Japan’s Business Manager Visa One Year After the 2025 Overhaul: What Foreign Founders and Companies Need to Know

INSIGHTS｜DOING BUSINESS IN JAPAN

Akira Kaneko, Attorney at Law (Kaneko Law Office)

Introduction

The “Business Manager” status of residence (keiei-kanri) is the visa most foreign entrepreneurs and executives use to set up and run a company in Japan. The amendment that substantially tightened its requirements took effect on October 16, 2025, almost exactly one year ago.

The amendment revised the Ministerial Ordinance setting the criteria under Article 7, paragraph 1, item 2 of the Immigration Control and Refugee Recognition Act (the “landing criteria ordinance”), and the Act’s Enforcement Regulations.

This article summarizes the changes, highlights the points that require particular care when setting up a company and hiring staff, and explains the transitional measures for people who already hold the Business Manager visa.

1. What changed

The main changes, based on materials published by the Immigration Services Agency of Japan, are:

Item	Before	After
Assets used for the business	JPY 5 million	JPY 30 million
Background (of the business manager)	None	At least three years of business management experience, or a master’s-level (or higher) degree in business administration or in the field of the business
Employment	No obligation	At least one full-time employee must be hired
Japanese language	None	The applicant or a full-time employee must have a considerable level of Japanese ability, namely B2 or higher under the Japanese Language Education Reference Framework (based on the CEFR)
Business plan	No outside review	A new business plan must be reviewed by a person with expert knowledge of business management (except, for example, for businesses comparable in size to listed companies)

The biggest practical change is that the two requirements now both apply. Before the amendment, meeting either the full-time employee requirement or the capital requirement was enough.

2. Points to watch when setting up the company and hiring staff

(1) The JPY 30 million test looks at stated capital: capital reserve and similar items do not count

For a kabushiki kaisha (KK), the test looks at paid-in stated capital (shihonkin). For a godo kaisha (GK) or another membership company, it looks at the total contributions. The Agency’s Q&A states that capital reserve, capital surplus and retained earnings do not count (Q7).

Under the Companies Act, a KK may record up to half of the amount paid in as capital reserve instead of stated capital (Article 445, paragraphs 2 and 3). This is often done to reduce the registration and license tax. If you structure the investment that way, you may fail the requirement even though you invested JPY 30 million or more in total.

For a sole proprietor, the JPY 30 million refers to the total amount invested as necessary to operate the business. This includes, for example, the cost of securing business premises, one year’s salaries for employees and capital expenditure.

For a company, by contrast, the test is based on stated capital or total contributions. Salaries, office running costs and other amounts invested to operate the business therefore cannot be added to reach the threshold (Q8).

(2) Who counts as a “full-time employee”: secondees and agency staff do not count

Only the following count as full-time employees for this purpose:

• Japanese nationals
• Special Permanent Residents
• Foreign nationals holding a residence status listed in Appended Table II of the Act: Permanent Resident, Spouse or Child of Japanese National, Spouse or Child of Permanent Resident, or Long-Term Resident

Whether a person is a full-time employee depends on the following factors:

• The person must work every day during the prescribed hours under a set work schedule, except on holidays and other non-working days.
• The person’s salary must reflect their duties.
• Compared with part-time workers, the Agency looks at the number of working days, working hours, annual paid leave and enrollment in employment insurance.

As for the form of employment, employees on secondment (zaiseki shukko), dispatched (agency) workers and independent contractors do not qualify as full-time employees (Q3).

Foreign companies setting up a Japanese subsidiary often staff it with secondees from group companies. As explained above, secondees do not count, so the subsidiary must employ the qualifying staff member directly. Plan the employment contract, work rules, and social and labor insurance enrollment at the incorporation stage.

(3) The Japanese-language requirement: who must meet it

Either the applicant or a full-time employee may meet the language requirement. For this requirement only, the employee may also be a foreign national holding a residence status in Appended Table I, such as a work-related status.

Specifically, one of the following must apply:

• JLPT level N2 or higher
• A score of 400 or more on the BJT Business Japanese Proficiency Test
• 20 years or more of residence in Japan as a mid- to long-term resident
• Graduation from a university or other higher-education institution in Japan
• Completion of compulsory education and graduation from high school in Japan

(4) Expert review of the business plan

A new business plan must be reviewed by one of the following Japanese-qualified professionals (Q16):

• A certified SME management consultant (chusho kigyo shindanshi)
• A certified public accountant
• A certified tax accountant

A person holding an equivalent foreign qualification, such as a U.S. CPA, does not qualify (Q17). Even if an officer or employee of the applicant’s own company holds one of these qualifications, that person cannot review the plan, because the review must be objective (Q18).

(5) The office and the substance of the business

A home office is, as a rule, not accepted. The premises must be large enough for the business, taking into account its scale under the new requirements (Q20, Q21). Check the permitted use and floor area before you sign a lease.

3. Transitional measures for existing visa holders

Transitional measures apply to people who already held the Business Manager visa before the amendment:

• Until October 16, 2028 (three years after the amendment took effect), a renewal application will not be refused solely because the new requirements are not met.
• After October 16, 2028, a renewal application may still fail to meet the new requirements. In that case, if the business is performing well, corporate and other taxes have been properly paid, and the new requirements are expected to be met by the next renewal, the Agency will decide the application after an overall assessment of the applicant’s other circumstances.

4. Why this matters for companies entering Japan

The amendment affects not only individual founders but also foreign companies that plan to set up a Japanese subsidiary and send an executive from headquarters. Decide how much stated capital to record, how to hire staff directly and where to locate the office when you choose your entry structure, not when you file the visa application.

For a comparison of entry structures, see our article “KK, GK, Branch or Representative Office? Choosing Your Entry Vehicle for Japan”.

This article provides general information based on laws and published materials as of September 30, 2026. It is not legal advice on any specific matter.