![[2026 Update] Major Changes to Japan’s Business Manager Visa: A Plain-English Guide to the New ¥30M Capital, JLPT N2, and Full-Time Staff Requirements, Plus the 2028 Grace Period](https://media.yolo-japan.com/wp-content/uploads/2026/04/2026-Update-Major-Changes-to-Japans-Business-Manager-Visa-A-Plain-English-Guide-to-the-New-¥30M-Capital-JLPT-N2-and-Full-Time-Staff-Requirements-Plus-the-2028-Grace-Period-1.png)
Last Updated: April 26, 2026
Reading Time: About 12 min read
Category: Visa & Legal
Introduction: The 2025 Reform Raised the Bar for “Becoming a Boss in Japan”
If you’ve been building a career in Japan, the thought of running your own company has probably crossed your mind at some point. Going independent with a colleague to start a software house, opening a restaurant that brings flavors from your home country to Tokyo, launching a cross-border e-commerce site — international residents in Japan are starting businesses in every shape and size.
The visa that opens that door is the Business Manager Visa (Keiei-Kanri). But on October 16, 2025, a major reform reshaped what it takes to obtain and renew it. The minimum capital jumped from ¥5 million to ¥30 million. Hiring at least one full-time employee became mandatory. A new Japanese language requirement at JLPT N2 (CEFR B2) level was added.
In this guide, we walk through the new requirements, the application flow, and the most important tips for avoiding denial — all from the applicant’s point of view. For deeper topics like the grace period and the route to permanent residency, we link out to dedicated articles so you can read at your own pace.
TL;DR (What You’ll Get from This Article)
- The October 16, 2025 reform added five new requirements to the Business Manager visa
- Capital jumped from the old ¥5M minimum to ¥30M, plus mandatory hiring of at least one full-time employee
- Either the applicant or one full-time employee must hold JLPT N2 (CEFR B2) level Japanese
- 3+ years of management experience or a master’s, doctoral, or professional degree is required
- Business plans must be reviewed by a certified SME consultant, CPA, or tax accountant
- A grace period until October 16, 2028 applies to existing visa holders
- A home-as-office setup is generally not accepted
This article reflects information published by the Immigration Services Agency of Japan and current application practices as of April 2026. It is not legal advice. For your specific application or renewal, consult a licensed administrative scrivener (gyoseishoshi) or other qualified professional.
Old vs. New Standards at a Glance
Here’s what shifted between the pre- and post-reform standards.
| Requirement | Old Standard (–Oct 15, 2025) | New Standard (Oct 16, 2025–) |
|---|---|---|
| Capital, etc. | ¥5M+ OR 2+ full-time employees | ¥30M+ AND 1+ full-time employee |
| Japanese ability | Not required | Applicant or one full-time employee at CEFR B2 (JLPT N2) level |
| Education / experience | Not specified | 3+ years of management experience OR a master’s-level degree in management/business |
| Business plan | Self-prepared was acceptable | Review by a certified SME consultant, CPA, or tax accountant required |
| Office | Private dedicated space | Same + home-as-office generally not accepted |
(Source: Immigration Services Agency, "Amendments to the Ministerial Ordinance on Landing Standards")
The reason the government tightened the rules this far is to stop visas being granted to businesses that don’t really exist. The new standard is a clear message: token capital and shell companies are out, but entrepreneurs who genuinely want to compete in the Japanese market are welcome.
Applications received by October 15, 2025 are processed under the old standard. Any new application after that date is judged purely under the new standard.
New Requirement 1: The ¥30M Capital Rule
The biggest single change is the increase in capital. From ¥5M to ¥30M — six times higher. And you must satisfy both the capital threshold and “1+ full-time employee” — meeting only one of the two is no longer enough.
The Source Matters More Than the Amount
It’s tempting to focus on the ¥30M number, but in practice the bigger hurdle is proving how you got the money.
- Personal savings: Bank statements going back several years, showing the funds built up from salary or business income
- Loans or gifts from family: A signed loan or gift agreement, the bank-traceable transfer route, and proof of how your parents themselves accumulated the funds
- Sole proprietor route: Treat office acquisition costs, annual employee wages, equipment investment, and first-year inventory as part of “total invested amount”
“Capital window dressing” — borrowing money short-term, registering the company, then immediately returning it — can lead not just to visa denial but to criminal liability. The funds you put in must genuinely be available for business use.
It’s safest to start preparing source-of-funds documentation at least six months before incorporation. Split overseas remittances into multiple transfers and ask the sender to label each one explicitly as “business preparation funds.”
