Revised Requirements for the “Business Manager” Status of Residence and Important Considerations for Existing Holders

Following amendments to the relevant regulations under the Immigration Control and Refugee-Recognition Act, the requirements for the “Business Manager” status of residence were revised effective October 16, 2025. This revision aims to eliminate shell companies with no substantial business activities and to ensure that Japan appropriately accepts business managers who conduct sustainable and reliable business operations in Japan.

1. Key Changes: Multiple and More Stringent Requirements

Under the previous criteria, applicants were required to meet either of the following: capital of at least ¥5 million OR the employment of at least two full-time employees.

Under the new standards, applicants must satisfy multiple requirements simultaneously, including capital of at least ¥30 million AND the employment of at least one full-time employee.

In addition, new requirements have been introduced, including Japanese language proficiency, such as JLPT N2 or higher, for the applicant or a full-time employee; educational and professional background in relevant fields; and professional evaluation or verification of the business plan by qualified professionals, such as Small and Medium Enterprise Management Consultants and licensed tax accountants.

2. Transitional Measures & Key Renewal Points for Current Status Holders

For those who already hold the “Business Manager” status of residence and are operating a business in Japan, a three-year transitional period has been established to minimize the impact of these significant changes.

[Transitional Period] Until October 16, 2028

Existing holders of the “Business Manager” status of residence will not necessarily be denied renewal during this period, even if they do not yet fully meet the new requirements. However, their current business must be operating smoothly, and immigration authorities will closely examine whether they have a reasonable and well-structured plan to meet the new requirements by the end of the three-year transitional period.

3. Practical Measures to Take Going Forward

(1) Strengthen Your Financial Position and Develop a Capital Increase Plan

Formulate a medium- to long-term financial plan to increase your capital or total business investment to at least ¥30 million before the end of the transitional period, including through retained earnings and capital increases.

(2) Develop a Plan for Hiring Full-time Employees

Secure an adequate budget for labor costs and build a recruitment framework to continuously employ eligible full-time employees, such as Japanese nationals or permanent residents.

(3) Prepare for Language Proficiency and Organizational Requirements

Work toward obtaining the necessary Japanese language certification as a business owner, or prepare to hire a full-time employee who meets the required level of Japanese language proficiency.

(4) Periodic Business Plan Evaluations by Qualified Professionals

Engage qualified professionals, such as Small and Medium Enterprise Management Consultants or licensed tax accountants, to evaluate your business plan in conjunction with your annual financial statements and status renewal, and monitor your progress toward meeting the new requirements by the end of the transitional period.

4. Entrust Your Status Renewal to Our Experienced Immigration Professionals

With the end of the transitional period approaching in October 2028, strict screening is expected. Simply saying, “I didn't know” or “I ran out of time to prepare” will not be sufficient. To minimize the risk of having your status renewal denied and ensure the stable continuation of your business, careful and strategic preparation starting now is essential.

However, keeping up with complex regulatory changes and obtaining professional evaluations of your business plan while managing your day-to-day operations is no small task.

Why Choose Our Firm?

We provide comprehensive support fully aligned with the revised requirements. Rather than simply handling the application process, we offer end-to-end consulting designed to help you prepare for and meet the new requirements in the future. Take advantage of our free consultation to get started.

■Expert Application Support: Up-to-date knowledge of the revised immigration requirements and application support based on that expertise.

■Professional Evaluations: Access to a strong network of qualified professionals, such as Small and Medium Enterprise Management Consultants and licensed tax accountants, for business plan evaluation and supporting documentation.

■Tailored Solutions: Customized strategies based on your company's unique financial and operational circumstances.