Business Manager Visa Eligibility Requirements Explained: A Clause-by-Clause Breakdown of the October 2025 New Standards

One-sentence summary: Under the new standards effective October 16, 2025, the core requirements for Japan’s Business Manager Visa (経営管理ビザ) have been tightened across the board: minimum capital rose from ¥5 million to ¥30 million, full-time employees are now mandatory, JLPT N2 Japanese ability is required, applicants must hold a master’s/doctorate or have 3 years of management experience, and the business plan must be evaluated by a designated expert. This article breaks down each requirement and the practical points that matter.

Requirements Overview: The New Standards at a Glance

Requirement	New Standard (from 2025.10.16)	Difficulty	Old Standard Reference
Capital	At least ¥30 million	★★★★★	Old: ¥5 million (or 2 employees as an alternative)
Full-time employees	Mandatory	★★★★	Old: Could substitute for capital requirement
Japanese ability	JLPT N2 or higher	★★★★	Old: No hard requirement
Management experience / academic background	Master’s/doctorate or 3 years’ experience	★★★	Old: No hard requirement
Business plan	Genuine, sustainable + expert evaluation	★★★★★	Old: Self-prepared submission
Office space	Independent physical office	★★★★	Unchanged
Managerial role	Must actually engage in management/administration	★★★	Unchanged, but enforcement is stricter
Criminal record	No serious legal violations	★	Unchanged
Business classification	Category 1-4	—	Unchanged

⚠️ If you have previously read guides saying the Business Manager Visa can be done with “just ¥5 million,” that information is now completely outdated. Under the new standards, the threshold has risen on every front.

Transition Period

Applications submitted before October 16, 2025 are reviewed under the old standards
Current Business Manager Visa holders have a three-year transition period until October 2028
After October 2028, everyone must satisfy the new standards

Below is a detailed breakdown of each requirement.

Capital Requirement: In Depth

From ¥5 Million to ¥30 Million: A Sixfold Increase

The core change in the new standards is straightforward:

The capital requirement increased from ¥5 million to ¥30 million, and the old “¥5 million in capital or 2 full-time employees” either-or framework no longer applies. ¥30 million is now a hard minimum, and full-time employees are a separate mandatory condition.

This is the most visible and most consequential change. For most founders, ¥30 million is a serious financial threshold.

Source of Funds: Much Stricter Review at the ¥30 Million Level

The larger the amount, the more closely Immigration will trace where the money came from. You will need to submit an explanation of how the funds were accumulated (資金形成過程の説明書). Commonly accepted sources include:

Personal savings: You need several years of bank statements showing the funds were built up over time
Gift from relatives: You need proof of the donor’s funds plus a gift confirmation letter and proof of family relationship
Sale of overseas assets: For example, real-estate sale contracts or stock settlement records
Joint investment by partners: Multiple contributors can pool funds to reach ¥30 million, but each person’s role should be explained
Loans: Technically possible, but borrowing at the ¥30 million level requires a highly credible repayment plan

The most common red flag: A large lump-sum deposit shortly before the application with no clear explanation. At the ¥30 million level, Immigration is much more sensitive to unusual fund movements.

見せ金 (“Show Money”): Even Riskier Under the New Standards

Borrowing money to use as capital and repaying it immediately after registration was already a clear reason for refusal under the old ¥5 million standards. At ¥30 million, it is even less likely to survive scrutiny.

How Immigration checks:

Comparing bank balances before and after incorporation
Requesting additional bank statements from the months after company establishment
Cross-checking with company registration records at the Legal Affairs Bureau

Practical advice: After the capital is deposited, use it for legitimate business expenses such as rent, equipment, inventory, and salaries. A ¥30 million capital base gives you meaningful operating runway, and Immigration expects to see that money being used for the business.

Can the Capital Be Paid in Installments?

No. At the time of incorporation, the capital must already reach ¥30 million. This is a hard requirement for the visa application.

Can the Capital Be Used to Pay Salaries and Rent?

Yes. Once the company is established, the capital becomes operating funds and can be used for ordinary business expenses. From an immigration review standpoint, what you should avoid is making large withdrawals immediately after registration or transferring money to a personal account. Reasonable business spending is expected.

Full-Time Employee Requirement

From an Alternative Option to a Mandatory One

This is one of the most frequently overlooked but most important changes in the new standards.

Old standard: ¥5 million in capital or 2 full-time employees. New standard: ¥30 million in capital and full-time employee hiring. Both are required.

In other words, the era of the one-person company applying for a Business Manager Visa is over.

Employee Eligibility Requirements

Employees must be full-time (常勤); part-time staff (パート・アルバイト) do not count
They must have a status allowing unrestricted work in Japan, such as Japanese nationals, permanent residents, spouses of permanent residents, or long-term residents
A formal employment contract (雇用契約書) is required
They must be enrolled in social insurance (employees’ pension and health insurance)

Practical Implementation

You should start planning recruitment during the company formation stage
At the time of the visa application, submit executed employment contracts or at least a detailed hiring plan
Salaries should be reasonable, above minimum wage, and consistent with market standards

Cost Impact

For a full-time employee, monthly salary is often around ¥180,000-¥300,000. With the employer’s share of social insurance added (roughly 15% of salary), annual cost per employee typically comes to around ¥2.6 million-¥4.2 million. This is a new recurring fixed expense.