New Requirement 2: Mandatory Full-Time Employee
The “stack ¥30M and run it solo” model no longer works.
Who Counts as a Full-Time Employee
Immigration only counts people in the following categories:
- Japanese nationals / Special Permanent Residents
- International residents holding Permanent Resident, Spouse or Child of Japanese National, Spouse or Child of Permanent Resident, or Long-Term Resident status
International residents on activity-based or work-based statuses (Engineer/Specialist in Humanities/International Services, Student, Specified Skilled Worker, Dependent, etc.) generally do not count — with one exception: if the applicant themselves meets the JLPT N2 requirement.
Practical Employment Conditions
- At least 217 days per year and 30 hours per week
- Enrolled in employment insurance (koyo hoken)
- Wages must be reasonable compared to similar businesses in the same area
“Hiring a friend on paper for ¥50,000 a month” or “putting a family member on the payroll part-time” will not pass scrutiny.
Reference Hiring Cost (Greater Tokyo, Annual)
| Item | Annual Estimate |
|---|---|
| Salary (¥250,000/month × 12) | About ¥3,000,000 |
| Bonus (about 2 months of salary) | About ¥500,000 |
| Employer’s share of social insurance (about 15% of salary) | About ¥530,000 |
| Employment insurance / workers’ comp | About ¥30,000 |
| Total | About ¥4,060,000 |
You’ll need to lay this out clearly in the income/expense section of your business plan and show a cash flow that can cover it from year one.
(Source: Japan Pension Service, "Procedures for Employers")
“Planning to hire” isn’t enough. By the time you submit the application, you should already have a signed employment contract and visible evidence of actual wage payments.
New Requirement 3: Japanese Ability at CEFR B2 (JLPT N2)
Here’s some good news: the Japanese language requirement is OR, not AND. You clear it as long as either the applicant or one full-time employee meets the CEFR B2 level.
Accepted Forms of Proof
| Method | Detail |
|---|---|
| JLPT | Pass certification at N2 or above |
| BJT Business Japanese Proficiency Test | Score of 400 or higher |
| Long-term residence record | 20+ years of cumulative mid- to long-term residence in Japan |
| Education in Japan | Graduation from a Japanese university, graduate school, junior college, or vocational school |
| Compulsory + high school education | Graduation from a Japanese elementary, junior high, and high school |
(Source: Immigration Services Agency, Notification No. 3 of the Reform)
Strategy for Founders Who Aren’t Confident in Japanese
If your working language has been English, the cleanest move is to hire a full-time employee who is Japanese or holds a status-based residence permit. That single hire automatically clears the language requirement.
JLPT N2 is offered twice a year (July and December). Counting back from your application schedule, give yourself at least one year of preparation time to be safe.
New Requirement 4: 3+ Years of Management Experience or a Master’s Degree
The applicant’s own background now has a minimum bar.
The Education Route
You’ll need one of the following degrees (a bachelor’s degree is not enough):
- A doctorate, master’s, or professional degree in management/administration (e.g., MBA)
- A doctorate, master’s, or professional degree in the field of the business you plan to run (for example, a CS master’s for an IT company)
The Experience Route
If you don’t have one of those degrees, you’ll need 3+ years of experience managing or administering a business.
- Director or executive officer-level positions
- Department head (bucho) or above in a managerial role
- Running a business unit or branch with full P&L responsibility
“Three years as a regular employee” doesn’t qualify. Get a certificate of employment from your previous company that clearly states your title and scope of responsibility.
Watch Out for Mismatches Between Background and Business
If someone with 15 years in IT suddenly tries to launch a construction company, immigration will scrutinize the disconnect heavily. Whether you can explain the logic of the pivot in your business plan is the deciding factor.
Certificates of employment from your home country may need to be in English or translated into Japanese, and notarized (apostille or consular authentication) is sometimes required. This can take 2–3 months to obtain, so start early.
New Requirement 5: Professional Review of the Business Plan
Of all the new requirements, this is the one that adds the most preparation work.
The Three Eligible Professional Qualifications
The business plan must carry a “review confirmation” from one of the following:
- Certified SME consultant (Chusho Kigyo Shindanshi)
- Certified Public Accountant (CPA)
- Licensed Tax Accountant (Zeirishi)
Administrative scriveners, attorneys, and labor and social security attorneys are not eligible (they can prepare documents and represent your application, but they cannot sign off on the business plan).
