What changed with the October 2025 overhaul?

The October 16, 2025 changes (effective date: 令和7年10月16日) significantly raised the bar for new Business Manager visa applicants. Key changes: (1) minimum capital increased from ¥5,000,000 to ¥30,000,000 — a 6x increase; (2) a business plan review by a Japanese-licensed 中小企業診断士, 公認会計士, or 税理士 is now mandatory; (3) at least 3 years of management experience OR a qualifying graduate degree in business management is required; (4) Japanese language proficiency at B2 equivalent (JLPT N2 / BJT 400+) is now mandatory — either the applicant OR a qualifying full-time employee must satisfy this; (5) the qualifying full-time employee must be a Japanese national, Special Permanent Resident, or Table 2 residence status holder — Table 1 work visa holders do not count; (6) home office is not permitted in principle. Applications filed before October 16, 2025 are assessed under the old rules. A 3-year grace period runs until October 16, 2028 for existing holders.

Do the new rules affect existing Business Manager visa holders?

A 3-year grace period applies until October 16, 2028 (令和10年10月16日). Existing holders who obtained their Business Manager visa before October 16, 2025 may renew during this transition period, and ISA will consider overall business status even if the new criteria are not yet fully met. Separately, holders of the startup visa (特定活動44号→経営・管理) who received their certification before October 15, 2025 may transition to Business Manager status under the old rules. During the transition period, confirm your specific situation with the immigration bureau or a licensed 行政書士.

Can I transition from Engineer/Specialist visa to Business Manager?

Yes, but the timing is critical. File the startup notification and status change application while still employed — before your current employment ends. A gap of more than 3 months without valid status creates legal complications. You must meet all the new requirements: ¥30,000,000 capital, certified business plan, management experience or qualifying degree, Japanese language proficiency, and at least 1 qualifying full-time employee (Japanese national, Special Permanent Resident, or Table 2 residence status holder).

What type of business plan review is required?

The business plan must be reviewed by one of three Japanese-licensed professionals: a 中小企業診断士 (SME Management Consultant), a 公認会計士 (Certified Public Accountant), or a 税理士 (Tax Accountant). Two strict conditions apply: (1) the reviewer must hold a Japanese license — foreign equivalents such as a US CPA do not qualify; (2) the reviewer must be external and independent — a company officer or employee cannot serve as reviewer. This is a new mandatory requirement under the October 2025 overhaul; previously a business plan was recommended but formal review was not required.

Is ¥30,000,000 the minimum for all business types?

Yes. ¥30,000,000 is the minimum capital investment for the Business Manager visa under the October 2025 rules, regardless of business type or industry. There is no lower threshold for smaller businesses or specific sectors. For corporations, only paid-in capital counts — capital reserves and surplus do not. For sole proprietors, the total invested in the business (office, one year of employee salaries, equipment) must reach ¥30,000,000. Where multiple companies are involved, at least one must independently meet the ¥30,000,000 threshold. The source of funds must be transparent and legitimate.

Why do foreign work visa holders not count toward the employee requirement?

Under the October 2025 overhaul, the qualifying employee must be a Japanese national (日本人), Special Permanent Resident (特別永住者), or a foreigner with Table 2 residence status: Permanent Resident (永住者), Spouse of Japanese National (日本人の配偶者等), Spouse of Permanent Resident (永住者の配偶者等), or Long-term Resident (定住者). Foreign nationals on Table 1 work visas — such as Engineer/Specialist in Humanities, Skilled Labor, or other employment-based categories — do not count. The rationale is that the requirement targets stable, long-term residents of Japan rather than holders of employer-dependent visas. Foreign employees on work visas can still be hired, but they do not satisfy the minimum qualifying employee requirement.

Can I operate the business remotely from outside Japan?

No. The Business Manager visa requires active, in-person management of the business in Japan. Passive ownership or remote management from abroad does not qualify. Additionally, being absent from Japan for more than 50% of your permitted stay period is treated as a negative factor at renewal — ISA may determine the holder is not actively engaged in business management and deny renewal.

What level of Japanese language is required?

The requirement is B2 equivalent on the Japanese Language Education Reference Framework (日本語教育の参照枠 B2相当以上). It can be satisfied by the applicant or by a qualifying full-time employee of the business. Accepted proof methods: JLPT N2 or higher, BJT Business Japanese Test score of 400+, 20+ years of mid/long-term residence in Japan, graduation from a Japanese university or vocational school, or completion of Japanese compulsory education plus high school graduation. Important distinction: for the language requirement only, Table 1 visa holders (work visa employees) may count as qualifying 常勤職員 — unlike the employment requirement where they are excluded. This requirement was not in place before October 2025.

How does this visa lead to permanent residence?

