News Details
2025.08.29
Stricter Requirements for the “Business Manager Visa” for Foreign Entrepreneurs
Capital Requirement Raised from 5 Million Yen to 30 Million Yen
1. Introduction
The Japanese government has announced plans to significantly tighten the requirements for the “Business Manager Visa,” which is necessary for foreign nationals to start a business in Japan. Conditions that were previously considered relatively lenient will now be stricter, aiming to prevent misuse. However, this may also affect the willingness of foreign entrepreneurs to enter the Japanese market. This article explains the details of the revisions, their background, and the practical implications.
2. Background of the Reform
The Business Manager Visa is one of the residency statuses required for foreigners to operate a business in Japan. Until now, applicants were eligible if they met either of the following:
• Having at least 5 million yen in capital, or
• Hiring two or more full-time employees
However, in recent years, cases have increased where “paper companies” with no real business activity applied, or where the visa was used as a loophole for residency. The number of visa holders rose to about 41,000 in 2024, a 50% increase compared to five years earlier, and concerns over misuse were raised in the Diet.
3. Key Points of the Revision
The main changes in the proposed amendment to the ministerial ordinance are as follows:
a. Increase in Capital Requirement
Raised significantly from 5 million yen to at least 30 million yen.
b. Stricter Employment Requirement
Mandatory employment of at least one full-time staff member. Both the capital and employment
conditions must now be met.
c. New Requirements for Management Background/Education
Applicants must have at least three years of management/administrative experience, or hold a relevant
master’s degree or higher.
d. Third-Party Verification of Business Plans
Business plans for new ventures must, in principle, be reviewed by certified public accountants or SME
management consultants.
4. Impacts and Risks
While the stricter rules are expected to help prevent fraudulent visa applications, several risks have also been pointed out:
a. Decline in Entrepreneurial Motivation
The new capital requirement of 30 million yen is comparable to that of South Korea and the United
States, potentially eroding Japan’s previous advantage of “relatively lenient conditions.”
b. Exclusion of Aspiring Entrepreneurs
Talented startup founders who cannot easily secure large initial funding may give up on entering the
Japanese market.
c. Increased Administrative Burden
With strengthened checks on actual business operations, the government will also face higher costs
and personnel burdens for investigations and screenings.
5. Conclusion
While the tightening of Business Manager Visa requirements is commendable from the standpoint of preventing misuse, it will also significantly raise the barriers to starting a business in Japan. The government aims to implement the revised ministerial ordinance in October, and those involved in practice must act swiftly. Going forward, finding the right balance between preventing fraud and encouraging entrepreneurship will be a key challenge for Japan’s startup ecosystem.
References
Nikkei – Government to Tighten Requirements for “Business Manager” Visas
(Accessed August 26, 2025)
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