- A Significant Shift Is Coming for One-Person Companies
- What Is Currently Expected to Change?
- Who Counts as a “Qualifying Employee”? — The Details Matter
- Why Is Japan Moving in This Direction?
- Who Is Most Affected — and Who Is Less Urgently Affected
- The Hidden Complexity: Hiring Someone Takes Longer Than It Looks
- A Practical Action Plan — By Year
- Frequently Asked Questions
- How Our Office Can Help
- The Bottom Line
A Significant Shift Is Coming for One-Person Companies
If you’re running a company in Japan on a Business Management Visa (Keiei Kanri visa) and you’re the only person working in that company, a meaningful rule change is on the horizon — and the preparation window is shorter than it might appear.
For renewal applications filed on or after October 16, 2028, the Business Management Visa framework is expected to require that applicants have at least one qualifying full-time employee at their company. That employee must be a Japanese national, a Special Permanent Resident, or a foreign national holding a status based on personal status or family relationship — such as Permanent Resident, spouse of a Japanese national, or Long-Term Resident.
If your company currently has no employees who meet that description, your renewal application filed on or after that date is likely to face significant difficulties.
This change has been widely described in practitioner guidance as a scheduled shift, with a transitional period ending in October 2028. Individual circumstances, operational details, and any transitional measures announced closer to the implementation date may affect how this applies in specific cases — which is precisely why starting your preparation now, rather than in 2027, is the prudent approach.
This article explains what the expected change actually involves, who is likely to be most affected, what “qualifying employee” means in practice, why Japan is moving in this direction, and — most importantly — what you can do during the transitional period to protect your long-term residency status.
What Is Currently Expected to Change?
The Current Framework
Under the current Business Management Visa renewal framework, there is no explicit minimum employee headcount written into the standard requirements. Immigration officers do assess whether a business has genuine substance — reviewing revenue, operational activity, office premises, and overall indicators of a functioning enterprise — but a solo-director structure, where the foreign national serves as the company’s sole representative and primary worker, has generally been a workable model.
Many foreign entrepreneurs in Japan have built their businesses exactly this way: a lean, focused operation where one person handles everything. It is a common structure, and until now, it has generally been compatible with visa renewal.
What Is Expected From October 16, 2028 Onward
For renewal applications filed on or after October 16, 2028, practitioners widely anticipate that the following requirement will apply:
At least one full-time employee who is a Japanese national, Special Permanent Resident, or a foreign national with a status based on personal status or relationship (e.g., Permanent Resident, spouse or child of a Japanese national or Permanent Resident, Long-Term Resident) — employed under a genuine, continuous employment contract.
Renewal applications that do not meet this standard are likely to be refused or face significantly increased scrutiny. Given the direction of policy and the practitioner consensus around this change, treating it as a planning baseline is the responsible approach for any solo-director company whose next renewal falls on or after that date.
Who Counts as a “Qualifying Employee”? — The Details Matter
This is an area where assumptions tend to diverge from actual requirements. Not every employee will satisfy the coming standard. Here is a breakdown of the key parameters.
Residence Status: Who Is Generally Considered to Qualify
The employee is generally expected to need one of the following statuses:
| Status | Description |
|---|---|
| Japanese National | Japanese citizen |
| Special Permanent Resident (特別永住者) | Long-term foreign residents under special post-war categories |
| Permanent Resident (永住者) | Foreign nationals who have been granted permanent residency |
| Spouse or Child of a Japanese National (日本人の配偶者等) | Foreign nationals married to or adopted by a Japanese citizen |
| Spouse or Child of a Permanent Resident (永住者の配偶者等) | Foreign nationals married to or whose parent is a permanent resident |
| Long-Term Resident (定住者) | Certain categories of designated long-term foreign residents |
These statuses are often grouped together by practitioners under the label “status based on personal status or family relationship” — sometimes informally referred to as 身分系 (mibun-kei) visas. They share the characteristic of not being tied to a specific job type or employer, which is what distinguishes them from standard work visas.
Who Is Generally Not Considered to Qualify
This is the point that tends to catch people off guard.
Foreign nationals working in Japan on standard employment-based visas — such as Engineer/Specialist in Humanities/International Services (Gijinkoku), Skilled Labor, or similar categories — are generally not treated as qualifying employees for this specific requirement.
The residency status, not the nationality or employment duration, is what determines whether someone counts. A highly valued foreign employee who has worked at your company for years on a standard work visa would generally not satisfy this requirement, regardless of their contribution to the business.
This has practical implications for foreign entrepreneurs who have built internationally diverse teams. A company with several well-established foreign employees on work visas may appear well-staffed, but may still need to hire at least one person with qualifying residency status in order to meet the expected new requirement.
What Counts as “Full-Time”?
The employment must be genuine, continuous, and full-time in nature. The practical benchmark used in most employment compliance contexts is approximately 30 or more scheduled working hours per week, broadly consistent with the threshold for standard enrollment in employment insurance (koyo hoken) as an insured worker.