Japanese Ability Requirement: JLPT N2

From “Helpful to Have” to “Cannot Proceed Without It”

Under the old standards, Japanese ability was just a positive factor in review. It was still possible to obtain the visa without Japanese, as long as the business plan explained how language issues would be handled.

The new standards now state clearly: the applicant must have Japanese ability at JLPT (Japanese-Language Proficiency Test) N2 or above.

What Level Is N2?

JLPT N2 roughly means being able to understand Japanese used in everyday situations, read newspapers and magazine articles on a broad range of topics to a certain extent, and follow conversations spoken at near-natural speed.

For Chinese speakers, kanji helps, but grammar and listening still require structured study. From zero to N2 typically takes around 6-12 months.

Exam Schedule

The JLPT is offered worldwide twice a year, in July and December
Results are usually released about two months after the exam
Registration generally opens 3-4 months in advance

Are Other Japanese Tests Accepted?

The new standards explicitly mention JLPT. It is still not fully clear whether other Japanese tests such as J-TEST, NAT-TEST, or BJT are accepted. The safest approach is to assume JLPT N2 is the standard, because that is the least controversial option.

Practical Advice

If you intend to apply for a Business Manager Visa but do not yet have an N2 certificate: start preparing for the exam now. This is no longer a recommendation you can work around. It is a hard prerequisite.

Management Experience / Academic Background Requirement

A New Threshold: Prove You Can Actually Manage a Business

The old standards imposed no hard requirement on the applicant’s education or experience. The new standards add a clear entry condition:

You must satisfy either of the following:

Hold a master’s degree (修士) or doctoral degree (博士); or
Have 3 or more years of business operation or management experience

How Is Management Experience Evaluated?

If you previously ran your own company and actually managed it, including overseas, you will need documents such as company registration records and tax filings
If you previously worked in a managerial role at a company (for example, department manager level or above), you should provide employment certificates, organizational charts, business cards, and similar evidence
The experience does not need to be in the same industry
The experience does not need to be in Japan
The 3 years do not have to be continuous, but you need a reasonable explanation

The Degree Route

A master’s or doctoral degree does not need to be in business or management
You need to provide your degree certificate, and foreign degrees may require verification
For many younger entrepreneurs, this is a realistic pathway

What If You Meet Neither Requirement?

If you have neither a master’s/doctorate nor 3 years of management experience, then under the new standards you are not currently eligible to apply. In that case, the practical options are:

First build up management experience, for example by moving into a managerial role at a company
Consider pursuing a master’s degree, including an MBA in Japan
Review your past experience carefully to see whether any part of it may qualify as management experience

Office Requirement: In Depth

The office requirement is basically unchanged from the old standards. Immigration’s review approach has not become looser under the new rules. It remains strict.

Office Type Comparison

Type	Feasibility	Risk	Best For
Independent leased office	✅ Best option	Low	All business types
Home-and-office combined use (住居兼事務所)	⚠️ Possible with conditions	Medium	Small-scale solo businesses
Shared office (シェアオフィス)	⚠️ Possible with conditions	Medium to high	Only if specific criteria are met
Virtual office (バーチャルオフィス)	❌ Generally not accepted	Extremely high	Not recommended
Owned property	✅ Possible	Low	Applicants able to purchase property

Independent Office: The Safest Choice

A standalone lease showing the use category as 「事務所」 or 「店舗」
Ideally signed in the company’s name; a personal-name lease may work, but a company-name lease is better
A separate entrance and company nameplate/signage (表札)
The space does not need to be large. A small 10-20㎡ office can be sufficient

Typical cost: In Tokyo’s 23 wards, a small office often rents for around ¥50,000-¥150,000 per month. In regional cities, it can be as low as ¥30,000-¥80,000.

Home Office Use: Possible, but Strictly Conditioned

You need physical separation such as a dedicated room, landlord consent (事務所使用承諾書), independent signage, and in some cases a change of permitted use. Under the new standards, because you are now required to hire employees, a pure home-office setup is even less practical. Where will your staff work?

Shared Office: Possible, With Conditions

You need a fixed workspace, independent mail handling, a meeting area, and dedicated storage. Under the new standards, the employee requirement adds another question: can the space realistically accommodate both you and your staff?

Virtual Office: Do Not Take the Risk

It is clearly not accepted in principle. Even if your business is fully online, you still need physical office space.

Business Plan + Expert Evaluation

How Immigration Judges Whether the Business Is Real

This is the most important and most subjective part of the entire application. The new standards added an expert-evaluation step, making the review more structured.

Core Review Factors

Specificity of the business: What exactly will you do, how will you do it, and who are your customers?
Reasonableness of profitability: Are your revenue projections supported? Are your margins realistic?
Market realism: Does the target market actually exist? Have you analyzed competition?
Sustainability: A first-year loss may be understandable, but when does the business become profitable?
Connection between the applicant and the business: Why are you the right person to do this? What experience or resources do you have?
Reasonableness of the staffing plan (new focus): How many people will you hire, in what roles, and at what pay level?

