Business Manager Visa Japan: ¥5 Million Capital—Preparation, Application, Pitfalls & Renewal

“I want to start my own company in Japan and succeed in business!”
If you’ve just begun gathering information with such a big dream in mind, you’ve probably come across the terms “Business Manager Visa” and “5 million yen in capital” on many websites and social media platforms.

“Can anyone really get a visa if they just have 5 million yen?”
“Some posts on social media say it’s easy, but I have a friend who failed and had to return home… What made the difference?”
“How should I prepare this 5 million yen, and how do I prove it?”

These are questions that every foreigner aiming to start a business in Japan inevitably faces at some point.

In recent years, the screening process for the Business Manager Visa—especially regarding the capital requirement—has become increasingly strict. It’s no longer enough to simply have the money; more and more applications are being rejected.
But rest assured: if you have the correct knowledge and prepare strategically, this is a challenge you can definitely overcome.

Here are the key points covered in this article.

✓  Preparing 5 million yen in capital is the most common and crucial requirement for obtaining a Business Manager Visa. It serves as an objective standard to prove the stability and continuity of your business. ✓  There are three main sources for capital: personal funds, loans, and contributions in kind. In the case of personal funds, it is essential to clearly prove how the money was accumulated. ✓  If the source or flow of funds is unclear—such as borrowed funds for show, cash stored at home, income from illegal part-time work, or lump-sum deposits just before the application—the risk of visa denial is high. ✓ After the company is established, the capital should be wisely used as working capital for the business. Withdrawing funds for personal use is strictly prohibited. ✓  During visa renewal, the continuity of the business and a healthy cash flow are closely scrutinized. Therefore, strategic financial management and building a solid track record are critical ✓  The procedures are complex, so wisely seeking support from professionals (such as certified immigration specialists) can significantly increase your chances of success.

In this article, we provide a comprehensive explanation of the Business Manager Visa and the 5 million yen capital requirement, based on the latest information as of 2025. From basic knowledge to advanced topics and real-life failure cases, nothing is left out. By the end of this article, you will clearly understand what steps you need to take now and how to move forward to bring your dream closer to reality.

1.The Truth About the Relationship Between Japan’s Business Manager Visa and the 5 Million Yen Capital Requirement

First, let’s understand the core reason why the figure of “5 million yen” is considered so important.

1-1. What Exactly Is Japan’s Business Manager Visa?

The Business Manager Visa is a residence status that allows foreign nationals to operate as business owners or managers in Japan. Specifically, it applies to the following types of individuals:

• Business Owners: Those who establish a company in Japan (such as a joint-stock company or an LLC) and operate the business as its representative director or executive member.
• Managers: Those who take on roles such as director or branch manager in an existing company in Japan and are responsible for managing the business (e.g., the Japan branch manager of a foreign headquarters).

In 2015, a legal revision changed the visa’s name from the “Investor/Business Manager Visa” to the current “Business Manager Visa,” expanding the scope of eligible activities. This visa is a key framework for welcoming foreign nationals with the motivation and capability to contribute to the revitalization of Japan’s economy.

1-2. Why Is “5 Million Yen” Required? Legal Basis and Immigration’s Perspective

This is the most important point in the article. In short, the purpose of the 5 million yen requirement is to objectively demonstrate that the business you plan to start is not just a spur-of-the-moment idea, but a legitimate venture with a strong prospect of stable and continuous operation.

Under Japanese law (specifically, the Ministry Ordinance that sets the standards based on Article 7, Paragraph 1, Item 2 of the Immigration Control and Refugee Recognition Act), the “scale of business” is clearly defined as a condition for granting a Business Manager Visa. To meet this requirement, one of the following conditions must be satisfied:

1. The business must employ at least two full-time staff members residing in Japan, excluding the applicant engaged in the management.
   (*These employees must be Japanese nationals, permanent residents, spouses of Japanese or permanent residents, or long-term residents.)
2. The company must have a capital or total investment of at least 5 million yen.
3. The business must be considered equivalent in scale to the above, such as in the case of a sole proprietorship that has invested 5 million yen or more in physical assets like a store or equipment.

