Business Manager Visa Tightened to 30 Million Yen — Expert Explains the New Rules

This significant tightening of requirements aims to prevent misuse of the system and attract higher-quality entrepreneurs.
The current standard of 5 million yen in capital is considered low by international standards and has been criticized as a “visa that can be bought with money,” becoming a breeding ground for paper companies without genuine business activities.
This policy shift clearly marks Japan’s move from focusing on “quantity” to emphasizing “quality” in its approach to accepting foreign entrepreneurs.

Countermeasures Against Abuse and Hollowing Out of the Business Manager Visa

The current requirement of ¥5 million in capital has remained unchanged since the era of the former Investor/Business Manager visa.

During this time, factors such as the depreciation of the yen and Japan’s economic growth have made this threshold extremely low by international standards, giving rise to criticism that it had become a so-called “visa you can buy with money.”

Reports indicate that the sharp increase in cases where individuals established paper companies—without engaging in actual business activities—solely to obtain residence status was the biggest trigger for this tightening.

Eliminating the Negative Image

There has been a growing number of media reports linking the Business Manager visa to issues such as unlicensed short-term rentals (so-called illegal minpaku). As a result, public criticism of the system has intensified.

It is believed that the government has felt compelled to respond to such criticism and to restore confidence in the integrity of the system.

Alignment with Global Standards

This revision also aims to bring Japan’s entrepreneur visa requirements closer to the standards of other developed countries. In many nations, higher investment amounts and stricter scrutiny of business feasibility are common.
The new measures are positioned as a way to enhance Japan’s international competitiveness by attracting high-quality entrepreneurs who possess both the intention and the capability to make a genuine contribution to the Japanese economy.

Background Highlighted by Experts

Some experts, such as gyoseishoshi (administrative scriveners), point to another underlying factor: when Business Manager visa holders bring their families to Japan under the “Dependent” visa category, public resources—particularly in public schools—are being allocated to provide Japanese-language education support for their children. It has been suggested that raising the bar for visa acquisition may also reflect an intent to curb such indirect social burdens.

The proposal requiring ¥30 million in capital and mandatory employment represents a clear signal to prioritize larger-scale enterprises that can create jobs and establish deeper roots in the Japanese economy. This aligns with the national strategy—advocated by organizations such as Keidanren—to attract “world-class highly skilled talent” and strengthen industrial competitiveness.

3. After the Enforcement Date: Applications submitted before the revision will be reviewed under the pre-amendment standards.

As the enforcement date of the system revision—October 16, 2025—approaches, many applicants may be wondering whether their applications submitted before that date will be reviewed under the old or new standards.
In conclusion, if your application is accepted by October 15, 2025 (the day before enforcement), it will be reviewed under the pre-amendment standards.
This has been officially announced by the Immigration Services Agency of Japan. Therefore, those who have successfully submitted their applications before the enforcement date will be examined based on the previous requirements, such as a capital of 5 million yen, rather than the new ones, such as 30 million yen in capital or the employment of full-time staff.
However, please note that the screening process itself will proceed as usual. The feasibility of the submitted business plan, the origin of funds, and the actual conditions of the business office will continue to be strictly reviewed.
If additional documents or explanations are requested during the process, remain calm and respond appropriately. The key point is that the applicable criteria are determined based on the date your application was accepted—that is, the standards in effect before the revision.
If you are uncertain about which standards apply to your application, it is advisable to consult a qualified professional.

4.Renewal of Existing Business Manager Visas｜Three-Year Transitional Period and Key Points

Under this system revision, a three-year transitional period has been established for current holders of the Business Manager Visa.

Renewal Applications Until October 16, 2028

If a renewal application is submitted within three years from the enforcement date, the decision will be made comprehensively based on the applicant’s current business performance and the likelihood of meeting the new standards (such as the 30 million yen capital requirement) in the future, even if those standards have not yet been met.
However, applicants may be required to submit a business evaluation report prepared by a certified professional during the review process.

Renewal Applications from October 17, 2028, Onward

Applications submitted on or after October 17, 2028, will, in principle, need to meet the new standards.
Nevertheless, if the applicant’s business is performing well, tax obligations are being properly fulfilled, and there is a reasonable prospect of meeting the new standards by the next renewal, approval may still be granted.

This three-year grace period should be viewed as a preparation phase to adapt to the new requirements, and it is essential to plan and manage your business strategically during this time.

Stricter Verification of Tax and Social Insurance Compliance at Renewal

With this revision, the review of applicants’ compliance with public financial obligations—such as taxes and social insurance payments—will become much stricter during renewal applications.
Specifically, the following items will be checked:

①Status of Labor Insurance Coverage

• Compliance with the registration of employees under employment insurance
• Proper payment of employment insurance premiums
• Status of procedures related to workers’ accident compensation insurance

②Status of Social Insurance Coverage

• Compliance with the registration of employees under health insurance and employees’ pension insurance
• Proper payment of the corresponding social insurance premiums

③Status of Payment of National and Local Taxes Owed by the Business Office

For Corporations

National Taxes: Withholding income tax and special income tax for reconstruction, corporate tax, consumption tax, and local consumption tax
Local Taxes: Corporate inhabitant tax and corporate enterprise tax

For Sole Proprietors

National Taxes: Withholding income tax and special income tax for reconstruction, income tax and special income tax for reconstruction, consumption tax and local consumption tax, inheritance tax, and gift tax
Local Taxes: Individual inhabitant tax and individual enterprise tax

Even during the transitional period, failure to properly pay these taxes or social insurance premiums will significantly increase the risk of renewal being denied.
Ensuring full legal compliance and proper payment is essential for maintaining and continuing business operations.

