1. Introduction: Why the “Management” visa Is Changing

In 2025, the Japanese government announced a major overhaul of the Status of Residence “Management,” which allows foreign entrepreneurs and executives to operate businesses in Japan.
The capital requirement will increase from 5 million yen to 30 million yen, while the employment requirement will be eased from two or more Japanese employees to at least one.
The change comes in response to repeated abuse of the system, including fraudulent applications and the creation of paper companies.

2. Specific details of the revision

Capital Requirement: 5 million yen → 30 million yen

  • Employment requirement: From two or more Japanese employees to at least one.
  • Implementation timeline: Expected by 2025 through ministerial ordinance.
  • Exceptions: Holders of Startup and Future Creation Individual Visas can still transition under the current criteria.

3. Why the capital requirement is being raised

Under the current system, the relatively low capital threshold meant that applicants with no long-term business commitment could qualify.
Compared to similar programmes abroad, such as South Korea’s Immigrant Investor Programme, Japan’s 5-million-yen requirement has been low.
Raising the threshold is intended to strengthen programme integrity and attract serious business operators.

4. Examples of Abuse and Their Impact

  • Establishing paper companies
  • Setting up short-term rental (minpaku) operations just to meet the criteria.
  • Submitting false financial statements for non-existent car dealerships

In July 2024, a Sri Lankan national was arrested for allegedly facilitating fraudulent applications. Authorities believe that around 600 dummy companies were involved, with victims paying brokers to secure residency status.

5. Key considerations for business owners

If you plan to hire or promote foreign nationals into executive roles using the “Management” status of residence, the capital requirement will be unavoidable.
This means that reviewing capital structures and business plans in advance is critical.
You should also evaluate the alternative routes — the Startup Visa and the Future Creation Individual Visa — for strategic flexibility.

6. Impact on Foreign Entrepreneurs

While the new 30-million-yen requirement may seem steep, Japan remains attractive due to the absence of language and age restrictions.
The reform could also encourage a more serious and committed group of entrepreneurs to enter the market.

7. What You Can Do Before the Change

  • Prepare and apply under the current 5-million-yen requirement
  • Gather necessary documentation early (business plan, incorporation papers, capital proof)
  • Consult a qualified immigration or legal professional to secure your timeline

8. Strategies After the Revision

  • Develop long-term business and capital investment strategies
  • Plan early recruitment for Japanese employees
  • Explore other residency categories such as Highly Skilled Professional or Intra-company Transferee status

9. Professional Insight

While reforms may seem restrictive, they also create opportunities for credible entrepreneurs.
Stricter requirements will help build a trustworthy business environment and improve the credibility of foreign-led companies in Japan.

10. Conclusion

The upcoming reform to the Status of Residence “Management” will have significant implications for both foreign entrepreneurs and companies employing foreign executives.
However, with proper planning and accurate information, this regulatory shift can be turned into a springboard for business growth.
Early action and collaboration with professionals will be key to success.

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