Japan Business Manager Visa 2026: Requirements Guide

Japan’s Business Manager Visa changed fundamentally on October 16, 2025. If you are planning to start a company in Japan and manage it on-site, the Japan business manager visa requirements for 2026 are now among the most demanding in East Asia. The minimum capital threshold jumped sixfold from ¥5 million to ¥30 million. A Japanese-language proficiency requirement was added. A full-time qualifying employee is now mandatory from day one. Six months after the reform took effect, monthly applications have fallen 96 percent, a signal of just how much the bar has risen. For foreign executives building Japan market entry plans, understanding these rules before committing capital is not optional.

This guide covers every new requirement, what they mean in practice, how the choice between a Kabushiki Kaisha (KK) and Godo Kaisha (GK) affects your application, and what existing visa holders must do before the grace period expires in October 2028.

What Changed in October 2025: The Full Scope of the Reform

Japan’s Ministry of Justice promulgated the amended ministerial ordinance on October 10, 2025, with the new standards taking effect on October 16. The reform was driven by documented abuse of the previous system. By end-2024, approximately 41,600 foreign nationals held Business Manager Visas, a record high, and Chinese nationals accounted for more than half. Immigration authorities identified a pattern of shell companies registered at shared offices, with little genuine economic activity.

The result was a comprehensive overhaul, not an incremental adjustment. The five new mandatory criteria are:

• Minimum capital of ¥30 million (up from ¥5 million, no longer one of several alternatives)
• At least one full-time qualifying employee (Japanese national, permanent resident, or certain specified residency statuses)
• Japanese language proficiency at JLPT N2 level or equivalent (either the applicant or the qualifying employee)
• Three or more years of business management experience, or a master’s, doctoral, or professional degree
• A formally reviewed business plan, signed off by a certified SME consultant (中小企業診断士), tax accountant (税理士), or certified public accountant (公認会計士)

The Real-World Impact: Applications Down 96%, and What Foreign-Owned Businesses Are Reporting

The reform’s effect on application volume has been more dramatic than the rule changes alone would suggest, and it gives applicants and existing holders a clearer picture of what is actually happening on the ground.

What the Application Data Shows

Business Manager Visa applications averaged roughly 1,700 per month between May and September 2025, in the run-up to the reform. Between November 2025 and March 2026, the first five full months after the new standards took effect, that figure collapsed to approximately 70 applications per month, a drop of 96 percent, according to The Japan Times (May 13, 2026), citing Immigration Services Agency figures. Kimi Onoda, Japan’s Minister in charge of a Society of Well-Ordered and Harmonious Coexistence with Foreign Nationals, addressed the figures at a press conference and characterized the sharp decline as the intended outcome of the reform, not a side effect of it.

One caveat is worth building into any reading of these numbers. The pre-reform monthly average may partly reflect a rush of applications filed ahead of the October 16 deadline, rather than a stable year-round baseline. No seasonal breakdown has been published to confirm or rule out that possibility. What the data does confirm is that the new criteria, taken together, have removed a large share of applicants who would have qualified under the old rules. For anyone still planning to apply, the practical read is straightforward: competition among applicants has thinned, but so has the pool of advisors and case precedent to draw on, and the underlying bar is real.

What the Tokyo Shoko Research Survey Found

The reform’s impact is not limited to prospective applicants. Tokyo Shoko Research surveyed 299 foreign-managed companies operating in Japan between March 31 and April 7, 2026. 45.2 percent of respondents reported some degree of operational impact from the tightened rules, ranging from hiring adjustments to changes in capital structure. More significantly, 5.3 percent, 16 companies, said they are considering shutting down their Japan operations entirely as a result. Both The Japan Times (April 30, 2026) and IBTimes JP (April 23, 2026) reported on the same underlying survey.

This matters for a wider audience than new applicants alone. Existing foreign-owned businesses in Japan, including visa holders currently inside the grace period, are already adjusting operations in response to the new standard. The reform is not a one-time filing hurdle. It is an ongoing compliance obligation that touches staffing, capital structure, and business planning well beyond the initial application.

