With the implementation of new Japanese visa rules, Japan’s Immigration Services Agency (ISA) has introduced changes to its Business Manager (BM) and Highly Skilled Professional (HSP) visa categories, raising the requirements for foreigners seeking to manage or establish businesses in the country.
The new regulations, which took effect on October 16, 2025, aim to promote stronger local engagement, higher investment standards, and closer integration of foreign entrepreneurs into Japan’s economy. Existing visa holders have until October 2028 to comply with these new Japanese rules.
New Rules
Under the revised policy, every applicant must hire at least one full-time local employee. Eligible workers include:
- Japanese citizens
- Permanent or special permanent residents
- Long-term residents
- Spouses or children of Japanese nationals or permanent residents
Applicants must also submit employment contracts, proof of residence registration, and salary payment records. These documents help enforce the new Japanese visa rules.
Previously, a single foreign entrepreneur could qualify for a Business Manager visa without employing any Japanese staff.
Capital Requirement Jumps to JPY 30 Million
The minimum capital requirement for visa eligibility has been raised sixfold to JPY 30 million (approximately USD 200,000), up from the earlier JPY 5 million threshold.
For incorporated businesses, this amount represents paid-in capital or shareholder contributions. For individual entrepreneurs, essential business costs such as rent, salaries, and equipment may count toward the total under the new Japanese visa rules.
Officials say further clarification will be issued on how “individual applicants” will be defined under the rule.
Japanese Language Proficiency Now Compulsory
Applicants or at least one full-time employee must now demonstrate Japanese language skills equivalent to JLPT N2, a BJT score of 400, or an equivalent credential to comply with the visa rules.
This requirement can also be met through evidence of long-term residence in Japan or graduation from a Japanese high school or university. The previous Business Manager visa carried no formal language requirement.
Residency and Active Business Requirement
Long absences from Japan without valid business justification could now be interpreted by the ISA as evidence of an inactive enterprise, leading to visa non-renewal under these newer regulations.
This change is intended to ensure active participation and day-to-day management from foreign business operators, aligning with the new rules.
Stricter Documentation Rules
The reforms introduce stricter documentation and operational requirements. Applicants must now provide:
- Certified business plans
- Proof of insurance, pension, health, and tax compliance
- Valid business licenses
- Evidence of a physical commercial office (home-based operations are banned)
These measures are designed to curb misuse of the Business Manager category by shell companies and passive investors as per the updated Japanese visa rules.
Transition Period Until 2028
Applications submitted before October 15, 2025, will be processed under the current rules. Existing Business Manager and HSP-BM visa holders have a three-year grace period until October 16, 2028 to meet the new requirements under the revised visa rules.
The updated standards will also apply to permanent residency and HSP II applications tied to the Business Manager category, even if those were filed before the new regulations took effect, reflecting the latest Japanese visa rules.
