Renewal of "business/management" status is in jeopardy!
Voice Explanation
Shockwave of Revision Hits Resident Foreign Managers
On October 16, 2025 (effective date), the Immigration and Residency Management Agency's revision of the permission criteria for the "Management and Administration" status of residence came into effect. This revision is not a mere tweaking of the rules, but a serious threat to foreign business owners.
In particular, those currently in Japan under this status of residence cannot ignore the risks they face when renewing their period of stay. The existing loose standards have been drastically changed with a significant increase in capital, strict Japanese language proficiency requirements, and the obligation to have a business plan checked by an expert. There is a strong possibility that the number of cases where renewal is denied and the status of residence is lost will increase sharply.
Now, only one month after the enforcement of the law, if we do not promptly conduct a self-diagnosis and take countermeasures, not only business continuity but even deportation from Japan will become a reality.
Details of the main tightening points of the revision and renewal risks
The core of the revision is a thorough verification of the "substantiality" and "sustainability" of the project. As can be read from the documents and the published materials of the Immigration and Residency Management Agency, the following requirements will be newly imposed, and if these requirements are not met, it will be difficult to be granted a renewal of the period of stay.
In particular, renewal applications filed within three years of the effective date (by October 16, 2028) may be judged on the basis of "good business conditions" and "expected compliance with the revised standards," even if they do not conform. After three years, conformity will become an absolute requirement, and the risk of renewal refusal will increase dramatically.
The previously flexible capital requirement has been raised to 30 million yen or more (paid-in capital, total capital contribution, etc. for corporations). For sole proprietorships, this corresponds to the total amount invested in securing business premises, staff salaries (for one year), and capital investment.
If your current equity is below this level, you could be immediately deemed non-compliant at the time of your renewal application.
Risk: If funding is delayed, the business will be forced to downsize or dissolve, directly leading to loss of residency status.
Risk: Increasingly, small businesses with labor shortages are unable to meet this requirement and are denied renewal. Since the performance status of public taxes and public dues (labor insurance, social insurance, and national and local taxes) is also checked, non-participation in insurance and delays in paying taxes are immediately negatively evaluated.
The status of labor insurance coverage and payment of social insurance premiums are emphasized as mandatory checkpoints at the time of renewal, and those who fail to do so are doomed to continue their residency.
Risk: Lack of Japanese language skills is a direct cause for refusal of renewal, as the "reality" of the business is not recognized.
The suggested cases of inadmissibility for lack of "a considerable degree of Japanese language ability" will likely result in a number of new businesses and small business owners in particular running into this barrier.
Since this criterion is also applied when applying for a permanent residence permit, prolonging the period of stay itself becomes difficult.
In addition, the business plan must be confirmed by specialists such as small and medium-sized enterprise diagnosticians, certified public accountants, and certified tax accountants, who will evaluate the "concreteness, rationality, and feasibility" of the plan.
Risk: If the applicant does not have a long work history or if the plan is inadequate, the renewal application itself is unlikely to be accepted, and the use of the office as a home office is also prohibited in principle.
It clearly states that businesses centered on outsourcing will be considered "without actual management" and will be disallowed, and paper company-like operations will be completely eliminated.
Another risk factor is the lack of permits and licenses (which must be submitted at the time of renewal).
In addition, if the applicant leaves the country for a prolonged period of time during his/her stay in Japan (without a valid reason), he/she will be deemed to be inactive and will be denied renewal.
Risk: Remote-oriented businesses and executives who make frequent overseas business trips are at great risk of having their status of residence revoked due to the difficulty of proving their actual status in Japan.
There are scattered reports that the screening process has become more stringent in these cases since the enactment of the law.
Severity of Risk: Chain Collapse Caused by Refusal to Renew
These revisions are not merely at the level of more documentation, but are fundamental to the business.
If the renewal is refused, a chain of events will occur: revocation of status of residence, suspension of business, employee layoffs, and economic loss, which will most likely force them to leave Japan.
Permanent residence permits from highly specialized professions are similarly affected, and in some cases, the dream of bringing family members or settling down for a long time is crushed.
The three-year grace period from the effective date is not an "opportunity" but a "warning period".
The disallowance of non-compliance at the end of the three-year renewal period is emphasized, and even if the business is in good condition, there is no mercy if tax payment performance is insufficient.
Bottom line: act now! Immediate Steps to Risk Avoidance
Dear "Management/Administration" status holders, do not underestimate this amendment. The risk of renewal is real, and now, one month after the enforcement, is the turning point.
日本語 
English 
简体中文 
Français 
Español 
한국어 
Tiếng Việt