Japan’s Business Visa: New Rules and Stricter Requirements

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The Ministry of Justice of Japan has approved new rules for the Business Manager Visa, intended for foreign entrepreneurs and company executives, according to KPMG. The changes came into effect on October 16, 2025, increasing the minimum financial threshold sixfold.

Main Requirements

The minimum capital requirement has been raised from 5 million yen ($32,400) to 30 million yen ($203,000).
Additional criteria now aim to verify the seriousness and authenticity of business intentions.

Applicants must employ at least one full-time worker who is a Japanese citizen, a permanent resident, or an eligible family member of a resident.

Other conditions include:

Japanese language proficiency – the applicant or an employee must hold at least CEFR B2 or JLPT N2. Alternatively, proof of more than 20 years of residence in Japan, or graduation from a Japanese school or university is accepted.

Education and experience – a master’s or doctoral degree in business, or at least three years of managerial experience.

Business plan – it must be specific, realistic, and feasible, verified by a certified small and medium enterprise consultant, auditor, or tax advisor.

Immigration authorities will now conduct enhanced checks on tax and social security compliance. When renewing the visa, applicants must provide evidence of social insurance, labor insurance, and tax payments. Violations may affect the extension of residence status.

The reform also focuses on the physical presence of the company. Virtual offices and nominal addresses will no longer be recognized — the office must match the scale of the business. Long absences of the entrepreneur without valid reasons may be seen as termination of operations, potentially leading to non-renewal of the visa.

Who Will Be Affected

The new requirements apply not only to new applicants, but also to current holders of Business Manager and Highly Skilled Professional visas:

(i)(c) – for executives and entrepreneurs;

(ii) – for professionals with at least three years of experience in Japan.

A transition period is in effect from October 16, 2025, to October 16, 2028. During this time, visa renewals will consider efforts to align with the new standards.

After three years, full compliance with all criteria will become mandatory.

Holders of Startup and Future Creation Individual visas will be able to switch to the Business Manager Visa under the old conditions.
The first category supports foreign startups, while the second targets graduates of top global universities launching innovative projects in Japan.

Reasons for the Reform

Originally, the Business Manager visa had stricter conditions, but they were relaxed in 2015 to attract more applicants.
Authorities stopped requiring foreign capital participation, and stock sale revenue began to count as part of the funds — a move that simplified entry for startups but also increased vulnerability to misuse.

Some visa holders opened companies without real operations or engaged in short-term housing rentals (minpaku), leading to concerns about abuse.
In July 2025, police in Kanagawa Prefecture uncovered a scheme involving fake documents submitted by Sri Lankan citizens, sparking public demand for stricter oversight.

By the end of 2024, the number of foreigners holding Business Manager visas reached 41,600, more than double the 18,100 recorded in 2015.
Nearly half of all visa holders (48–53%) are Chinese nationals, many of whom used the visa for short-term rental businesses rather than full-fledged enterprises.

Policy Shift and International Comparison

Justice Minister Keisuke Suzuki had already raised the issue in April–May 2025, calling for a reassessment of the capital threshold and alignment with international standards.
The reform was introduced through a ministerial ordinance, without parliamentary approval.

Authorities emphasize that the goal is not to limit foreign entrepreneurs, but to attract those who can make a genuine contribution to Japan’s economy.

Globally, Japan’s new standard now aligns with similar programs:

South Korea – around ₩300 million ($210,000),

United States – $100,000–$200,000,

Singapore – S$100,000 ($70,000).

KPMG calls it the most significant tightening of Japan’s visa regime in the last decade — a shift from quantity to quality, prioritizing sustainable, integrated, and transparent business models.