No, Japan’s Business Manager Visa Rules Got Stricter: 2025 Update & Expert Tips

To establish and run a company in Japan as a foreign national, you need a Business Manager Visa. In the past, there were predictions about “relaxed requirements” and the “nationwide rollout of startup visas” to encourage more foreign entrepreneurs. However, on October 16, 2025, the conclusion was the opposite: instead of being relaxed, the requirements were tightened to an unprecedented degree.

In this article, a specialist clearly explains the exact details of this historic regulatory reform based on official materials from the Immigration Services Agency of Japan.

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1. What is a Business Manager Visa Japan?

The Business Manager Visa (Management Visa) is a type of work visa required for foreign nationals to manage a company or work as an executive in Japan. It was previously known as the Investor/Business Manager Visa, but the name was changed to Business Manager Visa because it is now possible to obtain it without foreign capital involvement.

Japanese nationals, permanent residents, and spouses of Japanese nationals can freely manage companies or take executive positions within Japan. However, foreign nationals face restrictions on taking these positions based on their residency status. By obtaining a Business Manager Visa, foreign nationals can also work as business managers or executives in Japan.

1-1.The initial period of stay for the Business Manager Visa is generally one year.

Generally, the period of stay for the Business Manager Visa ranges from 3 months to 5 years. The period of stay is determined based on the applicant’s submitted plan and circumstances, but the standard duration for the initial application is one year.

Furthermore, while the visa is typically renewed annually, there are cases where the renewal period may be extended to 2 or 3 years depending on factors such as the business’s operational status, the manager’s residency history, and the scale of the business.

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1-2. The Business Manager Visa generally requires annual renewal.

When a foreign national obtains a Business Manager Visa, it is essentially a one-year renewable visa, requiring the renewal process to be completed annually. Each renewal necessitates the preparation and submission of documents, imposing a significant administrative burden on foreign business managers.

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2.[2025 New System] Five New Requirements for Obtaining Japan’s Business Manager Visa

Due to the legal revision on October 16, 2025, the rules for obtaining a Business Manager Visa have been revised and made significantly stricter. The previous requirements such as “5 million yen in capital” and “no restrictions on academic or professional background” no longer apply. Applicants must now satisfy all of the following five newly established requirements.

Requirement 1: Business scale (capital of at least 30 million yen and at least one full-time employee)

The benchmark for demonstrating the stability of the business has been raised more than any other requirement. Under the previous system, it was sufficient to meet either “capital of 5 million yen” or “two full-time employees.” Under the new system, however, it is mandatory to meet both of the following conditions: “capital of 30 million yen” and “at least one full-time employee.”

Capital or total investment of at least 30 million yen

If you operate a joint-stock company (kabushiki kaisha), the capital must be at least 30 million yen, and if you operate a limited liability company (godo kaisha), the total amount of investment must be at least 30 million yen. In the case of a sole proprietorship, the total amount invested in the business—such as securing an office and purchasing equipment—must be at least 30 million yen.

Employment of at least one full-time employee

In addition to the above capital requirement, it is now mandatory to employ at least one full-time staff member. There are also conditions for who can qualify as this “full-time employee,” limited to individuals who fall under one of the following categories.

• Japanese nationals
• Special permanent residents
• Foreign nationals who hold one of the following statuses of residence: “Permanent Resident,” “Spouse or Child of Japanese National,” “Spouse or Child of Permanent Resident,” or “Long-Term Resident”

Note: Foreign nationals working under work-related visas such as “Engineer/Specialist in Humanities/International Services” are not counted toward this full-time employee requirement.

Requirement 2: Securing an independent business office

It is necessary to secure a physical place of business to carry out your activities. This requirement has also been tightened, and as a general rule, it is no longer permitted to use your home as both your residence and business office. Virtual offices and shared areas in co-working spaces that anyone can use are likewise not accepted. You must instead lease a clearly demarcated, independent space dedicated to business activities under the company’s name.