For most aspiring entrepreneurs in Japan, hiring two full-time employees—especially Japanese nationals—at the startup stage is financially unrealistic due to high labor costs. Therefore, the majority of applicants opt for the clearest and most achievable standard:
“2. A capital or total investment of at least 5 million yen.”

Immigration examiners view this 5 million yen figure as a sign that the applicant has both the commitment and a concrete plan to launch a real business. It suggests that the business is less likely to fail quickly, which aligns with national policy efforts to prevent unstable ventures from becoming a gateway to illegal employment.

[Important] Possible Changes to the Requirements for the Business Manager Visa (as of August 2025)

There are reports suggesting that the requirements for obtaining a Business Manager Visa may become stricter around October 2025. Although this is not confirmed information at this stage, the following points have been highlighted as potential changes:

・Increase in capital requirements
(Current) ¥5 million or more → (Proposed revision) ¥30 million or more

・Mandatory employment of full-time staff
(Current) Choice between capital requirement or hiring → (Proposed revision) In addition to the capital requirement, employment of at least one full-time staff member will be mandatory

・Introduction of requirements for the manager’s background and academic qualifications
“At least 3 years of management/administration experience” or “A master’s degree or higher related to management/administration”

For those considering starting a business in Japan or applying for a Business Manager Visa, it is necessary to prepare on the assumption that such changes may take place.

For the latest information and procedures tailored to your specific situation, please feel free to contact our office.

2.[Practical Guide] How to Prepare and Prove 5 Million Yen in Capital

So, how exactly can you prepare 5 million yen and convince immigration authorities that it is legitimate funding?
Let’s break it down step by step.

2-1. What’s Your Funding Source? Three Capital Source Patterns

The source of your capital generally falls into one of the following three categories:

• Pattern A: Personal Funds (money you saved yourself)
• Pattern B: Loans (money borrowed from family or financial institutions)
• Pattern C: In-Kind Contributions (assets other than cash)

All three patterns are acceptable, but each has different requirements for proof and specific points to watch out for.

2-2. Pattern A: Proving Personal Funds [Most Important: The Process of Accumulation]

When using personal funds, immigration authorities are most interested in the story behind the 5 million yen—when, from where, and how the money was saved and deposited into your account.
Simply having 5 million yen in your bank book is not enough. To avoid suspicion of “borrowed show money,” you must provide supporting documents that clearly trace the flow of funds in a continuous and logical manner.

• Required Document ①: Copy of Bankbook (All Pages)
  〇Key Point: You must provide copies of the entire bankbook—from the cover to the last page—not just the balance page. Make sure the transaction details (like salary deposits and gradual savings) are clearly visible.
  If you use an online bank with no physical bankbook, obtain transaction history statements covering a long period—at least one year, preferably two to three years.
• Required Document ②: Official Documents Proving Your Income
  〇If you were an employee: Certificate of employment, pay slips (1–2 years), and withholding tax certificate (or tax certificate/tax payment certificate).
  〇If you were self-employed or a business owner: Copies of income tax returns (for several years) and documents explaining your business activities.
• Supplemental Documents (advantageous if available):Documents showing lump-sum income such as retirement payment certificates, real estate sale agreements, or proof of profits from stock sales.

2-3.Pattern B: Proving Loans [The Key Is Contract and Repayment Capacity]

It is acceptable to use funds borrowed from relatives or acquaintances as capital. However, you must provide clear evidence that the funds represent a genuine loan with a repayment obligation, and that the lender has sufficient financial capacity to make the loan.

• Required Document ①: Loan Agreement (Contract of Money Loan for Consumption)
  〇Mandatory Information: Full names and addresses of both lender and borrower, contract date, loan amount, repayment method, repayment period, and interest rate. Signatures and seals from both parties are also required.It is recommended to either consult a professional or use a reliable template available online to draft the contract.
• Required Document ②: Proof of Fund Transfer
  〇A bank transaction statement showing that the loan amount was transferred from the lender’s account to your account, exactly as stated in the contract.Do not use cash handovers—the transfer must leave a clear, traceable record.
• Required Document ③: Proof of Lender’s Financial Capacity
  〇Key Point: This proves that the lender had sufficient funds to make the loan.Acceptable documents include copies of the lender’s bankbook or income certificate.This is particularly important for loans between private individuals.