The standard route is 10 consecutive years of residence in Japan, with at least 5 years on a qualifying visa. Business Manager holders can also qualify under HSP (Highly Skilled Professional) criteria in the Advanced Business Management category (i)(c) if they accumulate 70+ points, which can accelerate the PR timeline to 1-3 years. Tax compliance and social insurance payment history are scrutinized at the PR application stage.

Can multiple foreign nationals co-manage the same business?

Yes, but each co-manager must independently satisfy the Business Manager visa requirements, including the ¥30,000,000 capital threshold and management experience or degree. Each co-manager must also have a clearly defined role and receive compensation commensurate with their position — ISA verifies that each person's management role is genuine and not duplicative. Tax and social insurance compliance is verified individually at each renewal.

What happens at renewal if the business is not profitable?

Immigration officers evaluate the business's ongoing viability at each renewal. Temporary losses are not automatically disqualifying — early-stage businesses often operate at a loss. However, the business must demonstrate ongoing operations, employee retention, tax compliance, and a credible path to sustainability. Persistent losses without clear recovery plans, failure to maintain the qualifying employee, tax delinquency, or social insurance non-compliance can result in renewal denial. Absence from Japan for more than 50% of the permitted stay period is also a negative factor.

Business Manager Visa (経営・管理)

Establish and manage a business in Japan under the new 2025 framework

At a Glance

Duration

1, 3, or 5 years

Fees

COE: free

Visa: ¥3,000–¥6,000

Processing Time

4–8 months total

Max Stay

No cumulative limit

Minimum capital investment of ¥30,000,000 (effective October 2025)
Employ at least 1 qualifying full-time employee
Business plan reviewed by a Japanese-licensed professional
3+ years of management experience OR a qualifying graduate degree
Japanese language proficiency at B2 equivalent — applicant OR a qualifying full-time employee (mandatory under October 2025 rules)
Dedicated physical office space in Japan (home office not permitted)

Key Requirements

¥30,000,000+ capital investment, certified business plan, 3+ years management experience, Japanese language proficiency (Oct 2025 rules)

RequiredMinimum capital investment of ¥30,000,000 (effective October 2025)
The business must have invested capital of at least ¥30,000,000. For corporations, this means paid-in capital (資本金の額) or total contributions; capital reserves and retained surplus do not count. For sole proprietors, the total amount invested in the business (office, one year of employee salaries, equipment) must reach ¥30,000,000. The requirement applies even to managers who are not the owner, and where multiple companies are involved, at least one must independently meet the ¥30,000,000 threshold. The capital must be verifiable through business registration documents and bank records, and the source of funds is scrutinized to ensure legitimacy.
The October 2025 overhaul raised the capital requirement 6x to ¥30,000,000 — applications under the old ¥5,000,000 threshold are no longer accepted for new applicants
Capital reserves and surplus (資本準備金・剰余金) do NOT count toward the ¥30,000,000 threshold — only paid-in capital or equivalent direct investment
RequiredEmploy at least 1 qualifying full-time employee
The business must hire at least one full-time employee who is: a Japanese national (日本人), a Special Permanent Resident (特別永住者), or a foreigner holding a Table 2 residence status — specifically Permanent Resident (永住者), Spouse of Japanese National (日本人の配偶者等), Spouse of Permanent Resident (永住者の配偶者等), or Long-term Resident (定住者). Foreign nationals on Table 1 work visas (e.g., Engineer/Specialist in Humanities, Skilled Labor) do NOT count toward this requirement. Full-time is defined as: regular scheduled work, 5+ days per week, 217+ days per year, 30+ hours per week, and enrolled in employment insurance (雇用保険). Secondment (在籍出向), dispatch (派遣), and contract/outsourcing (請負) workers do not count — the employee must be directly employed.
Foreign employees on Table 1 work visas (Engineer/Specialist, Skilled Labor, etc.) do NOT count toward the minimum employee requirement
Secondment, dispatch, and contract workers do not count — the qualifying employee must be directly employed full-time
Full-time threshold: 5+ days/week, 217+ days/year, 30+ hours/week, enrolled in employment insurance
RequiredBusiness plan reviewed by a Japanese-licensed professional
A comprehensive business plan must be evaluated by one of the following Japanese-licensed professionals: 中小企業診断士 (SME Management Consultant), 公認会計士 (Certified Public Accountant), or 税理士 (Tax Accountant). The reviewer must be externally engaged — a company officer or employee cannot serve as the reviewer. Foreign professional equivalents (e.g., a US CPA without Japanese license) do not qualify. This is a mandatory requirement under the October 2025 overhaul; previously a business plan was recommended but certification was not required.
Foreign professional licenses (e.g., US CPA) do not qualify — the reviewer must hold a Japanese license
The reviewing professional cannot be a company officer or employee — must be external and independent
Required3+ years of management experience OR a qualifying graduate degree
Applicants must satisfy one of two conditions: (1) a doctoral, master's, or professional degree related to business management or operations (経営管理に関する博士・修士・専門職学位), or (2) 3 or more years of experience in business management or operations. Startup preparation activity (起業準備活動) counts toward the 3-year experience period. Passive investment or remote management from outside Japan does not qualify.
Passive investment or remote management from outside Japan does not qualify — immigration verifies active, in-person business management
A qualifying graduate degree (doctoral, master's, or professional degree in business management) fully satisfies this requirement in place of experience
RequiredJapanese language proficiency at B2 equivalent — applicant OR a qualifying full-time employee (mandatory under October 2025 rules)
The applicant or at least one full-time employee of the business must hold Japanese language proficiency at B2 equivalent (日本語教育の参照枠 B2相当以上). This can be demonstrated by any of the following: JLPT N2 or higher, BJT Business Japanese Test score of 400 or above, 20+ years of mid- or long-term residence in Japan, graduation from a Japanese university or higher education institution (including vocational schools 専門学校), or completion of Japanese compulsory education plus graduation from high school. For the language requirement only, Table 1 visa holders (work visa holders) may count as a qualifying 常勤職員 — unlike the employment requirement, where Table 1 holders are excluded. This requirement was not in place before October 2025.
Japanese language proficiency (B2 equivalent / JLPT N2) is now mandatory — either the applicant OR a qualifying full-time employee must satisfy this
Note the distinction: for the LANGUAGE requirement, Table 1 visa holders (work visa employees) CAN count; for the EMPLOYMENT requirement, they cannot
RequiredDedicated physical office space in Japan (home office not permitted)
The business must have adequate dedicated office space that matches the scale of the business. Home offices are not permitted in principle (原則として認められません). Virtual offices are also not accepted. The office must be properly registered as the business address and verifiable through the lease agreement and company registration.
Home office is not permitted in principle under the October 2025 rules — a dedicated commercial office is required

