Japan’s Immigration Services Agency (ISA) has announced major updates to the Business Manager (BM) and Highly Skilled Professional (HSP) visa categories, set to take effect on October 16, 2025. These changes raise qualification standards for entrepreneurs and foreign professionals managing businesses in Japan. The goal is to ensure stronger local participation, higher financial accountability, and improved language integration among international business owners.
1. Compulsory Employment of Domestic Workers
Under the new structure, all Business Manager visa applicants must employ at least one full-time domestic worker who is:
- A Japanese citizen,
- A permanent resident or special permanent resident,
- A partner or child of a Japanese citizen or permanent resident, or
- A long-term resident.
Applicants must provide documentary proof, including employment contracts, residence registration, and salary payment records. Previously, hiring domestic staff was optional — a one-person business could still qualify for a Business Manager visa if it met the office and investment requirements.
2. Minimum Capital Requirement Raised
The minimum capital requirement has been significantly increased to $199,438.91, up from the previous $33,239.82. For corporations, this refers to paid-in capital or total investments. For individuals, eligible business-related expenses — such as rent, salaries, and equipment — may count toward the total amount. Authorities have indicated that further clarification will be issued regarding the treatment of private business owners under the new rule.
3. Japanese Language Requirement Introduced
For the first time, Japanese language proficiency is now mandatory. Either the applicant or one full-time employee must demonstrate:
- JLPT N2 level certification,
- BJT score of 400 or higher, or
- Equivalent qualification through formal education or long-term residence in Japan.
This requirement can also be fulfilled if the candidate has graduated from a Japanese high school or university. Previously, there were no language conditions for Business Manager visa holders.
4. Residency and Active Business Rule
Frequent or prolonged absences from Japan without valid reasons could now result in the ISA concluding that the business is inactive. If that happens, visa renewal requests may be denied. The earlier system had no strict limits on time spent abroad as long as the business continued operations.
5. Enhanced Compliance and Documentation
Business Manager visa applicants will be required to meet additional compliance and reporting obligations, including:
- Submission of an approved business plan.
- Proof of participation in Japan’s employment, pension, health insurance, and tax systems.
- Presentation of all necessary business licenses and certifications.
- A new ban on home-office operations for visa applicants.
6. Transition and Grace Period
Applications submitted before October 15, 2025 will continue to be processed under the current rules. Existing Business Manager and HSP-BM visa holders will have a 36-month grace period — until October 16, 2028 — to comply with the updated conditions.
From October 16, 2025, all new and renewal applications for permanent residence and HSP-II visas linked to Business Manager status will fall under the revised policy, regardless of when the original visa was issued.
Implications for International Entrepreneurs
The revised Business Manager visa framework signals Japan’s intent to tighten oversight of foreign-operated enterprises. The changes emphasize sustainable job creation, local financial investment, and integration into Japanese society. While these measures increase startup costs and administrative obligations, they also enhance transparency and credibility for genuine investors planning long-term business operations in Japan.
Conclusion
Japan’s Business Manager Visa reforms represent a significant policy shift. By enforcing stricter capital, language, and employment requirements, the Japanese government aims to ensure that international entrepreneurs contribute meaningfully to the local economy. For those planning to establish or manage a business in Japan after October 2025, it is essential to prepare financially, meet the new compliance standards, and secure qualified Japanese staff in advance.