The New ¥30 Million Capital Requirement Explained

The capital jump from ¥5 million to ¥30 million is the most immediate barrier for foreign entrepreneurs. At current exchange rates, ¥30 million is approximately USD 200,000 or EUR 185,000. This capital must be registered in the company’s articles of incorporation and deposited in a Japanese bank account as paid-in capital.

There are several practical points to understand. First, this must be capital, not a loan. Shareholder loans injected as capital contributions are scrutinized, and using borrowed funds that do not represent genuine equity will result in application rejection. Second, the capital is not frozen permanently, but the company must demonstrate ongoing financial viability in subsequent renewal applications.

Only around 4% of existing Business Manager Visa holders had capital exceeding ¥30 million under the previous system. That figure illustrates how significant a departure this represents from historical practice.

For companies already incorporated with lower capital, it is possible to increase registered capital through a capital increase procedure, which must be completed before submitting a new application or renewal under the new rules.

Japan Business Manager Visa 2026: Language, Staffing, and Experience Requirements

Japanese Language Proficiency (JLPT N2)

The language requirement is new to the Business Manager Visa and has generated significant discussion. To satisfy it, one of the following must apply:

• The applicant holds JLPT N2 or higher
• The applicant holds BJT Business Japanese Proficiency Test 400 or above
• The applicant has completed Japanese compulsory education and graduated from high school
• The applicant has graduated from a Japanese university or vocational school
• The applicant has 20 or more years of continuous residence in Japan

The JLPT N2 and BJT 400 pathways are not an interpretive workaround or a point of ambiguity. According to The Japan Times (April 15, 2026) and multiple corroborating sources, the Ministry of Justice and Immigration Services Agency have confirmed the JLPT N2 / BJT 400 equivalence as their official position. An applicant can rely on either qualification with equal standing in an application, and neither carries more weight than the other in adjudication.

If the applicant does not satisfy any of the above, the requirement can instead be met by a full-time qualifying employee who holds any of those credentials. This means a foreign CEO with no Japanese language ability can still qualify, provided they hire a qualified Japanese-proficient employee from the start. That said, a qualifying hire only satisfies the visa requirement itself. It does not cover the company’s broader Japanese-language needs across contracts, regulatory filings, or customer-facing materials; KAIZEN Digital OÜ’s Japanese localization services address that separate, ongoing need.

Full-Time Employee Requirement

The required employee must be full-time and must hold one of the following statuses: Japanese national, permanent resident, special permanent resident, or spouse of a Japanese national or permanent resident. Part-time workers, contractors, and those with other work visa categories do not count toward this requirement. The employee must be on payroll from the time of the application, which creates a sequencing challenge for new companies that requires careful advance planning.

Management Experience

The applicant must demonstrate either three or more years of business management experience, verifiable through employment records or company registration documents, or hold a relevant postgraduate degree. An MBA from an overseas university satisfies this requirement.

KK vs GK: Choosing the Right Company Structure for Your Visa Application

Foreign entrepreneurs establishing a company in Japan typically choose between a Kabushiki Kaisha (KK) and a Godo Kaisha (GK). Both are legally valid for the Business Manager Visa application, but there are meaningful practical differences.

Kabushiki Kaisha (KK)

• Setup cost: approximately ¥200,000 to ¥250,000 in government fees, plus notarization costs
• Incorporation time: typically 2 to 3 weeks
• More credibility with Japanese banks, enterprise clients, and immigration authorities
• Higher ongoing compliance burden: annual shareholder meetings, board minutes, stricter accounting

Godo Kaisha (GK)

• Setup cost: approximately ¥70,000 to ¥100,000 in government fees
• Incorporation time: typically 1 to 2 weeks
• Lower administrative overhead
• Less recognized by some Japanese enterprise clients; can complicate bank account opening

For the Business Manager Visa specifically, the KK carries a reputational advantage in the eyes of the Immigration Services Agency. Immigration officers reviewing a visa application look at the credibility and substance of the business, and a KK structure signals commitment and legitimacy in a way that a GK sometimes does not.

With the new ¥30 million capital requirement now in place, the cost differential between KK and GK setup has become less significant relative to total capital outlay. KAIZEN Digital OÜ recommends the KK structure for most clients pursuing the Business Manager Visa, unless there is a specific operational reason to prefer the GK.

