Japan tightens Business Manager visa rules amid rising scrutiny

On 25 August 2025, Japan’s government announced sweeping reforms to its Business Manager visa, citing rising cases of misuse and growing concern over “paper companies” used to obtain residency without genuine commercial activity. The changes, set to take effect from October 2025 following a public consultation, represent the most significant tightening of the visa’s requirements in a decade.

Key changes to the visa framework

Under the revised ordinance, applicants will face stricter eligibility standards:

• Capital Requirement: Minimum paid-in capital will rise sixfold from JPY 5 million to JPY 30 million.
• Employment Obligation: At least one full-time employee must be hired.
• Language Requirement: Either the applicant or one full-time employee must demonstrate Japanese proficiency equivalent to B2 (JLPT N2) level.
• Professional Background: Applicants must have either three years of relevant management or business experience, or hold a master’s degree in business management (or equivalent).
• Certified Business Plan: First-time applicants will need to submit a business plan certified by a qualified specialist, such as a Certified Public Accountant or Small and Medium Enterprise Management Consultant.

The revised framework aims to strengthen the credibility of visa applicants and align Japan’s investor immigration system with international standards. Officials noted that the current JPY 5 million threshold, unchanged for years, was significantly below those of peer economies such as South Korea.

Impact on Existing Visa Holders

Existing holders of the Business Manager visa will not be immediately penalised under the new system. However, at the time of visa renewal, applications will be assessed against the updated requirements.

The Immigration Services Agency indicated that while enforcement would be “flexible”, renewals would be reviewed on a case-by-case basis, focusing on the business’s financial soundness, operational continuity, and employment record.

Businesses that fall short of the new capital or staffing thresholds should prepare to demonstrate genuine commercial activity and sustainable operations to avoid rejection during renewal.

Context behind the reforms

The announcement follows several high-profile investigations into fraudulent use of the Business Manager visa, including cases involving the creation of hundreds of dummy companies. Officials estimate that by the end of 2024, over 41,000 foreign nationals held this visa - a 50% increase in five years.

Justice Minister Keisuke Suzuki stated that the reforms are designed to “filter out applications lacking long-term investment intent” and to protect the visa’s reputation as a legitimate pathway for entrepreneurs.

Exceptions will apply for holders of Japan’s Startup Visa and Future Creation Individual Visa, which are designed to attract highly skilled innovators and graduates from leading universities. These applicants may continue to transition into the Business Manager visa under existing conditions.

What this means for foreign entrepreneurs

For genuine investors and business owners, the new framework raises the bar for entry but also enhances the credibility of the programme. Foreign entrepreneurs operating under the Business Manager visa should anticipate the need to:

• Review and, if necessary, increase share capital to meet the JPY 30 million requirement.
• Hire and retain at least one full-time employee, preferably with local language capability.
• Ensure all business plans and documentation are comprehensive and professionally certified.

These adjustments will not only facilitate compliance but also help maintain long-term stability and trust in Japan’s investment migration environment.

How Alpadis can help

With a strong presence in Japan and across Asia, Alpadis provides comprehensive corporate and immigration advisory services, guiding clients through complex regulatory changes such as this. Our Japan office can assist with:

• Processing Work Visas: Assisting with the application and processing of work visas for foreign employees.
• Employer of Record (EOR): Onboarding staff in full compliance with local legal requirements.
• Company Formation: Helping you establish and grow your footprint in Japan through the right corporate structures.
• Regulatory Compliance: Ensuring that your business complies with all local statutory obligations.

Foreign business owners are encouraged to act early to assess their compliance position ahead of the October 2025 implementation date.

For more information or tailored assistance on Japanese visa and business structuring matters, contact the Alpadis Japan team.

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