Requirement 3: A feasible business plan verified by a qualified professional

A business plan that demonstrates the stability and continuity of the business remains just as important as before, but a new mechanism has been introduced to ensure the reliability of that plan. The submitted business plan is now required to be reviewed by a third-party professional with specialized knowledge of management, who must confirm that the plan is concrete and feasible. As of the date of enforcement, the professionals recognized for this role are those who hold the following national qualifications.

• Small and Medium Enterprise Management Consultant
• Certified Public Accountant
• Tax Accountant

It is not enough to simply draft a plan; the business plan must be of a level that can convince the professional reviewer.
The business to be conducted by the company you establish is also required to be appropriate, sustainable, and stable.
You will need to demonstrate this appropriateness, continuity, and stability by submitting materials such as a description of the business, projected income and expenditures, and the business plan itself. The Immigration Services Agency will examine whether the business has real substance and whether it can generate profit and continue operating. A company that is expected to remain in the red for many years will not be approved.

In fields such as internet-related services or trading, it is sometimes possible to operate a company with only a small number of staff. However, for brick-and-mortar businesses such as restaurants, massage parlors, or retail shops, the holder of a Business Manager Visa is fundamentally expected to be engaged in management tasks, and is not assumed to perform on-site labor such as cooking or serving customers. Therefore, in the case of such store-based businesses, it is necessary to hire front-line staff.

Requirement 4: The manager’s own professional experience or academic background

Under the new system, applicants are now required to objectively demonstrate their qualifications as a business manager, which was not examined under the previous rules. They must satisfy one of the following requirements.

At least three years of practical experience in business management or administration.

This includes experience in positions such as president, director, department manager, or branch manager, where the person was actually engaged in business management or administrative duties. Experience gained outside Japan is also counted. In addition, periods spent on entrepreneurial preparation activities under the “Designated Activities” residence status can be included in this three-year experience.

A master’s degree or higher in business management or in a field related to the proposed business

Degrees related to business management, such as a Master of Business Administration (MBA), or doctoral, master’s, or professional degrees in the field of the intended business (for example, a master’s degree in information science if you plan to start an IT business) are required. This also includes equivalent degrees conferred by universities and other institutions outside Japan.

Requirement 5: A certain level of Japanese language proficiency.

To demonstrate the ability to operate a business smoothly in Japan, it is now mandatory that either the applicant or one of the company’s full-time employees possesses a sufficient level of Japanese language proficiency.

Specific criteria for “a sufficient level of Japanese language proficiency”

It is defined as equivalent to level B2 or higher under the international standard known as the “Japanese Language Education Reference Framework,” and you must prove that you meet one of the following criteria.

• Having been certified at N2 or higher on the Japanese-Language Proficiency Test (JLPT)
• Having scored 400 points or higher on the BJT Business Japanese Proficiency Test
• Having graduated from a Japanese institution of higher education, such as a university or graduate school
• Having resided in Japan as a mid- to long-term resident for 20 years or more

Who meets these requirements?

It is not necessary for the applicant themself to satisfy this requirement; it may instead be met by a full-time employee of the company. Importantly, unlike the “full-time employee” referred to in Requirement 1, the “full-time employee” for the purposes of this Japanese language requirement may also be a foreign national working in Japan under a work-related status of residence such as “Engineer/Specialist in Humanities/International Services.”

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3.From March 2024, the payment for paid stock options will also be recognized as capital

In March 2024, the guidelines for the Business Manager Visa were revised so that fundraising through paid J-KISS type stock options is now also recognized as a contribution toward the 30-million-yen capital requirement. This section explains how paid J-KISS type stock options affect the relaxation of the capital requirement for the Business Manager Visa.

What are Paid Stock Options (J-KISS)?

For foreign entrepreneurs aiming to obtain a Business Manager Visa, raising 5 million yen is a significant hurdle.

