[June 12, 2026 Immigration Update] Business Manager Visa Reform FAQ: Expert Answers to Real Questions from Our Clients

Introduction: What Did the Immigration Services Agency’s Additional Explanation Clarify?

On June 12, 2026 (Reiwa 8), the Immigration Services Agency of Japan published additional FAQs regarding the “Business Manager” residence status reform. Approximately eight months have passed since the reform was implemented on October 16, 2025 (Reiwa 7), and various questions and confusion have arisen in the field.

Since the reform’s implementation, our office has received daily inquiries such as:

“Do sole proprietors really need 30 million yen?”
“I’m already operating a business—will my renewal be denied?”
“I pay taxes properly, but is that not enough?”

The Immigration Services Agency’s additional explanation directly addresses these real-world questions. In this article, as administrative scriveners specializing in visa applications and residence status matters, we will provide practical explanations of the Immigration FAQ based on actual questions from our clients.

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Immigration FAQ [Question 1]: Do Sole Proprietors Need 30 Million Yen in Capital?

Actual Client Inquiry

“I operate a trading business in Japan as a sole proprietor. After the reform, I heard that I need to prepare 30 million yen in capital just like corporations. Do I need to deposit 30 million yen in a bank account now, or will my next renewal be denied?”

This is the most frequently asked question since the reform. Especially those who have been operating legitimate businesses in Japan for several years express strong anxiety.

Official Response from Immigration (Updated June 12, 2026, Reiwa 8)

The Immigration Services Agency clearly responded in Question 1 as follows:

“The ’30 million yen’ in the landing standard ordinance refers to ‘the total amount of assets used for the business related to the application.’ Therefore, if the business entity is not a corporation but an individual, capital does not need to be prepared. As indicated in the guidelines regarding the reform, it refers to the total amount invested as necessary for operating the business, such as securing business premises, salaries of employed staff (for one year), and equipment investment expenses.”

Expert’s Practical Explanation

The key point of this response is that the concept of “capital” does not apply to sole proprietors.

Differences Between Corporations and Sole Proprietors

Item	Corporation	Sole Proprietor
What is Required	Capital of 30 million yen or more	Total business assets invested of 30 million yen or more
Verification Method	Corporate registry certificate	Supporting documents (contracts, receipts, ledgers, etc.)
Nature	Fixed amount registered	Total of assets actually used in business operations

What Specifically Are “Assets Invested in Business”?

Items exemplified by Immigration:

1. Securing Business Premises

• For rental contracts: security deposit, key money, guarantee deposit, prepaid rent
• For purchases: real estate acquisition costs
• Interior construction costs, renovation expenses
• Office equipment (desks, chairs, partitions, etc.)

2. Salaries of Employed Staff (One Year)

• Annual total salary of full-time employees
• Statutory welfare expenses (employer’s share of social insurance premiums)
• Allowances such as commuting and housing allowances

3. Equipment Investment Expenses

• Office automation equipment (computers, printers, phones, fax machines, etc.)
• Specialized equipment (machinery for manufacturing, kitchen equipment for restaurants, etc.)
• Vehicles
• Software

4. Other Necessities for Business Operations

• Product inventory
• Raw materials
• Working capital (deposits)
• Advertising expenses (prepaid portion)
• Website development costs

Critical Practical Points

Point 1: No Need to “Prepare 30 Million Yen Immediately”

For sole proprietors already operating businesses, it is important to accurately calculate and substantiate the total assets already invested. There is no need to borrow or deposit 30 million yen anew.

