Tightening Scrutiny of "Business Manager" Residence Status Applications

Rising Standards for New Applications

Currently, screening for new applicants seeking to obtain Business Manager residence status has become extremely strict.

• Strict proof of capital formation: A capital of JPY 30 million is required, and in principle these funds must be the applicant's own funds.
• Higher bar for personnel requirements: Based on Immigration Services Agency standards, applicants must show either that "the applicant themselves has Japanese language ability of JLPT N2 or above," or that they employ "a full-time staff member who is Japanese, or who has Japanese ability of N2 or above."
• More sophisticated business plans: Detailed, specific content is now required, and preparation by a specialist such as a certified SME management consultant or a certified public accountant is required.

The Reality of Stricter Screening for Renewal by Existing Holders

Even for those who already hold Business Manager residence status and are currently residing in Japan, applications are judged under strict standards, and careful, thorough preparation and submission of documents is required. Screening is being conducted under standards far stricter than many foreign residents currently assume.

• Strict scrutiny of social insurance enrollment: For entities taking a corporate form such as a KK or GK, at minimum the representative is required to be enrolled in social insurance (health insurance and employees' pension). Cases of renewal denial citing failure to meet this obligation have occurred.
• Routine fact-finding through additional documents: Following a renewal application, requests for documents such as "employee work/shift schedules," "employment contracts," and "documents showing payment of salaries" are now routinely made as a matter of course. Through these documents, Immigration rigorously scrutinizes the following points against internal standards:
  • Whether the holder of the Business Manager status is personally engaged in on-site or frontline work
  • Whether foreign students or others working part-time are being made to work illegally beyond the 28-hour weekly limit
  • Whether there is no inconsistency among the submitted documents, and whether staffing levels are appropriate to the scale of the business
• The transition period is effectively hollow: Although the system nominally states that "screening under the old requirements will continue until 2028," instructions for supplementary documents already include an item on the "Japanese language requirement," and regional immigration bureaus are already enforcing the stricter standard.
• Denial for abstract reasons: Minor legal violations, or the submission of documents that raise even the slightest doubt with Immigration, frequently lead to denial for the sole, abstract reason that "there is doubt about the stability and continuity of the business."

Support from Our Office

To avoid such situations and continue stable business management, it is necessary to build a management structure that accounts for this tightening as soon as possible. As for preparing the JPY 30 million in capital, this is not simply a matter of borrowing funds from somewhere — it is essential to methodically establish both the capital and a stable, continuing management structure within the remaining two-year grace period.

Sakura Central Law Office accepts consultations and support starting from a monthly retainer of JPY 20,000, tailored to your company's scale and support needs. Please feel free to contact us first.