Work Permission

Allowed (with restrictions)

RestrictionMust be actively engaged in managing or operating the business — cannot be a passive investor
RestrictionCannot work as an employee of another company on this visa
RestrictionBusiness activities must match those described in the visa application and business plan

The Business Manager visa authorizes the holder to manage and operate their business in Japan. This is fundamentally different from an employment visa — the holder must be an active manager or director, not simply an employee. Passive investment without active management does not qualify. The holder may operate multiple businesses.

If you hold a Business Manager visa obtained before October 16, 2025, a 3-year grace period applies until October 16, 2028. During this period, ISA considers overall business status at renewal even if the new criteria are not yet fully met. Holders of the startup visa (特定活動44号) who received certification before October 15, 2025 can transition to Business Manager under the old rules. Confirm your specific situation with a licensed 行政書士 — the transitional provisions vary by case.
JLPT N2-level proficiency is now mandatory for the Business Manager visa — but the requirement applies to either the applicant OR a full-time employee. If you are not a Japanese speaker, hiring an N2-level Japanese national or permanent-resident employee satisfies this rule. If you plan to satisfy it yourself, reaching N2 typically takes 1.5-2 years of regular study from zero. The JLPT is offered only twice a year (July and December), so plan your test dates accordingly.

Process

4-6 months

Estimated total timeline

4-6 months

The total timeline from initial planning to visa issuance is typically longer for Business Manager visas than for employment-based visas, due to the business setup requirements. New businesses without an operating history face additional scrutiny that can extend processing. Published guidelines recommend engaging professional support (immigration lawyer and business consultant) to avoid delays.

Prepare Capital and Business Plan

1-3 months for business plan development and certification

Secure the ¥30,000,000+ capital investment and develop a comprehensive business plan. Engage a professional expert (CPA, tax accountant, or SME management consultant) to certify the business plan. This is the most time-consuming preparatory step under the new rules.

Start with the business plan — the certification process itself can take several weeks
Research the Japanese market thoroughly — immigration evaluates the viability of the business
Consider hiring a Japanese business consultant familiar with immigration requirements

Incorporate the Business in Japan

2-4 weeks for incorporation

Register the company with the Legal Affairs Bureau (法務局). Choose the appropriate corporate structure (株式会社 for a standard corporation or 合同会社 for an LLC). Deposit the required capital, obtain a company seal (印鑑), open a corporate bank account, and secure office space.

Many foreign entrepreneurs use a 合同会社 (LLC) for simpler setup, but 株式会社 may carry more credibility with immigration
You may need a local representative or registered agent if you are not yet in Japan
Corporate bank accounts for new foreign-owned companies can be difficult to open — start this process early

Hire Required Employee(s) and Set Up Operations

2-4 weeks

Hire at least 1 full-time employee who is a Japanese national or permanent resident. Enroll the employee in social insurance (health insurance and pension). Set up the physical office, business operations, and any necessary licenses.

