[IMPORTANT] New Standards Apply to Renewals as Well – Grace Period is Only 3 Years

As a matter of Immigration Bureau policy, it has been made clear that from October 16, 2025 onwards, the new standards will apply not only to new acquisitions but also to visa renewal applications.

In other words, even those who currently already hold Business Manager visas must satisfy all of the following four requirements by October 2028 at the latest, or they risk having their renewal denied and losing their status of residence in Japan.

1. Registered capital of 30 million yen or more
2. At least one full-time employee who is a Japanese national or permanent resident
3. Japanese language proficiency of N2 or higher (either the business owner or employee)
4. Securing an independent office

October 2028 is Effectively the “Deadline”

The current period of stay for Business Manager visas is typically 1 year, 3 years, or 5 years.

Even if someone held a 5-year period of stay as of October 2025, their next renewal would be in 2030, at which point the new standards would certainly apply.

However, in reality, many Business Manager visa holders have periods of stay of 1 year or 3 years, and will face renewal application timing by October 2028 at the latest.

In other words, the effective grace period is only about 3 years.

This is a Shock Equivalent to “Visa Revocation”

As a certified administrative scrivener specializing in visa applications and immigration services for foreign nationals for many years, I have supported numerous Business Manager visa cases.

In immigration practice until now, the concept of “protection of vested rights” has been respected to a certain degree. That is, even when systems changed, it was customary to establish transitional measures and mitigation policies to avoid sudden impacts on those who already held visas.

However, this revision demonstrates an extremely strict stance of applying new standards mercilessly even to existing visa holders.

This is essentially equivalent to a notice stating, “Business owners whose current business operations do not meet the new standards must leave Japan within three years.”

Business Owners Who Will Be Particularly Affected

Those holding Business Manager visas in the following situations must begin taking action immediately, or renewal will become extremely difficult.

Those who established their company with 5 million yen capital → Capital increase of 25 million yen required

Those not employing workers, or only family members or student part-timers → Hiring a Japanese national or permanent resident as a full-time employee is essential

Those operating businesses from a home office → Relocation to an independent office is necessary

Business owners whose Japanese is not at business level (employees also without N2) → JLPT N2 acquisition, or hiring someone with N2 certification is essential

Meeting these requirements demands significant time and cost for fundraising, personnel recruitment, office relocation, and language study.

If you procrastinate thinking “I’ll deal with it eventually,” you’ll run out of time at renewal and face the extremely serious situation of being unable to continue your business in Japan.

Purpose of This Article: To Create a Sense of Urgency and Begin Preparations Immediately

This article provides detailed explanations from a practical perspective on the background of each requirement and what preparations will be necessary.

In particular, we will focus on what countermeasures those who already hold Business Manager visas should take for their next renewal.

This issue is absolutely not someone else’s problem.

If you yourself, or someone you know, is staying in Japan on a Business Manager visa, you need to begin preparations from this very moment.

[Requirement 1] The Corporation’s Registered Capital Must Be 30 Million Yen or More

Comparison with Previous Standards: 6 Times the Fundraising Required

Previously, acquiring a Business Manager visa required registered capital of 5 million yen or more as a minimum standard. This amount was within a realistic range even for foreign entrepreneurs, and in most cases could be prepared through personal savings or assistance from relatives.

However, from October 16, 2025 onwards, a minimum of 30 million yen in registered capital will be required. This is six times the previous level, and cannot be called a mere “increase”—it is effectively a major raising of the barrier to entry.

Why 30 Million Yen? – The Immigration Bureau’s Underlying Intent

The background to this change is the concept that financial capability = execution capability and employment creation capability.

The Immigration Bureau was aware that many companies established with 5 million yen in fact had minimal business activities and remained “self-employed businesses” for the business owner to earn living expenses. Additionally, there were many cases where businesses started without sufficient operating capital, leading to early management difficulties and inability to renew visas.

Therefore, the Immigration Bureau significantly raised the objective indicator of registered capital to select “companies with the will and ability to seriously invest in Japan and create employment.”

[Impact on Existing Visa Holders] Capital Increase Procedures Become Mandatory

For those who have already established companies with registered capital of around 5 million to 10 million yen and hold Business Manager visas, this requirement represents an extremely heavy burden.