Point 2: Preparation of Supporting Documents Is Key

Since sole proprietors do not have official certificates like corporate registry documents, the following materials must be carefully prepared:

Required Documents Checklist

• [ ] Business premises lease agreement
• [ ] Proof of payment for security deposit, key money, guarantee deposit (receipts, transfer details)
• [ ] Interior construction contract and receipts
• [ ] Purchase receipts for equipment and fixtures
• [ ] Depreciation asset ledger (prepared by accountant)
• [ ] Employee employment contracts
• [ ] Payroll ledger (past one year)
• [ ] Withholding record
• [ ] Inventory valuation document (inventory list)
• [ ] Bank statement copies (business account)
• [ ] Other materials that can prove business investment

Point 3: “Comprehensive Judgment” Even After Three Years

Immigration made an important supplementary statement in the same response:

“Even at the time of residence period renewal applications made after three years have passed from the implementation date, if the revised permit standards are not met but the business status is good, corporate tax payment obligations are properly fulfilled, and there is a prospect of meeting the revised permit standards by the next renewal, other residence status factors will be comprehensively considered in the permit/denial decision. Therefore, a uniform denial decision will not be made solely because ‘the total amount of assets used for the business related to the application’ is less than 30 million yen.”

In other words, even after three years (after October 16, 2028, Reiwa 10), if the following conditions are met, comprehensive judgment will be applied:

✅ Business status is good
✅ Corporate tax payment obligations are properly fulfilled
✅ Prospect of meeting standards by next renewal exists

Expert Advice

We recommend that sole proprietors take the following steps:

Step 1: Inventory of Business Assets
Accurately understand how much capital has been invested in the business

Step 2: Organize Supporting Documents
Organize contracts, receipts, ledgers, and other materials that can prove invested assets

Step 3: Pre-Diagnosis by Expert
Rather than applying with uncertainty based on self-judgment, have an expert check in advance

Step 4: Consider Measures for Shortfalls
If less than 30 million yen, utilize the three-year grace period to systematically increase investment

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Immigration FAQ [Question 2]: Will Existing Business Owners Face Renewal Denial Within Three Years?

Actual Client Inquiry

“I have been operating a restaurant in Japan with a Business Manager visa since 2023 (Reiwa 5). Although I was residing before the reform, I have a renewal application next year. If I don’t meet the new standards, will my renewal be denied?”

This is the most pressing question for those who have been operating legitimate businesses before the reform.

Official Response from Immigration (Updated June 12, 2026, Reiwa 8 – New)

The Immigration Services Agency newly added Question 2 and clearly responded as follows:

“Until three years have passed since implementation (until October 16, 2028, Reiwa 10), even if the new standards are not met, residence period renewal applications will not be denied solely for that reason.”

Expert’s Practical Explanation

This response is extremely important reassurance for existing business owners.

Clarification of Grace Period Measures

Period	Compliance with New Standards	Renewal Possibility
October 16, 2025 – October 16, 2028 (3 years)	Not meeting is OK	Will not be denied “solely for that reason”
After October 16, 2028	Generally required	However, comprehensive judgment (see Question 1)

Meaning of “Solely for That Reason”

This expression is very important in legal practice. That is:

❌ Misconception: “Not meeting new standards = immediate denial”
✅ Correct: “Will not deny solely because new standards are not met. Other factors will also be comprehensively judged.”

In other words, during the three-year grace period, even if business assets are less than 30 million yen, renewal is possible if other factors such as the following are good:

✅ Business is continuously operated
✅ Taxes are properly paid
✅ Employees are properly employed and managed
✅ Laws are observed
✅ Other residence status has no problems

Critical Practical Points

Point 1: Not “Grace for 3 Years” but “Prepare in 3 Years”

This grace period should not be misunderstood as “three years of doing nothing.” Correctly:

A period to prepare to gradually comply with new standards during the three years

Immigration also evaluates whether there is a “prospect” of meeting standards by the next renewal. Therefore, systematic response is important.

Point 2: Present “Improvement Plan” at Renewal Application

During renewal applications in the three-year grace period, we recommend clearly stating the following:

📝 Contents to Include in Improvement Plan

• Current status of business assets (total amount at present)
• Gap with new standard (30 million yen)
• Future business expansion plans
• Equipment investment plans
• Staff increase plans
• Specific schedule to meet standards by next renewal (or by October 16, 2028, Reiwa 10)

Point 3: Not Rigid Application Even “After 3 Years”

Reading together with the response to Question 1, even after three years (after October 16, 2028, Reiwa 10):

• Business status is good
• Tax payment obligations are properly fulfilled
• Prospect of meeting standards by next renewal exists

If these conditions are met, Immigration clearly states that uniform denial will not occur just because “less than 30 million yen.”

