\u2713 The tightening of regulations is aimed at preventing abuse of the system and marks a policy shift from \u201cquantity to quality\u201d to attract higher-caliber entrepreneurs. \u2713<\/span>It is essential to consider alternative options such as the new Business Manager Visa aligned with financial capacity, the Startup Visa for those with innovative ideas, and the Highly Skilled Professional Visa for elite professionals.<\/span><\/p>\n This revision is not a mere technical adjustment; rather, it symbolizes a strategic shift in national policy\u2014reflecting what kind of foreign entrepreneurs Japan seeks in the future and what level of economic value the country expects them to bring. In this article, we will explain this significant proposed change.<\/p>\n This revision symbolizes a shift in Japan\u2019s national strategy regarding the type of foreign entrepreneurs it seeks to attract in the future. This article explains the key points of this significant change.<\/p>\n The most significant change under the new system is not only the substantial increase in the capital requirement but also the introduction of four new obligations that assess the entrepreneur\u2019s capability and the credibility of the business. The capital requirement will be raised from 5 million yen to 30 million yen or more. Previously, hiring a full-time employee could serve as an alternative to the capital requirement. To ensure smooth business operations, either the applicant or a full-time employee must possess a sufficient level of Japanese language proficiency, meeting one of the following criteria:<\/p>\n The applicant themselves does not necessarily have to meet these criteria. It is acceptable if a Japanese national, a Special Permanent Resident, or a full-time employee who is a foreign national other than these categories satisfies the requirement. Applicants are now required to demonstrate their own managerial capability by meeting one of the following conditions:<\/p>\n To emphasize the authenticity of business operations, the following two obligations have been newly introduced:<\/p>\n This significant tightening of requirements aims to prevent misuse of the system and attract higher-quality entrepreneurs. The current requirement of \u00a55 million in capital has remained unchanged since the era of the former Investor\/Business Manager visa.<\/p>\n During this time, factors such as the depreciation of the yen and Japan\u2019s economic growth have made this threshold extremely low by international standards, giving rise to criticism that it had become a so-called \u201cvisa you can buy with money.\u201d<\/p>\n Reports indicate that the sharp increase in cases where individuals established paper companies\u2014without engaging in actual business activities\u2014solely to obtain residence status was the biggest trigger for this tightening.<\/span><\/p>\n 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.<\/p>\n It is believed that the government has felt compelled to respond to such criticism and to restore confidence in the integrity of the system.<\/p>\n This revision also aims to bring Japan\u2019s 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. Some experts, such as gyoseishoshi (administrative scriveners), point to another underlying factor: when Business Manager visa holders bring their families to Japan under the \u201cDependent\u201d visa category, public resources\u2014particularly in public schools\u2014are 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.<\/p>\n The proposal requiring \u00a530 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\u2014advocated by organizations such as Keidanren\u2014to attract \u201cworld-class highly skilled talent\u201d and strengthen industrial competitiveness.<\/p>\n As the enforcement date of the system revision\u2014October 16, 2025\u2014approaches, many applicants may be wondering whether their applications submitted before that date will be reviewed under the old or new standards. Under this system revision, a three-year transitional period has been established for current holders of the Business Manager Visa.<\/p>\n If a renewal application is submitted within three years from the enforcement date, the decision will be made comprehensively based on the applicant\u2019s 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. Applications submitted on or after October 17, 2028, will, in principle, need to meet the new standards. 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.<\/p>\n With this revision, the review of applicants\u2019 compliance with public financial obligations\u2014such as taxes and social insurance payments\u2014will become much stricter during renewal applications. For Corporations<\/strong><\/p>\n National Taxes: Withholding income tax and special income tax for reconstruction, corporate tax, consumption tax, and local consumption tax For Sole Proprietors<\/strong><\/p>\n 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 Even during the transitional period, failure to properly pay these taxes or social insurance premiums will significantly increase the risk of renewal being denied. If the proposal to raise the Business Manager visa requirement to \u00a530 million is implemented, the environment surrounding foreign entrepreneurs in Japan will change dramatically.<\/p>\n The hurdles\u2014such as obtaining the Business Manager visa after studying in Japan\u2014will become higher, and not everyone will be able to start from the same \u201cBusiness Manager visa\u201d 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 \u00a530 million or more to Japan.<\/p>\n Accordingly, this chapter explains how to adapt after the amendment and discusses alternative statuses of residence.<\/p>\n 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. For entrepreneurs who cannot meet the \u00a530 million requirement\u2014especially those in technology and other innovation-driven fields\u2014the \u201cStartup Visa\u201d 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.<\/p>\n This is a strong option for entrepreneurs with high academic backgrounds, professional experience, and income levels. The proposed tightening of requirements for the Business Manager Visa will, unintentionally, create a \u201ctwo-tier\u201d 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.<\/strong> The other path will be for innovative but less capitalized startup founders, who will rely on the Startup Visa.<\/strong> When considering how to obtain a Startup Visa, it is essential to check which municipalities have built more efficient and attractive support systems.<\/p>\n
\n<\/span><\/p>\n1. What Will Change from October 16, 2025?An Explanation of the 5 Major Revisions<\/h2>\n
The key points of these revisions are outlined below.<\/p>\n\u2460Capital Requirement Raised to 30 Million Yen or More<\/h3>\n
For corporations, this refers to the paid-in capital for joint-stock companies (Kabushiki Kaisha) and the total investment amount for general partnerships, limited partnerships, or limited liability companies.
For sole proprietors, it refers to the total amount necessary for business operations, including office acquisition costs, one year\u2019s worth of employee salaries, and equipment investment.