Two Rules That Are Easy to Miss

A home address will not work as your office. Because the business must now hold premises appropriate to the scale of activity the revised standard assumes, the Immigration Services Agency notice on the revised Business Manager landing standards states that using your own residence as the business office is, as a rule, not accepted. Budget for a separate commercial lease from the start rather than treating it as a later step.

Falling short of the new standard also blocks permanent residency. After the effective date, an applicant who does not meet the revised criteria cannot be granted permanent residence from Business Manager status, or from Highly Skilled Professional (i)(c) or (ii) where that status rests on business management activity. The same applies to changing from Highly Skilled Professional (i)(c) to (ii). For anyone treating Japan as a long-term base, this turns the reform from a one-off filing hurdle into a standing requirement.

The 3-Year Grace Period: What Existing Visa Holders Must Do Now

Existing Business Manager Visa holders who do not meet the new requirements are protected by a transitional grace period running from October 16, 2025 to October 16, 2028. During this window, renewal applications will be assessed based on the applicant’s business situation and demonstrable progress toward meeting the new criteria, rather than a hard pass/fail on each requirement.

This does not mean existing holders can ignore the new rules. The Immigration Services Agency has signaled that it expects holders to be actively working toward compliance. For the grace period to provide meaningful protection, existing holders should:

• Assess current capital and determine whether a capital increase is feasible
• Review their employee roster for qualifying full-time staff
• Plan the language requirement pathway, either through the applicant’s own qualification or through a qualifying hire
• Engage an immigration specialist well before the next renewal date

Holders who attempt to renew after October 2028 without meeting the new criteria will be assessed under the full new standard with no flexibility.

A Practical Checklist: How to Apply Under the New Japan Business Manager Visa 2026 Rules

Phase 1: Company Formation (2 to 4 weeks)

• Choose entity type (KK or GK)
• Prepare articles of incorporation
• Notarize articles (KK only)
• Open a Japanese bank account for capital deposit
• Deposit ¥30 million or more in registered capital
• Complete company registration at the Legal Affairs Bureau (法務局)

Phase 2: Hiring and Business Plan (2 to 4 weeks)

• Hire at least one full-time qualifying employee
• Obtain or confirm language proficiency documentation for the applicant or employee
• Prepare a detailed business plan
• Retain a certified SME consultant (中小企業診断士), tax accountant (税理士), or certified public accountant (公認会計士) to review and sign off on the business plan

This last point trips up more applicants than any other in Phase 2. Attorneys (弁護士) and administrative scriveners (行政書士) commonly handle the surrounding visa application paperwork, but they are not eligible to certify the business plan itself, regardless of how much experience they have with immigration filings. Per ACROSEED (last updated October 13, 2025), only the three credentials above satisfy the certification requirement. Confirm your certifying professional’s qualification before they begin the review, not after.

Phase 3: Visa Application

• Compile the full documentation package: company registration, articles, capital evidence, business plan with certification, employee contracts, management experience evidence, language proficiency evidence
• Submit the application to the regional Immigration Services Agency office
• Standard processing time: 1 to 3 months
• Certificate of Eligibility (在留資格認定証明書) issued upon approval; use to obtain the visa at a Japanese embassy or consulate abroad

What This Reform Means for Foreign Entrepreneurs

Japan’s Business Manager Visa reform is real, significant, and reflects a deliberate policy decision to raise the floor on foreign entrepreneurship in Japan. The old ¥5 million threshold allowed a wide range of applicants to qualify, including those with limited genuine business intent. The new ¥30 million threshold, combined with language, hiring, and experience requirements, targets applicants who are genuinely prepared to build a business in Japan.

For serious foreign executives and companies with real Japan market entry plans, meeting the current Japan business manager visa requirements is challenging but navigable. The key is preparation: structuring the company correctly, aligning the hiring timeline with the visa application, and ensuring the business plan meets the new standard of formal third-party certification. For a broader look at the obstacles foreign companies face beyond visa compliance, see our guide to market entry barriers in Japan.

KAIZEN Digital OÜ works with foreign companies entering the Japanese market and supports the full company formation and Business Manager Visa preparation process. The earlier you begin planning, the more options you have.

Key Takeaways