The following arrangements are generally not considered to satisfy a full-time employment standard:
- Part-time employment below approximately 30 hours per week
- Freelance, independent contractor, or commission-only arrangements
- Short-term, seasonal, or project-specific contracts
- Nominal employment arrangements that are not backed by genuine working hours and payroll records
The underlying principle is straightforward: immigration authorities are looking for evidence of a genuine, ongoing employer-employee relationship — not a contractual structure created specifically to satisfy a compliance checklist.
Why Is Japan Moving in This Direction?
Understanding the policy logic behind a rule change helps calibrate how seriously it should be taken and how it is likely to be applied in practice.
The Core Policy Concern
Japan’s Business Management Visa has historically been relatively accessible compared to entrepreneur visa programs in many other countries. Over time, a pattern emerged that concerned policymakers: companies nominally qualifying under the business management framework but contributing minimally to the Japanese economy — few or no employees, limited revenue, minimal operational footprint.
The intent of the visa — to bring genuine entrepreneurial energy and economic contribution to Japan — was not always being realized in practice.
Requiring at least one qualifying full-time employee is a way of establishing a minimum threshold of real economic participation. A company that employs a Japanese national or permanent resident as a genuine full-time worker is, by definition:
- Generating sufficient revenue or capital to support employment costs
- Fulfilling the legal obligations that come with being an employer in Japan — payroll, labor contracts, social and labor insurance
- Operating at a scale that more credibly justifies the ongoing presence of a foreign national in a management role
- Demonstrably functioning as an employer, not merely as a registered legal entity
The Broader Policy Direction
The October 2028 employment requirement does not exist in isolation. It is part of a broader policy current that has been shaping Business Management Visa practice for several years. Recent practice trends and post-2025 documentation expectations increasingly emphasize proof of proper tax and social insurance compliance — reflecting a shift toward substance-based, compliance-oriented assessment of renewal applicants.
The message running through all of these changes is consistent: the Business Management Visa is intended for people who are genuinely running real, compliant, economically active businesses in Japan. Demonstrating that credibly requires more than it used to.
Who Is Most Affected — and Who Is Less Urgently Affected
You Are Likely Most Directly Affected If:
- Your company currently has no employees at all
- Your company employs only foreign nationals on standard employment-based work visas
- Your company employs family members informally, without proper employment contracts or payroll documentation
You Are Likely Less Urgently Affected If:
- You already have at least one full-time Japanese national or permanent resident on a genuine, documented employment contract
- You are actively in the hiring process and expect to bring a qualifying employee on board well before October 2028
The Overlooked Middle Case
One group that deserves particular attention — and may not immediately recognize their exposure — is foreign entrepreneurs who employ internationally recruited staff, all on valid employment-based work visas. These are genuine, operating businesses with real employees. But under the expected new framework, employing only work-visa holders would generally not satisfy the qualifying employee requirement, regardless of headcount or tenure.
The Hidden Complexity: Hiring Someone Takes Longer Than It Looks
One of the most common misconceptions about this issue is that it can be addressed by simply hiring someone in 2027 or early 2028. The reality is that building the employment track record that would meaningfully support a renewal application takes considerably more time than the hiring process alone.
Here is a realistic breakdown of what the full process involves:
Stage 1: Recruitment (1–3 months, sometimes longer)
For a small or solo-run foreign-owned company in Japan, finding a suitable candidate — someone with qualifying residency status, the right skills, and a genuine interest in the role — can take anywhere from one to several months. Job posting, applicant screening, interviews, offer negotiation, and acceptance all take time.
Stage 2: Notice Period and Onboarding (3–6 weeks)
In Japan, it is common for employees to observe a one-month notice period at their current employer. After acceptance, there is typically a transition period before the person actually begins work, followed by an onboarding phase.
Stage 3: Labor and Social Insurance Enrollment (Immediately upon hiring — no delay is appropriate)
As soon as a full-time employee joins your company, you are legally required to enroll them in Japan’s labor and social insurance programs:
- Employment Insurance (Koyo Hoken) — registered via Hello Work
- Workers’ Accident Compensation Insurance (Rosai Hoken) — registered via the Labor Standards Inspection Office
- Health Insurance (Kenko Hoken) — registered via the Japan Pension Service
- Employees’ Pension (Kosei Nenkin) — registered via the Japan Pension Service
Delayed or missed enrollment is a compliance violation in its own right, and the resulting gaps in insurance records can negatively affect your visa renewal. These procedures involve multiple government offices and specific documentation requirements; for a company setting up these systems for the first time, you will often need support from a Social Insurance and Labor Consultant (sharoushi / 社会保険労務士) — ideally one with English-language capability.
Note on professional scope: Administrative scriveners (gyosei shoshi / 行政書士) — the professionals who prepare and submit immigration applications — are not authorized to handle labor and social insurance enrollment procedures. These two professional roles are complementary but distinct. Our office can refer you to an English-speaking sharoushi who can handle the enrollment side.