Capital increases require the following procedures:

Resolution at shareholders’ meeting Determining the details of the capital increase (amount, number of new shares issued, recruitment method, etc.)

Payment of investment funds Depositing funds from new investors into the company’s account

Registration application Registering the capital change at the Legal Affairs Bureau (recommending delegation to a judicial scrivener)

Amendment of financial statements Reflecting the post-increase capital in the balance sheet

Creation of explanatory materials for Immigration Detailed explanation of the circumstances of the capital increase, relationship with investors, source of funds, etc.

Risks and Precautions Associated with Capital Increases

Capital increases are not mere “number manipulations.” There are risks and precautions such as the following:

1. Changes in investor rights relationships The addition of new shareholders may dilute management control. Particularly when bringing in external investors, shareholder agreements must be carefully drafted.

2. Sources of funds are strictly scrutinized Documents proving “where the funds were procured from” (remittance records, gift agreements, loan agreements, etc.) are essential. Unclear funding sources will raise serious doubts in immigration review.

3. Operating capital plan after capital increase is necessary Rather than leaving the increased capital as “show money,” you must demonstrate a plan to invest it in actual business activities.

Practical Barriers: Diversification of Procurement Methods is Essential

The amount of 30 million yen in registered capital is extremely difficult to prepare individually. In practice, the following procurement methods need to be combined:

• Personal savings: Deposits that can be proven as own funds
• Investment from relatives/acquaintances: Investment contracts and remittance proof required
• Fundraising from third-party investors: Angel investors, VCs, overseas investors, etc.
• Capital partnerships with co-investors: Multi-person corporate establishment, or acceptance of investment in existing corporations

Advice as an Administrative Scrivener

Among the cases I have supported, there are many instances of disapproval due to deficiencies in fundraising documentation. I strongly recommend the following preparations:

Arrange contracts with investors in advance When there are multiple investors, create a shareholder agreement that clarifies investment ratios, voting rights, dividend policies, etc. Immigration strictly checks whether “the investment was actually made” and “is it not just name lending.”

Ensure transparency of remittance routes For remittances from overseas, obtain bank remittance certificates (Swift Copy, etc.) and have the remittance purpose clearly stated as “investment capital.”

Pay attention to capital increase procedures at registration When conducting capital increases after company establishment, procedures such as payment certificates, shareholder meeting minutes, and capital change registration become complex. Consider collaboration with judicial scriveners and complete the capital increase at an appropriate timing.

“Temporary borrowing” of funds is strictly prohibited Acts such as temporarily borrowing capital as show money and repaying it after application will, if discovered, result in immediate disapproval and adversely affect future applications.

[For existing visa holders] Complete capital increase at least 1 year before next renewal Capital increase procedures may take several months. If you hurriedly increase capital just before renewal application, there is a risk of being judged as “lacking substance.” Ideally, complete the capital increase at least one year before renewal and demonstrate actual business expansion results using those funds.

[Requirement 2] At Least One Full-time Employee is Required, and They Must Be “Japanese or Permanent Resident”

Simply “Having Employees” is Not Enough – Personnel Without Work Restrictions Are Essential

Even under the previous Business Manager visa, there was a choice between “2 or more full-time employees” or “registered capital of 5 million yen or more,” but in reality, capital was often chosen, and the actual employment of workers was not heavily emphasized.

However, under the new standards, it is essential to employ at least one person from “Japanese nationals, permanent residents, long-term residents, special permanent residents, etc.—personnel without work restrictions.”

In other words, the following cases are not recognized:

• Student part-timers (due to 28-hour weekly restriction)
• Technical intern trainees (due to limited work content)
• Spouses on dependent visas (requiring permission to engage in activities outside status of qualification)
• Nominal employees who are relatives of the business owner but not actually working

Background: Ensuring Actual Employment Creation and Eliminating “Nominal Companies”

The reason Immigration imposed this requirement is clear.

It is to determine “whether the company is truly operating a business and contributing to Japanese society.”

In fact, in previous examinations, there were frequent false reports such as “employees supposedly exist but are not actually working” and “no actual salary payment.” Therefore, Immigration aims to eliminate paper companies by requiring proof of actual employment.

