Japan New Business Manager Visa Requirements (2025 Update)

Japan is raising the bar for its Business Manager Visa in 2025, introducing tougher financial and professional criteria for foreign entrepreneurs. The Business Manager Visa (also known as the investor/business manager visa) is a residency status that allows foreign nationals to set up and manage a business in Japan, with long-term stays of up to 5 years (renewable) and the ability to bring family members.

Historically, this visa was a gateway for entrepreneurs to establish companies in Japan with relatively modest investment, but major changes are slated for October 2025. This guide explains the current requirements versus the new stricter rules, how the changes affect both new applicants and existing visa holders, and what alternative paths (like the Startup Visa) are available for those who may not meet the heightened standards. We also provide a step-by-step overview of the application process and key FAQs for 2025.

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Key Takeaways

• Apply before October 2025 to qualify under current rules (¥5M capital or 2 employees).
• After October 2025, expect stricter requirements: ¥30M capital + 1 employee.
• Existing visa holders must scale up capital and staff before renewal.
• Startup Visa offers a two-year runway with lower initial capital.
• Japan now prioritizes well-funded, well-prepared entrepreneurs.

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What Is the Business Manager Visa in Japan?

The Business Manager Visa is designed for foreign entrepreneurs, investors, and company managers who intend to operate a business in Japan. It grants permission to reside in Japan while managing a company, and is typically issued in increments of 1, 3, or 5 years (with the possibility of renewal). Visa holders can sponsor family (spouse and children) to live in Japan as dependents. After about 5 years on this visa (and 10 years of total residence), holders may even become eligible to apply for permanent residency.

Originally, the visa (formerly called the Investor/Business Manager visa) was introduced to attract entrepreneurs and boost Japan's international competitiveness. By the end of 2024 it had grown in popularity – roughly 41,600 people held Business Manager visas (an 11% increase from the previous year), with Chinese nationals making up more than half of the holders. The visa's popularity was partly due to its relatively accessible requirements (by international standards) and the opportunity it gave foreigners to start small businesses or investment ventures in Japan.

Current Requirements (Until October 2025)

Until mid-October 2025, the requirements to obtain a Business Manager Visa are fairly straightforward. An applicant needs to:

Establish a business office in Japan

You must have a physical office or shop space for the business (virtual offices are not accepted). The space can be rented, but it should be clearly for business use (residential apartments are only allowed if the lease permits business use and the work area is distinctly separated).

Show sufficient investment capital or employees

Under the current rules, you qualify by either investing at least ¥5 million in the business or employing 2 or more full-time employees in Japan (who are not family members). In practice, most applicants satisfy the requirement via the capital investment route (injecting ≥¥5M into their company). The hired employees, if used to qualify, typically must be residents of Japan (Japanese nationals or foreign residents with valid statuses).

Prepare a viable business plan

Applicants need to submit a business plan or company profile to immigration. It should outline the business activities, finances, and growth strategy to demonstrate the venture's viability. While there is no formal external review of the plan required under current rules, immigration officers will assess it as part of the Certificate of Eligibility process.

Meet general legal and administrative steps

This includes registering the company in Japan (often as a KK or GK corporation), providing the company's Articles of Incorporation and registry certificate, and documentation of the ¥5M capital (e.g. a bank statement) or employment contracts/payroll for 2 employees. Tax and social insurance setup is also expected once the company is running.

In summary, current law requires "People, Money, and Office." You must have a business office, plus either money (¥5 million capital) or people (2 employees) in place. These lenient criteria have made it feasible for even small startups or single-owner businesses to get the visa by investing a relatively low amount of capital. For example, many opened small restaurants, IT startups, or even just managed an Airbnb-style rental ("minpaku") under this visa.

The initial visa term under these conditions is often 1 year (for new businesses), after which one can apply for renewal by demonstrating the business is active and still meets the requirements. Subsequent renewals may be granted in 3 or 5-year increments if the business is stable. Importantly, until the rule change, you only needed to meet either the capital or the hiring requirement – not both – which significantly lowered the bar for entry.

