A Wake-Up Call for Foreign Entrepreneurs: Review Startup Strategies After Stricter "Management and Administration Visas"

November 6, 2025November 7, 2025

Warning to Foreign Entrepreneurs: Rethink Your Startup Strategy After the “Business Manager” Visa Tightening

Many municipalities now offerThe start-up visa (status of residence "Designated Activities") system is a very attractive "gateway" for foreigners who wish to start a business in Japan. However, the difficulty level of transition to the "Management/Administration" visa, which is the original status of residence, is dramatically increasing.The fact should not be overlooked by entrepreneurs.

the Startup Visa (Status of Residence: “Designed Activities”) The scheme, offered by many local governments across Japan, is a highly attractive entry point for foreigners aiming to start a business in the country. However, entrepreneurs must not overlook the fact that the path to the essential status that follows-the “Business Manager” visa-has become Dramatically more difficult.

In particular, the strict new requirements for the "Management and Administration" visa, which was revised and went into effect on October 16, 2025, are too hard compared to the previous criteria.

In particular, the strict new requirements for the “Business Manager” visa, which came into effect on October 16, 2025, represent a significantly higher hurdle compared to previous standards.

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⚠️ Beware of Outdated Information: Old Standards No Longer Apply

Internet and some older sources,Startup Visa Kyoto Application Procedures Kyoto Prefecture Promotion of Entrepreneurial Activities by Foreignersmay still list relatively loose requirements (e.g., 5 million yen in capital) prior to the revision. (as of November 6) However, this isIt no longer reflects reality.(as of November 6)

Information found online or in older sources, including the linked information (such as “How to apply for STARTUP VISA in KYOTO
Kyoto Prefectural Government Project to Promote Startup Businesses by Foreign Nationals (METI).” , may still reference the relatively lenient former requirements (such as ¥5 million capital). ( As of November 6) This no longer reflects the reality.

If you fail to convert to a "Management/Administration" visa that meets the new standards during the grace period (usually 6 months to 1 year) given under the start-up visa, your business start-up in Japan will come to a halt.

If you cannot transition to the “Business Manager” visa under the new criteria within the grace period provided by the Startup Visa (typically 6 months to 1 year), your promising venture in Japan will be forced to an end.

🔑 Key Points of the “Business Manager” Visa Tightening

The main requirements demanded by the new standards indicate a shift in the level of demand for foreign managers in the Japanese entrepreneurial environment toward an emphasis on "quality" in line with international standards.

The new criteria indicate a shift in the requirements for foreign business owners in Japan towards focusing on “QUALITY”.” to meet international standards.

Dramatic increase in funding requirements:.
- Before revision: 5 million yen or more
- After revision: 30 million yen or more (or the employment of at least one full-time employee isindispensableand other requirements are compounded and tightened)
Mandatory employment requirements:.
- Japanese nationals, etc. (including permanent residents, permanent residents, etc.)Employs at least one full-time employeeone of the most important things that one can doindispensablewill be.
Additional Japanese language proficiency requirements:.
- Either the applicant or a full-time employeeJapanese language proficiency equivalent to N2 or higherThe company must have a
Stricter background and education requirements:.
- A minimum of three years of management experience or a master's degree or higher education is required.
Stricter business plans:.
- About the business plan,Confirmation of feasibility by experts (SME diagnostician, tax accountant, etc.)is mandatory.

Drastic Increase in Capital Requirement: The
- Before: Before Minimum ¥5 million
- After: Minimum ¥30 million (or an equivalent investment, and the employment of at least one full-time employee is mandatory, making the requirements multi-layered and stricter).
Mandatory Employment Requirement:
- It is mandatory to Employ at least one full-time staff member who is a Japanese national or equivalent (such as a Permanent Resident or Long-Term Resident).
Addition of Japanese Language Proficiency Requirement:
- Either the applicant or a full-time employee must possess Japanese language proficiency equivalent to JLPT N2 or higher.
Stricter Experience/Educational Requirements:.
- A minimum of 3 years of management experience or a Master's degree in a relevant field (among others) is now required.
Rigorous Business Plan Scrutiny:.
- The business plan now requires verification of feasibility by a specialist (e.g., Small and Medium Enterprise Management Consultant, Tax Accountant).

💡 Why Using the Startup Visa Lightly is Dangerous

The start-up visa is a wonderful program that provides a "preparatory period for doing business," but it is very dangerous to view it as an "easy loophole to obtain a management and administration visa.

The Startup Visa is an excellent system that grants a “preparatory period” for business, but it is extremely dangerous to view it as an “easy shortcut” to obtaining the Business Manager visa. The Startup Visa is an excellent system that grants a "preparatory period" for business, but it is extremely dangerous to view.

Existence of time limits:. The grace period is short, and during that time, the company will need to raise 30 million yen in funding, hire N2-level personnel, and have its business plan reviewed by experts.Cleared all high hurdlesIt must be done.
Businesses without substance are disallowed. The new judging criteria are,paper company (i.e. existing "only on paper").Management in name only with no substanceWe are thoroughly trying to eliminate the Formal establishment of a company is not enough to be granted a visa.
A finite grace period for existing management. For those who already hold a "Management/Administration" visa now, there is a transitional measure until October 16, 2028, after which the new standards will apply in principle.

The Time Limit: The Time Limit The grace period is short. Within this time, you must clear all the high hurdles simultaneouslyWe are looking for a business plan that is easy to understand and easy to manage: securing ¥30 million in funding, hiring N2-level personnel, and getting expert verification of your business plan.

Unsubstantiated Businesses Will Be Denied:. The new screening standards are designed to Thoroughly eliminate paper companies and management that lacks genuine substance. Merely establishing a company formally will not guarantee visa approval.

Limited Grace Period for Existing Managers: The Grace Period for Existing Managers is the period of time during which the company is in the process of acquiring the new shares. Even those currently holding the “Business Manager” visa have a transition period until October 16, 2028, after which the new standards will generally apply.

🚀 Advice to Entrepreneurs: Commitment and Detailed Planning

If you are considering starting a business with a start-up visa, abandon your naive outlook,Plan based on new standardsshould be switched to

If you are considering starting a business using the Startup Visa, you must abandon any optimistic assumptions and switch to a plan that is premised on the new, strict criteria.

How do I move to a "business/management" visa?Establishment of a "full-fledged business that is sustainable and contributes to society" that is worthy of recognition by the Japanese Immigration and Residency Management Agency, rather than a mere administrative procedure.means "a person who is a member of a group of people who are not members of a group.

Transitioning to the “Business Manager” visa is not merely an administrative procedure. It signifies the launch of a “sustainable, serious business that contributes to society.” Worthy of recognition by the Japanese Immigration Services Agency.

Maximize the grace period, in addition to validating the initial business model,A detailed roadmap to simultaneously meet funding, human resources strategy, and visa requirementsto create a new product or service. Jumping in with an easy mind can result in wasted time and money.

You must create a detailed roadmap That simultaneously addresses funding, talent strategy, and visa requirements, Jumping in with an unprepared mindset risks wereting both your time and capital. in addition to validating your initial business model during the limited grace period.

Next step:. Why not work with our experts to develop a concrete plan for how your business plan can meet the new requirements for the stricter "Management and Administration" visa?

Next Step:. Would you like me to find resources or a specialist who can help you assess how your current business plan meets the new, stricter “Business Manager” visa requirements?

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