Stage 4: Building a Documented Employment History (3–6+ months)
Having just hired someone is a starting point, not a conclusion. In assessing a renewal application, immigration reviewers will generally look for evidence that the employment relationship is stable, genuine, and ongoing — not freshly created in the weeks before an application deadline.
The more established and documented the employment history at the time of your application, the more credibly it supports your case.
The realistic planning horizon: From beginning the hiring process to having a well-documented, credible employment track record, you are looking at approximately 9 to 12 months, sometimes longer. For a renewal application due in October 2028, the practical recommendation is to begin the hiring process no later than early to mid-2027 — and ideally to be thinking about it now, in 2026.
A Practical Action Plan — By Year
2026: Audit and Plan
Begin with an honest assessment of your current situation:
- Does your company have any employees at all? If yes, what are their residence statuses and employment terms?
- If you have employees on standard work visas only, your company would generally not meet the expected new requirement without additional hiring.
- If you have no employees, hiring is something you need to plan for — not defer.
This is also the right time to consult a qualified immigration professional about your specific renewal schedule and circumstances. The interaction between your next renewal date, the October 2028 threshold, and your current employment situation may call for a tailored strategy.
2027: Act
By mid-2027 at the absolute latest, recruitment should be actively underway. Once a qualifying employee joins your company, ensure that labor and social insurance enrollment is completed promptly and correctly, with proper documentation maintained from day one.
Keeping careful records — employment contracts, payroll history, social insurance enrollment confirmations, and premium payment documentation — will matter when your renewal application is being assessed.
2028: Prepare Your Full Application Package
In addition to demonstrating qualifying employment, your renewal application is likely to require comprehensive compliance documentation. Recent practice trends and post-2025 documentation expectations around Business Management Visa renewals increasingly emphasize proof of proper insurance and tax compliance, including:
- Labor insurance premium payment documentation
- Social insurance premium payment confirmation
- Corporate and consumption tax payment certificates
Certificate acquisition takes time — multiple agencies are involved, processing is not always immediate, and regional offices vary in their turnaround. Build this into your planning several months in advance.
Frequently Asked Questions
“Can I make my Japanese spouse a director of my company and have them count as the qualifying employee?”
Corporate officers — including directors — are generally not treated as employees for this purpose, regardless of whether they receive director compensation. The requirement is understood to apply specifically to workers employed under an employment contract (koyo keiyaku), not corporate officers. Individual circumstances may vary, and this is worth discussing with your immigration professional.
“I have a part-time Japanese staff member. Does that satisfy the requirement?”
Probably not, based on current practitioner understanding. Employment below approximately 30 scheduled hours per week is generally not considered to meet a full-time employment standard for this purpose.
“What if the employee I hire leaves the company before my renewal application?”
Employment instability close to a renewal application is likely to raise questions. Building a genuine, stable employment relationship — rather than one created solely to satisfy a visa requirement — is the more sustainable and more credible approach.
“My company employs several foreign nationals on work visas. None of them are permanent residents. Am I in a difficult position?”
Based on current practitioner guidance, foreign nationals on standard employment-based work visas are generally not treated as qualifying employees under the expected new requirement. Regardless of headcount or tenure, you would likely need to hire at least one person with qualifying residency status.
“My renewal falls in late 2028. Can I submit just before the October 16 cutoff under the current rules?”
This depends on the specific timing of your renewal and the application submission date. This is exactly the kind of question that requires individualised professional advice — do not assume a timing strategy will work without confirming it with your immigration professional.
How Our Office Can Help
Our office provides the following services for Business Management Visa holders navigating this transitional period:
✅ Business Management Visa Renewal Application We prepare and submit your complete renewal application package, including all documentation required under current and anticipated future requirements.
✅ English-Speaking Social Insurance Labor Consultant Referral If your company needs to establish labor and social insurance systems for a new employee — or review the adequacy of existing enrollment — we can connect you with a trusted, English-capable sharoushi from our professional network.
✅ Insurance Certificate Acquisition We handle obtaining labor insurance and social insurance payment documentation on your behalf, bundled with your visa renewal service.
✅ Tax Certificate Acquisition We obtain your full set of tax payment certificates from the Tax Office as part of the same service package.
✅ Compliance Status Review Unsure where your company currently stands? We offer a structured review of your insurance enrollment, payment history, and employment status — giving you a clear picture of what needs to be addressed before your renewal.
💡 First consultation is free. English supported.
The Bottom Line
October 16, 2028 is not as far away as it looks on a calendar.
Between identifying the right hire, completing onboarding, setting up compliant insurance enrollment, and building the employment track record that an immigration reviewer will find credible, the realistic preparation horizon is 12 to 18 months. That window is open now.
The foreign entrepreneurs who navigate this transition smoothly will be those who engage with it early, get tailored professional guidance, and approach compliance not as a bureaucratic obstacle but as the foundation of their continued business life in Japan.
If your company currently has no qualifying full-time employees, this is the moment to start planning — not waiting.
