The capital requirement for the Business Manager Visa will be significantly increased from 5 million yen to 30 million yen.

On August 25, 2025, the Immigration Services Agency of Japan announced a draft amendment to the Ministerial Ordinance that will substantially raise the capital requirement for obtaining the “Business Manager Visa,” a residence status that allows foreign nationals to establish and operate a company in Japan. The requirement will be raised from the current 5 million yen to 30 million yen.

This article provides a detailed explanation from the perspective of immigration law professionals, covering the background of this amendment, its impact on foreign entrepreneurs, and practical measures companies and applicants should consider.

1. What is the Business Manager Visa?

The “Business Manager Visa” is a residence status for foreign nationals who establish a company in Japan and operate as its owner or manager. Until now, the main requirements have been as follows:

Among these requirements, the 5 million yen capital threshold has been considered a relatively attainable amount for many foreign entrepreneurs, thereby encouraging the entry of overseas startups into the Japanese market.

2. Details of the Amendment

Under the proposed amendment, the capital requirement will be drastically increased sixfold from 5 million yen to 30 million yen. In addition, the following new conditions are expected to be introduced:

These are not merely formal requirements; rather, they place stronger emphasis on the applicant’s ability to sustain actual business operations and generate employment.

3. Background of the Amendment

The background to this amendment lies in the increasing number of foreign startups in Japan, among which there have been cases of “shell companies” with little substance or ventures launched solely for the purpose of securing a visa. The previous 5 million yen standard was often insufficient to sustain a viable business in Japan, and many such ventures struggled or collapsed shortly after establishment.

Through this reform, the government aims to achieve the following policy objectives:

These changes are therefore intended to strengthen the integrity and effectiveness of Japan’s Business Manager Visa framework.

4. Impact on Foreign Entrepreneurs

Advantages

Disadvantages

5. Practical Considerations

Refinement of the Business Plan

Following the amendment, it will not be sufficient merely to increase capital. Applicants will be required to submit a new business plan reviewed and confirmed by a certified SME management consultant. A plan with a high level of feasibility will be essential.

Compliance with Employment Requirements

Since the employment of at least one full-time staff member is mandatory, companies must establish a clear hiring plan and ensure proper enrollment in social insurance systems.

Proof of Academic Background or Management Experience

Applicants will likely need to provide documentation such as degree certificates or records of past management experience (e.g., corporate registry, tax payment certificates, or employment verification), which will play a critical role in the examination process.

6. Renewal of the Business Manager Visa

The amendment affects not only new applications but also renewals for existing Business Manager Visa holders. Of particular note is the tightening of renewal examinations effective July 10, 2025.

As of this date, the following documents must be submitted at the time of renewal:

This requirement is intended to verify whether the individual is genuinely engaged in business management rather than merely maintaining a company in form.

In the past, renewals were often processed relatively smoothly by submitting corporate registry documents and financial statements. However, under the revised framework, authorities now carefully examine:

As a result, cases where a company is maintained only on paper face a much higher risk of renewal being denied.

At ACROSEED, we have successfully obtained stable approval for renewals even under the stricter requirements introduced on July 10, 2025. If you are concerned about your renewal, we encourage you to make use of our free consultation service.

7. Future Outlook

Currently, there are approximately 41,600 foreign nationals holding a Business Manager Visa in Japan. However, only about 4% of these companies have capital exceeding 30 million yen. Once the amendment takes effect, the number of new entrants will decline sharply, and the barrier to entry for foreign entrepreneurs will rise dramatically.

This capital increase marks a turning point for foreign entrepreneurship in Japan. Until now, the relatively low threshold allowed entrepreneurs from diverse backgrounds to enter the Japanese market. Going forward, only those with substantial financial resources, proven execution ability, and management experience will qualify, resulting in a short-term decline in the number of foreign entrepreneurs.

At the same time, since the 30 million yen requirement significantly exceeds the average capital of Japanese SMEs, the overall quality of foreign-owned businesses is expected to improve. This could make it easier for foreign business owners to gain credibility with banks and business partners and foster their acceptance as long-term partners rather than temporary residents.

Additionally, the new requirements—such as employing full-time staff and obtaining verification of business plans by SME consultants—indicate a policy shift toward evaluating sustainability and job creation, not just capital strength. This approach could yield positive effects for the Japanese economy while providing foreign entrepreneurs with stronger business foundations.

Nevertheless, the steep capital increase poses a real challenge and may lead many potential entrepreneurs to abandon their plans to enter the Japanese market. This could result in reduced inflows of new business, innovation, and diversity. How the government addresses these side effects will be a key point to watch.

In conclusion, this reform reflects a clear shift “from quantity to quality.” While the number of foreign entrepreneurs may decrease, those who do enter the market are expected to contribute more substantially to Japan’s economy through larger-scale and more sustainable businesses.

Summary: 30 Million Yen Capital Requirement for the Business Manager Visa

The increase in the capital requirement from 5 million yen to 30 million yen represents a major turning point for foreign entrepreneurs in Japan. Although the entry barrier has risen considerably, those with genuine business foundations may benefit from greater credibility and stability in the Japanese market.

Close monitoring of further operational details and the impact on current visa holders remains essential. Foreign entrepreneurs considering entry into the Japanese market are strongly advised to consult professionals early and review their capital planning, employment strategy, and business plan accordingly.