Common Reasons Business Manager Visa Applications Are Rejected and How to Avoid Them: Pass on the First Try Under the 2025 New Standards

In one sentence: A significant share of Business Manager Visa (経営・管理ビザ) applications are rejected every year, and the new standards effective October 16, 2025 have made the threshold much higher. This article breaks down the most common pitfalls under both the old and new standards and explains how to avoid them.

⚠️ October 2025 New Standards: Changes You Must Understand

Before looking at rejection reasons, you need a quick overview of the major changes under the new standards, because most newly added rejection risks come directly from these changes:

Item	Old Standard (before October 15, 2025)	New Standard (from October 16, 2025)
Capital	¥5 million or 2 full-time employees (choose one)	¥30 million (hard requirement; the either-or system was abolished)
Full-time employees	Optional (as an alternative to the capital requirement)	Mandatory hiring (a separate hard requirement)
Japanese ability	No requirement	JLPT N2 (hard requirement)
Management background	No clear requirement	Master’s/doctoral degree or 3+ years of business management experience
Business plan	Self-prepared submission	Must undergo expert evaluation by a certified SME consultant, CPA, or tax accountant
Transition period	—	Existing visa holders may still renew under the old standards until October 2028

In simple terms, the era when you could apply by setting up a company with just ¥5 million is completely over.

For a full breakdown of the new standards, see Detailed Eligibility Requirements.

Rejection Rates: Approval Is Not as Easy as Many Assume

According to publicly available statistics from the Immigration Services Agency (出入国在留管理庁), approval rates for newly filed Business Manager Visa applications have generally fluctuated in the 70% to 80% range in recent years. In other words, roughly 1 out of every 4 to 5 applicants is refused.

Several trends are worth noting:

Refusal rates are expected to rise further under the new standards. The capital threshold increased sixfold, and new hard requirements such as Japanese ability, management background, and expert evaluation were added.
Screening has become stricter overall. Immigration is placing more emphasis on whether the applicant is engaging in genuine business operations. The path of simply investing money to obtain status is getting narrower.
Renewal screening is tightening too. The old assumption that renewals would be approved as long as the paperwork was submitted no longer holds. Renewal refusals are becoming more common.
Regional differences exist. Tokyo Immigration is generally viewed as stricter, while local immigration offices may apply somewhat different practical standards.

Common Reasons First-Time Applications Are Rejected

The list below is ordered roughly by frequency in practice. Reasons newly added under the new standards are marked with 🆕.

1. The Business Plan Fails the Expert Evaluation 🆕

Under the new standards, it is no longer enough for you to think your business plan is good. It must be professionally reviewed by a certified SME management consultant (中小企業診断士), CPA (公認会計士), or tax accountant (税理士), and you need that evaluation before filing with Immigration.

Common problems:

No expert evaluation was obtained at all
The evaluator concluded that the plan is “not feasible” or carries “material risk”
Revenue projections were viewed as unsupported
The market analysis is vague and does not explain where customers will come from or how they will be acquired
The numbers contradict each other, and the evaluator flags the plan as logically inconsistent

The key point: if the expert does not clear it, Immigration will not clear it either. Expert review typically costs around ¥50,000 to ¥200,000, and this is not an expense you should try to avoid. The better approach is to involve the expert while drafting the plan, revise as you go, and not simply hand over a finished draft for a quick sign-off.

For how to write the business plan itself, see our Business Plan Guide.

2. Insufficient Capital or Unclear Source of Funds

Under the new standards, the minimum capital increased from ¥5 million to ¥30 million. This is not a minor revision. It is a completely different threshold.

Not enough capital: the old “¥5 million or 2 full-time employees” option has been abolished. There is now one hard rule: ¥30 million in capital, with no substitute.

