In-Depth Analysis of the Business-Manager Visa Capital Requirement Increase
For years, the Business-Manager (経営・管理) visa in Japan has been seen by some as a relatively straightforward pathway to long-term residence. With a capital requirement of ¥5 million or the alternative of hiring two full-time employees, it allowed small entrepreneurs, freelancers, and even semi-retired investors to set up a modest company and gain residency rights — often including the ability to bring family members.
Now, the Japanese government is preparing to raise the minimum investment to ¥30 million — six times the current level — while also requiring at least one full-time employee in all cases. This represents one of the most significant overhauls of this visa category in years and could reshape the profile of foreign entrepreneurs in Japan.
1. What’s Changing — The Core Points
- Capital increase: From ¥5 million to ¥30 million minimum.
- Employment requirement: At least 1 full-time employee, regardless of investment amount.
- Stricter screening: Authorities will evaluate not only documents but also the real operational status, financial sustainability, and contribution to Japan’s economy.
- Implementation window: Expected to be announced within this year, with enforcement likely within months afterward.
2. Why the Government is Making the Change
(a) Misuse prevention
The current low threshold has made it relatively easy for individuals to register “paper companies” with no real business activity, using them solely to obtain residency. This has raised concerns about integrity and fairness in the visa system.
(b) International alignment
Many countries — including the U.S., Canada, and South Korea — demand significantly higher investments or operational proof for similar business visas. Japan’s current ¥5 million figure is among the lowest in developed nations.
(c) Emphasis on real business impact
Authorities are shifting from a form-based approval process toward one that examines economic value, job creation, and sustainability. It is no longer enough to show initial capital; applicants will be expected to demonstrate actual operations.
3. How This Could Affect Prospective Applicants
Until now, the Business-Manager visa has been accessible for small ventures — for example:
- Opening a small restaurant or café
- Running a consultancy targeting international clients
- Managing an e-commerce business with modest start-up costs
Under the new rules, these models may become financially unfeasible unless the founder can secure substantial backing. The employment requirement also means higher ongoing costs for payroll, insurance, and labor compliance.
Renewal challenges:
Even existing visa holders may face difficulties at renewal if they cannot prove ongoing, genuine business activity. This could lead to a wave of non-renewals for underperforming businesses.
4. Possible Exceptions and Special Programs
The changes are expected to include carve-outs for:
- Startup visa holders under local government or national economic development schemes
- Highly skilled professionals, including graduates from globally ranked universities or individuals with recognized expertise and innovation potential
These alternative channels suggest a targeted approach: making the standard Business-Manager visa harder to obtain, while keeping doors open for innovators, investors in growth sectors, and talent Japan considers strategically valuable.
5. Potential Consequences for Japan’s Economy and Society
Positive outcomes:
- Higher quality and seriousness of business applicants
- Reduced abuse of the immigration system
- Greater economic benefit per visa issued
Negative risks:
- Loss of diversity in small-scale entrepreneurship
- Reduced influx of lifestyle businesses that enrich local communities
- Potential chilling effect on creative ventures without large capital reserves
While the new policy aims to attract “high-value” entrants, it could inadvertently shut out genuine entrepreneurs who operate on lean budgets but provide cultural, social, or niche economic value.
6. Strategic Advice for Potential Applicants
- Apply before the change — If you meet current criteria, the time to act is now.
- Consider partnerships — Teaming up with a co-founder or investor could help meet the ¥30M requirement.
- Explore other visa types — Such as startup visas, highly skilled professional visas, or investor/business categories through special zones.
- Document your business reality — Future renewals will likely involve site inspections, financial audits, and proof of ongoing operations.
7. Future Outlook
If implemented as planned, this policy will likely shift the profile of foreign entrepreneurs toward:
- Larger companies with significant upfront investment
- Ventures in technology, manufacturing, or export sectors
- Founders backed by venture capital or foreign corporate sponsors
Smaller, independent business owners may need to pivot to alternative residency routes or rethink Japan as their primary base.
Quick Recap in Emoji
💰 Capital requirement rising from ¥5M → ¥30M
👥 Mandatory 1 full-time employee
🚪 Higher barriers for small-scale entrepreneurs
🎯 Exceptions for startups and top talent
📅 Apply soon if you plan to use current rules