5.Three Options After the ¥30 Million Capital Requirement Amendment

If the proposal to raise the Business Manager visa requirement to ¥30 million is implemented, the environment surrounding foreign entrepreneurs in Japan will change dramatically.

The hurdles—such as obtaining the Business Manager visa after studying in Japan—will become higher, and not everyone will be able to start from the same “Business Manager visa” baseline. The strategies to pursue will differ significantly between well-capitalized entrepreneurs and those with innovative ideas but limited funds. In addition, only a limited number of entrepreneurs will be able to manage the banking practicalities of remitting ¥30 million or more to Japan.

Accordingly, this chapter explains how to adapt after the amendment and discusses alternative statuses of residence.

Option 1: New Business Manager Visa (for well-capitalized entrepreneurs)

This option is intended for those who can meet the requirements of 30 million yen in capital, as well as management experience and Japanese language proficiency.
Proof of funding sources and knowledge of labor management will become more important than ever.

• Building the investment and business plan
  An investment of ¥30 million presupposes a business of commensurate scale and social impact. Screening will be stricter than ever, requiring you to show concrete projections for revenue in line with the investment amount, job-creation effects, and sustainability.
• Proof of funding sources
  The larger the investment amount, the more important and complex it becomes to prove that the funds were legally obtained.
  Applicants will need to prepare documentation that clearly explains the origin and flow of funds, such as income certificates from the past several years, asset sale agreements, and gift contracts
• Meeting the employment obligation
  The proposed requirement to employ at least one full-time staff member is more than an added cost. HR administration know-how is essential: recruiting, executing employment contracts, enrolling in social and labor insurance, and running payroll. Because the hire must be a Japanese national or someone with specific statuses of residence (e.g., permanent resident), a staffing strategy is also necessary.

Option 2: Startup Visa (for entrepreneurs with innovative ideas)

For entrepreneurs who cannot meet the ¥30 million requirement—especially those in technology and other innovation-driven fields—the “Startup Visa” becomes a primary option.During the preparation phase for starting a business, the goal is to secure sufficient funding to ultimately meet all the new Business Manager Visa requirements, including a capital of 30 million yen and the employment of at least one full-time staff member.

• What is the Startup Visa (Foreign Entrepreneurship Promotion Program)?
  This is not the formal name of a status of residence; it is a type of “Designated Activities” status. It allows foreign entrepreneurs to enter Japan before meeting the strict requirements of the Business Manager visa (such as securing an office and paying in capital) and to conduct startup preparation activities for up to one year (up to two years in some municipalities such as Yokohama City and Shibuya Ward).
• Application process
  Unlike a standard visa application, you first submit your business plan to a local government that has adopted the program (e.g., the Tokyo Metropolitan Government, Aichi Prefecture, Kyoto Prefecture, Yokohama City). If the municipality determines that you are likely to meet the Business Manager visa requirements within the period, it issues a confirmation certificate. You then apply for the visa to the Immigration Services Agency with that certificate—making it a two-step process.
• Transition to the Business Manager visa
  The ultimate goal of the Startup Visa is to complete fundraising, secure an office lease, establish the company, and then switch to the Business Manager visa within the allotted preparation period. Under the new system, this means using the preparation period to clear the higher hurdles of ¥30 million in capital and the employment of at least one full-time staff member.

Option 3: Highly Skilled Professional Visa (the Fast-Track Route for Elite Talent)

This is a strong option for entrepreneurs with high academic backgrounds, professional experience, and income levels.
If you meet the new Business Manager Visa requirements and score 70 points or higher on the points-based system, you can receive significant benefits, such as a five-year residence period and a shortened eligibility period for permanent residency.

• Highly Skilled Professional (i)(c) Visa
  This residence status is intended for individuals engaged in business management and administration activities. As a prerequisite for application, one must first meet the basic requirements of the Business Manager Visa (such as securing an office and meeting business scale conditions). On top of this, applicants are required to score at least 70 points under the points calculation system set by the Ministry of Justice.
• Points Calculation System
  Points are awarded across a wide range of categories, including academic background, professional experience, annual income, age, research achievements, specific qualifications, and Japanese language ability. Among these, annual income is a particularly significant factor; for example, earning over 10 million yen in annual income alone grants a substantial number of points.
• Overwhelming Advantages
  Once you achieve 70 points or more and obtain the Highly Skilled Professional Visa, you gain extensive benefits:
  Period of Stay: From the very first grant, the maximum period of five years is uniformly provided.
  Spouse Employment: Your spouse can work full-time even without meeting specific educational or career requirements.
  Fast Track to Permanent Residency: Normally, an applicant must have resided in Japan for at least 10 years to apply for permanent residency. However, for Highly Skilled Professionals with 70 points or more, eligibility is granted after just three years, and for those with 80 points or more, after only one year. This is arguably the greatest advantage.