[Impact on Existing Visa Holders] Business Owners Running Operations Alone Must Be Cautious

For those who have been operating businesses alone or with family members only, this requirement represents an extremely significant change.

Particularly, those in the following situations need to begin recruitment activities immediately:

• Business owners running operations alone
• Those whose spouse (dependent visa) is helping but is not a formal employee
• Those employing student part-timers but no full-time employees
• Those with only foreign national employees and no Japanese/permanent residents

Practical Challenges: Personnel Acquisition is Extremely Difficult for Newly Established/Small-scale Businesses

For newly established companies or small-scale businesses, securing appropriate personnel is extremely difficult in practice. The following points are particularly barriers:

• Recruitment costs: Job advertising fees, personnel agency fees, etc.
• Continuity of salary payments: Need to prepare at least several months’ worth of salaries in advance
• Social insurance enrollment obligations: Employer burden for health insurance and employees’ pension arises
• Labor management systems: Establishing labor contracts, work rules, attendance management, etc. is essential

What “Documentation of Actual Employment” Does Immigration Require?

Immigration review requires submission of documents such as the following:

• Employment contract (with employment period, job description, and salary amount clearly stated)
• Salary statements (bank transfer records showing actual payment)
• Social insurance enrollment certificates (qualification acquisition confirmation notices for health insurance and employees’ pension)
• Resident certificates (proof that employees actually reside in Japan)
• Residence card copies (for permanent residents)
• Attendance records/time sheets (proof of actual work attendance)

If these documents are not complete, there is an increased possibility of being judged as “lacking substance” and being disapproved.

Advice as an Administrative Scrivener

Enter into preliminary employment agreements with prospective employees Ideally, begin recruitment activities before company establishment and prepare to conclude employment contracts simultaneously with establishment.

Consider utilizing personnel agencies and Hello Work By utilizing reliable personnel agencies or Hello Work offices understanding of foreign employment, you can increase the possibility of meeting appropriate personnel.

Ensure continuity of salary payments Secure sufficient operating capital to demonstrate at least 6 months of salary payment records. Immigration is watching “whether there is truly intent to employ continuously.”

Collaborate with labor management specialists By collaborating with social insurance and labor consultants to properly establish employment contracts, work rules, salary calculations, etc., credibility in immigration review increases.

[For existing visa holders] Establish employment record at least 6 months before renewal Even if you hurriedly hire employees just before renewal application, it will be suspected as “show employment.” Begin employment at least 6 months before renewal and accumulate records of salary payments, social insurance enrollment, and actual job performance.

[Requirement 3] Proof of Japanese Language Ability: Either Full-time Employee or Business Owner Must Have Japanese N2 or Higher

Japanese Language Ability Becomes a “Prerequisite” for Management

Until now, Japanese language ability was positioned as “advantageous if present” in Business Manager visa review. However, under the new standards, “either full-time employee or business owner must possess JLPT N2 or higher Japanese language ability” becomes essential.

The background to establishing this requirement includes the following concerns:

• Smooth administrative procedures: Tax returns, social insurance procedures, licensing applications, etc. must be conducted in Japanese
• Smooth communication with business partners and customers: Japanese is essential for contract negotiations, complaint handling, sales activities
• Cooperation with local communities: Japanese ability is required for building relationships with neighboring residents, chambers of commerce, and local governments

Target: Either Business Owner or Full-time Employee

The point of this requirement is that even if the business owner does not have N2, it is satisfied if a full-time employee has N2 or higher.

In other words, the following two patterns are conceivable:

Pattern A: Business owner holds N2 or higher

• Submit JLPT N2 or higher certificate of passing
• Graduates of Japanese universities/graduate schools may also be recognized as having certain Japanese ability

Pattern B: Full-time employee holds N2 or higher

• Automatically cleared when employing Japanese employees
• When employing foreign national employees such as permanent residents or long-term residents, those employees need to possess N2 or higher

[Impact on Existing Visa Holders] Japanese Study May Not Be Completed in Time

Among those already holding Business Manager visas, many can speak conversational-level Japanese but have not reached business level/N2 level.