Expert Advice

We recommend the following responses for existing business owners:

[What to Do Immediately]

1. Current Status Assessment (Within This Month)

• Accurately calculate total business assets
• Confirm gap with 30 million yen

1. Formulate 3-Year Plan (Within 3 Months)

• Establish specific plan for how to meet standards
• Make realistic, achievable plan

1. Regular Review (Every 6 Months)

• Confirm progress according to plan
• Revise plan as necessary

1. Consult Expert (3 Months Before Renewal Application)

• Have expert check whether improvement plan is appropriate
• Strategize renewal application

[What NOT to Do]

❌ Do nothing because “three years is OK”
❌ Respond haphazardly without a plan
❌ Panic just before renewal
❌ Put off consulting an expert

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Immigration FAQ [Question 3]: Can Renewal Be Denied Even If Taxes Are Properly Paid?

Actual Client Inquiry

“I file tax returns properly every year and pay all taxes. My business is doing well and profitable. Can renewal still be denied?”

Many business owners think “tax payment = compliance,” but in reality, that alone is insufficient.

Official Response from Immigration (Updated June 12, 2026, Reiwa 8 – New)

The Immigration Services Agency newly added Question 3 and clearly warns:

“In residence period renewal applications, not only tax payment status but also rules that must be observed as a business manager are confirmed. For example, if there are problems with compliance with labor-related laws such as the Labor Standards Act or Minimum Wage Act, enrollment and payment status of social insurance, employment insurance, workers’ accident compensation insurance, etc., or acquisition status of permits necessary for business, these are judged as negative factors in the examination, and there are cases where renewal is not permitted, so please be careful.”

Expert’s Practical Explanation

This response is extremely important in practice. It has become clear that Immigration comprehensively examines “compliance as a business manager.”

“Compliance as a Business Manager” Subject to Examination

Let me explain in detail the items exemplified by Immigration from a practical perspective:

1. Compliance with Labor-Related Laws

Labor Standards Act

Common Violation Cases:

❌ Non-payment or Improper Calculation of Overtime Wages

• Improper operation of fixed overtime pay system
• Incorrect application of managerial or supervisory employee exemption
• Failure to calculate overtime work hours

❌ Illegal Long Working Hours

• No 36 Agreement concluded
• Exceeding limits in 36 Agreement
• Excessive holiday work

❌ Failure to Provide Break Time and Days Off

• Not providing 45-minute break for work over 6 hours, 1-hour break for work over 8 hours
• Not providing 1 day off per week or 4 days off per 4 weeks

❌ Failure to Grant Annual Paid Leave

• Not granting 10 days of paid leave after 6 months of continuous service
• Not fulfilling obligation to designate 5 days of annual leave

Minimum Wage Act

Common Violation Cases:

❌ Wages Below Minimum Wage

• Below prefecture-specific minimum wage (Tokyo: 1,163 yen for FY 2026, Reiwa 8)
• Below industry-specific minimum wage
• Even during probation period, must be at or above minimum wage (except with reduction exemption permit)

❌ Substantive Minimum Wage Violations

• Base salary is above minimum wage, but excessive deductions result in take-home pay below minimum wage
• No pay or low pay during training period

2. Social Insurance and Labor Insurance Enrollment and Payment Status

Health Insurance and Employees’ Pension Insurance (Social Insurance)

Business Owners with Enrollment Obligation:
✅ Corporations (mandatory enrollment regardless of number of employees)
✅ Sole proprietors regularly employing 5 or more employees (excluding certain industries)

Common Problem Cases:

❌ Non-enrollment

• Corporation not enrolled in social insurance
• “Employee doesn’t want to” is not a valid reason