The employee must be enrolled in shakai hoken (social insurance) — this is verified by immigration
Foreign employees on work visas do not count toward the requirement under the new rules

File COE Application at Immigration Bureau

2-3 months for COE processing

Submit the complete COE application at the regional immigration bureau. Include: certified business plan, company registration documents, proof of ¥30,000,000+ capital, office lease, employee contracts, management experience documentation, and Japanese language certificate. Many applicants engage an immigration lawyer (行政書士) to handle this step.

Professional representation by a licensed 行政書士 (administrative scrivener) or immigration lawyer is strongly recommended
New businesses without a track record face more scrutiny — the strength of the business plan is critical

Obtain Visa and Enter Japan (or Change Status)

Visa processing: 5-10 working days (from abroad) | Status change: 2-4 weeks (in Japan)

If applying from abroad: receive the COE, apply for the visa at your local Japanese embassy, and enter Japan. If already in Japan on another visa (e.g., Engineer/Specialist): apply for change of status at the immigration bureau. Critical timing: if transitioning from an employment visa, file the change of status before your current employment ends to avoid a gap in legal status.

If transitioning from another visa, a gap of more than 3 months without valid status creates serious legal complications that can affect all future visa applications

If transitioning from Engineer/Specialist visa: file the startup notification and status change application before your employment ends
A gap of more than 3 months without valid status creates serious legal complications

Begin Operations and Maintain Compliance

Once the visa is issued, begin active business operations. Maintain compliance with all tax filing, social insurance, and employee requirements. Immigration evaluates ongoing business viability at each renewal — the business must demonstrate sustained operations, revenue, and employment.

File all tax returns on time — late or missing filings are a red flag at renewal
Keep detailed financial records — immigration may request profit and loss statements at renewal
Maintain the full-time employee requirement continuously — losing the employee can affect renewal

If you are on an Engineer/Specialist visa and planning to start a business, begin the Business Manager visa preparation at least 6-8 months before you plan to leave your current employer. The business setup, plan certification, COE filing, and status change processing all take time. Leaving your job before the status change is approved creates a dangerous gap.
A licensed 行政書士 (administrative scrivener) specializing in immigration is invaluable for the Business Manager visa. They handle the COE application, ensure documentation is complete, and communicate directly with the immigration bureau. Fees typically range from ¥200,000-¥500,000 depending on complexity, but the investment significantly reduces rejection risk.

FAQ

Show all 11 questions

Tips

Engage a licensed immigration lawyer (行政書士 or 弁護士) early — the Business Manager visa application is significantly more complex than employment-based visas
Japanese language proficiency at JLPT N2 is now mandatory — either you or a full-time employee must hold N2-equivalent proficiency. If you are not a Japanese speaker, hiring an N2-level Japanese national or permanent-resident employee can satisfy this requirement
Build the business plan with immigration requirements in mind — a certified plan that demonstrates job creation, tax contribution, and economic impact strengthens the application
Open the corporate bank account early — Japanese banks are notoriously difficult for new foreign-owned companies, and the process can take weeks
If transitioning from an employment visa, file the status change before your employment ends — the 3-month gap rule is strictly enforced
Maintain meticulous financial records from day one — immigration reviews profit and loss statements, tax filings, and employee records at each renewal
The ¥30,000,000 capital must be verifiable and its source transparent — prepare documentation showing the origin of funds
Ensure the full-time employee is enrolled in social insurance (shakai hoken) — this is verified by immigration during the application and at renewal

Sources & Related Visas

Official Sources

Last updated: 2026-03-28

This information is compiled from publicly available sources for general reference only. It does not constitute immigration consulting (入管業務), document preparation services (行政書士業務), or legal advice. For personalized guidance, consult a licensed immigration lawyer (弁護士) or administrative scrivener (行政書士). Final decisions on visa issuance rest solely with the Immigration Services Agency of Japan.

Based on published requirements. Not legal advice.

Business Manager Visa (経営・管理)

At a Glance

Key Requirements

Work Permission

Documents

Required Documents (0 of 10 completed)

Prepare Yourself

Process

Prepare Capital and Business Plan

Incorporate the Business in Japan

Hire Required Employee(s) and Set Up Operations

File COE Application at Immigration Bureau

Obtain Visa and Enter Japan (or Change Status)

Begin Operations and Maintain Compliance

FAQ

Tips

Sources & Related Visas

Official Sources

Related Visas

Work Permission

Required Documents (0 of 10 completed)

Prepare Yourself

Prepare Capital and Business Plan

Incorporate the Business in Japan

Hire Required Employee(s) and Set Up Operations

File COE Application at Immigration Bureau

Obtain Visa and Enter Japan (or Change Status)

Begin Operations and Maintain Compliance

Tips

Official Sources

Related Visas