JLPT N2 is defined as a level where one “can understand Japanese used in everyday situations, and can understand Japanese used in a wider range of situations to a certain degree,” and typically requires 800-1,000 hours or more of study.

When the grace period until renewal is only 1-3 years, there is sufficient possibility that study will not be completed in time.

Practical Impact: An Extremely High Hurdle for Foreign Entrepreneurs

Particularly for foreign entrepreneurs who came to Japan from overseas, this requirement is extremely stringent.

While occupied with business startup and operations, advancing Japanese language study in parallel is not easy.

How to Prove Japanese Language Ability?

Methods for proving Japanese language ability recognized by Immigration are as follows:

• JLPT N2 or higher certificate of passing
• BJT Business Japanese Proficiency Test score above a certain level
• Graduation certificate from Japanese university/graduate school (if classes were taken in Japanese)

Note that graduates of programs with classes in English (English MBA, etc.) are not recognized as proof of Japanese language ability.

Advice as an Administrative Scrivener

Prepare in coordination with JLPT examination schedule JLPT is only administered twice per year (July and December). Calculate backwards from your visa renewal timing and take the exam systematically.

Collaborate with language schools By utilizing Japanese language schools or corporate Japanese training services, there is potential to reach N2 level efficiently in a short period.

Employee development plans are also effective Even if employees to be hired do not yet have N2, incorporating an “employee development plan aiming for N2 acquisition” into your business plan may serve as persuasive material for Immigration.

Deploying interpreter staff is one means Until the business owner masters Japanese, it is also effective to position an employee with N2 or higher Japanese ability as “business operations manager” and establish a system where that person can conduct daily operations in Japanese.

[For existing visa holders] Hiring Japanese/permanent resident employees is realistic Since it takes time for the business owner to acquire N2, hiring Japanese or permanent resident employees is more realistic. In this case, employees automatically satisfy the Japanese language requirement, so the business owner does not need to rush N2 acquisition.

[Requirement 4] Home Office is Not Permitted; Home and Office Must Be Completely Separated, and an Environment Where Employees Can Work Must Be Secured

The Era of “Starting a Business in a Room of Your Home” is Over

Even in previous Business Manager visa reviews, office substance was verified, but “home offices” using part of a residence as an office were sometimes permitted under conditions.

However, from October 2025 onwards, completely separating home and office and establishing an environment where employees can actually work becomes mandatory.

Why Did Home Offices Become Unacceptable?

The reasons Immigration tightened this requirement are as follows:

1. Opacity of business substance With home offices, it was difficult to determine “whether business activities are truly being conducted there” or “is it merely a residence.”

2. Effectiveness of employee hiring In one room of a home, even if employees were hired, there was no space for them to actually work, and many cases arose where employment substance was questionable.

3. Rental contract issues Many rental residences are contracted as “residential use,” and business use is prohibited. Because cases of applying while aware of contract violations continued unabated, Immigration also moved toward tightening.

[Impact on Existing Visa Holders] Those Conducting Business from Home Offices Must Relocate

Those who currently have registered part of their home as an office and hold Business Manager visas must relocate to an independent office by the next renewal.

This is not merely an “address change” but involves major changes such as:

• New rental contract conclusion: Contract for commercial property
• Corporate registration change: Relocation registration of principal office location
• New purchase of equipment/furnishings: Office furniture, PCs, communication environment, etc.
• Increased rent burden: Double rent for residential and office use

What Standards for “Independent Office” Does Immigration Require?

The office requirements recognized by Immigration are as follows:

1. Independence

• Must be a property separate from residence
• Even within the same building, residential section and office section must be clearly separated (separate entrance, etc.)

2. Legality of business use

• Rental contract must clearly state “commercial use” or “office use permitted”
• Corporate name contract, or even if individual name, “business use permission document” must be obtained

3. Environment where employees can work

• Business equipment such as desks, chairs, PCs, etc. must be in place
• Space where multiple people can work simultaneously (guideline: 15㎡ or more)
• Office existence must be externally indicated through signboards and nameplates

Practical Challenges: Cost and Difficulty in Finding Properties

Securing an independent office is a significant burden particularly for startup companies.