❌ Only Some Employees Enrolled

• Not enrolling only foreign employees
• Part-time/temporary workers working 30+ hours per week also have enrollment obligation

❌ Delinquent Insurance Premiums

• Enrolled but delinquent on premium payments
• Even if on installment payment plan, negative factor in examination

Employment Insurance

Business Owners with Enrollment Obligation:
✅ Business owners employing even one employee (for workers working 20+ hours per week)

Common Problem Cases:

❌ Non-enrollment

• Not enrolled because “short hours” (20+ hours per week = enrollment obligation)
• Not enrolling foreign employees

❌ Failure to Submit Qualification Acquisition Notification

• Enrolled but not submitting individual employee qualification acquisition notifications

Workers’ Accident Compensation Insurance

Business Owners with Enrollment Obligation:
✅ Business owners employing even one employee (all workers covered)

Common Problem Cases:

❌ Non-enrollment

• Not enrolled because “accidents won’t happen”
• Sole proprietors unaware of enrollment obligation

❌ Unpaid Insurance Premiums

• Forgetting annual renewal (once per year)

3. Acquisition Status of Permits Required for Business

Major Permits by Industry

Industry	Permit	Authority
Restaurant	Restaurant business permit	Public health center
Alcohol sales	Liquor sales license	Tax office
Construction	Construction business permit (for projects over 5 million yen)	Prefecture / MLIT
Temporary staffing	Worker dispatch business permit	Ministry of Health, Labour and Welfare
Fee-charging employment placement	Fee-charging employment placement business permit	Ministry of Health, Labour and Welfare
Second-hand goods	Used goods dealer permit	Prefectural Public Safety Commission
Real estate	Real estate transaction business license	Prefecture / MLIT
Travel agency	Travel agency registration	Prefecture / Japan Tourism Agency
Transportation	General freight automobile transport business permit	Regional Transport Bureau

Common Problem Cases:

❌ Operating Without Permit

• Operating without knowing permit is required
• Misconception that “small scale doesn’t require it”

❌ Permit Expiration

• Operating with expired permit after forgetting renewal
• Not submitting change notification

❌ Operating Outside Permit Scope

• Late-night operations with restaurant business permit (separate late-night alcohol service restaurant business notification required)
• Undertaking construction work outside permitted construction business categories
• expiration dates is essential. Record renewal dates on calendar and perform renewal procedures with plenty of time.

Expert “Comprehensive Compliance Check” Checklist

Check your company’s status with the following checklist. If even one answer is “no,” urgent action is needed.

Labor-Related Laws Check

• [ ] Do you properly track employee working hours?
• [ ] If there is overtime work, have you concluded and filed a 36 Agreement?
• [ ] Do you properly calculate and pay overtime wages?
• [ ] Are wages not below minimum wage (prefecture-specific / industry-specific)?
• [ ] Do you properly provide break time?
• [ ] Do you provide 1 day off per week or 4 days off per 4 weeks?
• [ ] Do you properly grant annual paid leave?
• [ ] Do you fulfill the obligation for 5 days of paid leave acquisition?
• [ ] Have you prepared and filed work rules? (if regularly employing 10 or more)

Social Insurance and Labor Insurance Check

• [ ] Are you enrolled in health insurance and employees’ pension insurance? (corporations or sole proprietors regularly employing 5 or more)
• [ ] Are you enrolled in employment insurance? (if employing employees)
• [ ] Are you enrolled in workers’ accident compensation insurance? (if employing employees)
• [ ] Are all applicable employees properly enrolled?
• [ ] Are insurance premiums not delinquent?
• [ ] Do you properly submit qualification acquisition/loss notifications?
• [ ] Do you properly submit annual renewal (labor insurance) and calculation base notification (social insurance)?

Permit Check

• [ ] Have you obtained all permits required for your business?
• [ ] Are permit expiration dates current?
• [ ] If you changed business content, have you submitted change notification?
• [ ] Do you meet permit conditions (assignment of full-time qualified persons, etc.)?

