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 or more is required (for corporations, paid-in capital or total contributions; for sole proprietors, the total amount invested to run the business). In practice, applicants are often asked to document where the funds came from (the applicant's own savings versus borrowed money, etc.), and relying on borrowed money makes it difficult to explain the funds on the premise that they are the applicant's own. (The Immigration Services Agency's published materials do not expressly state an "own funds" requirement; this is our understanding based on practice.)
• Employment of a full-time employee: Under the Immigration Services Agency's standards, the business the applicant runs must employ at least one full-time employee. Eligible employees are limited to Japanese nationals, special permanent residents, and permanent residents, spouses of Japanese nationals or permanent residents, and long-term residents.
• Japanese language ability: Either the applicant or a full-time employee must have Japanese ability at the B2 level or above (for those other than Japanese nationals and special permanent residents, by meeting one of the criteria set by the Agency, such as JLPT N2 or higher). For this requirement, the full-time employee may also be a foreign national holding a Table 1 status of residence.
• More sophisticated business plans: Detailed, specific content is now required, and the plan must be confirmed by a person with specialist management knowledge (a certified SME management consultant, certified public accountant, or licensed tax accountant).

Source: Immigration Services Agency, "Revision of the permission criteria for Business Manager (effective October 16, 2025)" (document, explanatory page; in Japanese)

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: Under the system, for renewal applications filed by October 16, 2028 (three years after the October 16, 2025 effective date), the decision is made in light of the business's condition and the likelihood of meeting the new criteria even if they are not yet met (documents evaluated by a management expert may be requested), and renewals after that date must meet the new criteria. However, 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."

Our Retainer Service for Business Manager Residence Status

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 grace period until October 16, 2028.

Our retainer service is not general business consulting. It is continuing support for renewing your "Business Manager" residence status and for preparing to meet the new permission criteria.

What we support

• ① Organizing where you stand against the new criteria and what needs to be prepared
• ② Checking compliance with social insurance enrollment, minimum wage and similar rules, and helping you prepare improvements
• ③ Continuously organizing the documents needed for the renewal application
• ④ Preparing materials that explain that you are actually engaged in Business Manager activities (to prepare for a case where the Immigration Services Agency suspects you work on the front line, we organize your duties, staff placement, outsourcing arrangements and so on into materials that can explain the actual situation)
• ⑤ The renewal application for the contract holder's own "Business Manager" residence status

Fees

• Retainer: from JPY 20,000 per month (excluding tax) (from JPY 22,000 including tax). The retainer includes the fee for the contract holder's own Business Manager renewal application.
• Application fees for persons other than the contract holder, such as family members in Dependent status, are charged separately (50% off the regular fee).
• Fee for a Business Manager renewal application without a retainer contract: from JPY 160,000 (excluding tax) (from JPY 176,000 including tax)

* We do not guarantee that a permit will be granted.

Related Services

• Residence status applications & immigration procedures
• Specified Skilled Worker (registered support organization)
• Wills & inheritance procedures