• Rent burden: Fixed costs of 100,000 yen to several hundred thousand yen per month in urban areas
• Security deposit, key money, agency fees: Initial costs of several hundred thousand yen to 1 million yen or more required
• Commercial property screening: Cases where rental contracts are refused for foreign names/newly established corporations are common

Are Virtual Offices or Shared Offices Recognized?

To put it bluntly, they are not recognized in principle.

Virtual offices are merely address lending services and do not allow actual work to be conducted there, so Immigration judges them as “lacking business substance.”

For shared offices, there is potential for recognition if the following conditions are met:

• Dedicated space (private room or booth) exists
• Corporate registration is possible
• Corporate name is stated in rental contract
• Environment where employees can be stationed

However, free address type (unfixed seating) coworking spaces tend not to be recognized as substance verification is difficult.

Advice as an Administrative Scrivener

Begin property search before corporate registration It is important to preview and tentatively secure properties in advance so rental contracts can be concluded simultaneously with establishment.

Clearly communicate “corporate registration possible” to real estate agents Not all properties allow corporate registration. From the beginning, convey that you are searching for properties “for Business Manager visa application office.”

Pay attention to rental contract descriptions Contracts described as “residential use” will be disadvantageous in immigration review. Be sure to have “commercial use” or “office use permitted” clearly stated.

Don’t forget photo documentation Immigration review requires submission of exterior and interior photos of the office. Photograph signboards, desk arrangements, business equipment, etc., to visually prove “business is actually being conducted here.”

Precautions when utilizing rental offices Some rental office providers are familiar with immigration applications and may provide necessary documents (usage permission documents, building plans, etc.). Confirm in advance.

[For existing visa holders] Complete relocation at least 6 months before renewal Office relocation takes several months for property search, contract, moving, and registration changes. Even if you hurriedly relocate just before renewal, there is risk of being judged as “lacking substance.” Ideally, complete relocation at least 6 months before renewal and demonstrate actual business operation records from that office.

Summary: The Era When Business Manager Visas Are Judged by the Four-fold Unity of “Capital, Personnel, Language, and Location” – If You Cannot Respond by October 2028, Continued Residence in Japan Becomes Impossible

Reorganizing: The Four Essential Requirements

From October 2025 onwards, Business Manager visas are insufficient with mere “proof of company establishment.”

Only when all four pillars are in place can you reach the starting line for application—that is the new era Business Manager visa.

1. Registered capital of 30 million yen or more → Proof of financial capability to seriously conduct business in Japan

2. At least one full-time employee who is a Japanese national or permanent resident → Substance of employment creation and guarantee of business continuity

3. Japanese language proficiency of N2 or higher (business owner or employee) → Smooth communication ability with administration, business partners, and local communities

4. Securing an independent office → Establishing an environment where employees can actually work and visualizing business substance

[MOST IMPORTANT] This is Not Only a Problem for New Applicants – Those Already Holding Visas Are Not Exempt

To reiterate, these new standards apply not only to new acquisitions but also to renewals.

In other words, even those currently already holding Business Manager visas will lose their status of residence in Japan if they do not satisfy all these requirements at the next renewal (by October 2028 at the latest) and their renewal is denied.

This is not merely “stricter screening” but a shock equivalent to de facto “visa revocation.”

The Grace Period is Only 3 Years – If You Don’t Start Acting Now, You Won’t Make It

Many Business Manager visa holders have periods of stay of 1 year or 3 years.

In other words, the effective grace period is only about 3 years.

And to satisfy all four requirements, the following preparation periods are necessary:

• Capital increase to 30 million yen: Fundraising, negotiations with investors, registration procedures → 3-6 months
• Hiring Japanese/permanent resident employees: Job postings, interviews, employment contracts, social insurance enrollment → 3-6 months
• Acquisition of Japanese N2: Study, examination, passing → 6 months to 2 years
• Relocation to independent office: Property search, contract, relocation, registration changes → 3-6 months

Even if these are advanced in parallel, a minimum of 1 year, realistically 1.5-2 years of preparation period is necessary.

In other words, if you don’t begin preparations by 2026, there is high possibility of not making it in time for October 2028 renewal.

“I’ll Deal With It Eventually” Will Absolutely Not Be in Time

As a certified administrative scrivener handling many Business Manager visa cases for many years, I have seen numerous cases where “people came for consultation at the last minute and ultimately didn’t make it in time.”