Other Compliance Check

• [ ] If employing foreign nationals, have you filed employment status notification?
• [ ] Have you properly submitted various notifications to tax office and prefecture?
• [ ] Do you properly prepare and preserve account books and documents?
• [ ] Do you properly prepare and preserve contracts?

What to Do If Problems Are Found

If problems are found in the checklist, respond in the following steps:

Step 1: Accurate Understanding of Current Status (Within 1 Week)

• Accurately understand what the problem is
• Confirm when the problem started

Step 2: Consult Expert (Immediately)

• Consult social insurance and labor consultant, administrative scrivener, etc.
• Confirm severity of problem and countermeasures

Step 3: Implement Corrective Measures (Within 1 Month)

• Social insurance non-enrollment → Immediately enroll
• Unpaid overtime wages → Settle past amounts and proper future payment
• Permit expiration → Promptly renew or reacquire

Step 4: Preserve Evidence

• Preserve materials that can prove correction
• Prepare for submission at renewal application

Step 5: Build Recurrence Prevention Measures

• Establish checking system
• Conduct regular compliance inspections

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Practical Points for Renewal Applications: Strategic Response Based on Immigration FAQ

Practical Response Strategy Following June 12, 2026, Reiwa 8 FAQ Update

With the addition and update of the Immigration FAQ, practical response strategies have also become clear.

Response Strategy 1: Enhance “Supporting Documents”

For sole proprietors, preparation of materials to substantiate 30 million yen in business assets is key.

Recommended Structure of Supporting Documents:

1. Summary Table (Created in Excel, etc.)

• Amount by business asset item
• Total amount
• Numbers of supporting materials

1. Individual Supporting Materials

• Copies of contracts
• Copies of receipts
• Copies of ledgers
• Number each and correspond with summary table

1. Explanatory Statement (Reason Statement)

• Business overview
• Detailed explanation of business assets
• Explanation that total reaches 30 million yen

Response Strategy 2: Present “Improvement Plan”

During renewal applications in the three-year grace period, we strongly recommend attaching an improvement plan.

Sample Structure of Improvement Plan:

1. Current Status Analysis

• Current total business assets
• Gap with new standard (30 million yen)

1. Improvement Goal

• Achieve 30 million yen by October 16, 2028, Reiwa 10

1. Specific Measures

• Equipment investment plan by fiscal year
• Staff increase plan
• Business expansion plan

1. Feasibility

• Financial plan
• Funding methods
• Expected contracts with business partners, etc.

Response Strategy 3: Thoroughly “Prove Compliance”

Prepare materials to prove comprehensive compliance observance, not just tax payment.

Recommended Proof Materials:

Proof of Labor-Related Law Compliance

• Employee roster
• Wage ledger
• Attendance record or time cards
• 36 Agreement notification (copy)
• Work rules (copy)

Proof of Social Insurance and Labor Insurance Enrollment

• Health insurance / employees’ pension insurance qualification acquisition confirmation notice
• Employment insurance qualification acquisition confirmation notice
• Labor insurance provisional / final premium declaration form (copy)
• Social insurance premium payment certificate or receipts

Proof of Permit Acquisition

• Copies of various permits
• Materials showing renewal has been completed

Response Strategy 4: “Utilize Experts”

Based on the Immigration FAQ content, the importance of expert support has increased even more.

