Management VISA to Permanent Residency: Why “10 Years of Residence” Is No Longer Enough—New 2025 Requirements Explained

🧠Introduction: Why Are the Standards for Obtaining Permanent Residency Changing Now?

For foreign entrepreneurs aiming to build a stable life and business in Japan, “obtaining permanent residency” is one of the major goals. Being freed from the unstable situation of renewing residence status and establishing a long-term business foundation and living base in Japan—that is the greatest appeal of permanent residency.

Particularly for those aiming for permanent residency from a Management VISA, the focus has been on meeting requirements such as “residence period of 5 years or more,” “stable income and tax payment,” and “good conduct.” Many foreign entrepreneurs have continued their businesses aiming for these standards.

However—

From October 16, 2025, it has been decided that the acquisition and maintenance of the Management VISA itself, which is the “starting point” for permanent residency applications, will be significantly tightened. This is not merely a “raising of hurdles,” but rather an extremely important policy shift that reconsiders the positioning of foreign entrepreneurs in Japan itself.

In this article, we will thoroughly explain the reality of applications, including the “three new requirements” being newly introduced in addition to the existing permanent residency requirements. This is essential reading not only for those aiming for permanent residency from now on, but also for those who already hold a Management VISA when considering future countermeasures.

📌Chapter 1: Basic Requirements for Permanent Residency Application (Conventional Requirements)

First, let’s confirm the conventional basic requirements for obtaining permanent residency from a Management VISA. These are the “foundational requirements” that will basically remain unchanged after October 2025.

Main Requirements for Permanent Residency Application (For Management VISA Holders)

Requirement Item	Detailed Content
Residence Period	In principle, 10 years or more (of which 5 years or more must be on a work-related visa). For Management VISA holders, a track record of 5 years or more is required. However, there are shortened measures through the Highly Skilled Professional Points System, etc.
Income and Tax Payment	Must have stable and continuous income (considering dependent family members). Tax and insurance premium payment status for the most recent 5 years must be good. If the executive compensation is extremely low, it may not meet the independent livelihood requirement.
Good Conduct	No criminal record or traffic violations, and no problems with social credibility. Even minor traffic violations (such as parking violations) may affect the examination if there are multiple occurrences.
Independence	The business must have substance and the independence of the manager must be secured. Nominal lending or formal establishment is not recognized, and actual business activities are required.
Not Becoming a Public Burden	Not receiving public assistance, etc. Required to maintain an independent livelihood including family members.
Resident Registration and Pension Enrollment	Resident registration must be continuous, and appropriate enrollment in the National Pension and Health Insurance is required. Unpaid periods will significantly affect the examination.
Intent to Settle in Japan	Clear intention to live in Japan long-term. Asset formation in Japan, family situation, involvement with the local community, etc., are comprehensively judged.

These requirements are standards for judging whether foreigners can settle stably in Japanese society and live without becoming a public burden. Particularly for Management VISA holders, “business continuity” and “track record as a manager” are emphasized.

Points Emphasized in Conventional Examinations

In conventional permanent residency applications, the following points have been particularly emphasized:

Business Stability: Ideally being in the black every year, but temporary deficits could be considered if business continuity could be explained. However, if deficits continued consecutively or sales were extremely low, the business substance was questioned.

Appropriateness of Executive Compensation: For Management VISA holders, executive compensation must be sufficient to maintain an independent livelihood. Although specific standards are not published, generally an annual income of 3 million to 5 million yen or more depending on the number of dependent family members has been considered a guideline.

Completeness of Tax Payment: Appropriate filing and payment of all tax categories including income tax, corporate tax, consumption tax, and resident tax are required. It is necessary to prove there are no unpaid amounts with tax payment certificates, and even if there were unpaid amounts in the past, it could be considered if they had been fully paid.

Social Insurance Enrollment Status: Enrollment in health insurance and employees’ pension is mandatory. Even in the case of National Health Insurance and National Pension, it is important that there are no unpaid periods. Payment status for the most recent 2 years in particular, including not just absence of non-payment but also whether full payment was made within the deadline, is strictly checked.