This revision in particular requires fundamental changes to business structure that cannot be addressed by mere document preparation alone.

• Capital increases require shareholder meeting resolutions and registration procedures
• Employee hiring requires the process of job postings, interviews, and contracts
• Japanese N2 acquisition requires long-term study
• Office relocation requires time from property search through contract and moving

None of these are at the level of “I’ll do it tomorrow.”

The Consequences of Failing to Respond: Business Termination and Repatriation

If new standards cannot be satisfied at the next renewal, what will happen?

Conclusion: Business Manager visa renewal will be denied, and status of residence in Japan will be lost.

As a result:

• Must depart from Japan (forced repatriation)
• Company remains but business owner is absent (de facto business suspension)
• Causes tremendous inconvenience to employees, business partners, and customers
• The business foundation built in Japan thus far is lost

This is absolutely not an exaggerated story, but a situation that could realistically occur.

How Should This Change Be Perceived? – Not a Crisis But an Opportunity

Certainly, these requirements are very high hurdles for foreign entrepreneurs. However, conversely speaking, companies that can clear these will be trusted by Immigration as “genuine business operators.”

In fact, among cases I have supported, companies that established solid business plans, financial plans, and personnel plans from the beginning have successfully expanded their businesses smoothly after visa acquisition and realized step-ups to permanent residence permits and Highly Skilled Professional visas.

On the other hand, the reality is that cases approached with the casual attitude of “let’s just make a company and get a visa” often get stuck during the review process, or even if acquired, struggle at renewal time.

Whether you perceive this revision as a “crisis” or as a “chance to formalize your business” is up to you.

Conclusion as a Certified Administrative Scrivener: “Acting Now” is the Only Solution

Through supporting visa applications for foreign nationals for many years, I have felt firsthand that immigration review is becoming stricter year by year.

This revision can be said to be the culmination of that.

However, this is absolutely not intended to “exclude foreign entrepreneurs.”

To welcome personnel with the will and ability to truly create valuable businesses in Japan, generate employment, and contribute to society—that is the true intent of this revision.

Therefore, to those aiming for Business Manager visas from now on, and those already holding Business Manager visas, I want to strongly appeal the following:

• Draw up medium to long-term business plans: Clarify where you want to be in 1 year, 3 years, 5 years
• Collaborate early with specialists: Form a specialist team of administrative scriveners, judicial scriveners, tax accountants, labor consultants, etc.
• Thoroughly prepare documents: Ambiguous documents and incomplete proofs will definitely be detected in review
• Prioritize substance: Establish a system that actually operates the business, not superficial appearances
• “Act now”: The grace period is shorter than you think. You should begin preparations today

Especially for Existing Visa Holders: Seek Free Consultation Immediately

If you are in a situation where:

• You already hold a Business Manager visa but do not meet the new standards
• You are anxious about the next renewal and don’t know where to start
• You want to know specific preparation methods such as capital increase, recruitment, office relocation
• You want to hear a specialist’s opinion on whether your case has potential for renewal

Then please consult a specialist as quickly as possible.

We certified administrative scriveners are not merely “document creation and submission agents.”

We are partners who utilize specialized knowledge of immigration law to propose optimal strategies and overcome difficulties together to realize our clients’ dreams.

When there are major system changes like this, our mission is not to give up saying “it’s impossible,” but to think through “how can we make it possible.”

Finally: October 2028 is the “Deadline” – Today is the Day to Begin Preparations

October 2028—this is the de facto “deadline” for many Business Manager visa holders.

If new standards cannot be satisfied by this date, continuing business in Japan becomes impossible.

However, if you begin preparations today, there is still time.

Fundraising, personnel recruitment, Japanese language study, office relocation—to advance all of these systematically, at least 1-2 years of preparation period is necessary.

Not “I’ll deal with it someday” but “I’ll deal with it starting today”—that decision will protect your business and life in Japan.

We will provide full support to foreign entrepreneurs seriously challenging themselves in Japan.

Let us overcome the new era Business Manager visa together.

Please consult us immediately. Not tomorrow, but today is the day for action.

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