2-4. Pattern C: Utilizing In-Kind Contributions [For Advanced Applicants]

The 5 million yen capital does not have to be entirely in cash—it can also include assets used for the business. This is known as an in-kind contribution.

• Examples of Eligible Assets: Computers, servers, software, vehicles, real estate, etc.
• Points to Note:
  〇Difficult to Prove Value: For items like used computers or vehicles, you must objectively prove that the asset truly holds a market value equivalent to the claimed amount—such as 5 million yen. This usually requires a formal valuation or certification by a professional (e.g., tax accountant, attorney, or real estate appraiser). The process is complex and can incur additional costs.
  〇Combination with Cash Is Allowed: For example, a combination like “3 million yen in cash + a business vehicle worth 2 million yen” is acceptable. However, due to the complexity of the procedures, most applicants choose to fulfill the requirement entirely in cash.

2-5. Important Points When Transferring or Bringing Funds from Overseas

If you are bringing funds from your home country, please pay close attention to the following points.

• Transfer a Sufficient Amount
  Be sure to account for exchange rate fluctuations and transfer fees. To ensure that the amount received in Japanese yen exceeds 5 million yen, it’s best to send a bit more—around 5.1 million yen, for example.
• Use of Transfer Services
  Fintech services like Wise (formerly TransferWise) are convenient, but you must transfer the money in your own name and ensure that a transfer certificate or receipt is issued.
• Bringing Cash into Japan
  If you bring more than the equivalent of 1 million yen in cash into Japan, you are legally required to submit a Declaration of Carrying Means of Payment at customs.
  The receipt copy of this declaration is extremely important for proving the origin of your funds—do not lose it.

3. [Learn from Failure] 7 Critical Mistakes That Can Lead to Visa Denial

Here, we’ll introduce seven critical mistakes—based on actual cases—that can directly lead to visa denial.
By understanding these in advance, you can significantly reduce the risk of failure.

1. [Absolutely Prohibited] Show Money
   This refers to borrowing money temporarily from friends or acquaintances, depositing it into your own bank account to show a high balance, and then immediately returning it. Immigration authorities scrutinize unusual transactions, and if discovered, not only will your visa be denied, but it may also be treated as a fraudulent application—seriously affecting future visa prospects.
2. [Cannot Be Proven] Cash Stored at Home
   Claims like “my family saved cash in our home country and I brought it over little by little in my suitcase” are almost never accepted, as they cannot be objectively verified. The flow of funds must always be traceable through financial institution records.
3. [Illegal] Excess Earnings from Student Part-Time Work
   International students are generally allowed to work up to 28 hours per week under a work permit. Using funds earned in excess of this limit as capital is illegal and not accepted. Immigration may contact your former school or employer to verify details, so misrepresenting facts is not an option.
4. [Unexplainable] Large Lump-Sum Deposit Just Before Application
   If your account, which had little to no activity, suddenly receives a 5 million yen deposit just days before applying for the visa, you will almost certainly be asked, “Where did this money come from?” If you cannot legitimately prove the source, it will likely be treated as show money.
5. [Incorrect Name] Transfer from Another Person’s Account
   Capital must be deposited into the applicant’s (founder’s) personal bank account. You cannot transfer funds directly from your parent’s or sibling’s account to the company’s account. The proper sequence must be: Parent → Your personal account → Company account.
6. [Lack of Documentation] Incomplete Proof for Gifts from Parents
   If your parents gift you 5 million yen, it’s no longer enough to just submit a gift agreement. Immigration increasingly requires proof of how your parents accumulated the funds. You may need to ask for documents such as retirement payment certificates or income certificates.
7. [Lack of Knowledge] Using Cryptocurrency Gains
   Using profits from cryptocurrency trading as capital is allowed, but extremely difficult to prove. You must provide full documentation, including trade history from the exchange, records of conversion into Japanese yen, and tax filings (proof of declared income from those profits).

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4. How to Use the 5 Million Yen Capital After Company Formation

Once your company is successfully established and the 5 million yen in capital is deposited into the company’s bank account, what happens to that money next?