Stricter source-of-funds review: ¥30 million is a substantial amount, so Immigration will examine the source of funds far more closely. Common problem patterns include:

Your bank statements show a sudden large deposit shortly before application
You claim the money was saved personally, but your income history does not support that explanation
You say the money was gifted by your parents, but you cannot provide a gift agreement or supporting proof
The remittance trail from overseas is unclear
Multiple people contributed funds, but their relationship to you and the origin of the funds are not properly documented

3. “Show Money” (見せ金)

This means borrowing money to use as capital and then returning it immediately after incorporation. Immigration can often detect this by comparing bank activity before and after the company is established.

Scrutiny of 見せ金 is even tougher under the new standards. A fake ¥30 million capital contribution is easier to spot than a fake ¥5 million one, because far fewer applicants can move that amount naturally and the transaction trail tends to stand out. This is a red line. Do not try it.

4. No JLPT N2 Qualification 🆕

The new standards require the applicant to have Japanese ability at JLPT (Japanese-Language Proficiency Test) N2 or above. This is a hard requirement. Without an N2 certificate, you do not meet the eligibility criteria.

Common situations:

No JLPT certificate at all
Only N3 or a lower level
You have N2, but the certificate details do not match or the supporting documentation is incomplete

Important: this is not the kind of issue you can “strengthen” with extra explanatory materials. If you do not meet the requirement, you do not meet it. Pass N2 first, then apply.

5. Insufficient Management Experience or Academic Qualifications 🆕

Under the new standards, the applicant must have one of the following:

A master’s degree or doctoral degree (in any field)
At least 3 years of business management experience

Common problems:

You have neither a master’s/doctoral degree nor management experience
You claim management experience but cannot prove it with documents such as employment certificates or company registry records
Your experience is less than 3 years
You try to count part-time work or freelance work as “management experience,” but Immigration is looking for experience as a manager or business operator

6. No Full-Time Employee Hired 🆕

Under the old standards, hiring full-time employees was merely an alternative to the capital requirement. Now it is a separate hard requirement. Even if you have ¥30 million in capital, your application can still be refused if you have not hired a full-time employee.

Points to keep in mind:

“Full-time” means a regular full-time employee; part-time staff do not count
You need supporting documents such as the employment contract and proof of enrollment in social insurance
The employee must be a Japanese national or a foreign national with lawful work authorization

7. Non-Compliant Office Setup

Typical office-related problems include:

An apartment designated solely for residential use (住居専用)
A virtual office (バーチャルオフィス)
A coworking setup where all you really have is one shared desk
A lease that does not state office or business use

8. The Business Has Little Connection to Your Background

For example, someone with a background in food service suddenly applies to run an IT business, or someone with no trade experience proposes an import-export company. A career shift is not impossible, but your materials must credibly explain why you can run that business. Under the new standards, because management background is now a formal requirement, this explanation needs to be even stronger.

9. Missing Required Licenses or Permits

Industry	Required license or permit
Restaurants	Food Sanitation Supervisor + Restaurant Business License
Secondhand goods sales	Secondhand Dealer License
Travel agency	Travel Agency Registration
Real estate brokerage	Real Estate Broker License
Worker dispatch business	Worker Dispatch Business License

10. Suspicion That the Company Is Only a Shell

No customers, no contracts, no purchasing records, and an empty office. Immigration sometimes conducts on-site inspections (実態調査) and may physically visit your office to check whether the business is real.

11. Incomplete or Inconsistent Application Materials

Inconsistencies are often more damaging than missing documents. If something is missing, Immigration may ask you to supplement it. If the documents contradict each other, the officer may start doubting your credibility.

For a full document list, use the Document Checklist Tool for a self-check.

Common Reasons Renewals Are Rejected

⏰ Transition Rules (Important)

People who already held a Business Manager Visa before October 16, 2025 may still renew under the old standards until October 2028. That means the old criteria such as ¥5 million capital and no N2 requirement can still apply during that transition period. After October 2028, however, everyone will be subject to the new standards.

