Japan tightens requirements for business manager visa

The requirements for foreign nationals seeking business manager visas will become stricter starting next Thursday, including requiring visa applicants to have ¥30 million ($197,000) in capital, up from the current ¥5 million, the Immigration Services Agency (ISA) said Friday.

There has been a rapid rise in the number of business manager visa holders in recent years, triggering concerns that some are using it as an easy route to long-term residency rather than for genuine entrepreneurship.

Currently, applicants can qualify for the visa status by establishing a business in Japan and either investing at least ¥5 million in capital into it or hiring two full-time employees who live in the country. The visa is renewable and allows stays of up to five years each time.

However, under the revised criteria, the minimum investment requirement for those applying from Thursday will be increased sixfold to ¥30 million.

On Friday, Justice Minister Keisuke Suzuki said one of the main reasons for increasing the capital requirements was that government statistics showed the figure as being the profitability threshold for smaller businesses.

Suzuki also stressed the need to strengthen government oversight, saying that tightening requirements on applicants alone would be not enough.

“To ensure the visa status is being used appropriately, it’s essential for us to accurately understand whether or not business activity is actually taking place,” said Suzuki.

Applicants will also be required to employ at least one full-time worker who is either a Japanese national or a foreign resident with independent residency status, such as a permanent resident or spouse visa holder.

The government will also be introducing a new language requirement. Either the applicant or a full-time employee must demonstrate business-level Japanese proficiency — approximately CEFR B2 level.

Acceptable proof of language ability includes passing N2 of the Japanese Language Proficiency Test, having lived in Japan for more than 20 years, or graduating from a Japanese university or the country’s school system.

In addition, applicants must prove at least three years of management experience or hold a graduate degree in business administration or a related field, which they were not previously required to do.

The government will also check whether payments for taxes and premiums for the national health care programs payment have been made when renewing the status.

There were 41,615 foreign nationals residing in Japan under the business management residential status as of the end of 2024, up from 31,808 in 2022, according to government data. Chinese nationals accounted for over half of visa holders, at 21,740. Other major groups include residents from Nepal, South Korea, Vietnam, Sri Lanka and Pakistan, each with more than 2,000 holders.

Junji Ito, director of the ISA’s division in charge of the visa, emphasized that simply purchasing property or outsourcing operations to third parties will no longer count as active business management.

“This residency status is intended for individuals who are actively engaged in managing their business,” he told reporters. “They need to be personally involved in day-to-day management activities.”

For existing visa holders, the government will be adopting transitional measures. For the first three years after enforcement — until Oct. 16, 2028 — renewals may be granted even if all new requirements are not yet met, provided overall business performance is deemed sound.

After three years, however, meeting the new standards will become the default requirement.