New Stricter Rules Coming in October 2025

From October 2025, Japan is implementing much stricter criteria for the Business Manager Visa. A draft ministerial ordinance has been approved that raises the investment and staffing bar six-fold and adds new personal qualifications. The changes, expected to take effect in mid-October after a public comment period, include:

Higher Capital Requirement

Applicants will need a minimum capital investment of ¥30 million (approximately $200,000) in the business. This is a six-fold increase from the previous ¥5 million. Notably, this must be actual paid-in capital or invested funds in the company (funds raised from share sales can count). The huge jump is intended to ensure applicants have substantial financial commitment and aren't setting up shell companies on shoestring budgets just to obtain a visa.

Mandatory Employee Hiring

It will no longer be enough to invest money alone – the company must also employ at least one full-time employee in Japan from the outset. In other words, under the new rules both conditions must be met: ¥30M+ investment and ≥1 employee. (The employee can be a Japanese national or a foreign resident with a long-term visa such as permanent resident or spouse visa.) This ensures the business creates local jobs. Previously, hiring was an alternative to capital; going forward it's in addition to the high capital.

Management Experience or Degree

Applicants themselves must now demonstrate relevant expertise. A business manager will need either at least 3 years of management experience or a Master's degree in business/management (or a related field). This personal qualification is aimed at vetting the capability of the entrepreneur – presumably to select those who are more likely to run a successful enterprise. Under current rules, there was no explicit requirement for a certain degree or years of experience; this is a new hurdle especially for younger entrepreneurs.

Professional Business Plan Review

The immigration process will introduce an extra step of scrutiny – the business plan must be reviewed by a qualified professional before submission. Acceptable reviewers include a Certified Public Accountant (CPA), tax accountant, Small/Medium Enterprise management consultant, or similar expert in Japan. A sign-off or evaluation from one of these professionals will need to accompany the application. The goal is to ensure business plans are sound, realistic, and not just paper exercises to get a visa.

Stricter Documentation for Proof of Business Scale

Immigration authorities will require more robust proof that both the capital and hiring conditions are met. Applicants must submit evidence of the investment and proof of the employee(s) on payroll (e.g. bank statements, payroll records, employment contracts, staff residency certificates).

In the past, providing just one form of proof (say, a bank certificate showing ¥5M capital) could suffice since only one condition was needed. Going forward, for both initial applications and renewals, you must document both the financial and staffing aspects of your business. This eliminates loopholes where other less direct documents might have been accepted as evidence of "equivalent scale".

These new requirements mark a major tightening of the visa. The Japanese government has justified the change as a way to crack down on abuse and ensure the visa program is used for genuine business investment. Reports highlighted that some individuals were exploiting the relatively low ¥5M threshold to live in Japan without truly operating substantial businesses (for example, setting up only nominal ventures or "name lending" arrangements).

In July 2025, authorities even uncovered a case of foreign nationals in Kanagawa using paper companies to fraudulently obtain this visa. Such incidents, along with political pressure from both ruling and opposition voices who viewed the entry cost as too low, led to calls for reform. The Justice Ministry, following an election where an anti-immigration party gained some support, moved to raise the bar for foreign entrepreneurs.

When do the new rules take effect?

The ordinance is expected to be adopted in early October 2025 and come into force by mid-October 2025. A public comment period runs until late September 2025, but no major changes are anticipated to the outlined rules. Crucially, these stricter criteria will apply not just to new applicants but also to visa renewals after implementation.

This means even if you obtained a Business Manager visa under the old rules, when you go to extend it after October 2025 you must meet the new capital, hiring, and qualification requirements to be approved. There is concern among current visa holders about this retroactive effect, as many small businesses that qualified with ¥5M or no employees will struggle to fulfill the ¥30M + staff rule going forward.