In particular, when conducting business in Japan, entrepreneurs must meet certain business scale requirements, such as securing capital and establishing a business office. In this context, paid stock options, specifically the J-KISS model, play an important role. J-KISS is a method commonly used by startup companies to raise funds from investors, where instead of directly issuing shares, they offer paid rights (stock options) that can be converted into shares in the future.

This enables startups to raise funds at the time of issuing the stock options without directly issuing specific shares, such as common stock or preferred stock, based on strict company valuations. According to the investment agreement, these rights can be converted into shares once specific conditions are met, such as securing additional funding.

J-KISS offers investors the potential to acquire shares in the company in the future, while initially holding “rights” rather than actual shares. This allows startups to avoid complicating their capital structure, providing a more flexible and simplified way to raise funds.

The paid-in amount for paid stock options will be recognized as part of the 30 million yen capital requirement for the Business Manager Visa.

To meet the criteria for obtaining a Business Manager Visa, the business’s capital or total investment must be at least 30 million yen.

Requirements for Paid Stock Options to be Recognized as Capital

The paid-in amount raised through J-KISS stock options, without issuing shares, will be recognized as capital only if the following two conditions are met:

• The paid-in amount obtained from the issuance of stock options is non-refundable.
• The paid-in amount will be recorded as capital whether the stock options are exercised in the future, becoming paid-in capital, or expire unexercised, resulting in a profit.

Necessary Documents for Recognizing the Paid-in Amount of Paid Stock Options as Capital

To meet the requirements for a Business Manager Visa through fundraising using paid stock options, the following documents are necessary:

• The investment contract concluded at the time of issuing the stock options (such as the J-KISS stock option agreement).
• Documentation proving the paid-in amount (copies of bank passbooks or transaction statements).
• Additionally, a declaration confirming that the amount to be recorded as part of the 30 million yen capital for the Business Manager Visa will be recognized as capital when the stock options are exercised in the future.

By utilizing J-KISS stock options, startup companies can more easily meet the capital requirements for the Business Manager Visa and achieve more flexible fundraising.

4.2025 Legal Revision: Not a “Relaxation of Startup Visas” but a “Tightening of the Business Manager Visa”

The reports at the end of 2024 about a “relaxation of startup visas from 2025” and their “nationwide expansion” unfortunately did not come to pass. In reality, what was implemented was the exact opposite: a significant tightening of the Business Manager Visa requirements.

“What is a ‘Startup Visa’?”

Generally, what is commonly referred to as a “startup visa” includes statuses of residence for business preparation, such as the “Designated Activities (Program to Promote Foreign Entrepreneurs)” implemented by certain local governments. These statuses allow foreign nationals to stay in Japan before fully launching their business, in order to carry out preparatory activities such as establishing a company and signing an office lease.

Not a Relaxation, but a Steeper Path to the Goal

This legal revision has made the very requirements for obtaining the Business Manager Visa—the ultimate goal after this “preparation period” itself—extremely strict.
In other words, even if your startup preparation activities are approved, unless you ultimately clear very high hurdles such as 30 million yen in capital, the employment of at least one full-time employee, and three or more years of management experience, you will no longer be able to continue working in Japan as a business manager.
The notion that you can “start a business without an independent office or capital investment” applies only to this limited preparation period. The correct way to understand the amendment is that the path to obtaining the full-fledged visa that follows has become far steeper than before.

5.Summary

With this legal revision, the environment for foreigners starting a business in Japan has fundamentally changed. The era in which “anyone could give it a try” has come to an end, and we have entered a phase in which only high-caliber entrepreneurs with sufficient financial strength and a clear track record in management are accepted.

Now that it has become mandatory to present a business plan, certified by a professional, that demonstrates the “stability and continuity of the business,” close collaboration with experts and strategic preparation are more essential than ever for those seeking to obtain a Business Manager Visa.

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