Japan Business Manager Visa Rules Change from October 16: Check New Requirements

Japan’s Immigration Services Agency (ISA) has announced major updates to the Business Manager (BM) and Highly Skilled Professional (HSP) visa categories, effective October 16, 2025. The new rules raise eligibility standards for entrepreneurs and foreign professionals managing businesses in Japan.

1. Hiring Local Employees Becomes Mandatory

Under the new system, every visa applicant must employ at least one full-time local worker. The employee must be a:

• Japanese National
• Permanent or Special Permanent Resident
• Long-Term Resident
• Spouse or Child of a Japanese National or Permanent Resident

Applicants must provide proof such as employment contracts, residence registration, and salary payment records.

Until now, hiring local staff was optional. A one-person company could qualify for a Business Manager (BM) visa if it maintained an office and met the investment requirement.

2. Minimum Capital Requirement Increased to JPY 30 Million

Applicants will now need to demonstrate a minimum capital of JPY 30 million, a sharp rise from the previous JPY 5 million.

For corporations, this refers to paid-in capital or total contributions. For individuals, the amount can include essential business expenses such as rent, salaries, and equipment costs.

Authorities have stated that further clarification will follow on how “individual” applicants will be defined under the new rule.

3. Japanese Language Proficiency Now Required

Either the visa applicant or one full-time employee must possess Japanese language skills equivalent to JLPT N2, a BJT score of 400 or higher, or any other equivalent qualification.

This can also be met through long-term residence in Japan or graduation from a Japanese high school or university. Previously, the Business Manager visa had no language requirement.

4. Residency and Active Business Requirement

Extended stays outside Japan without a valid reason could now lead to the ISA determining that the business is inactive. If that happens, visa renewal may be denied. Earlier, there was no specific limit on time abroad as long as the business continued to operate.

5. Stricter Documentation and Compliance

Business Manager visa applicants will also need to meet new compliance standards, including:

• Certification of business plans
• Proof of employment insurance, pension, health insurance, and tax payments
• Submission of relevant business licenses
• A clear ban on home office operations

6. Transition Period and Grace Period

Applications submitted before October 15, 2025, will continue under current rules. Existing Business Managers and HSP-BM visa holders will have a three-year grace period until October 16, 2028, to comply.

From October 16, 2025, the new BM criteria will also apply to permanent residency and HSP II applications linked to BM or HSP-BM visa holders, regardless of when those applications were filed.

What This Means for Foreign Entrepreneurs

Japan is clearly tightening oversight of foreign-run businesses to ensure stronger local engagement, financial stability, and language integration.

For entrepreneurs, these updates mean higher startup costs, mandatory local employment, and tighter compliance, but they may also enhance credibility for genuine investors planning long-term operations in Japan.