What this means in practice: if you already hold the visa but do not yet meet the new standards, you have roughly three years to prepare by increasing capital to ¥30 million, passing JLPT N2, building management credentials, and hiring a full-time employee. Do not wait until the last minute.

Continuous Losses

If the company has been in the red for two or more consecutive years, Immigration is likely to take a closer look. You may need to submit a business improvement plan (事業改善計画書) explaining why the losses occurred and what concrete measures you will take to return to profitability.

Lack of Real Business Activity

Immigration will examine whether you are actually operating the business: whether there are ongoing transactions, whether there are real clients, and whether you yourself are actively engaged in management.

Late or unpaid corporate tax, residence tax, or social insurance premiums are serious negative factors. Information-sharing between Immigration and tax-related authorities has become increasingly tight.

No Full-Time Employee (After the Transition Period) 🆕

Once the transition period ends, renewals will also require compliance with the full-time employee requirement. If you still have not hired a full-time employee by October 2028, your renewal may be refused.

Insufficient Capital (After the Transition Period) 🆕

Once the transition period ends, renewals will also require compliance with the ¥30 million capital requirement. Any capital increase needs to be completed during the transition period.

No JLPT N2 Qualification (After the Transition Period) 🆕

Likewise, renewals after October 2028 will require compliance with the N2 requirement.

Spending Too Much Time Outside Japan

If you spend less than 6 months in Japan during a year, Immigration may scrutinize the case more closely. If you remain outside Japan for more than 3 consecutive months without obtaining re-entry permission, your status may be at risk of cancellation.

For renewal documents in detail, see Detailed Renewal Documents Guide.

What to Do After a Refusal

Understand the Reason for Refusal

Go to the Immigration office counter and request an oral explanation of the reason for refusal. It is best to bring someone who speaks Japanese well, or an administrative scrivener (行政書士).

File an Appeal

Administrative appeals are possible, but the success rate is very low and the process often takes more than six months. Unless Immigration clearly made a legal error, this is usually not the most practical route.

Reapply

There is no limit on the number of times you may reapply, and there is no formal cooling-off period. The critical point is not to submit the same materials again without meaningful changes:

Address each refusal reason one by one
Strengthen the weak areas, especially any hard requirements under the new standards
Add favorable new evidence
Include a written explanation of what has been improved

Important: if the refusal was caused by failure to meet a hard requirement, such as no N2 certificate, insufficient capital, or no qualifying management background, improving the paperwork alone will not fix the problem. Meet the requirement first, then reapply.

Prevention Strategy: Self-Check List Before You Apply

Hard Requirements (New Standards: if not met, the case fails immediately)

¥30 million in capital has already been deposited into the company account
You have obtained a JLPT N2 certificate or higher
You have a master’s/doctoral degree or at least 3 years of business management experience, with supporting evidence
You have already hired at least one full-time employee (regular full-time staff)
Your business plan has passed expert evaluation by a certified SME consultant, CPA, or tax accountant

Business Plan

The business plan is more than 10 pages long, including financial projections
It clearly explains concrete revenue sources and customer-acquisition methods
The financial figures are internally consistent
You can explain in one sentence exactly how the business makes money
The expert evaluation is favorable

Funding

You can document the full chain of source of funds for the ¥30 million capital
The capital was not withdrawn immediately after incorporation
There is no sign of 見せ金 (“show money”)

Office

You have an independent physical office space, not a virtual office
The lease explicitly states “office” or “business use”

Licenses and Permits

You have confirmed whether your business requires any industry-specific licenses or permits
Any necessary licenses or permits have already been obtained, or the application process has already begun

Consistency of Materials

All documents contain consistent information
The business plan does not contradict the other application materials
All translations are accurate and complete

Full eligibility explanation: Detailed Eligibility Requirements. Budget planning: Complete Cost Analysis.

Should You Hire an Administrative Scrivener?

You may be able to apply on your own if: your Japanese is strong (N2 or above), your case is straightforward, and you have time to research the process carefully.