These standards were at a level of “achievable but requiring proper preparation” for many foreign entrepreneurs. However, from October 2025 onwards, even stricter requirements will be added to these.

⚠️Chapter 2: From October 2025, “Three Additional Requirements” Emerge for Management VISA

This is the most important point of this article. From October 16, 2025, it has been decided that the following three new requirements will be added for the acquisition and renewal of Management VISA.

This is not merely a problem for “those who will obtain Management VISA from now on.” Even for those who already hold a Management VISA when applying for permanent residency, whether these requirements are met at the time of application will be examined.

In other words, for your “management track record” from a Management VISA to count toward a permanent residency application, it is important that all of the following three points are met at the time of permanent residency application.

🧱New Requirement 1: Capital of 30 Million Yen or More

Previous Standard: Capital of 5 million yen or more

New Standard: Capital of 30 million yen or more

This change has the greatest impact as a requirement for Management VISA. It is a significant increase to 6 times the previous amount, and will be the biggest hurdle for many foreign entrepreneurs.

Why 30 Million Yen?

The following policy intentions are considered to be behind this standard:

Securing Substantive Contribution to the Japanese Economy: With the previous standard of 5 million yen, “paper companies” and “nominal company establishments” that do not engage in substantive business activities were possible. The 30 million yen standard can be said to be a level for selecting managers who have the intention and capability to engage in full-scale business activities.

Elimination of Formal Establishments and Paper Companies: In recent years, company establishments without substance using Management VISA have been problematic. The aim is to prevent such formal establishments by setting high capital requirements.

Consistency with International Standards: Compared with investor visas and entrepreneur visas in other developed countries, the previous standard of 5 million yen was pointed out as being too low. The level of 30 million yen can be said to be within a reasonable range internationally.

📌Practical Points: Capital Measures

To comply with this requirement, the following preparations are necessary:

Fundraising Plan: The amount of 30 million yen is quite substantial for an individual to prepare. It will be realistic to combine multiple funding sources, not just self-funding, but also investment from external investors, gifts from relatives, and borrowing from financial institutions.

Selection of Investors and Accountability: When receiving investment from external sources, it is necessary to explain the identity of the investor and the legitimacy of the funding source. From the perspective of preventing money laundering, documents that can clearly prove the source of the investment (bank balance certificates, remittance records, etc.) are required.

Preparation of Payment Certificates: For capital payment, a bank payment certificate is required. It is important to always go through bank account procedures rather than cash payment and keep clear records.

Timing of Capital Increase: For those who already hold a Management VISA and whose current capital is less than 30 million yen, it is necessary to complete the capital increase by the 2028 Management VISA renewal. Since capital increase procedures require a certain amount of time, including shareholder meeting resolutions and registration applications, early preparation is necessary.

👥New Requirement 2: Employment of One or More Full-Time Japanese or Equivalent Employees

New Standard: Employ one or more full-time Japanese or equivalent employees

This requirement is an important standard for securing the “substance” of the business and “contribution to the Japanese economy.”

What Are “Full-Time Japanese or Equivalent Employees”?

To properly understand this requirement, let’s look at each element in detail:

Definition of “Full-Time”: Not merely part-time or part-time work, but working full-time and enrolled in social insurance (employees’ pension and health insurance) is a condition. Specifically, working 30 hours or more per week is a guideline.

Scope of “Japanese, etc.”: This includes the following persons:

• Japanese nationals
• Permanent residents
• Long-term residents
• Special permanent residents
• Spouse or child of Japanese national, etc.

Conversely, foreigners with work visas (Engineer/Specialist in Humanities/International Services, Skilled Labor, etc.) are not covered by this requirement.

“Actually Working”: The mere existence of an employment contract is insufficient. It is necessary to prove that they are actually commuting and performing work. Nominal lending by relatives or acquaintances is not recognized.

Why Is This Requirement Being Introduced?

Confirmation of Business Substance: Actually employing Japanese people and operating a business is proof that the business has substance and is continuing. It is practically difficult for paper companies to employ Japanese employees.

