Immigration

Japan | Updated approval criteria for Business Manager status effective October 16, 2025

Summary

Effective October 16, 2025, Japan’s Immigration Services Agency (ISA) implemented significant amendments to the Business Manager (経営・管理 keiei kanri) status. The revisions raise the eligibility and compliance standards for both foreign nationals seeking to manage or operate businesses in Japan and existing corporations sponsoring Business Manager status holders.

The updated criteria tighten requirements around capital investment, employment, academic/ work experience, language ability and proof of actual business operations. These changes aim to deter misuse of the status by “paper companies” and ensure that only genuine active businesses and qualified managers receive approval.

Corporations already sponsoring personnels under this status should note that the amendments will also affect renewal applications and permanent residence eligibility.

The detail

Background and purpose

Previously, the Business Manager status had relatively broad criteria, lacking clear benchmarks for educational background, managerial experience, etc. Concerns arose that some applicants obtained the status through nominal company registration without substantive operations.

The amended standard therefore:

• Introduce higher qualification threshold for both applicants and companies;
• Allow authorities to verify business activity more rigorously; and
• Aim to attract qualified, growth-oriented entrepreneurs who contribute to Japan’s labour market.

Key changes at a glance

Requirements	Before revision	After revision (from October 16, 2025)
Applicant
Activities in Japan	Must engage in business management or administration	Same scope, but more stringent verification of actual activities
Academic background / Work experience	Executive: No specific requirement Manager: Generally 3+ years of business management/administration experience	Master’s degree (or equivalent/higher) in business administration or field related to the company’s business OR 3+ years of business management/administration experience
Remuneration	Executive: No requirements Manager: At least equivalent to Japanese nationals	Unchanged
Japanese language proficiency	No requirement	Applicant or full-time employee must possess sufficient Japanese language ability
Business entity (Company, etc.)
Business premises requirement	Independent office space required Home-use may sometimes be permitted	Independent office space required Home-use is generally not permitted
Paid-in capital/ Total investment	5 million yen or more	30 million yen or more
Employment obligation	None explicitly; alternative was hiring two or more full-time employees if capital under threshold	Employment of at least one full-time employee (Japanese national, Special Permanent Resident, or holder of certain long-term statuses) is required
Business plan & Business stability	Business plan generally not required; financial statements and business continuity considered	Business plan generally required with verification by a professional (e.g. certified tax accountant) and stronger proof of stability/ continuity
Public taxes, insurance and permits	Labour insurance, social insurance, tax payments, etc., must be fulfilled No specific checks were conducted	Unchanged. Additionally, at renewal the business will be checked for labour/social/tax insurance compliance
Licenses / Permits	Obtaining necessary business licenses/permits required. Not necessarily checked	Unchanged. License/permit acquisition status checked

Transition and Enforcement

Business Manager applications filed before October 16, 2025:

• Review under pre-amendment standard.

Renewals:

•  Tax, social and labour compliance will be formally verified at renewal.
• For renewals submitted by October 16, 2028, applications will consider both pre-amended standard and the likelihood of meeting the new standards.

Permanent Residence and Highly Skilled Professional Status:

•  If the revised requirements are not satisfied, applications for permanent residence will not be approved for individuals holding the Business Manager, Highly Skilled Professional Type 1-c, or Highly Skilled Professional Type 2 statuses – where Business Manager activities form part of the eligibility basis. Likewise, applicants seeking to change their status from Highly Skilled Professional Type 1-c to Type 2 will not be granted.

Extended Absences:

•  Extended periods outside Japan without valid reason may be deemed as lack of actual business activity and lead to renewal refusal.

 What this means

Japan’s tightening of the Business Manager status aligns with a broader recalibration of its immigration policy – one that balances demographic and labour challenges with increasing public concern about the pace of foreign workforce growth. The government is taking a more selective and compliance-driven approach: expanding certain work visa categories while raising entry and renewal standards for managerial routes.

For corporations sponsoring Business Manager status holders:

• Expect stricter oversight of existing sponsored personnels, including renewed checks on business substance and labour/social/tax insurance status.
• Early review of business structure, documentation, and staffing plans is recommended ahead of renewals.
• Companies may wish to explore alternative visa routes where Business Manager requirements cannot be met.

For business owners/ newly established companies who are applying for/ sponsoring the Business Manager status(es):

• The higher bar for capital and employment means start-ups and small entities may find this status harder to obtain
• Renewals will likely require stronger documentation of genuine management roles and sustained business activity.
• Those relying on dormant or minimally active entities may face greater risk of non-renewal.

Overall, Japan’s direction points to tighter immigration control with targeted openness – rewarding credible business activity while phasing out less substantiated routes.

How we can help

Our Japan immigration specialists can assess your eligibility, help align your business operations with the new requirements, and guide you through all aspects of the application or renewal process.

For tailored advice, please contact Vialto Partners Japan.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Noriyuki Tominaga
Japan Partner

Jia Ee
Japan Director

Yuko Furuya
Japan Manager

Hikaru Yamanaka
Japan Senior Associate

Further information on Vialto Partners can be found here: www.vialtopartners.com

Want to know when a Regional Alert is posted?

Simply follow our Vialto Alerts page on LinkedIn and posts will be displayed on your feed. To ensure you don’t miss one, once you’re on our LinkedIn page, click on the bell icon under the banner image to manage your notifications.

Further information on Vialto Partners can be found here: www.vialtopartners.com

Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.

© 2025 Vialto Partners. All rights reserved.