Japan’s Stricter Business Manager Visa Rules Raise the Bar for Foreign Entrepreneurs

Japan’s revised rules for the Business Manager status of residence are now a major planning issue for foreign entrepreneurs, small business owners and some long-stay residents who want to operate a company in Japan.

The change does not affect ordinary short-term tourists. It is relevant for travelers who are considering a longer stay in Japan tied to entrepreneurship, self-employment, a local company, a restaurant, a guesthouse, a consultancy or another Japan-based business.

What changed

Japan’s Immigration Services Agency says amendments to the rules for the Business Manager status of residence took effect on October 16, 2025. The official Japanese guidance lists several stricter conditions for new applications and, over time, renewals.

• Higher business asset or capital threshold: the revised standard refers to ¥30 million. For corporations, this generally means capital or total investment. For individual business operators, the agency explains that the test concerns the total assets used for the business, such as office costs, equipment investment and one year of staff wages.
• At least one full-time employee: the business must employ at least one full-time worker. The official guidance limits qualifying staff for this requirement to Japanese nationals, special permanent residents, permanent residents, spouses of Japanese nationals or permanent residents, and long-term residents.
• Japanese-language requirement: either the applicant or a full-time employee must have Japanese ability equivalent to B2 level. The guidance lists examples such as JLPT N2 or higher, a BJT Business Japanese score of 400 or higher, certain Japanese education history, or long-term residence in Japan.
• Management background or education: applicants must show either at least three years of business management or administration experience, or a relevant graduate-level or professional degree.
• Reviewed business plan: a business plan must be reviewed by a qualified expert such as a Small and Medium Enterprise Management Consultant, certified public accountant or tax accountant.
• Real office and business activity: the guidance says a business office must be secured and that using a home as the office is generally not accepted. Immigration may also look at whether the applicant is actually managing the business rather than outsourcing most operations.

Why this matters for long-stay travelers

For most visitors, Japan remains a tourism destination and this rule change will not affect visa-free travel, ordinary tourist stays or short business trips. The impact is narrower but important: it changes the practical threshold for foreigners who want to live in Japan by running a business.

Digital nomads, consultants, restaurant operators, guesthouse owners, founders and other independent workers should not assume that a small Japan-based company will be enough for residence. The revised criteria point to a more substantial business: larger committed assets, local employment, Japanese-language capability and a professionally reviewed business plan.

Existing business owners should check renewals early

The official guidance includes transitional handling for people who were already in Japan under the Business Manager status before the October 16, 2025 enforcement date. Until October 16, 2028, renewals may still be assessed with attention to business performance, prospects for meeting the revised standards and the applicant’s broader residence situation.

However, this should not be read as automatic protection. The agency notes that after the three-year period, applicants are generally expected to meet the revised standards, although some cases may still be assessed comprehensively if the business is sound, tax obligations are met and there is a realistic path to compliance by the next renewal.

Startup Visa route remains separate

Japan’s Startup Visa system remains a possible preparation route for some foreign entrepreneurs. METI describes it as a system allowing eligible applicants to stay in Japan for up to two years while preparing to start a business before meeting the full Business Manager requirements.

That route is not nationwide in a uniform way. Applicants must apply through an approved municipality or organization, and METI warns that business fields, documents and local requirements vary. Anyone considering this route should check the rules of the specific city, prefecture or approved organization before relying on it.

Practical steps before planning a move

• Check the Immigration Services Agency’s latest Business Manager application page and amendment guidance before preparing documents.
• Confirm whether your intended activity really requires Business Manager status or another residence category.
• Budget for the ¥30 million threshold and understand how it applies to a corporation versus an individual business.
• Plan for local hiring if your business model previously depended only on the owner or foreign part-time staff.
• Prepare Japanese-language evidence early, either for yourself or for a qualifying full-time employee.
• For Startup Visa plans, check the approved municipality or organization directly, because procedures vary by location.
• Use a qualified immigration professional if your residence depends on a business renewal or a new company setup.

Secondary reporting, including The Japan Times, indicates that the stricter rules have already created uncertainty for some foreign small-business owners. That reporting is useful context, but the core requirements travelers should rely on are the official Immigration Services Agency and METI pages.