Contribution to the Japanese Employment Market: Since foreign entrepreneurs conduct business in Japan, they are expected to contribute to job creation in Japan. This requirement can be said to be the minimum standard for that.

Compliance with Labor Laws: By employing Japanese employees, it becomes necessary to comply with Japan’s labor legislation, including the Labor Standards Act, Labor Contract Act, and social insurance-related laws. This is expected to raise managers’ awareness of legal compliance.

📌Practical Points: Employee Employment Measures

Advancing Recruitment Plans: Even those who have been thinking “I want to employ employees eventually” need to advance their recruitment plans to comply with this requirement. However, careful judgment is necessary as employment that does not match the business scale will put pressure on management.

Preparation of Employment Contracts: Employment contracts are essential to prove the reality of employment. Create a contract that clearly states working hours, salary, job content, etc., and keep signed and sealed copies by both parties.

Management of Attendance Records: It is necessary to record that employees are actually commuting using time cards or attendance management systems. Even in the case of working from home, keep records that can prove work activity (work reports, email exchanges, etc.).

Salary Statements and Withholding: For salary payments, it is important to make payments by bank transfer and issue salary statements. Also, perform withholding appropriately and don’t forget to pay to the tax office.

Social Insurance Procedures: When employing employees, it is necessary to complete social insurance (employees’ pension and health insurance) enrollment procedures within 5 days. Neglecting this procedure will result in violation of labor laws and adversely affect visa examination.

Employment Stability: If employees quit in a short period, the stability of the business may be questioned. It is also important to create a workplace environment where employees want to work long-term.

🗣New Requirement 3: Manager or Full-Time Employee Must Have Japanese Language Proficiency N2 or Higher

New Standard: Either the manager themselves or a full-time employee must possess Japanese Language Proficiency Test (JLPT) N2 level or higher Japanese language ability

This requirement is a standard for securing smooth communication in business operations and ensuring legal compliance.

What Is Japanese Language Proficiency N2?

The N2 level of the Japanese Language Proficiency Test (JLPT) refers to the following abilities:

Reading Comprehension: Able to read and understand written materials on a wide range of topics, such as newspaper and magazine articles and commentaries, and simple critiques.

Listening Comprehension: In addition to everyday situations, in a wide range of situations, able to listen to coherent conversations and news at near-natural speed and understand the flow and content of the story and the relationships among the people involved.

Practically: Can be said to be a level where one can understand business contracts and official documents to some extent and can conduct basic communication with business partners and administrative agencies.

Why Is Japanese Language Ability Required?

Smooth External Transactions: Since business is conducted in Japan, it is necessary to communicate with various parties such as business partners, customers, and financial institutions. Smooth transactions are difficult without a certain level of Japanese language ability.

Dealings with Administration: Document understanding and conversational ability in Japanese are indispensable for procedures and dealings with administrative agencies such as tax offices, labor standards inspection offices, and municipal offices.

From the Perspective of Legal Compliance: Japanese laws are naturally written in Japanese. A certain level of Japanese language ability is necessary for managers to understand and comply with laws.

Communication with Employees: When employing Japanese employees, communication in Japanese is necessary for work instructions and labor management.

📌Practical Points: Japanese Language Ability Measures

If the Manager Themselves Obtains It:

It is important to check the JLPT test schedule and proceed with learning systematically. Since JLPT is only conducted twice a year (July and December), careful attention is needed not to miss examination opportunities.

Utilize Japanese language schools and online learning services to proceed with learning efficiently. Reaching N2 level generally requires about 600-800 hours of study.

Learning Japanese that can be used in actual business situations, not just test preparation, is also useful for business operations.

If Employing Employees with N2 Qualifications:

If the manager themselves cannot meet the Japanese language ability requirement, the requirement can be met by employing Japanese nationals or permanent residents with N2 or higher qualifications.

In this case, it is necessary to prove that the employee is substantially involved in management and can handle external dealings. Merely clerical staff or part-time workers may not meet the requirements.

Keep copies of Japanese language proficiency certificates (JLPT certificates, etc.) held by employees.

Other Japanese Language Proficiency Certificates:

If you have graduated from a Japanese university or graduate school, that degree may be recognized as proof of Japanese language ability in some cases.