Comparison Table — Old vs. New Requirements

To clearly see how dramatic the change is, here's a side-by-side comparison of the current (pre-October 2025) vs. new (post-October 2025) Business Manager Visa requirements:

Criteria	Current Rules (Until Oct 2025)	New Rules (From Oct 2025)
Minimum Investment (Capital)	¥5 million (approx $34,000) – required if not hiring 2 staff	¥30 million (approx $200,000) – mandatory for all applicants
Employee Requirement	Hire ≥2 full-time employees in Japan OR meet capital requirement. Hiring was an alternative to investment.	Hire ≥1 full-time employee in addition to the ¥30M investment. Both capital and at least one local staff are required.
Office Space	Physical office or shop lease in Japan required (no virtual offices; home office allowed only with permission)	No change: Physical business premises still required (same as before).
Business Manager's Credentials	No specific education or experience needed by immigration (though business competence was expected informally).	Must have 3+ years of management experience or a Master's degree in business/management (or related field). Proof (e.g. CV, degree certificate) required.
Business Plan	Detailed plan required as part of application, but no external review mandated. Immigration evaluates it internally.	Business plan review by an accredited expert (CPA, tax accountant, SME consultant, etc.) is required before submission. A signed evaluation must accompany the application.
Proof of Compliance	Submit evidence of EITHER capital (e.g. bank statement) OR employees (employment contracts, etc.), whichever condition you chose	Must submit documentation for BOTH capital and employees (e.g. bank proof of ¥30M & payroll/resident proof of staff) for applications and renewals
Initial Visa Duration	Typically 1 year (sometimes up to 3 or 5 years) on first issuance, depending on business plan strength. Renewable if conditions continue to be met	Likely similar duration granted initially (1-3 years common), but renewal will require meeting new criteria. No "grandfather" exception; even existing businesses must comply upon extension

As shown above, the new policy raises both financial and professional hurdles. Under the old system, someone with ¥5 million and a good plan could start a small enterprise (like a café or trading company) and qualify solo. Going forward, Japan is signaling it wants well-capitalized, serious entrepreneurs – those who can deploy significant funds and create jobs.

Implications for Entrepreneurs and Investors

The impending changes have significant implications for foreign entrepreneurs eyeing Japan:

Drastically reduced eligibility

Many aspiring business owners who could previously qualify will be priced out or disqualified. ¥30 million JPY is approximately $200,000, a steep sum for a small startup. In fact, according to Japan's Immigration Services Agency, only about 4% of current Business Manager visa holders would meet the new ¥30M capital criterion based on recent data. This suggests that 96% of existing foreign-run businesses in Japan under this visa are below the new threshold, highlighting how uncommon such large initial investments have been. We can expect far fewer applicants (and approvals) once the rules tighten.

Impact on small businesses and startups

The barrier to entry will be much higher, potentially sidelining small-scale entrepreneurs. In the past, one could open a modest restaurant, import/export trade office, or IT consultancy with ¥5M capital and no employees (at least initially). With a required ¥30M outlay and an employee from day one, these kinds of lean startups will find it very difficult to qualify. This could particularly hurt businesses that operate in regional areas or niche markets, where huge capital isn't necessary for success but now a visa demands it. Japan risks losing some grassroots foreign entrepreneurs who contribute to local economies and innovation but don't have deep pockets.

Aligning with global standards

On the other hand, Japan's new requirements are now more in line with (or even above) those of other developed countries' investor visas. For context, South Korea requires about ¥32 million (₩300M won) capital for a similar visa, the U.S. expects roughly ¥15–30M (for certain investor visas like E-2 or EB-5 regional center), and Singapore requires around ¥11M (S$100k) paid-up capital. Japanese policymakers likely observed these figures and concluded that ¥5M was too low by comparison, potentially making Japan a target for visa "abuse" or easy immigration. The raise to ¥30M puts Japan near the top end of this scale, essentially weeding out lower-budget business plans.