In-House Officers and Employees Are Out; External Advisors Are Fine
- ❌ Even if your own director or employee holds the qualification, they cannot review your own company’s plan
- ⭕ An external advisory tax accountant or contracted SME consultant is acceptable
Reference Review Fees
| Professional | Reference Review Fee |
|---|---|
| Certified SME consultant | ¥100,000–300,000 |
| CPA | ¥150,000–400,000 |
| Licensed tax accountant | ¥80,000–250,000 |
The Level of Specificity Expected
“Projecting ¥5M monthly revenue” by itself won’t pass.
- Build-up logic of unit price × customer count × operating days
- Comparison data from peer companies
- Quotes or draft contracts with prospective clients
- A hiring plan with bottom-up personnel cost estimates
- Monthly P&L simulations for 3–5 years
There was a time under the old standard when a self-written Word document was enough. Under the new standard, collaborating with a qualified professional is effectively mandatory.
New Requirement 6: Home Offices Generally Out, with Narrow Exceptions
The office requirement now defaults to separate properties for living and working.
When a Home-Based Setup Can Still Pass
For a detached house or maisonette with built-in office space, all of the following must be true:
- The residential and business spaces have completely separate entrances
- The lease explicitly permits “business use” and “corporate registration”
- A letter of consent from the landlord authorizing business use
- Signage and a company nameplate visible on both the building exterior and the mailbox
- A line of business that won’t significantly disturb neighbors in a residential area
A studio apartment or a corner of an LDK almost never clears the bar. Virtual offices, address-rental services, and coworking spaces without a private dedicated room don’t qualify either.
Photos You’ll Need to Submit
- Building exterior (with signage / nameplate)
- Mailbox (with company name)
- The door of the business space’s entrance
- The full business space (desks, PCs, document shelves, multifunction printer, and other equipment)
When you start looking for property, tell the real estate agent up front that it’s for a Business Manager visa application. They’ll narrow the search to properties that genuinely allow business use.
Grace Period for Existing Visa Holders (Through October 2028)
If you already hold the Business Manager visa, you get a three-year grace period from the date of the reform.
- Until October 16, 2028, renewals are judged holistically — taking into account your current operations and your plan for catching up to the new standard, even if you don’t fully meet it yet
- From October 16, 2028 onward, full compliance with the new standard is, in principle, required
“Sit back and do nothing for three years” won’t work. You’ll need to show in writing that you’re actively working on a roadmap for capital increase, hiring a full-time employee, and meeting the language requirement.
We cover the renewal-review checkpoints during the grace period, the three planning paths toward 2028 (capital increase, hiring, business pivot), and what to do if you’re in negative equity in a separate article.
👉 Business Manager Visa Renewal Guide: Using the Grace Period and Navigating Renewal Reviews
Required Documents and the Application Flow
Required Document List (New Application)
| Category | Documents |
|---|---|
| Application core | Certificate of Eligibility application form, photo (3cm × 4cm) |
| Company info | Certified copy of corporate register, articles of incorporation |
| Capital | Proof of payment, source-of-funds documentation |
| Office | Lease agreement, photos of the office |
| Business plan | Business plan (with the professional review confirmation), supporting evidence for revenue projections |
| Employment | Full-time employee’s employment contract and ID documents |
| Applicant | CV / certificate of employment, academic credentials |
| Japanese ability | JLPT certificate, etc. |
| Tax | Applicant’s tax certificate, planned corporate tax filings |
(Sources: Legal Affairs Bureau, "Application Forms for Commercial and Corporate Registration", National Tax Agency, "Corporate Tax Procedures")
The Overall Schedule
| Timeline | Main Tasks |
|---|---|
| 6–12 months out | Prepare capital, line up master’s program OR proof of 3-year management experience, start JLPT N2 prep OR shortlist full-time employee candidates |
| 3–6 months out | Draft business plan, engage a qualified reviewer, sign lease for the office property |
| 1–3 months out | Incorporate the company, open the corporate bank account, sign the employment contract for the full-time hire, finalize all documents |
| Application | File for Certificate of Eligibility (or change of status), 1–3 month review period |
The first period of stay granted is usually 1 year. Once stability is recognized — for example, two consecutive years of profit — the next renewal can be granted for 3 years. The maximum is 5 years.