🔧Chapter 3: Practical Advice for Preparing from Now

So, how should foreign entrepreneurs aiming for permanent residency from now on proceed with preparations? Let’s explain specific measures by item.

Comprehensive Measures Table

Measure Item	Specific Content	Priority	Preparation Period Guideline
Capital Measures	Organize capital increase plan and timing, utilize external investors, negotiate with financial institutions, prepare payment certificates	★★★(Highest)	3-6 months
Employee Employment	Advance employment plan, recruitment activities, prepare employment contracts, social insurance procedures, establish retention support system	★★★(Highest)	2-4 months
Japanese Language Ability	JLPT examination plan, use of language schools, advance recruitment of N2 personnel, practical learning of business Japanese	★★☆(High)	6-12 months
Document Preparation	Organize employment contracts, attendance records, payroll ledgers, language certificates, business plans, financial statements	★★★(Highest)	As needed/Continuous
Tax and Social Insurance	Resolve past non-payments, ensure future reliable payment, regularly check tax payment certificates	★★★(Highest)	Immediate response
Business Stabilization	Secure sales and profits, diversify business partners, clarify business plans	★★☆(High)	Continuous
Cooperation with Experts	Establish regular consultation system with administrative scriveners, tax accountants, and social insurance labor consultants	★★☆(High)	From initial stage

1. Capital Measures: Path to 30 Million Yen

The standard of 30 million yen in capital will be the biggest hurdle for many. Consider the following methods:

Preparing Self-Funding:

• Transfer funds from overseas bank accounts to Japan (be sure to keep overseas remittance records)
• Liquidate assets such as real estate or stocks
• Receive gifts from relatives (create gift contracts and file gift tax returns appropriately)

Utilizing External Investors:

• Create a business plan and request investment from investors or venture capital
• Recruit co-managers and receive investment (careful attention to distribution of management rights is necessary)
• Angel investors and crowdfunding are also options

Borrowing from Financial Institutions:

• Consider financing from public institutions such as Japan Finance Corporation (startup financing, etc.)
• Build relationships with regional banks and credit unions (however, repayment plans should be carefully considered)

Gradual Capital Increase:

• If unable to prepare 30 million yen at once, a plan for gradual capital increase in line with business growth is also effective
• However, careful attention to timing is necessary as achieving 30 million yen by permanent residency application is required

Important Points to Note:

• Capital is “company property” and can be withdrawn after payment. However, it must be appropriately managed as funds necessary for business operations.
• Absolutely avoid “show money” (borrowing temporarily to pay in and immediately repaying). Immigration checks the flow of funds in detail.
• Be sure to keep documents that can clearly prove the source of funds (bank balance certificates, remittance records, gift contracts, etc.).

2. Employee Employment Measures: Achieving Quality Employment

It’s not simply “just employ someone,” but substantive and continuous employment is required.

Formulation of Recruitment Plans:

• Clarify job types that match the scale and content of the business (accounting, sales, marketing, customer support, etc.)
• Set salary levels according to market rates (too low won’t attract personnel, too high will pressure management)
• Work backwards from recruitment timing to create a certain period of employment track record by permanent residency application

Recruitment Activities:

• Utilize Hello Work, job sites, recruitment agencies, etc.
• Look for personnel who understand being a foreign entrepreneur (personnel with cross-cultural understanding are valuable)
• In interviews, confirm whether they have the intention to work long-term and can empathize with the company vision

Preparation of Work Environment:

• Appropriately create employment contracts (specify working hours, holidays, salary, job content, etc.)
• Create work rules (recommended for trouble prevention even with less than 10 employees)
• Definitely enroll in social insurance (employees’ pension and health insurance)
• Comply with Labor Standards Act, appropriate payment of overtime, provision of paid leave, etc.

Retention Support:

• If employees quit, it costs time and money to recruit again
• Conduct regular interviews to listen to complaints and requests
• Provide appropriate evaluation and feedback to maintain motivation
• If possible, provide incentives such as raises or bonuses

Record Keeping:

• Organize and keep employment contracts, employment insurance/social insurance enrollment certificates, salary statements, attendance records, etc.
• These documents may be required for submission during permanent residency application

3. Japanese Language Ability Measures: Challenge to N2 Level

Japanese Language Proficiency N2 can be said to be the “minimum” line as a business level. Systematic learning is necessary.

