Detailed Explanation of the 2025 Business and Management Visa Revision: What Foreign Entrepreneurs Need to Know

  Voice Explanation

On October 16, 2025, the Japanese government made significant revisions to the criteria for granting "Management and Administration" status of residence. This revision is intended to make visa requirements for foreign entrepreneurs and managers more stringent and to promote genuine business activities. Based on the official guidelines of the Immigration and Immigration Control Agency, the background and main contents of the revision will be explained in an easy-to-understand manner. A must-see for foreign nationals and supporters who are considering starting a business!

Background and Overall Picture of the Revision

While Japan wants to actively incorporate innovation by foreign entrepreneurs amid its declining birthrate and aging population, it has tightened its standards to prevent visa abuse and "paper company" problems. The revision is a partial change to the "Ministerial Ordinance to Provide for Criteria Pursuant to Article 7, Paragraph 1, Item 2 of the Immigration Control and Refugee Recognition Act" and the "Enforcement Regulations of the Act," which went into effect on October 16, 2025.

Main aims,Expand business scale, create jobs, ensure Japanese-language communicationIt is a great way to make a difference. This will encourage true economic contribution, not just a "visa tool". Check out the PDF of the revised outline and guidelines (available for download on the Immigration and Immigration Agency website) for more information.

Major revisions: Thorough explanation of 5 key points

At the core of the revision is a tightening of permit standards. Below is a summary of the specific changes and practical points.

1. mandatory employment of full-time staff

• ChangesFull-time employees: At least one "full-time employee" must be employed at the business location. Part-time and freelance employees are not eligible.
• target groupJapanese nationals, special permanent residents, and those with status of residence in Appended Table 2 of the Act (permanent residents, spouses, etc. of Japanese nationals, permanent residents, etc. of Japanese nationals, etc.).attention (heed)Foreigners with other status of residence (e.g., technology, humanities, international services) are not eligible.
• Practical TipsProof: Proof with an employment contract and proof of social insurance coverage. Even in the case of a family business, outside Japanese employment is likely to be required. For start-ups, early employment planning is key.

2. increase in the size of capital

• ChangesCapital, etc.30 million yen or moreRequired (previously, about 5 million yen was acceptable).
• In the case of a corporation: Paid-up capital of a joint stock company, or total capital contribution of a partnership, limited partnership, or limited liability company.
• For sole proprietors: "total amount invested" in securing business premises, salaries for one year, capital investment, etc.
• Practical Tips: Check with the Certificate of Registered Matters. Fundraising (investor investment and financing) is a factor that increases the level of difficulty. Clearly explain the use of funds in the business plan.

3. additional Japanese language proficiency requirement

• ChangesThe applicant or one of the full-time employees must have "a considerable degree of Japanese language proficiency" (CEFR B2 or equivalent or higher).
• Method of Proof(Other than Japanese nationals and special permanent residents):
  • JLPT N2 or higher
  • BJT Business Japanese 400 or above
  • More than 20 years in Japan
  • Graduated from a university (institution of higher education)
  • High school graduation (after completion of compulsory education)
• Practical Tips: Attach proof documents (certificate of acceptance, certificate of graduation, certificate of residence). Fill in specific information on the application form, such as "Japanese employment will be used. English-only business models may become more difficult?

4. stricter background requirements

• ChangesApplicants must have a doctoral, master's, or professional degree or at least three years of experience in business management or administration.
• (university) degree: Foreign equivalent degrees are also acceptable.
• experienceThe period of preparation for starting a business on a special activity visa can also be counted.
• Practical Tips: Supported by a resume and degree certificate. For inexperienced entrepreneurs, consider using a pre-internship or preparatory visa.

5. obligation to confirm the business plan with an expert

• ChangesThe expert confirms and documents the "concreteness, rationality, and feasibility" of the business plan.
• Subject experts: small business consultant, certified public accountant, certified tax accountant (may be added after enforcement).
• Practical Tips: There is a risk of illegality if documents are prepared for compensation by anyone other than an administrative lawyer. Consult an expert and include detailed market analysis and financial projections.

New rules for application: operation with emphasis on actual conditions

The revision changes not only the standards, but also the operation of the examination. The point is to prove "genuine management activity".

• Business: If the company focuses on outsourcing, it is easy to be judged as "no actual management". Proof of proactive decision making.
• officeIn principle, the use of an office as a home is not acceptable.
• Performance of taxes and public dues: Check the payment status of unemployment insurance, social insurance, and taxes at the time of renewal. Out for non-payment.
• permits and licencesObtain the necessary licenses for your business (e.g., restaurant business license) in advance. If you are unable to obtain a license, you may renew it at the next renewal, but a letter of explanation is required.
• departure controlThe renewal was denied because of "no actual activity" for a long stay abroad.

Compliance with the new standards is also a prerequisite when applying for a permanent residence permit. Transition from a highly specialized profession is also highly affected.

Transitional measures after implementation: check now!

• Renewal of a person in residenceFlexible decision-making based on "good business conditions" and "expected compliance" during the first three years after the enforcement of the law. After 3 years, strict application is required.
• Changed from Start-up Visa (Specified Activities No. 44 and No. 51)The old and new standards are divided by the time when the confirmation certificate is issued. Prepare early.

Picked up from Q&A:

• What about hiring full-time staff? → Japanese, etc. only. No family members.
• What about Japanese proof? → JLPT N2, etc. is OK, but please be specific on the application form.
• What about renewal documents? → Proof of registration, tax payment, etc. For details, see the official information page.