Japan's Business Manager Visa Reform: Stricter Screening and Higher Standards for Applicants

In recent years, the misuse of Japan’s Business Manager Visa has become increasingly common, with many applicants establishing so-called “paper companies” to obtain residency without engaging in genuine business operations. To prevent such abuses and raise the quality of foreign investment and entrepreneurship in Japan, the Ministry of Justice and the Immigration Services Agency have implemented a major revision of the Business Manager Visa system. Overall, the new framework significantly tightens the eligibility requirements.

The main directions of this reform can be summarized as follows: a substantial increase in capital requirements, the introduction of mandatory employment obligations, higher applicant qualification standards, and a new requirement for third-party professional review of business plans.

Key Changes Announced by the Immigration Services Agency of Japan 

Item	Previous Regulation	New Regulation
Capital Requirement	¥5,000,000	¥30,000,000
Employment Obligation	At least two full-time employees or capital of ¥5,000,000 or more (either condition)	Employment of at least one full-time employee is now mandatory
Applicant Qualification	No academic or professional experience requirement	At least three years of management experience or a master / doctoral degree in a management-related field
Japanese Language Proficiency	No requirement	The applicant or one full-time employee must demonstrate Japanese proficiency equivalent to B2 level
Business Plan Verification	No restriction	The business plan must be reviewed and verified by a Japanese CPA, licensed Tax Accountant, or Small and Medium Enterprise Management Consultant

Details of the New Regulations

• Significant Increase in Capital Requirement

  For small businesses and startups, raising the required capital from ¥5 million to ¥30 million represents a major financial hurdle.

  
  

• Full-time Employment Obligation

  The requirement to employ at least one full-time worker applies only to individuals with a residence status not restricted by work limitations. Therefore, employing foreign students or non-permanent residents on work visas does not satisfy this condition.

  
  

  Qualified full-time employees include the following categories:

  • Japanese nationals

  • Spouses of Japanese nationals

  • Permanent residents or special permanent residents

  • Spouses of permanent residents

  • Long-term residents

    
    

• Higher Applicant Qualifications

  Previously, anyone could apply for this visa regardless of background. Under the new rules, applicants must have at least three years of business management experience or hold a master’s degree (MBA) or higher in a relevant field. In practice, this means future applicants will need to provide verifiable proof of experience or obtain an advanced degree in management before applying.

  
  

• Japanese Language Requirement

  Under the old system, no Japanese proficiency was needed. The new regulation makes language ability mandatory. Applicants can prove proficiency in one of the following ways:

  • Passing the JLPT N2 exam

  • Scoring 400 or higher on the BJT test

  • Having resided in Japan for 20 years or more

  • Graduating from a Japanese high school or higher education institution

    
    

  If the applicant themselves does not meet the language requirement, at least one full-time employee must hold one of the qualifications listed above.

  
  

• Professional Review of Business Plan

  Previously, business plans could be self-prepared. Under the new system, they must be verified by a Japanese CPA, Tax Accountant, or certified SME management consultant before submission.

  
  

From the above, it is clear that future applicants for the Business Manager Visa will face challenges related to capital requirements, language proficiency, and academic or professional background. Investors are therefore strongly advised to plan and make necessary adjustments as early as possible, and to seek assistance from professional accountants or other qualified experts to ensure proper business operations in Japan.