Rationale – preventing abuse and ensuring quality

The government's stance is that tightening the visa will prevent misuse and ensure that those who come on this visa are genuinely contributing to Japan's economy. There had been reports of people using the Business Manager visa as an "easy loophole" to live in Japan without truly investing or hiring. Some only set up a paper company or engaged in small sideline operations like short-term apartment rentals (which require minimal staff and capital). By requiring a serious financial commitment and credentials, the authorities aim to filter for real investors and experienced managers rather than those seeking a backdoor into Japan.

Existing visa holders face uncertainty

If you already hold a Business Manager visa, these changes could affect you at renewal time. The immigration agency has indicated that renewal applications will be subject to the same requirements, meaning you may need to show that your business has grown to the new standard. For instance, someone who got the visa with ¥5M capital will likely need to inject significantly more funds (up to ¥30M) and hire at least one full-timer to convince immigration to extend the visa. Many current visa holders are concerned about this and are hoping for some grandfathering or grace period, but as of now, no exemptions have been confirmed.

This creates a risk that some entrepreneurs who have successfully run modest businesses for years might lose their status if they cannot scale up rapidly. It's advisable for current holders to start planning early – either shoring up their business to meet the new criteria or exploring alternative visa options if they foresee difficulties.

Surge in applications before the deadline

An immediate consequence is that many prospective applicants will try to apply before October 2025 to beat the change. Immigration lawyers anticipate a rush of applications in the months leading up to the new rules. If you're in a position to apply under the old rules, it may be wise to do so (more on that in the Key Takeaways section). Keep in mind, however, that even if you enter under the wire, you'll still confront the new requirements at your first renewal a year or so later.

In summary, Japan is signaling that the Business Manager visa is no longer intended for "micro" ventures or first-time entrepreneurs without significant backing. The focus is shifting to higher-value businesses and experienced individuals. While this may improve the quality of foreign investment and reduce fraud, it also raises the barrier for legitimate small entrepreneurs. Aspirants with less capital will need to look at alternative paths like the Startup Visa or find Japanese business partners/investors to help meet the requirements. Meanwhile, larger investors and seasoned business managers will have a clearer field, as there will be less competition from small-scale applicants.

Alternatives to the Business Manager Visa

For those who find the new Business Manager Visa requirements out of reach, all is not lost – there are alternative visa pathways to start a business or work in Japan:

Startup Visa

This is perhaps the most relevant alternative for entrepreneurs. The Startup Visa is a program that grants a temporary residency status (up to 1~2 years) to foreign entrepreneurs without requiring the full Business Manager visa prerequisites immediately. Originally offered in select cities (like Fukuoka, Tokyo, etc.), in 2025 Japan expanded Startup Visas nationwide and extended the maximum duration to 2 years. Under a Startup Visa, you typically need an approved business plan and sponsorship from a local government rather than heavy capital. Major requirements like the ¥5M capital, hiring staff, or having a fully set-up office can be deferred during the startup period.

This gives entrepreneurs a grace period to establish their business on the ground. For example, you might arrive in Japan on a 12-month (now extendable to 24-month) Startup Visa, get your company running, seek investment, and build toward meeting the Business Manager Visa criteria. By the end of the startup visa term, if you can fulfill the standard requirements (whatever they are at that time, e.g. ¥30M and an employee), you can transition to a Business Manager Visa to continue operating long-term.

The Startup Visa is easier to obtain initially because it is aimed at encouraging innovation and has "lighter" conditions – it's essentially Japan saying "we'll give you time to prove your business, before you need to show us the money/job creation." For many, this will be the best option if they cannot immediately muster ¥30M capital. (Note: Startup Visas are often granted for specific sectors or initiatives and require progress reports to the local government. Each city may have its own program details.)

J-Find / Future Creation Visa

Japan recently introduced the "J-Find" (Japan Future Creation Individual) visa for highly educated individuals from top universities to come to Japan for job-hunting or startup preparation. It allows certain young graduates up to 2 years in Japan to explore starting a business (similar in spirit to a startup visa, but tied to academic pedigree).

