What’s happening with the Japan Business Manager Visa (and its implications for the Startup Visa holders)?

I’m writing this blog post because one of the businesses I’ve been supporting in Japan asked me to gather details about the situation. As I learned more about it, I felt it was important to spread the word.

The amendment, scheduled to be implemented in mid-October 2025, seemed to come out of the blue, at least to me, and I believe to many foreign entrepreneurs in Japan as well. Public comments were open from August 26 to September 25. I created a quick Google Doc for those who wanted to submit comments but couldn’t read Japanese, and I also submitted one myself.

What changes have been proposed for the Business Manager Visa?

The proposed changes include:

• Capital: Currently 5,000,000 JPY, but under the amendment, it is proposed to increase to 30,000,000 JPY.
• Employee/Staff: Currently, it is acceptable for a company to have only one owner. After the amendment, it is proposed that the business must employ at least one full-time employee residing in Japan (not including the owner/applicant).
• Business Expertise: Previously not required, but under the amendment, it will become mandatory for the business owner (visa applicant) to have at least three years of management experience, or to hold a master’s degree or higher in business/management or a related field.

They are also likely to require Business Manager Visa applicants to be fluent in business-level Japanese. However, this requirement can be bypassed by hiring a full-time Japanese employee.

What does it mean for the Startup Visa holders?

The Startup Visa is designed to allow foreign entrepreneurs who wish to prepare for starting a business in Japan to stay in the country.

As Asahi Shinbun reported on August 26th:

入管庁は当初、高度人材の受け入れが阻害されないよう、起業計画が経済産業相の認定を得た在留資格「特定活動」のスタートアップビザなどの取得者については、従来通りの基準で「経営・管理」への移行を認める方針だった。しかし、例外は設けず、一律に厳格化することになった。

The Immigration Services Agency initially planned to allow those holding a Startup Visa under the Designated Activities residency status, granted with certification from the Minister of Economy, Trade and Industry, to transition to the Business Manager status under the same criteria as before, so as not to hinder the acceptance of highly skilled talent. However, it has now decided not to make exceptions and to tighten the requirements uniformly.

So, my understanding is that Startup Visa holders will need to meet the same requirements when they transition to the Business Manager Visa.

Note: There is limited information available on how the proposed amendment to the Business Manager Visa will impact the Startup Visa, but I’m monitoring the situation closely.

This raises another question: what about visa renewals for Startup Visa holders? They can renew the Startup Visa several times before finally transitioning to the Business Manager Visa. The maximum period is up to two years, with renewals required every six months.

The key aspect here is that the Startup Visa serves as a ramp, enabling Japan to welcome innovative entrepreneurs and stimulate its economy. It provides holders with time to prepare and gradually transition to the Business Manager Visa.

Knowing the clear role of the Startup Visa, I believe that the new requirements should not be applied to any Startup Visa holders when they renew their Startup Visa. The sudden proposal of an amendment to the Business Manager visa is already surprising to all Startup Visa holders.

If this is applied to the renewal of Startup Visa holders, it creates a discrepancy with the core concept of the Startup Visa, which is to bring innovative businesses so they can establish a foundation before transitioning to a Business Manager visa holder.

Why the change to the requirements?

To better understand this issue, let’s go back to the reasoning behind the amendment. Why is the government trying to raise the bar and make it more difficult in the first place? The answer is that the Japanese government aims to target visa holders who are not genuinely running businesses but are instead taking advantage of the relatively (e.g, compared to Korea, the U.S, etc.) easy requirements to stay in Japan.

Research shows that there are many issues with the current, overly lenient requirements:

Prime Minister Ishiba expressed concern over the current state of the Business Manager Visa for foreign nationals seeking to enter Japan, stating, “There have been claims that an increasing number of people are using private lodging management as a pretext to obtain residency under the Business Manager status and move to our country.”

I understand the situation and the government’s need to address it. However, there should be a way to strike the right balance. The primary issue concerns those who exploit the visa system to migrate to Japan. Enforcement should be directed specifically at them, not at serious, hardworking entrepreneurs who are genuinely seeking to obtain the visa, including those already in Japan under Startup Visa status.

Can Startup Visa holders meet the requirements within 2 years?

If the requirements of the new amendment were to be applied to Startup Visa holders currently in Japan, the situation would become extremely challenging. These entrepreneurs were promised up to two years under the Startup Visa, with the understanding that they would need to meet the requirements, including 5,000,000 JPY in capital, when transitioning to the Business Manager Visa. They accepted those terms and chose the Startup Visa as their path to moving to Japan.

Now, however, the government seems to be asking them to raise their capital to 30,000,000 JPY within two years (or less). This is too much. While I cannot speak to the financial circumstances of every visa holder, I strongly suspect that this would be a significant hurdle for many of them.

They have already gone through the complex process of relocating to Japan, dealing with housing and furniture in their home countries, preparing countless documents, finding an apartment in Japan, while simultaneously working to build their businesses.

On top of that, they must also participate in networking events and adapt to life in a new environment. Their time and energy are finite, and it is safe to assume they cannot focus fully on business growth under such pressure. For early-stage entrepreneurs, raising that much capital is extraordinarily difficult.

Calling for a logical approach

I sincerely hope the Japanese government will approach this issue with more consideration and continue to treat the Startup Visa as a ramp for committed entrepreneurs. There are alternative measures that could be taken, such as extending the timeframe to reach 30,000,000 JPY in capital or setting a lower target, acknowledging that Startup Visa holders only have two years before transitioning.

Applying the exact strict requirements even at the point of Startup Visa renewal is unrealistic. It would effectively mean asking founders to raise several million yen in just a few months.

The core issue here is that the government previously failed to manage the visa system properly by allowing overly lenient conditions. Instead of simply raising the capital requirement across the board, they could have implemented a more thorough review process for applicants.

For Startup Visa holders already in Japan, a more reasonable approach would be for the government to review each case carefully. These individuals are not hypothetical applicants. They are already here, visibly working on real businesses. It is unnecessary to impose the full 30,000,000 JPY requirement on them. Indeed, after the amendment, the requirements would include having the business plan reviewed by someone with professional management expertise.

Ultimately, the goal should be to prevent people from abusing the system by using the visa solely as a means to migrate to Japan. There are many ways to achieve that goal. I hope the government can clearly separate the goal (preventing abuse) from the means (such as raising the capital requirement and other conditions, even though alternative approaches exist) and address the issue logically.

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Disclaimer: I strive to provide accurate information with citations; however, if any information is misrepresented or if further developments need to be incorporated, please do not hesitate to contact me at shunyaohira@kotoli.com. I will do my best to keep this page as up-to-date as possible.

My intention is to support those struggling with the sudden changes and the limited publicly available information, especially in English. This content is not intended to provide legal or other professional advice that should be handled by a licensed administrative scrivener or other qualified professionals in Japan.