If the Manager Themselves Obtains It:

Formulation of Learning Plan:

• Objectively evaluate current Japanese level (utilize mock tests, etc.)
• Estimate study time required to pass N2 (generally 600-800 hours)
• Secure weekly study time and study continuously

Learning Methods:

• Attend Japanese language school (practical conversation skills acquired through face-to-face classes)
• Utilize online learning services (high time flexibility)
• Use JLPT preparation materials (comprehensively covering grammar, vocabulary, reading, listening)
• Actively converse with Japanese people (business partners, employees, local residents, etc.)

Test Preparation:

• Since JLPT is only held twice a year (July and December), don’t miss examination opportunities
• From 3 months before the test, repeatedly solve past questions
• Especially since listening comprehension is difficult, get into the habit of watching Japanese news and dramas

If Employing Employees with N2 Qualifications:

Confirmation at Hiring:

• Have them submit JLPT certificate of passing
• Confirm actual Japanese language ability in interview (documents alone are insufficient)
• Assess whether they have business Japanese ability

Clarification of Role:

• Design job content so that employee can function as external contact point
• Have them handle contract creation, administrative procedures, negotiations with business partners, etc.
• Even if the manager makes final decisions, entrust practical responses to that employee

4. Document Preparation: Importance of Keeping Evidence

For permanent residency applications, submission of a vast amount of documents is required. Get into the habit of organizing and keeping documents appropriately on a daily basis.

Company-Related Documents:

• Corporate registration certificate (certificate of all registered matters)
• Articles of incorporation
• Shareholder list
• Business plan
• Financial statements (balance sheet, income statement, cash flow statement)
• Corporate tax and consumption tax final returns and tax payment certificates

Personal Documents:

• Resident certificate
• Family register (if you have family)
• Copy of passport
• Copy of residence card
• Income tax final return and tax payment certificate
• Resident tax payment certificate
• Pension and health insurance payment certificates

Employment-Related Documents:

• Employment contracts
• Employment insurance and social insurance enrollment certificates
• Payroll ledger
• Withholding record book
• Attendance records

Japanese Language Ability Related:

• JLPT certificate of passing
• Japanese language school completion certificate
• Other Japanese language proficiency certificates

Other:

• Rental contract (residence)
• Utility bill receipts
• Bank account transaction history
• Certificate of no traffic violations (driving record certificate)

It is important to file these documents regularly so they can be retrieved at any time.

5. Tax and Social Insurance Measures: Aim for Zero Unpaid Amounts

In permanent residency applications, tax and social insurance payment status is extremely emphasized.

If There Are Past Unpaid Amounts:

• Pay in full promptly (installment payment consultation is possible)
• After full payment, obtain and confirm tax payment certificate
• Prepare to explain reasons for unpaid periods (if there were unavoidable circumstances)

Future Reliable Payment:

• Definitely observe payment deadlines (calendar entry, reminder settings)
• If possible, use automatic bank transfer (prevents forgotten payments)
• Have tax accountants or social insurance labor consultants check regularly

Tax Categories Requiring Particular Attention:

• Income tax and corporate tax (including corporate business tax)
• Consumption tax
• Resident tax (including corporate resident tax)
• Fixed asset tax (if owning real estate)
• Automobile tax (if owning a car)

Social Insurance:

• Employees’ Pension
• Health Insurance
• Employment Insurance (mandatory if employing employees)
• Workers’ Compensation Insurance (mandatory if employing employees)

6. Business Stabilization: Demonstrate Continuous Growth

In permanent residency applications, “whether you can continue living stably in Japan in the future” is examined. For that purpose, it is important to show that the business is continuously growing.