However, with the new Business Manager rules requiring 3 years of experience, there is a potential mismatch – a fresh graduate on a J-Find visa might not have 3 years' management experience when they later try to switch to the Business Manager Visa. It's unclear if exceptions will be made, but this visa could still be a foot in the door for those eligible, giving time to network and perhaps find a sponsor or another solution.

Highly Skilled Professional (HSP) Visa I

f you have a strong professional background, another route is the Highly Skilled Professional visa (a points-based system for skilled workers). This is not specifically for entrepreneurs, but if you qualify (based on criteria like education, work experience, income, Japanese ability, etc.), it provides a very flexible status with perks (like a fast track to permanent residency). Some entrepreneurs choose to first come to Japan on an HSP visa by, for example, securing a high-salary job or research position, and later start their own business.

The HSP visa can later be converted to Business Manager once the business is ready, or you might continue on HSP if it covers running a business. Given the new Business Manager hurdles, qualifying as an HSP (if possible) could be an alternate strategy to legally stay and work toward launching a company. Keep in mind HSP requires an employer or some sponsored activity initially, and a high level of credentials.

Work Visas (Engineer/Specialist in Humanities/International Services, etc.)

For those who can't immediately start a business under the new rules, another path is to work for a Japanese company first on a normal work visa. Traditional work visas in Japan (for professionals) require an employment offer from a company in Japan and relevant skills/education for the job field. While this doesn't let you run your own business, it can get you into Japan to build connections and capital. Later, you might transition to a Business Manager visa when you've saved enough or found local partners.

Additionally, if you start a business on the side while on a work visa (which can be tricky legally, but possible if you set it up and hire someone as representative director), you could switch statuses once that business is viable. However, you would need to navigate strict rules about engaging only in the activities permitted by your visa unless you change status.

Spouse or Family Visa

This is tangential, but worth noting – if you are married to a Japanese national or permanent resident, or have family ties, you might be eligible for a Spouse or Dependent visa, which has no work restrictions. On a spouse visa, you could theoretically start a business without needing a Business Manager visa at all. Of course, this isn't an option available to everyone, but for some entrepreneurs, their personal situation might allow it, thus bypassing these requirements.

In essence, the Startup Visa is the most directly relevant alternative for those aiming to launch a venture in Japan with less capital. The Japanese government, while tightening the Business Manager route, is simultaneously promoting the Startup Visa program to incubate new businesses. In fact, effective April 2025, the startup visa validity was extended from 6 months to 2 years nationwide, signaling a commitment to attract innovative startups even as they discourage undercapitalized ones from abusing the system. So if ¥30 million is too steep right now, look into the startup programs in Japan's cities or national startup visa – they can buy you time to build up your business until you're ready for the Business Manager Visa.

Lastly, it's worth considering combining paths: e.g., come on a Startup Visa or work visa, and simultaneously work on meeting Business Manager criteria for the future. Consulting with an immigration lawyer (行政書士 in Japan) is highly advisable to chart the best course based on your situation.

Application Process Overview

For those moving forward with the Business Manager Visa (under current or new rules), here is an overview of the application process and timeline:

1. Design your Business & Incorporate in Japan

Before applying for the visa, you need a legal business entity in Japan. This involves crafting a solid business plan, deciding on a company structure (usually a Kabushiki Kaisha (KK) or Godo Kaisha (GK) corporation), and preparing the incorporation documents. You will need a Japanese address for the company (hence securing an office or space lease comes here) and a modest amount of initial capital to register (even a ¥1 capital company is legally possible, but for visa you'll ultimately need the required amount). You'll register the company at the Legal Affairs Bureau and obtain a company registration certificate. Many entrepreneurs hire a judicial scrivener or administrative lawyer to handle incorporation and ensure the paperwork is correct.

2. Secure the Office Lease

As mentioned, a physical office or shop is mandatory. By this stage, you should have a lease contract under the company's name (or your name with clear permission for business use) for premises in Japan. Prepare photos of the office and the floor plan/lease agreement to prove to immigration that you have an appropriate business space.

