Old rules versus new rules
| Item | Before 16 October 2025 | From 16 October 2025 |
|---|---|---|
| Size of the business | ¥5 million capital or two full-time employees living in Japan | ¥30 million capital and at least one full-time employee |
| Who counts as the employee | Residents of Japan | Japanese nationals, special permanent residents, and holders of Permanent Resident, Spouse or Child of Japanese National, Spouse or Child of Permanent Resident, or Long-Term Resident. Holders of work statuses do not count |
| Japanese language | No fixed requirement | Applicant or full-time employee at B2 level (holders of work statuses can count for this point) |
| Education or experience | Not required for the owner | Relevant master's, doctoral or professional degree (foreign degrees included), or 3 years of management experience |
| Business plan | Submitted | Must be checked by an SME management consultant, certified public accountant or tax accountant |
| Office | Required | Required at a scale matching the business. Using your home as the office is in principle not allowed |
For a company, the ¥30 million is the paid-in capital (or total contributions for other company types). For a sole proprietor, it is the total actually invested in the business, such as the office, one year of salary for employees, and equipment.
How the Japanese requirement can be met
B2 level is defined by Japan's reference framework for Japanese education. For people other than Japanese nationals and special permanent residents, the ISA accepts any of these:
- JLPT N2 or higher
- BJT Business Japanese Proficiency Test score of 400 or higher
- 20 years or more of residence in Japan as a mid- to long-term resident
- Graduation from a Japanese university or other higher education institution
- Completion of compulsory education in Japan and graduation from a Japanese high school
Only one of the two people needs to meet this: the applicant or the full-time employee.
What the review now looks at beyond the numbers
- Real management activity. If the business is mostly handed to others through outsourcing, and the applicant is not actually managing, the activity is not treated as Business Manager activity
- Licences. Documents showing the permits your business needs (for example for food service or lodging). If a permit can only be obtained after the status is granted, it is requested at the next renewal
- Taxes and social insurance at renewal. Labour insurance, health insurance and employees' pension enrolment and payments, and national and local taxes of the business are checked
- Long absences. Leaving Japan for long periods without good reason can lead to refusal of renewal, because there is no real activity in Japan
If you already hold Business Manager status
Holders who apply for renewal by 16 October 2028 (three years after the change) can be approved even if they do not yet meet the new criteria, based on how the business is doing and whether it is likely to meet them. An evaluation by a management expert may be requested. Renewals after that date must meet the new criteria, although a well-run business that pays its taxes and is likely to comply by the next renewal is judged on its overall situation.
One more consequence: from the change, permanent residence from Business Manager (or from Highly Skilled Professional based on business management) is not granted unless the business meets the new criteria.
What ¥30 million means in practice
For comparison, the Japan Finance Corporation's 2025 survey of new businesses found that people who started a business in Japan spent an average of ¥9.75 million (median ¥6 million) to open it. The new threshold is three times that average. The capital is not a fee; it is money put into the business, and it has to carry an employee's salary, an office of suitable size and the expert check of your plan. Before you count on this route, work out whether the business can pay those costs and still support you.
| Your situation | Realistic route |
|---|---|
| You have ¥30 million+, management experience and a solid plan | Business Manager is still open. Prepare the plan with an expert |
| You want to run a business but have less capital | Work in Japan first on a work status, build savings and Japanese, or partner with someone whose status has no restriction |
| You are married to a Japanese citizen or a permanent resident | You do not need Business Manager. The spouse status allows you to run a business. See the spouse visa guide |
| You are a graduate of a Japanese university who wants to start a company | Ask about the startup-related Designated Activities statuses. Transition rules apply when changing to Business Manager |
Running a business without startup capital: what this site offers, and its limits
Some people searching for the Business Manager visa simply want to be in charge of a business rather than be an employee. A management contract is one way to do that without capital. The pair hotel manager position introduced on this site lets two people run one business hotel of a chain with more than 170 hotels: no entry fee or deposit, free housing in the hotel, and a first-year fee of ¥11.5 million or more for the pair (excluding tax).
Be clear about the limit: this contract is not a route to the Business Manager status. Permanent residents, spouses of Japanese nationals or permanent residents and long-term residents can take part without a status change. Visa support: for applicants who meet the requirements of the Engineer/Specialist in Humanities/International Services status, including people living outside Japan, the hiring company supports the visa application (the selection is online, with only the final interview in person). Both members of the pair are checked individually. Our recruitment service does not file visa applications, and only the immigration authorities decide, so no visa is guaranteed. See also franchise versus management contract.