Prose International Administrative Scrivener Office

If you are a foreign entrepreneur considering establishing a business in Japan, it is critical to be aware of a significant regulatory update. The Immigration Services Agency of Japan has announced a comprehensive revision to the permission criteria for the "Business Manager" (Keiei-Kanri) visa, which will officially come into effect on October 16, 2025.

This amendment introduces substantially stricter requirements to ensure that businesses operated by foreign nationals are stable, sustainable, and properly integrated into the Japanese economic and legal framework. Below is a detailed overview of the five primary changes and how they may impact your business planning.

1. Capital and Total Investment Threshold Raised to ¥30 Million

Under the previous criteria, a minimum capital investment of ¥5 million was required. The revised regulation drastically increases this threshold:

• For Corporate Entities: The paid-in capital or total investment amount must be ¥30 million or more.

• For Sole Proprietorships: The total amount invested in business operations—including securing an office, staff salaries for the first year, and capital expenditures—must total at least ¥30 million.

2. Mandatory Employment of At Least One Full-Time Staff Member

Previously, hiring full-time staff was an alternative option to the capital requirement. Under the new rules, both conditions must be met.

• You are now required to employ at least one full-time staff member.

• Important Legal Constraint: This full-time employee must be a Japanese national, a Special Permanent Resident, or a foreign national holding a status based on civil status (such as "Permanent Resident," "Spouse or Child of Japanese National," "Spouse or Child of Permanent Resident," or "Long-Term Resident"). Foreign nationals staying under standard employment-based visas (Table I visas) do not qualify to satisfy this specific hiring requirement.

3. Verification of Business Plans by Qualified Professionals

To ensure the feasibility and rationality of new ventures, the government now mandates an objective evaluation of your business plan.

• Prior to submission, your business plan must be verified by a certified professional with specialized management knowledge.

• Eligible evaluators are limited to SME Management Consultants (Chujo-Kigyo Shindan-shi), Certified Public Accountants (CPAs), or Certified Public Tax Accountants (Zeirishi).
  *Note: Please be advised that preparing application documents for public agencies for a fee remains strictly restricted to administrative scriveners and attorneys under Japanese law.

4. Background and Educational Requirements for Executives

The revised criteria place greater scrutiny on the applicant's professional background. You must satisfy at least one of the following conditions:

• Possess at least 3 years of experience in business management or administration (this may include periods of entrepreneurial preparation activities under certain "Designated Activities" visas).

• Hold a Master’s degree, Professional degree, or Doctorate in a field related to business administration or the specific industry of your proposed business.

5. Standardized Japanese Language Proficiency

The applicant or at least one full-time employee must possess a professional level of Japanese language proficiency (equivalent to CEFR B2 or higher). Compliance can be demonstrated through the following:

• JLPT N2 or higher.

• BJT Business Japanese Proficiency Test score of 400 or above.

• Graduation from a Japanese university or higher education institution.

• Residence in Japan as a mid-to-long-term resident for 20 years or more.

Crucial Operational Considerations

• Physical Office Requirement (Home Offices Prohibited): To accommodate the expanded scale of operations required under the new rules, using a residential home as a combined business office is generally no longer permitted. Securing an independent, dedicated commercial office space is mandatory.

• Substantial Management Activity: If a business structure relies excessively on outsourcing and the applicant cannot demonstrate active, daily management engagement, the visa status may be denied.

Transitional Measures for Existing Visa Holders

• Applications Pending Before the Effective Date: Applications accepted and under review prior to October 16, 2025, will be evaluated under the previous (older) criteria.

• 3-Year Grace Period for Renewals: If you currently hold a "Business Manager" visa, you will be granted a 3-year grace period until October 16, 2028. During this timeframe, renewals may still be granted even if you do not fully meet the new criteria, provided your financial performance is stable and you demonstrate a clear path toward future compliance. However, full compliance will be strictly mandatory for any renewals requested after this 3-year window.

• Impact on Permanent Residency: Please note that post-enactment, if your business does not comply with the revised criteria, applications for Permanent Residency from a "Business Manager" or "Highly Professional Volt (i)(c)" status will not be approved.

Professional Support for Your Transition

These regulatory updates mark a profound shift in Japan's immigration policy, prioritizing high-value, structurally compliant enterprises. While the benchmarks for market entry have risen, establishing a business that successfully aligns with these criteria positions your company as a highly credible and robust entity in the Japanese market.

Navigating these multi-layered requirements—from legal office structuring to professional business plan verification—demands strategic planning. Our office provides comprehensive legal guidance, corporate registration support, and coordination with an authorized financial specialist to ensure your business transition or launch in Japan is seamless and legally sound.

Please contact our office to schedule a professional consultation regarding your specific business case.