3. Gather Required Documents

Along with the application, you will need to submit a package of documents to support your case. Typical documents include:

• Business Plan – A detailed plan explaining your business model, product/service, target market, financial projections, and how you intend to meet the visa conditions (investment, hiring, etc.). Under 2025's new rule, you'll also include the expert's review letter for this plan.
• Company Registration Certificate (登記簿謄本) – Proof that your company has been legally established in Japan.
• Articles of Incorporation – The company's charter, stating its purpose, capital, directors, etc.
• Shareholder/Investment Documents – If using the ¥5M/¥30M capital route, you need evidence of capital injection. Typically a bank deposit certificate showing the capital in the company's account, and documentation of the source of funds (to show it's legitimate). If multiple investors contributed to reach ¥30M, list them.
• Employment Proof – If using (or required to have) employees, you'll include employment contracts, salary statements, and the employee's residence card copy or certificate to prove you've hired the requisite number of full-time staff and they are based in Japan.
• Director's Resume and Qualifications – Your CV highlighting management experience, copies of any degrees (especially if using a Master's to qualify), and possibly recommendation letters or evidence of past business success.
• Office Lease and Photos – As noted, provide the lease contract and pictures of the office exterior/interior, with a note explaining how it's dedicated to business use.
• Financial statements or forecasts – Not always required for a brand new company, but a budget or cash-flow forecast may strengthen your application to show you have the means to sustain the business.
• Others: Passport copies, application forms, explanation letters if any condition is unusual, etc.

4. Apply for a Certificate of Eligibility (COE)

The actual visa application is a two-step process. First, you (or your representative in Japan, like an immigration lawyer) apply to the Immigration Services Agency for a Certificate of Eligibility for the Business Manager status. The COE application includes all the above documents and forms. Processing time for a Business Manager COE can range from about 1 to 3 months typically, depending on the complexity and regional office load. During this time, immigration officials may ask for additional information or clarifications about your business plan or funding. Assuming all is in order, they will issue the COE, which is essentially pre-approval for the visa.

5. Obtain the Visa and Start the Business

Once you have the COE, if you are outside Japan you will take it to a Japanese embassy or consulate to get the actual visa stamp in your passport (this is usually quick, a few days). If you are already in Japan (perhaps on a different status), you can use the COE to do a change of status to Business Manager at the local immigration office. Upon entry to Japan (or upon change of status), you'll be granted a Residence Card with the status "Business Manager" and the period of stay (e.g. 1 year) noted. Now you are officially allowed to run your business! You should also register your address at the city/ward office, sign up for health insurance and pension, and open corporate bank accounts if not done yet.

6. Ongoing Compliance and Renewal

After getting the visa, your work isn't over. You must actively engage in the business as proposed. Immigration may check on the health of your business when you apply for renewal (extension of stay). Typically, a few months before your visa expires, you will prepare an extension application. At renewal, you show updated documents: recent financial statements, tax payments, proof that you still have an office, proof that you still have the required capital invested (or retained earnings) or employees on payroll, etc.

If renewing after October 2025, be prepared to meet the new standards – for example, an existing business that only had ¥5M capital may need to demonstrate that it later gained more capital or retained earnings approaching ¥30M, and/or that it hired staff, in order to satisfy the new renewal criteria. Renewals are generally granted for longer periods (if the business is doing well, you might go from a 1-year extension to a 3-year extension, etc.). If a renewal is refused (because requirements aren't met), the individual would have to depart Japan, so it's crucial to plan for this.

Throughout this process, attention to detail is key. Many applications fail or are delayed due to common mistakes such as using an inadmissible virtual office address, not clearly evidencing the full ¥5M/¥30M fund transfer (e.g. money that appears briefly then is moved, which immigration calls "show money"), or having an overly optimistic or vague business plan. Engaging a qualified immigration lawyer can greatly smooth the process – they can advise on how to document everything properly and even act as a collaborator if you are not in Japan yet (often, a local collaborator is used to help set up the company and bank account before you physically move).

