Japan Updates Business Manager Visa Rules Effective October 16, 2025

Japan is set to implement significant changes to its Business Manager (BM) and Highly Skilled Professional (HSP) visa categories starting October 16, 2025. These adjustments aim to enhance local engagement and ensure that foreign entrepreneurs meet specific standards. Here’s a closer look at what these updates entail and how they affect potential applicants.

1. Mandatory Local Employee Hiring

Under the new regulations, every visa applicant must hire at least one full-time local employee. Eligible candidates include:

• Japanese Nationals
• Permanent or Special Permanent Residents
• Long-Term Residents
• Spouses or Children of Japanese Nationals or Permanent Residents

To comply, applicants must present proof such as employment contracts, residence registration, and records of salary payments. Previously, hiring local staff was optional, allowing even single-person companies to qualify for the BM visa.

2. Increased Capital Requirement

The minimum capital requirement for visa applicants is now set at JPY 30 million, a substantial increase from the previous JPY 5 million. For corporations, this refers to paid-in capital or total contributions. Individual applicants can include essential business expenses like rent and salaries within this amount. Authorities will clarify how “individual” applicants will be defined under the new rules.

3. Japanese Language Proficiency Requirement

Visa applicants, or at least one full-time employee, must now demonstrate Japanese language skills equivalent to JLPT N2, a BJT score of 400 or higher, or other equivalent qualifications. This can also be met through long-term residency in Japan or graduation from a Japanese high school or university. Before these changes, there were no language requirements for the Business Manager visa.

4. Residency and Active Business Compliance

Extended absences from Japan without valid reasons could lead to the Immigration Services Agency (ISA) classifying the business as inactive. This classification could result in the denial of visa renewal. Previously, there were no specific limits on time spent abroad, as long as the business operations continued.

5. Stricter Compliance and Documentation

Applicants for the Business Manager visa will face new compliance standards, which include:

• Certification of business plans
• Proof of employment insurance, pension, health insurance, and tax payments
• Submission of relevant business licenses
• A clear prohibition on home office operations

6. Transition and Grace Period

Applications submitted before October 15, 2025, will still follow the existing rules. Current Business Manager and HSP-BM visa holders will receive a three-year grace period until October 16, 2028, to meet the new requirements.

Starting October 16, 2025, the revised BM criteria will also apply to permanent residency and HSP II applications linked to BM or HSP-BM visa holders, regardless of when those applications were submitted.

Implications for Foreign Entrepreneurs

These updates signal Japan’s effort to tighten the oversight of foreign-operated businesses. The new rules aim to promote stronger local engagement, financial stability, and language integration. For entrepreneurs, these changes translate into higher startup costs, mandatory local employment, and stricter compliance measures.

However, they may also increase credibility for serious investors planning long-term operations in Japan. As the landscape evolves, staying informed and prepared will be crucial for prospective applicants.