Expert Evaluation System: Details

Starting October 16, 2025, the business plan must be submitted together with an evaluation opinion from a designated expert.

Who is qualified to perform the evaluation?

Certified SME Management Consultant (中小企業診断士)
Certified Public Accountant (公認会計士)
Licensed Tax Accountant (税理士)

An administrative scrivener (行政書士) who does not also hold one of the above qualifications cannot serve as the evaluating expert.

Process: Prepare the business plan → have it reviewed by an expert → obtain the expert’s written evaluation → submit both to Immigration

Typical cost: Roughly ¥50,000-¥200,000 depending on the complexity of the business plan.

Why this can help you: In practice, the expert often spots weaknesses in your plan before filing, which is effectively a paid professional review. A plan that has already passed expert evaluation also tends to carry more credibility with Immigration.

Business Types That Tend to Be Easier to Approve

Trading businesses (import/export): Clear supplier and client channels
Restaurants (飲食店): Signed lease already secured and business permits in place
IT / software development: Existing signed clients or concrete projects
Real estate businesses: Applicant holds a real-estate-related qualification or has clear inventory/property sources

Common Reasons for Refusal

The business plan is too vague
The business has no connection to the applicant’s background
It is obviously a one-person activity that does not truly require a “manager”
The financial projections do not withstand expert scrutiny
There has been no meaningful advance preparation

Category System: Which Category Does Your Company Belong To?

The category system (カテゴリー制度) has not changed significantly under the new standards, but understanding it is important for document preparation.

The Four Categories

Category	Target Company Type	Typical Examples
Category 1	Listed companies, etc.	Publicly listed companies, Japanese subsidiaries of state-owned enterprises
Category 2	Withholding tax amount of at least ¥15 million	Mid-sized and larger companies
Category 3	Has tax payment records but below ¥15 million	Small and medium-sized operating companies
Category 4	None of the above	Newly established companies, very small businesses

Practical Impact on the Application

Categories 1-2: Documentation is significantly simplified, and review is usually faster. Category 3: Standard document package. Category 4: The strictest category. Most first-time applicants fall into Category 4 and must submit the fullest set of documents.

📌 As your company grows, a renewal application may move you up to Category 3 or even Category 2. For renewal-specific points, see Detailed Renewal Documents Guide.

FAQ: Common Questions About Business Manager Visa Requirements

Q1: Can the ¥30 million capital be used to pay rent and salaries?

Yes. Once the company is established, the capital becomes operating funds, so ordinary business expenses are allowed. In fact, Immigration generally expects to see the funds being used reasonably for the business.

Q2: Can two partners each contribute ¥15 million to make a total of ¥30 million?

Yes, but there is some risk. If both people apply for a Business Manager Visa, you must clearly explain each person’s role and why both are necessary. In practice, approval rates are often better when one person applies for the Business Manager Visa and the other participates under a different status or role.

Q3: Can cryptocurrency gains be used as the source of funds for the capital?

In theory yes, but proving it is extremely difficult. You would need complete transaction histories, records showing conversion into fiat currency, and bank statements showing the incoming funds. At the ¥30 million level, Immigration will review cryptocurrency-based funds even more carefully.

Q4: Which is easier, applying directly from overseas or changing status inside Japan?

A change of status inside Japan is usually smoother. You already have a track record of residence and activities in Japan, and Immigration can refer to your previous residence history. An overseas application requires a person in Japan to assist with the COE filing, and the overall process takes longer.

Q5: Can company registration and the visa application be done at the same time?

No. There is a sequence. First incorporate the company → obtain any required permits → get the expert evaluation → apply for the visa.

Q6: How many years is the Business Manager Visa granted for?

For a first application, it is usually 1 year. At renewal, depending on the business situation, it may be renewed for 1 year or 3 years. A 5-year period is relatively rare and usually seen with managers of Category 2 companies or above.

Q7: When is the JLPT N2 exam held? How many times per year?

It is held twice a year, in July and December, with results usually released about two months later. If you do not yet have N2, start preparing now.

Q8: If the business is running at a loss, will the renewal be refused?

Not necessarily, but continuous losses are a risk factor. Renewal review is stricter under the new standards. You may need to submit a business improvement plan (事業改善計画書) explaining how you will turn things around. See Detailed Renewal Documents Guide for more.

Q9: If I run an e-commerce or personal shopping business, can I still get a Business Manager Visa?

The threshold is much higher under the new standards: ¥30 million in capital, employee hiring, and expert evaluation. A small personal-scale buying/reselling business is unlikely to satisfy those requirements. A larger-scale e-commerce business still can.

Q10: After obtaining a Business Manager Visa, how long until I can apply for permanent residence?

As a general rule, you need 10 years of continuous residence in Japan, including the most recent 5 years under a work-authorized status. Under the Highly Skilled Professional points system, that can be shortened to 3 years with 70 points or 1 year with 80 points.