Timeline Summary

If you start now, assuming you have your plan and capital ready, incorporation might take 2-4 weeks, preparing the COE application another couple of weeks, COE processing ~2 months, and then the visa issuance a week or so. So it's common for the whole process to take 3-4 months from company setup to visa approval (though it can be faster or slower). Keep this in mind if you're trying to beat a deadline (like the October 2025 rule change). Also, note that the ordinance change in 2025 is via a ministerial notification, which means it doesn't require new legislation – so there's no lengthy phase-in; it will apply almost immediately as announced. In 2025, immigration procedures will also incorporate the new elements (checking your degree/experience, verifying the CPA-reviewed plan). Be prepared for possibly a more rigorous review, and potentially longer processing times as officials adapt to the new criteria.

FAQs

Q: Can I apply before October 2025 to avoid the new rules?

A: Yes. If you submit your application (Certificate of Eligibility) before the rule change is implemented, it will be assessed under the current rules (¥5M or 2 employees) rather than the new tougher rules. The Justice Ministry's draft indicated the changes will only be adopted in mid-October 2025. In fact, officials have encouraged those eligible to apply early under the existing criteria before the window closes. However, keep in mind two caveats: (1) Visa processing can take a couple of months, so aim to apply well in advance of October to secure approval under old rules. (2) Even if you obtain the visa under current rules, any renewal after October 2025 will require meeting the new standards. So you "avoid" the new rules only temporarily. Still, getting in now could buy you a year or two to grow your business to the new requirements.

Q: What happens if my Business Manager visa renewal is after October 2025?

A: If your extension of stay is due after the new rules take effect, you will most likely need to demonstrate full compliance with the new requirements to get approved. Immigration authorities have made it clear that for renewal applications, the same dual requirements will apply – you'll have to submit proof of both the ¥30M capital and having at least one full-time employee. They are essentially eliminating the previous flexibility where a single criterion or other evidence could suffice. In practical terms, if you originally qualified with only ¥5M invested or with two employees but less capital, you'll need to bring your business up to the new standard by the time of renewal. If you cannot, there is a risk your renewal application could be denied, which would jeopardize your ability to continue residing in Japan. There is some anxiety among current visa holders about whether there will be any grandfathering or exemptions for those already here; as of now, plan on complying with the new rules. It would be wise to start preparing well ahead of your renewal date – e.g., increase capital, hire staff, etc., and keep documentation of these changes – so that you can present a strong case when renewing. Always check the latest immigration announcements for any transitional measures, but don't count on leniency.

Q: Is the Startup Visa easier to get than the Business Manager Visa?

A: Generally, yes, the Startup Visa is easier initially because it was designed to lower the barriers for foreign entrepreneurs. The Startup Visa lets you live in Japan for a preparatory period (now up to 2 years) without having to immediately invest ¥5M/¥30M or hire staff. To get a Startup Visa, you usually need a solid business plan and approval from a sponsoring local government or economic agency, but the upfront requirements (capital, office, etc.) are deferred or relaxed. This makes it much more attainable for a person with a great idea but limited funds. However, note that the Startup Visa is temporary and not renewable in itself – it's a stepping stone. By the end of that period, you're expected to transition to a standard Business Manager Visa by meeting the full criteria. So while it's "easier" to start, it doesn't let you escape the ultimate requirements; it only postpones them. It's best for those who need time to set up and perhaps fundraise. Also, the availability of startup visa programs can depend on the region (though 2025 onward it's nationwide) and your business field (some areas prioritize certain industries). In short: Startup Visa = easier entry, but you must eventually satisfy Business Manager Visa rules to stay long-term. Many entrepreneurs find it extremely useful, especially now that Japan extended it to 2 years, as it provides breathing room to build up capital and traction.

Q: Why is Japan making these changes now? Will it reverse if impacts are negative?