4-1. Capital Is the Engine That Drives Business Growth

Capital is not money to be locked away in a safe. It serves as working capital—the engine that powers your business’s growth. After establishing your company, you can use the funds for various business expenses such as:

• Fixed Costs: Office rent, security deposit, maintenance fees, communication costs, utilities (water, electricity, etc.)
• Personnel Expenses: Your own executive compensation, employee salaries, company-paid social insurance contributions
• Variable Costs: Product procurement, advertising and marketing expenses, transportation costs, entertainment and client hospitality expenses
• Capital Expenditures: Purchases of business equipment such as computers, desks, software, and company vehicles

4-2. Manage Your Funds with Visa Renewal in Mind

The Business Manager Visa is typically granted for an initial period of one year. When you apply for renewal after one year, immigration authorities will closely examine whether your business has been properly maintained and is continuing operations.

• Does a Deficit Mean Automatic Visa Denial?
  It’s often difficult to turn a profit in the first year of business, so a deficit alone will not necessarily lead to visa denial. However, if your company has generated no revenue or has nearly depleted its capital, immigration authorities may judge that the business lacks sustainability.
• What Matters Most: Healthy Cash Flow
  Even if your company is operating at a loss, it is crucial to demonstrate real business activity—such as paying executive compensation, covering necessary operating expenses, and continuing day-to-day operations.
• Consistency with Your Business Plan
  Another key factor during the renewal process is whether you have followed the business plan submitted with your initial visa application. If things haven’t gone according to plan, you must be able to provide a logical explanation.
  Using your capital strategically and steadily building a track record of business activity is essential for a successful renewal.

5. Alternatives to the 5 Million Yen Capital Requirement

As mentioned earlier, instead of providing 5 million yen in capital, you can meet the business scale requirement by employing two or more full-time staff. However, this is a significantly more challenging option.

5-1. Hiring Two or More Full-Time Employees

• Definition of “Full-Time”
  You must hire full-time employees (e.g., regular staff) and enroll them in social insurance (health insurance and pension) as well as employment insurance.
• Eligible Employees
  Only the following individuals are counted: Japanese nationals, permanent residents, spouses of Japanese nationals or permanent residents, and long-term residents.
  Foreign workers on other types of work visas do not count toward this requirement.
• Practicality of Hiring Two or More Full-Time Employees
  For most startups, covering the salaries (typically ¥500,000–¥600,000 or more per month for two employees) and social insurance premiums immediately upon company formation is a heavy financial burden.
  As a result, nearly all applicants choose the 5 million yen capital route instead.

5-2. When a Foreign National Manages an Existing Business in Japan

If a foreign national is appointed as a director, department head, branch manager, or factory manager in an existing business in Japan, the applicant is not required to personally invest 5 million yen.
Instead, the key condition is that the company where the foreigner will work already meets the required business scale—either having a capital of 5 million yen or employing at least two full-time staff.

In such cases, the immigration review focuses not on the applicant’s capital investment, but on the foreign national’s experience and qualifications in business management or administration.

Specifically, the following conditions must be met:

• The applicant must have at least three years of experience in business management or administration, including time spent in a graduate program majoring in business or management.
• The applicant must receive a salary equivalent to or higher than that of a Japanese national in the same position.

In this way, it is possible to obtain a Business Manager Visa for a foreign national without requiring them to personally invest 5 million yen, provided they are being brought in as a manager. However, the applicant must be able to prove their three or more years of managerial experience or time spent in a relevant graduate-level program such as an MBA.
Additionally, the salary offered must be equal to or greater than that of a Japanese national engaged in similar duties, either within the same company or in comparable roles at similar companies.

6.Process Flow: From Company Formation to Visa Acquisition

If you are living overseas and do not have a local representative or partner in Japan, the general process proceeds as follows:

1. [Before Entering Japan] Apply for a 4-Month Business Manager Visa：Apply for a temporary 4-month Business Manager Visa to enter Japan and prepare for company establishment.(Processing time: approximately 1–3 months)
2. [After Arrival in Japan] Preparation Activities (Within 4 Months)
   〇Office Lease: Rent an office suitable for your business activities.
   〇Open a Personal Bank Account: Set up a personal bank account to receive your capital funds.
   〇Draft and Certify Articles of Incorporation: Prepare your company’s Articles of Incorporation and have them certified at a notary office.
3. Capital Deposit: Transfer the 5 million yen from your home country into your personal bank account in Japan.
4. Company Registration: Submit your application for company incorporation at the Legal Affairs Bureau. (Typically completed within 1–2 weeks)
5. Notification to Tax Authorities: After registration, submit necessary startup notifications to the tax office and relevant local government agencies.After Arrival in Japan] Preparation Activities (Within 4 Months)
6. [Main Step] Apply to Change to a 1-Year Business Manager Visa
   Gather all required documents and submit your application for a change of status to a 1-year Business Manager Visa at the Immigration Bureau.(Processing time: approximately 2–3 months)
7. Visa Approved – Begin Business!
   Once approved, you can officially launch your business activities in Japan.

7. Business Manager Visa in Japan: Q&A

Q. Is there a difference in how capital is treated between an LLC (Godo Kaisha) and a Corporation (Kabushiki Kaisha)?

A. No, there is no difference. As long as the total investment is 5 million yen or more, both company types meet the visa requirement.
If you want to reduce startup costs, an LLC is often chosen. If you prioritize future fundraising or social credibility, a corporation is generally preferred.

Q. Will increasing capital make it easier to renew the visa?

A. It could work in your favor. Capital increases may be viewed as evidence that the business is performing well and aiming for growth.
However, simply increasing capital is not enough—you must also show how that additional capital has been used to grow the business and generate revenue or profit.

Q. After establishing the company, can I immediately withdraw capital to pay business expenses?

A. Yes. Once deposited into the company account, the capital becomes company funds and can be used for legitimate business expenses.

Q. What should I be aware of when using capital to open a franchise business?

A. Franchise fees, security deposits, and royalties will typically be paid from your capital. Contracts and receipts related to these payments are important proof of actual business activity, so be sure to keep them.
Also, the feasibility of the business plan provided by the franchisor will be evaluated during the visa process.

Q. Were there any changes in the law as of March 2024?

A. Yes. As of the legal revision in March 2024, the amount paid for stock options with consideration (paid stock acquisition rights) can now be counted toward the capital requirement under certain conditions.
This change was made to accommodate the growing diversity of startup funding methods. While cash investment remains the standard for most cases, it’s good to be aware of this option.

8.Summary

✓  Preparing 5 million yen in capital is the most common and crucial requirement for obtaining a Business Manager Visa. It serves as an objective standard to prove the stability and continuity of your business. ✓  There are three main sources for capital: personal funds, loans, and contributions in kind. In the case of personal funds, it is essential to clearly prove how the money was accumulated. ✓  If the source or flow of funds is unclear—such as borrowed funds for show, cash stored at home, income from illegal part-time work, or lump-sum deposits just before the application—the risk of visa denial is high. ✓ After the company is established, the capital should be wisely used as working capital for the business. Withdrawing funds for personal use is strictly prohibited. ✓  During visa renewal, the continuity of the business and a healthy cash flow are closely scrutinized. Therefore, strategic financial management and building a solid track record are critical ✓  The procedures are complex, so wisely seeking support from professionals (such as certified immigration specialists) can significantly increase your chances of success.

Thank you for reading this comprehensive guide on the Business Manager Visa and the 5 million yen capital requirement all the way to the end.

Let us leave you with the most important takeaway: immigration authorities are not just looking at numbers in a bankbook. What truly matters is the story behind those numbers—your passion for the business, your careful planning, and your commitment to compliance.

1. Prepare the “story” behind your funds:
   Clearly demonstrate how and why you were able to prepare the 5 million yen, using objective documents that anyone can verify.
2. Make smart use of professionals:
   The procedures are complex, and immigration laws change frequently. If you feel uncertain or overwhelmed, don’t go it alone—consult an immigration specialist such as a certified administrative scrivener (Gyoseishoshi). It’s the most direct path to success.
3. Obtaining the visa is not the goal—it’s the starting line:
   Use your capital wisely, grow your business, and contribute to Japanese society. The visa is just the beginning of an exciting and meaningful journey.

If this article helps you turn your dream of starting a business in Japan into reality, nothing would make us happier.
We sincerely wish you success on your entrepreneurial path.