Business Manager Visa in Japan: 2026 Update

New Standards Now in Force — What the January Cabinet Decision Makes Clear～

Hello everyone. I am Hiroaki Higuchi, a certified administrative scrivener at Mirai Fuso Administrative Scrivener Office.

In October 2025, Japan's Business Manager visa underwent its most significant overhaul since the system was established. Since publishing an article covering those changes, readership has grown steadily from overseas — particularly from Estonia, China, Taiwan, and South Korea.

This article is a direct follow-up. The January 23, 2026 Cabinet Decision — "Comprehensive Measures for Accepting Foreign Nationals and Promoting Orderly Coexistence" — has made the direction of enforcement substantially clearer. What was outlined as new rules in October 2025 now has sharper operational teeth. This update explains what the five new standards require in concrete terms, how enforcement is being stepped up, and what foreign nationals planning to do business in Japan need to know today.

Why the System Changed

Japan's Business Manager visa was previously accessible with a paid-in capital of ¥5 million, a threshold that critics argued was low enough to enable abuse — shell companies with no substantive operations, or applications that were essentially disguised long-term residency arrangements. The government's response was a fundamental redesign, announced in 2025 and now in force, aimed at selecting entrepreneurs who are genuinely committed to contributing to Japan's economy.

The five new standards are examined below. Of these, the second — the full-time employee requirement — deserves particular attention, because its practical implications are often underestimated.

The Five New Standards

① Capital requirement: from ¥5 million to ¥30 million

For corporations, the paid-in capital (the stated capital of a kabushiki kaisha, or the total capital contributions of a godo kaisha or equivalent) must be ¥30 million or more. Capital reserves and retained earnings cannot be combined to meet this figure. For sole proprietors, the equivalent threshold applies to the total amount actually invested in the business — covering costs such as office acquisition, one year's salary for the required full-time employee, and capital equipment expenditure. The key word in both cases is "actually invested": funds that are deposited but not deployed into business operations do not satisfy the requirement.

② Full-time employee requirement: from optional to mandatory — and the eligibility rules matter

This is the area where the new system diverges most sharply from the old, and where applicants are most likely to encounter unexpected difficulty.

Under the previous system, an applicant could satisfy the requirements by either employing two or more full-time workers or meeting the capital threshold. The two conditions were alternatives. Under the new system, employing at least one full-time worker is mandatory in addition to the capital requirement — not instead of it.

The employee must fall within a specific category: Japanese nationals, special permanent residents, permanent residents, spouses of Japanese nationals, spouses of permanent residents, or long-term residents. Foreign nationals holding employment-based residence statuses — such as "Engineer / Specialist in Humanities / International Services" (技術・人文知識・国際業務) — are explicitly excluded from counting toward this requirement.

The practical implication is significant. An entrepreneur who plans to build a team primarily of foreign staff cannot count those employees toward visa compliance unless they hold one of the qualifying statuses listed above. This requirement needs to be factored into hiring plans from the outset — it cannot easily be corrected after the fact.

③ Japanese language proficiency: JLPT N2 / CEFR B2 or above

Either the applicant themselves, or the full-time employee required under standard ②, must demonstrate Japanese language proficiency at JLPT N2 level or its CEFR B2 equivalent. For the purpose of satisfying this language requirement specifically, foreign nationals holding employment-based residence statuses are included — meaning a foreign employee with appropriate Japanese proficiency can fulfill this condition even if they cannot be counted toward the full-time employee requirement under ②.

④ Applicant background and experience

The applicant must satisfy at least one of the following: hold a doctoral, master's, or professional degree in a field relevant to the business they are proposing to operate; or have at least three years of practical management experience. Time spent on business preparation activities under the "Specified Activities" residence status (スタートアップビザ) counts toward this three-year calculation.

⑤ Expert verification of the business plan

The business plan submitted with the application must be accompanied by a written evaluation — from a certified management consultant (中小企業診断士), certified public accountant (公認会計士), or registered tax accountant (税理士) — confirming that the plan is "reasonable and feasible." This expert verification is a distinct professional service, separate from the preparation of immigration application documents by an administrative scrivener or attorney.

What the January 2026 Cabinet Decision Added: Enforcement

The October 2025 reform set the standards. The January 2026 Cabinet Decision confirmed that active enforcement — not just rulemaking — is now underway. Two specific measures were described as actions to be taken "promptly."

On-site inspections targeting virtual and name-only offices

The Cabinet Decision calls for direct field investigations targeting buildings where a disproportionate number of small registered offices are concentrated. This is a clear signal aimed at virtual offices and address-only registrations used as business premises on paper.

The Business Manager visa has always required an independent, functioning office. Going forward, the Immigration Services Agency will proactively conduct site checks, and where the registered address does not correspond to a real, active operation, visa revocation or denial of renewal is a concrete risk. For anyone currently using a shared or virtual address, the registered business location needs to reflect where actual business activities take place.

Expanded information sharing between the National Tax Agency and Immigration

The second measure broadens the institutional channel through which tax irregularities can flow directly into visa adjudication. Tax compliance has always been part of renewal assessments — inspectors check whether corporate taxes, consumption taxes, the applicant's personal income tax, and social insurance premiums have been properly paid. What the January 2026 decision does is expand the scope of information that the National Tax Agency can formally share with the Immigration Services Agency for use in that review.

In practical terms: a foreign national running a business in Japan who has unpaid taxes or has engaged in tax evasion will now face a more direct path from that tax record to a negative outcome at visa renewal. Tax compliance and immigration status management can no longer be treated as separate matters.

Transitional Arrangements

Those already holding the Business Manager visa as of October 16, 2025 — or who had submitted a Certificate of Eligibility application before that date and were awaiting entry — are covered by a three-year transitional period. Renewal applications submitted up to October 16, 2028 will not automatically result in denial if the new standards are not yet fully met; cases will be assessed individually, taking into account the business situation and realistic prospects of future compliance.

However, renewal applications filed from October 16, 2028 onward will require full compliance with the five new standards as a rule. Additionally, those not yet in compliance with the revised standards will not be eligible to apply for permanent residence.

This three-year window is not a period of inaction. The capital increase to ¥30 million, the hiring of a qualifying full-time employee, the Japanese language proficiency requirement, and the business plan verification process each require lead time. Planning these in reverse from the October 2028 deadline is more manageable now than under time pressure.

A Note on Professional Scope

The administrative scrivener's role covers preparation and filing of immigration application documents. Business plan verification, tax compliance advice, and financial due diligence are services provided by their respective licensed professionals — certified management consultants, certified public accountants, and registered tax accountants. Coordinating with the relevant specialists early, rather than assembling them at the last moment, is practical preparation in the current enforcement environment.

Closing

Japan's Business Manager visa has shifted from a system that could be entered with relatively modest capital to one explicitly designed to verify substantive, ongoing business commitment — and the January 2026 Cabinet Decision confirms that this shift is backed by real enforcement, not only revised regulations on paper.

If you are planning a Business Manager visa application, or if you currently hold one and are approaching a renewal cycle, I hope this overview has provided a useful reference point.

If you have questions about your specific circumstances, or if you would like to share your thoughts on this article, please feel free to reach out through the inquiry form on our website.

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