A: Japan is implementing these changes largely due to concerns of visa abuse and political pressure to tighten immigration routes. The Business Manager visa was seen as having "lax" conditions compared to other nations, and there was criticism that it allowed quasi-immigration with minimal economic benefit (e.g., people using a small investment to live in Japan without creating jobs or significant business activity). Additionally, a rise in foreign residents through this visa (especially a perception that many were using it just to reside in Japan rather than contribute economically) prompted lawmakers to push for stricter rules. The Justice Ministry is likely aiming to preempt any further abuse by raising standards. As for reversal, it's hard to predict. If the policy severely reduces foreign investment or draws backlash from business communities, the government might adjust (for example, by introducing exceptions or lowering thresholds for certain cases). They have already hinted at exceptions for Startup visa holders and a special "future creation" visa holders to transition under the old criteria, indicating some flexibility for those channels. But overall, Japan tends to stick to immigration decisions once implemented, at least for a few years. We might actually see additional measures instead of reversal – e.g., more support for startups, or new visa categories for different investor levels. Monitoring news from the Immigration Services Agency and Ministry of Justice in late 2025 and 2026 will be important, as they could fine-tune the rules based on the public comments and initial outcomes.

Q: If I don't have ¥30 million, what are my realistic options to start a business in Japan?

A: If ¥30M is out of reach, your best bet is to take a phased approach:

• Use the Startup Visa – as discussed, it lets you come to Japan and operate for up to 2 years without that capital. During that time, focus on growing your business, securing investors or loans, or accumulating revenue. Many entrepreneurs use this period to hit milestones that attract funding.
• Find a Japanese partner or investor – Teaming up with a local partner who can contribute capital (or already has a company) can strengthen your position. For instance, if a Japanese company co-founds the venture with you, the combined resources might meet the requirement. Or, if you can get investment from a venture capital firm or angel investors in Japan, their funds can count toward the ¥30M.
• Consider a smaller start then scale – Perhaps start your business in your home country or another country with lower barriers, prove the concept, and generate capital, then expand to Japan once you have the funds. Or start in Japan on a work visa as mentioned, build savings and local knowledge, then launch your business later.
• Explore other visas – If you qualify for other visa types (e.g., if you're from certain countries that have working holiday programs, or if you could get a student visa and study while researching the market), you could come to Japan to lay groundwork, though you'd need to change to a Business Manager visa to officially run a company.

Not having ¥30M means you'll likely need to delay the full business launch or do it in stages. Many entrepreneurs get creative – for example, running a limited business as a sole proprietorship under a spouse visa or work visa, until it grows enough to incorporate and meet the criteria.

Ultimately, without ¥30M, patience and planning are key. Japan hasn't made it impossible, but you will need either time (startup visa), talent (HSP visa or a skill job), or teammates (investors/partners) to reach your goal.

Q: Will hiring one employee really be enough for the new rules – why not still require two?

A: Under the new rules Japan chose a middle ground on hiring: requiring at least 1 full-time employee (who is not a family member) from the get-go. The current requirement was 2 employees or capital; now they want both but lowered the headcount to 1. It might seem odd to go from "2 or" to "1 and," but presumably, they determined that the ¥30M investment is a more significant contribution, so only one employee is mandated as a complement. Also, requiring two employees in addition to ¥30M might have been deemed too restrictive (virtually only larger SMEs or branch offices of foreign companies could do that). By setting it as 30M + 1 employee, they ensure there is job creation, but they don't completely shut out smaller operations that might only need one staff in the beginning. One full-time employee could be, for example, a Japanese manager, accountant, or technical staff that you hire to support your business. There is no upper limit, of course – hiring more is fine. But one is the minimum. Keep in mind that this employee needs to be hired and on payroll at the time of application/renewal. You'll have to show their employment contract, salary payment, and that they're enrolled in social insurance. The employee can be Japanese or a foreign national with permanent residence or similar (not someone on a temporary visa). If you eventually let this employee go, you'd need to hire a replacement by the time of your next renewal to remain compliant. Essentially, Japan wants to see that your business isn't a "one-man show" with no local employment impact – hiring at least one person achieves that goal modestly.