Securing Sales and Profits:

• Ideally maintaining profits every year (temporary deficits may be tolerated if explainable)
• Show that sales are trending upward
• Be able to explain growth initiatives such as new business or new product development

Diversification of Business Partners:

• Avoid depending too much on specific business partners
• Build continuous relationships with multiple business partners
• Keep contracts and invoices showing transaction track records

Clarification of Business Plans:

• Create a 3-5 year business plan
• Include market analysis, competitive analysis, financial planning, etc.
• Be able to explain future business development at permanent residency application

Building Social Credibility:

• Joining industry associations
• Participation in local chambers of commerce
• Social contribution activities (sponsorship of local events, etc.)
• These activities also demonstrate intent to settle in Japanese society

7. Cooperation with Experts: Early Consultation is the Key to Success

Permanent residency application is a complex and specialized procedure. We recommend cooperating with experts from an early stage.

Administrative Scrivener (Immigration Specialist):

• Visa application specialist
• Diagnosis of whether permanent residency application requirements are met
• Preparation and submission of application documents
• Negotiation with immigration

Tax Accountant:

• Corporate tax and income tax filing
• Tax payment certificate acquisition support
• Tax advice
• Financial statement preparation

Social Insurance Labor Consultant:

• Procedures related to employee employment
• Creation of employment contracts and work rules
• Social insurance enrollment procedures
• Overall labor management

Lawyer:

• When legal troubles occur
• Contract review
• Disputes among shareholders, etc.

Regularly consulting with these experts and proceeding with preparation for permanent residency application is the shortcut to success.

💡Summary: An Era Where the “Quality” of Management VISA is Questioned

From October 2025 onwards, the path to obtaining permanent residency from a Management VISA will certainly become more difficult. However, this does not mean it will “become impossible.”

Rather, it can be said that we are approaching the way it should be—selecting “entrepreneurs with the genuine intention to conduct business in Japan and contribute to Japanese society.”

Perspective Needed for Permanent Residency Application

The “residence track record” required for permanent residency application will henceforth not be merely “number of years,” but whether it was “residence with substance” will become the essence of examination.

Specifically:

Substantive Business Operations: Not a paper company, but a business that actually generates sales, employs employees, and contributes to the Japanese economy.

Legal Compliance: Understanding and appropriately observing Japanese laws, including payment of taxes and social insurance and compliance with labor laws.

Settlement in Japanese Society: Including Japanese language ability, integrating into Japanese society and building a foundation for long-term living.

Economic Stability: The business continuously generating profits and enabling stable living including family members.

Managers who comprehensively meet these elements are judged as worthy of permanent residency.

What to Start Immediately

Those aiming for permanent residency with a Management VISA from now on should immediately start the following actions:

1. Current Status Diagnosis: Objectively evaluate your current situation (capital, employees, Japanese language ability, tax payment status, etc.)
2. Identify Gaps: Clarify gaps between new requirements and current status
3. Create Action Plan: Establish a concrete action plan to fill the gaps (by when, what, how)
4. Consult with Experts: Consult early with experts such as administrative scriveners and receive advice
5. Execute and Record: Implement the plan and record and keep all processes

Have a Long-Term Perspective

Permanent residency application is not something that can be done overnight. Long-term preparation over several years is necessary.

However, the business foundation, human resources, and social credibility built in that process lead not only to obtaining permanent residency, but to the success of the business itself.

If you think of obtaining permanent residency not as a goal but as a means to succeed long-term in Japan, all the preparations you start now should become meaningful investments.

Finally

Japan welcomes foreign entrepreneurs who seriously conduct business and contribute to society. The new requirements may seem strict, but they are standards for accepting “high-quality foreign entrepreneurs.”

Clearing these standards is not easy, but it is by no means impossible. By proceeding with preparations systematically and steadily, you can achieve the goal of obtaining permanent residency.

We hope this article will be of some help to you on your path to obtaining permanent residency. We sincerely wish you success in Japan.

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📚Reference Information and Related Links

• Immigration Services Agency of Japan Official Website
• Ministry of Justice Residence Status Related Information
• Japanese Language Proficiency Test (JLPT) Official Website
• Latest Information on Management VISA

*This article is based on information as of February 2026. Please always check the latest information on the Immigration Services Agency official website and with experts.

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