The proposed tightening of requirements for the Business Manager Visa will, unintentionally, create a “two-tier” residence system for foreign entrepreneurs. One path will be for entrepreneurs with abundant funding who can overcome the high capital threshold of 30 million yen. The other path will be for innovative but less capitalized startup founders, who will rely on the Startup Visa. When considering how to obtain a Startup Visa, it is essential to check which municipalities have built more efficient and attractive support systems.

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6.Two ways for foreign entrepreneurs to raise ¥30 million in capital

If the proposed plan to raise the capital requirement for the Business Manager Visa to ¥30 million is implemented, the importance of securing funding will grow significantly. In many cases, raising funds through personal savings or loans from relatives and acquaintances may not be sufficient to meet the ¥30 million threshold.

Fortunately, Japan offers several financing options available to foreign entrepreneurs. In this chapter, we will explain in detail two common funding routes: loans from the Japan Finance Corporation (JFC), which serve as a standard source of business capital, and more advanced options such as venture capital and angel investors. We will also highlight the specific methods and key points to keep in mind when utilizing these resources.

Japan Finance Corporation (JFC)

The Japan Finance Corporation (commonly known as “JFC”) is a government-funded financial institution, with 100% of its capital provided by the government. It actively provides loans even to start-up businesses in their early stages, where private banks may hesitate to lend. Being a foreign national, in itself, is not a reason for being denied financing.

Eligibility and Requirements

To apply for financing as a foreign entrepreneur, there are several important prerequisites that must be met.

• Proper Residence Status
  It is essential to hold a residence status that legally permits business management in Japan. This includes status-based visas such as “Permanent Resident” or “Spouse of a Japanese National,” as well as work-related visas such as “Business Manager” or “Highly Skilled Professional.”
• Repayment Period
  In principle, the loan repayment period must fall within the validity of the applicant’s residence status. Therefore, those without a fixed period of stay, such as “Permanent Residents” or “Highly Skilled Professional (Category 2),” are in a more favorable position during screening.
• Personal Funds
  It is strongly recommended to have personal funds amounting to roughly one-third of the desired loan amount. Applicants must prove how these funds were accumulated, typically through bankbook records. “Show money” (temporarily borrowed funds that are returned immediately) is not acceptable.
• Business Experience
  Having prior experience in the same industry as the planned business, especially three or more years of practical experience, significantly increases the credibility of the business plan and works in the applicant’s favor during the screening process.

Application Process and Required Documents

The application process begins with the submission of an application form and a startup business plan. After that, an interview with a loan officer will be conducted, and based on the evaluation, the approval or rejection of the loan will be determined.

• Startup Business Plan
  This is the most critical document in JFC’s screening process. You must clearly and specifically explain, with objective evidence, why the business is expected to generate revenue, how it will secure profits, and how the loan will be repaid.
• Interview
  During the approximately one-hour interview, detailed questions and answers will cover topics such as the business model, the entrepreneur’s background, the intended use of funds, and the repayment plan. Strong Japanese communication skills are advantageous; however, depending on the nature of the business, the presence of an interpreter may be permitted.

Venture Capital (VC) and Angel Investors

Unlike government-backed loans, raising funds from VCs or angel investors involves receiving larger amounts of capital in exchange for a portion of the company’s shares. This financing method is particularly well-suited for startups with business models that show strong potential for rapid growth.

• Japan’s Investment Environment
  In recent years, Japan’s VC and angel investment market has been growing more active, though it is still developing compared to countries like the United States. Nevertheless, investor appetite for promising startups continues to rise.
• What Investors Look For
  Investors seek more than just a good idea. They place strong emphasis on a capable and experienced management team, a large potential market, and a clear competitive advantage—such as proprietary technology or a unique business model. For foreign entrepreneurs, strengths may include leveraging networks in their home markets or bringing a unique, outsider’s perspective to the Japanese market.
• Synergy with Visa Applications
  Successfully securing investment from a well-known VC or angel investor serves as a powerful endorsement when applying for a Business Manager Visa or Startup Visa. It provides objective proof that professionals in the market recognize the business’s potential and feasibility. This can leave a highly positive impression on immigration officers reviewing the application.

7.Summary

The tightening of the Business Manager Visa requirements marks a significant elevation in the standards Japan expects from foreign entrepreneurs.
In addition to the 30 million yen capital requirement and the employment of at least one full-time staff member, the new high hurdles—such as management experience, Japanese language proficiency, and a business plan approved by certified professionals—clearly convey Japan’s intent to demand greater stability and sustainability in business operations.

To meet these new approval standards, it is essential to develop an optimal strategy and prepare a solid business plan tailored to your individual circumstances.
As the system becomes increasingly complex, consulting early with experienced immigration specialists, such as gyoseishoshi (administrative scriveners), and making thorough preparations will be critical to your success.