Common Patterns That Lead to Denial
Most denials cluster into the same handful of patterns. Knock these out in advance and your risk drops sharply.
| Pattern | Detail | Countermeasure |
|---|---|---|
| Unclear source of capital | Murky overseas remittance trail, cash brought in physically, large deposit right before applying | Remit gradually over six months or more, leave a complete bank record |
| Full-time employee in name only | Name-only hire, family member treated as a part-timer, unpaid wages | Have employment insurance enrolled and actual wage payments visible by the time you apply |
| Office without real substance | Virtual office, address-only service, just a desk in the home living room | Lease a property with explicit business use, satisfy the photo checklist |
| No professional review | Submitting only a self-prepared plan | Get a review confirmation from a certified SME consultant, CPA, or tax accountant |
| Mismatch between background and business | IT background suddenly running a construction company with no visible link | Explain the bridge between background and the new business carefully in the plan |
If your application is denied, the “Designated Activities (preparation for departure)” period is usually 30 days. During that window, you’ll need to either change to a different status or prepare to leave Japan.
If clearing the new standard is genuinely tough, consider switching to a different status such as Engineer/Specialist in Humanities/International Services, Specified Skilled Worker, Spouse Visa, or Dependent Visa (see the dedicated guides on YOLO MEDIA).
Bridging to Permanent Residency and Highly Skilled Professional
The Business Manager visa isn’t the finish line. If you plan to live in Japan long-term, it’s standard practice to plan toward Permanent Residency or Highly Skilled Professional status from day one.
- Standard Permanent Residency: 10+ years of residence in Japan, of which 5+ years on a working or residence-based status (Business Manager counts)
- Highly Skilled Professional 1(c): A points-based change of status — 70+ points for the change, 80+ points lets you apply for permanent residency in as little as 1 year
- To secure a 3-year or 5-year period of stay: Two consecutive years of profitable financial statements, full payment of taxes and social insurance, and a director’s salary at a livable wage (the rough benchmark is ¥250,000+ per month)
For more detail, refer to the Highly Skilled Professional Visa Guide and Permanent Residency Requirements articles on YOLO MEDIA.
FAQ
Q1: I obtained my visa under the old ¥5M standard. What happens to it?
A: The grace period applies to you through October 16, 2028. During that window, renewals are judged holistically based on your current operations and your plan for moving toward full compliance — you don’t have to be 100% compliant on day one. But “do nothing for three years” is a non-starter. See the Business Manager Visa Renewal Guide for the details.
Q2: I want to switch from a Student visa to a Business Manager visa. Is that still realistic under the new standard?
A: Technically yes, but the new requirements — ¥30M capital, hiring a full-time employee, and the rest — make it genuinely difficult for a recent graduate launching their first business. The realistic path is to first use the Startup Visa to give yourself a runway, or to take an Engineer/Specialist in Humanities/International Services position, build experience, and then go independent.
Q3: I want to run my business from home. Is that completely off the table?
A: As a default, yes. There’s a narrow exception for detached houses where the residential and business sections have completely separate entrances and meet the strict criteria, but a studio apartment, an LDK corner, or a single condo room won’t qualify. The realistic move is to lease a separate property that explicitly permits business use.
Q4: I don’t speak Japanese well. Can I still get a Business Manager visa?
A: Yes. The Japanese language requirement is “applicant OR one full-time employee,” so the cleanest workaround is to hire a Japanese national or a status-based resident as your full-time employee. That clears the requirement automatically.
Q5: Can I switch from a Startup Visa to a Business Manager visa?
A: Yes, but you’ll need to satisfy the new standard (¥30M capital and the rest). Within the maximum 2-year period of the Startup Visa, plan to wrap up both hiring a full-time employee and securing the capital. Refer to the Startup Visa Complete Guide on YOLO MEDIA for details.
(Source: Ministry of Economy, Trade and Industry, "Startup Visa / Business Activity Promotion Project")
Summary: Pre-Application Self-Check
Yes, the new standard makes the Business Manager visa harder to clear than before. But meeting the requirements one by one still keeps the door open to running a business in Japan as an international resident. The successful pattern is simple: plan backward from the requirements, work alongside qualified professionals, and don’t rush.
Before you apply, run through the checklist below.
Sourced through a route fully traceable in bank records
[!TIP]
Employment contract signed and social insurance lined up
[!TIP]
Either you or your full-time employee can prove it
- ✅ 3+ years of management experience OR a master’s-level degree
Comes with a review confirmation from a certified SME consultant, CPA, or tax accountant
- ✅ Private business-use office (a home-as-office setup is generally out)
Existing visa holders should review the Business Manager Visa Renewal Guide for the October 2028 grace period details.
If you’re unsure about preparing the documents, the most direct route is to bring on a two-person team from the start: an administrative scrivener with strong immigration experience, and a tax accountant strong in corporate taxation.