You should seriously consider hiring an administrative scrivener if: the case is complex, such as overseas funding or a prior refusal; you need help coordinating the expert evaluation; it is your first application; or your time is limited.

How to choose one: confirm that they have immigration-case experience, ask about past successful cases, make sure the fee structure is transparent (typically around ¥200,000 to ¥400,000, excluding expert evaluation fees), and do not trust anyone who promises guaranteed approval.

FAQ

Q1: Will a refusal affect future applications for other types of visas?

Not directly, unless the refusal involved a credibility issue such as false documents or 見せ金. If the refusal was simply due to insufficient materials, the impact is usually limited.

Q2: How soon can I reapply after a refusal?

There is no waiting period, but it is usually wise to spend 1 to 2 months making serious improvements. If the issue was failure to meet a hard requirement, such as not having N2, you need to fix that first.

Q3: Does Immigration conduct on-site inspections?

Yes. An on-site investigation (実態調査) does not happen in every case, but it is not rare, especially for newly established companies. There is often no advance notice.

Q4: Can I apply without any clients yet?

Yes, but the business plan must persuasively explain how you will acquire clients, and that part of the plan must also pass expert review. Letters of intent can help significantly.

Q5: Does continuous loss automatically lead to refusal?

Not necessarily. A convincing business improvement plan can help. But if the company has been losing money for more than 3 consecutive years with no sign of improvement, the risk is high.

Q6: Can I run multiple companies at the same time?

Legally, yes. But Immigration will look at whether you can realistically manage them. If several companies are all underperforming, that may work against you.

Q7: Can I put the company in a family member’s name while I run it in practice?

This is very high risk. If Immigration concludes that you are trying to bypass visa requirements, the case may be treated as a false application.

Q8: If I reapply through a different Immigration office, could the result change?

That is not advisable. Immigration records are shared nationwide, and officers can see your prior filing history. Trying a different office may instead make the case look opportunistic.

Q9: I already hold a Business Manager Visa. Do I need to meet the new standards for my renewal after October 2025? 🆕

Not immediately. Existing visa holders can still renew under the old standards until October 2028. But after October 2028, the new standards will apply to everyone, so early preparation is strongly recommended.

Q10: JLPT N2 is a hard requirement. Is there any alternative? 🆕

Under the new standards announced so far, N2 is a hard requirement and no substitute has been published. The practical advice is to register for the exam and start preparing as early as possible.

Q11: Roughly how much does the expert evaluation of the business plan cost? 🆕

Depending on the complexity of the plan and the professional involved, it is generally around ¥50,000 to ¥200,000. It is best to consult the expert while drafting the plan so you do not face major revisions later.

Q12: Can the ¥30 million capital come from a loan? 🆕

In principle, capital should come from your own funds or a lawful gift. Long-term debt with capital-like features, such as subordinated loans, may be considered under strict conditions, but that requires careful structuring by professionals such as an administrative scrivener and tax accountant. Ordinary short-term bank loans are likely to be treated as 見せ金 and carry very high risk. In practice, self-funded capital is the safest basis.

Recommended Next Steps

Check the hard requirements first: N2, management background or advanced degree, and the ¥30 million capital. If any of these are missing, address them first.
Work with a qualified expert while drafting the business plan so it is being evaluated as you build it
Use the Document Checklist Tool to run a full self-check
Spend real time on the business plan: Business Plan Guide
Organize the full source-of-funds trail for the ¥30 million capital
Make sure the office is compliant and that a full-time employee is in place
Cross-check all materials for consistency
If the case is complex, consult an administrative scrivener early

At its core, Business Manager Visa screening is trying to answer one question: is this person genuinely planning to operate a real business in Japan? Under the new standards, Immigration is using a much higher threshold to filter applicants. Every part of your application should be prepared around that core point.

Wishing you a successful application.

This article is based on publicly available information from the Immigration Services Agency and practical case experience. It reflects the new standards effective October 16, 2025 and is provided for general reference only, not as legal advice.