most critical point. The Justice Minister outlined the following transitional measures during his parliamentary response:
【Transitional Measure 1: A Three-Year Grace Period】
The Minister stated explicitly that for three years from the effective date of the revised ordinance (until October 16, 2028), visa renewal applications will not be denied solely due to non-compliance with the new capital and other requirements.
In other words, foreign nationals currently holding a Business Manager visa will not immediately lose their ability to renew. A three-year window has been provided.
【Transitional Measure 2: Case-by-Case Assessment After Three Years】
After the three-year period, compliance with the new standard will in principle be required. However, even where the new threshold is not met, the following factors will be taken into account through a comprehensive, individualized assessment:
- The company’s financial and operational performance is sound
- Corporate tax and other obligations have been properly fulfilled
- There is a reasonable prospect of meeting the new standards by the next renewal
This means that even if you haven’t reached ¥30 million after three years, continued residence may still be possible if your business is stable and your tax record is clean.
Now let me share what I really think.
Reading about the three-year grace period, you might feel a sense of relief. “Three years—that’s plenty of time.”
I understand that feeling. But I need to be honest with you: having time and having nothing to do are two very different things.
From my years of experience handling these cases, I can tell you with certainty: Immigration doesn’t just look at whether you’ve met the standard after three years. They look at whether you are genuinely working toward it right now.
People who start preparing from day one and people who wait until the last minute end up with fundamentally different outcomes at renewal. I have seen this pattern play out again and again. It is not a guess—it is a fact.
■ Seven Steps Foreign Business Owners Should Take Right Now
How you use this three-year period will determine the future of your residence in Japan. Based on my practical experience—and specifically, what immigration authorities actually evaluate—here are the concrete steps I recommend.
【Step 1: Make Your Business Substance Visible and Verifiable】
Maintain proper accounting records, manage contracts systematically, and ensure that all business transactions are documented in writing. Photographs of your office, records of client meetings, delivery receipts—every piece of evidence demonstrating that your business is genuine matters.
When immigration conducts an individualized review, the key question is: “Is this business genuine?” The answer needs to be obvious from your documentation. Day-to-day diligence in record-keeping is what will protect you three years from now.
【Step 2: Ensure All Taxes and Social Insurance Premiums Are Paid—With Zero Arrears】
Corporate tax, consumption tax, resident tax, social insurance premiums—timely payment of every obligation will be one of the single most important factors in the case-by-case assessment after the grace period.
If you have any arrears, resolve them immediately. I know this sounds harsh, but “I’ll catch up later” does not work in immigration reviews. This is essential.
【Step 3: Establish a Full-Time Employment Structure】
This is a newly mandated requirement. You must employ at least one full-time staff member who is a Japanese national, permanent resident, or holder of another eligible residence status.
“Full-time” has specific criteria: at least 5 working days per week, 217+ working days per year, 30+ working hours per week, and enrollment in employment insurance. Superficial employment arrangements will not pass scrutiny. Immigration is looking for genuine, substantive employment relationships.
【Step 4: Develop a Phased Capital Increase Plan】
You do not need to reach ¥30 million overnight. What matters is that you have a credible, concrete plan to get there. Actively working toward compliance is itself a powerful signal to immigration.
Options might include reinvesting annual profits into capital, bringing in new investors, or restructuring your corporate finances. Which approach works best depends entirely on your specific situation.
【Step 5: Rebuild Your Business Plan With Professional Input】
Prepare a fresh business plan covering the next three to five years. Revenue projections, hiring plans, capital investment schedules—concrete numbers, not vague aspirations—make your case compelling.
Under the new rules, business plans must include evaluation by a qualified expert (certified tax accountant, CPA, or SME management consultant). It is advisable to begin this collaboration early. A well-crafted business plan is not just paperwork—it is your strongest argument for renewal.
【Step 6: Secure Your Japanese Language Certification Early】
Either you or your full-time employee must demonstrate Japanese proficiency at JLPT N2 level or equivalent. Testing opportunities are limited to a few times per year. Three years may sound like a long time, but if you miss exam windows, you may find yourself running out of time.
Plan your exam schedule now. Don’t leave this for the final year.
【Step 7: Talk to a Specialist Who Will Understand Your Specific Situation】
This is the last step on this list, but in many ways, it is the most important.
Immigration matters are deeply individual. Your business size, industry, length of residence, family situation, tax history—every factor is different. The general information you find online or through AI tools may not apply to your case at all.
This does not mean handing everything over to an expert. You know your own reality better than anyone. What I am saying is: share your situation with someone who understands the system, and together, figure out the best possible path within the rules as they stand.
