Japan Tightens Business Manager Visa Rules from October 2025 – Here’s What Changes
Starting October 16, 2025, Japan will introduce stricter eligibility rules for foreign entrepreneurs and professionals under its Business Manager (BM) and Highly Skilled Professional (HSP) visa categories.
The changes — announced by the Immigration Services Agency (ISA) — aim to promote genuine business operations, encourage local hiring, and ensure better integration of foreign business owners into Japanese society.
Existing visa holders will have until October 2028 to fully comply with the new standards.
- Hiring Local Employees Becomes Mandatory
Under the revised system, every visa applicant must employ at least one full-time local worker.
Eligible local employees include:
- Japanese nationals
- Permanent or special permanent residents
- Long-term residents
- Spouses or children of Japanese nationals or permanent residents
Applicants will be required to submit documentary proof such as employment contracts, residence registration, and salary payment records.
Previously, hiring local staff was optional. A one-person company could still qualify for a BM visa if it met the capital and office requirements — but that flexibility will end in 2025.
- Minimum Capital Requirement Rises to JPY 30 Million
The minimum capital threshold will jump from JPY 5 million to JPY 30 million, a sixfold increase.
- For corporations, this refers to paid-in capital or total contributions.
- For individual entrepreneurs, the amount may include essential operating expenses such as rent, salaries, or equipment costs.
Authorities are expected to issue further clarification on how “individual” applicants will be evaluated under this rule.
- Japanese Language Proficiency Now Mandatory
For the first time, the Business Manager visa will include a language requirement.
Either the applicant or one full-time employee must demonstrate Japanese language proficiency equivalent to:
- JLPT N2 level, or
- BJT score of 400 or higher, or
- An equivalent qualification (e.g., graduation from a Japanese high school or university, or long-term residence).
This new rule is intended to promote smoother communication and cultural integration in the Japanese business environment.
- Residency and Active Business Obligations
Applicants will be required to maintain an active business presence in Japan. Long stays abroad without a valid reason could result in the ISA deeming the business inactive — which may lead to visa renewal being denied.
Previously, there were no clear limits on time spent outside Japan as long as the business continued to operate.
- Stricter Compliance and Documentation
The new framework also introduces tighter compliance checks. Applicants must now submit:
- A certified business plan
- Proof of employment insurance, pension, health insurance, and tax payments
- Relevant business licenses or permits
- Evidence of a dedicated office (home-based operations are no longer permitted)
These steps are aimed at curbing misuse of the visa and ensuring legitimate, tax-compliant business activity.
- Transition and Grace Period
- Applications submitted before October 15, 2025 will be processed under the current rules.
- Existing Business Manager and HSP-BM visa holders will have a three-year grace period, until October 16, 2028, to meet all new requirements.
- From October 16, 2025, the new BM standards will also apply to permanent residency and HSP II applications linked to BM or HSP-BM holders — even if those applications were filed earlier.
What This Means for Foreign Entrepreneurs
Japan’s new visa rules clearly signal a move toward greater oversight and accountability for foreign-run businesses.
While the new requirements — including higher capital, local hiring, and language proficiency — raise the entry barrier, they also enhance the credibility and stability of businesses operating under the Business Manager visa.
For genuine investors and entrepreneurs with long-term plans in Japan, these reforms could create a more sustainable and trusted environment to grow their ventures.
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