The "Business Manager" status of residence is required for foreign nationals to establish, operate, or manage a company in Japan. The Immigration Control and Refugee Recognition Act defines the "Business Manager" status as engaging in activities to operate international trade or other businesses, or to engage in the management of such businesses in Japan. With the recent revision, the criteria for permission have been significantly reviewed, setting a higher hurdle than before.

Examples of Eligible Persons

• Expatriates of Japanese branches (Business Manager if there are employees) or representatives of Japanese subsidiaries (subsidiaries).
• Startup entrepreneurs and owners of small and medium-sized enterprises (SMEs).

Scope of Activities

• Substantial business operation and management duties such as company establishment, business operation, store management, and management of investment projects.
• Unlike employment for engineers or researchers, the focus is on formulating business plans, managing employees, managing funds, etc.

Period of Stay

The initial period allowed is generally 1 year (or 6 months depending on the situation), and upon renewal, periods of 1 year, 3 years, 5 years, etc., are granted.

[Important] Necessary Documents and Requirements After 2025 Revision

Note: The following new criteria apply from October 16, 2025.

• Increase in Capital/Investment Amount:
  The previous standard of 5 million yen has been significantly raised, requiring a capital or total investment of 30 million yen or more. Proof of the source of funds is also required more strictly.
• Mandatory Employment of Full-time Employees:
  Before the revision, this could be substituted by the capital amount, but going forward, hiring at least one full-time employee is mandatory. This employee is limited to "Japanese nationals, Special Permanent Residents, Permanent Residents, Long-term Residents," etc., and does not include foreign nationals on visas such as Engineer/Specialist in Humanities/International Services.
• Addition of Career/Educational Requirements:
  As a capability requirement for the manager themselves, either "3 years or more of practical experience in business management" or "a master's degree or higher in business administration or related fields" is mandatory.
• Addition of Japanese Language Proficiency Requirement:
  Either the applicant themselves or the full-time employee they hire must have Japanese language proficiency equivalent to JLPT N2 or higher.
• Expert Certification of Business Plan:
  It has become mandatory to have the business plan confirmed (certified) by experts such as Small and Medium Enterprise Management Consultants (SME Consultants), Certified Public Accountants (CPAs), or Licensed Tax Accountants.
• Securing a Business Office:
  Stricter enforcement is expected than before; using a residence as an office will generally not be permitted. It is necessary to secure an independent physical business office.

Required Documents (Example): Application for Certificate of Eligibility, copy of passport, photo, resume (proof of experience), degree certificate, Japanese language proficiency certificate (applicant or employee), commercial registration, articles of incorporation, business plan confirmed by an expert, office lease agreement, documents showing the source of funds (30 million yen or more), etc.

Application Procedure (Pre-departure / Post-departure)

1. Obtaining a Certificate of Eligibility (CoE) (Generally Pre-departure): If you have not yet entered Japan, you first apply for a Certificate of Eligibility at a regional Immigration Services Bureau in Japan. Strict documentation proving compliance with the new standards is required.
2. Visa Application (Pre-departure): Present the issued CoE to a Japanese diplomatic mission abroad (Embassy or Consulate) to apply for a visa.
3. Entry Procedures: Upon arrival in Japan, present your documents to an immigration inspector to receive landing permission and, at the same time, receive your Residence Card.
4. Change of Status of Residence in Japan (If Necessary): When applying for permission to change your status of residence, you must also meet the above new standards (capital of 30 million yen, etc.).

Examination Period and Costs

• Examination Period: The standard examination period at the Immigration Bureau is several months, but it may take longer immediately after the introduction of the new system. A schedule with ample lead time is necessary.
• Investment Cost: In addition to the minimum capital of 30 million yen, the initial investment amount will increase significantly compared to the past, including company establishment costs, fees for experts (including business plan confirmation fees), and office rent.

Acquisition of Certificate of Eligibility (CoE) and Points to Note

• Proof of Source of Funds: It is necessary to rationally explain how the large sum of 30 million yen was formed (accumulation process, borrowing/gifts from relatives, etc.) and prove it with evidentiary documents (remittance history, etc.).
• Involvement of Experts: Since certification of the business plan is required, it is essential to collaborate with experts such as SME Consultants and Licensed Tax Accountants from an early stage.

Regarding Transitional Measures: Those who have been residing under "Business Manager" status since before October 16, 2025, have a 3-year transitional measure (grace period), but upon renewal, prospects for future compliance with the new standards will be examined.

Differences and Points to Note by Nationality

Legally, there is no difference in residence status requirements based on nationality, but requirements for proof of authenticity of documents (notarization/authentication) and restrictions on fund remittances vary by country. In particular, since 30 million yen is a large amount, please pay close attention to improved remittance regulations from overseas (such as China and Vietnam) and secure legal remittance routes.

Common Reasons for Denial and Keys to Success

• Failure to Meet Funding Requirements: When 30 million yen cannot be prepared, or when it is suspected to be "show money" (temporary borrowing).
• Non-compliance with Requirements: Lack of formal requirements such as less than 3 years of management experience, no degree, or no employee meeting the Japanese language proficiency requirement.
• Credibility of Business Plan: Even with an expert's seal of verification, if the content is too unrealistic or unaccompanied by actual substance, it will be denied.

Keys to Success:

• Prepare the 30 million yen capital through legitimate procedures and perfectly prove the source.
• Securely hire (or offer employment to) at least one Japanese or equivalent full-time employee and prepare an employment contract.
• Securely obtain documents (employment certificates, etc.) proving your own background (3 years or more experience, etc.).
• Create the business plan while receiving advice from a proven expert and obtain certification.

Renewal of Period of Stay and Obligations as a Manager

Even after obtaining the status of residence, annual financial results and tax payment status are strictly checked. Especially if deficits or insolvency continue, there is a risk that business continuity will be denied and renewal will not be permitted. In addition, enrollment in social insurance and fulfillment of tax obligations are absolute conditions. Thorough compliance with laws and regulations and sound management are the keys to continuing business in Japan for a long time.