That is how I see my role—not as someone who fills out forms on your behalf, but as someone who walks alongside you toward your goals.
■ What Employers and HR Managers Should Watch For
This policy change affects not only foreign business owners themselves but also companies that employ or do business with foreign nationals.
If a foreign business owner who is one of your key partners or suppliers loses their residence status, the ripple effects may impact your operations. If your company directly employs someone under a Business Manager visa, their renewal situation is now your concern as well.
Moreover, the reforms introduce several points that directly implicate the employer side:
Four Priorities for Companies
① The mandatory full-time employment requirement means that your company’s employment practices and compliance—labor insurance, social insurance enrollment, employment contract standards—are now under closer scrutiny.
② Regularly verify the residence status and expiration dates of all foreign employees and business partners. Last-minute action often leads to preventable problems.
③ Build a system for staying current on regulatory changes. The trend toward stricter requirements may not stop at the Business Manager visa. Other residence categories could face similar revisions as Japan’s overall immigration framework continues to evolve.
④ Establish a relationship with an immigration specialist before problems arise—not after. The earlier you engage, the more options you have and the better the outcomes tend to be.
Foreign talent is no longer optional for Japanese businesses—it is a strategic necessity. Rather than treating regulatory change as something that happens to you, take the initiative to work within the framework and find the best path forward. That mindset itself is a competitive advantage.
■ Issues Raised in the Diet: Fairness and Multicultural Coexistence
The parliamentary debate also raised important questions about fairness.
Lawmaker Uchikoshi argued: “A Japanese corporation can be established with just ¥1 in capital. If the goal is to combat shell companies, that should apply equally to Japanese and foreign nationals. Imposing such an exorbitant requirement exclusively on foreign nationals is unreasonable.”
The Immigration Services Agency responded: “Under customary international law, a state has broad discretion in deciding whether to admit foreign nationals and what conditions to attach to their admission.”
This debate touches on a fundamental question about the direction of Japan’s immigration policy.
Let me share my personal perspective.
I believe that supporting foreign nationals is not just a professional service—it is a mission. I have met countless people who came to Japan, pushed through language barriers and cultural differences, built businesses from nothing, and fought to become part of their communities. That effort has real value—not just for those individuals, but for Japanese society as a whole.
Regulation is necessary. Abuse of the system is unacceptable. But regulation and exclusion are not the same thing. I believe, from the bottom of my heart, that the people who have done things right deserve a system that recognizes their contribution.
That said, regardless of how this policy debate evolves, the most practical thing you can do right now is work within the system as it exists today. Political discussions are important, and they deserve our attention. But while those debates unfold, your visa expiration date keeps getting closer.
Start with what you can do today. That is the most reliable way to protect your business and your life in Japan.
■ Conclusion: To Everyone Feeling Uncertain Right Now
The Business Manager visa reform—raising the capital requirement from ¥5 million to ¥30 million, mandating full-time employment, adding Japanese language requirements, and requiring expert evaluation of business plans—represents a significant shift for foreign entrepreneurs in Japan. The anxiety is understandable and entirely valid.
But the three-year transitional period is real. The commitment to individualized assessment is on record from the Justice Minister himself.
What matters now is using these three years for preparation, not inaction:
- ✅ Organize documentation that proves the substance of your business
- ✅ Ensure zero arrears on all taxes and social insurance premiums
- ✅ Build a compliant full-time employment structure
- ✅ Develop a concrete, phased capital increase plan
- ✅ Rebuild your business plan with professional expert input
- ✅ Secure Japanese language certification on schedule
- ✅ Connect with a specialist who understands your individual situation
One final thing I want to say to you directly.
I do not promise everyone that everything will be fine. I won’t do that. The law is the law, and there are limits to what any professional can do within it. Making promises I can’t keep would ultimately hurt the very people I’m trying to help—and that goes against everything I believe in.
But if there is even a slim possibility, I will do everything possible to pursue it.
Your business size, your industry, your years in Japan, your family, your tax record—I will look at all of it, and together, we will figure out what the best path forward looks like for you, specifically. Not generic advice. Not one-size-fits-all answers. Your situation. Your solution.
What I do is not fill out paperwork on someone’s behalf. What I do is work alongside clients toward their goals, through the complexity, for as long as it takes.
“What does this mean for my case?”
Let me help you answer that question. Let us work through this together.
This article is based on information available as of April 15, 2026. The specifics and implementation of the regulations may change, so please consult a qualified professional for the most up-to-date guidance.
References: https://www.sankei.com/article/20260415-YJYPBJXV2NGLNBYPXIQAJENAAM/