Value Experts Can Provide:

1. Accurate Calculation of Business Assets

• Judgment of what is included in “assets used for business”
• Appropriate selection of supporting documents

1. Improvement Plan Formulation Support

• Creating realistic and persuasive plans
• Preparing materials at the level Immigration requires

1. Comprehensive Compliance Inspection

• Identifying easily overlooked legal violations
• Support for implementing corrective measures before renewal

1. Application Document Preparation and Representative Application

• Accurate preparation of complex application documents
• Negotiation with Immigration

1. Minimizing Denial Risk

• Detecting potential denial risks in advance
• Proposing avoidance strategies

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Our Office’s Support Services: Immigration FAQ Response Version

Following the Immigration FAQ update on June 12, 2026, Reiwa 8, our office has strengthened the following support:

Support 1: Business Asset Calculation Service

Content:

• Accurately calculate sole proprietor’s business assets
• Diagnose compliance status with 30 million yen standard
• Support preparation of supporting documents

Fees:
Free diagnosis during initial consultation (simplified version)
Detailed diagnosis: From 50,000 yen

Support 2: 3-Year Improvement Plan Formulation Service

Content:

• Current status analysis
• Formulate improvement plan until October 16, 2028, Reiwa 10
• Propose specific measures by fiscal year
• Support creation of financial plan

Fees:
From 100,000 yen (depending on business scale)

Support 3: Comprehensive Compliance Inspection Service

Content:

• Check labor-related law compliance status
• Check social insurance and labor insurance enrollment and payment status
• Check permit acquisition and renewal status
• Identify problems and propose improvements

Fees:
From 80,000 yen (depending on business scale)

Support 4: Full Renewal Application Support

Content:

• Business asset calculation
• Improvement plan formulation
• Comprehensive compliance inspection
• Preparation of complete application documents
• Collection and organization of supporting documents
• Representative application to Immigration
• Response to additional document requests during examination

Fees:
150,000–300,000 yen (depending on business scale and complexity)

Support 5: Advisory Contract Service

Content:

• Monthly regular meetings (online available)
• Regular compliance status checks
• Regular monitoring of business assets
• Progress management of improvement plan
• Advice on labor management
• Reminders of permit renewal timing
• Priority response in emergencies
• Preferential rates at renewal application

Fees:
From 30,000 yen per month (depending on business scale)

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Conclusion: What Was Clarified by the June 12, 2026, Reiwa 8 FAQ Update

What Immigration Clarified

Through this FAQ update, the following points became clear:

✅ Sole proprietors are judged by “business assets,” not “capital”
→ No need to prepare 30 million yen anew

✅ The 3-year grace period is “preparation period,” not “grace”
→ Systematic response is important

✅ Not just tax payment but comprehensive compliance is examined
→ Labor laws, social insurance, permits, etc., are also important

✅ Even after 3 years, “comprehensive judgment”
→ Uniform denial will not occur just for not reaching 30 million yen

Actions Business Owners Should Take Now

[High Urgency] For those with renewal application within 1 year

1. Calculate business assets immediately (within 1 week)
2. Comprehensive compliance inspection (within 2 weeks)
3. Consult expert (within 1 month)
4. Correct problems (within 3 months)
5. Begin renewal application preparation (3 months before)

[Medium Urgency] For those with renewal application 1–2 years away

1. Calculate business assets (within 1 month)
2. Formulate 3-year improvement plan (within 3 months)
3. Comprehensive compliance inspection (within 3 months)
4. Implement systematic improvements (continuously)
5. Confirm progress every 6 months

[Low Urgency] For those with renewal application 2+ years away

1. Roughly grasp business assets (within 3 months)
2. Solidify compliance basics (within 6 months)
3. Consider long-term business expansion plans (within 1 year)
4. Regular monitoring (every 6 months)

Final Message from an Expert

The Immigration FAQ update on June 12, 2026, Reiwa 8, provided clear answers to many questions that had been causing confusion in the field. In particular, the clarification that the misconception “sole proprietors also need 30 million yen” is incorrect was good news for many business owners.

On the other hand, it also became clear that comprehensive compliance, not just tax payment, is examined. While this is “a matter of course” for business owners operating legitimately, the reality is that many aspects are easily overlooked.

If you have even slight concerns or want an expert to check your company’s status, please consult us as soon as possible. Early detection and early response are the shortest path to reliable renewal.

We will fully support foreign business owners and HR managers at companies employing foreign nationals so they can continue their businesses in Japan with peace of mind.

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