This change clearly reflects the government\u2019s intention to attract high-quality entrepreneurs with stable and sustainable business foundations.<\/p>\n\u2461Employment of at Least One Full-Time Employee Becomes Mandatory<\/h3>\n
Under the new system, however, both conditions must be met: a capital of at least 30 million yen<\/strong> and the employment of at least one full-time staff member<\/strong>.
Eligible employees include Japanese nationals as well as foreign nationals holding Permanent Resident, Spouse of Japanese National, Spouse of Permanent Resident, or Long-Term Resident visas.<\/p>\n\u2462Japanese Language Proficiency Becomes Mandatory [New Requirement]<\/h3>\n
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\nImportantly, full-time employees counted toward this Japanese proficiency requirement may also include foreign workers holding other work visas, such as \u201cEngineer\/Specialist in Humanities\/International Services.\u201d<\/p>\n\u2463At Least 3 Years of Management Experience or a Relevant Educational Background Becomes Mandatory [New Requirement]<\/h3>\n
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\u2464Stricter Requirements for Business Premises and Business Plans [New Requirement]<\/h3>\n
\n
\nUsing a residence as both home and business office will, in principle, no longer be permitted.<\/li>\n
\nThe business plan must be reviewed and verified by a qualified professional such as a Small and Medium Enterprise Management Consultant, Certified Public Accountant (CPA), or Tax Accountant.<\/li>\n<\/ul>\n2. Why Tightening Now? Exploring the Government\u2019s Intentions and Background<\/h2>\n
\nThe current standard of 5 million yen in capital is considered low by international standards and has been criticized as a \u201cvisa that can be bought with money,\u201d becoming a breeding ground for paper companies without genuine business activities.
\nThis policy shift clearly marks Japan\u2019s move from focusing on \u201cquantity\u201d to emphasizing \u201cquality\u201d in its approach to accepting foreign entrepreneurs.<\/p>\nCountermeasures Against Abuse and Hollowing Out of the Business Manager Visa<\/h4>\n
Eliminating the Negative Image<\/h3>\n
Alignment with Global Standards<\/h3>\n
\nThe new measures are positioned as a way to enhance Japan\u2019s international competitiveness by attracting high-quality entrepreneurs who possess both the intention and the capability to make a genuine contribution to the Japanese economy.<\/p>\nBackground Highlighted by Experts<\/h3>\n
3. After the Enforcement Date: Applications submitted before the revision will be reviewed under the pre-amendment standards.<\/h2>\n
\nIn conclusion, if your application is accepted by October 15, 2025 (the day before enforcement)<\/strong>, it will be reviewed under the pre-amendment standards.<\/strong>
\nThis 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.
\nHowever, 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.
\nIf 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\u2014that is, the standards in effect before the revision.
\nIf you are uncertain about which standards apply to your application, it is advisable to consult a qualified professional.<\/p>\n4.Renewal of Existing Business Manager Visas\uff5cThree-Year Transitional Period and Key Points<\/h2>\n
Renewal Applications Until October 16, 2028<\/h4>\n
\nHowever, applicants may be required to submit a business evaluation report prepared by a certified professional during the review process.<\/p>\nRenewal Applications from October 17, 2028, Onward<\/h4>\n
\nNevertheless, if the applicant\u2019s 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.<\/p>\nStricter Verification of Tax and Social Insurance Compliance at Renewal<\/h4>\n
\nSpecifically, the following items will be checked:<\/p>\n\u2460Status of Labor Insurance Coverage<\/h5>\n
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\u2461Status of Social Insurance Coverage<\/h5>\n
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\u2462Status of Payment of National and Local Taxes Owed by the Business Office<\/h5>\n
\nLocal Taxes: Corporate inhabitant tax and corporate enterprise tax<\/p>\n
\nLocal Taxes: Individual inhabitant tax and individual enterprise tax<\/p>\n
Ensuring full legal compliance and proper payment is essential for maintaining and continuing business operations.<\/p>\n5.Three Options After the \u00a530 Million Capital Requirement Amendment<\/h2>\n
Option 1: New Business Manager Visa (for well-capitalized entrepreneurs)<\/h3>\n
Proof of funding sources and knowledge of labor management will become more important than ever.<\/p>\n\n
\nAn investment of \u00a530 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.<\/li>\n
\nThe larger the investment amount, the more important and complex it becomes to prove that the funds were legally obtained.
\nApplicants 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<\/li>\n
\nThe 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.<\/li>\n<\/ul>\nOption 2: Startup Visa (for entrepreneurs with innovative ideas)<\/h3>\n
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\nThis is not the formal name of a status of residence; it is a type of \u201cDesignated Activities\u201d 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).<\/li>\n
\nUnlike 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\u2014making it a two-step process.<\/li>\n
\nThe 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 \u00a530 million in capital and the employment of at least one full-time staff member.<\/li>\n<\/ul>\nOption 3: Highly Skilled Professional Visa (the Fast-Track Route for Elite Talent)<\/h3>\n
\nIf 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.<\/p>\n\n
\nThis 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.<\/li>\n
\nPoints 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.<\/li>\n
\nOnce you achieve 70 points or more and obtain the Highly Skilled Professional Visa, you gain extensive benefits:
\nPeriod of Stay:<\/strong> From the very first grant, the maximum period of five years is uniformly provided.
\nSpouse Employment:<\/strong> Your spouse can work full-time even without meeting specific educational or career requirements.
\nFast Track to Permanent Residency<\/strong>: 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.<\/li>\n<\/ul>\n
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