Kaoru Miyatake
Author Kaoru Miyatake Gyoseishoshi / Juris Doctor (J.D.) | MOJ-Certified Application Agent Chairperson, Sakura Training Organization (Public Interest Corporation) / Sakura Central Legal Office

Kyodo News and Nikkei report that 953 foreign nationals with the "Business Manager" status of residence left Japan without re-entry procedures in the first half (January–June) of 2026, about 3.9 times the 246 recorded in the same period of 2025 (Kyodo, October 15, 2026). The figures are based on Immigration Services Agency (ISA) statistics, and the tightening of the criteria in October 2025 is believed to have had an effect.

Key Figures Reported

📌 Kyodo News and Nikkei reports (source: ISA statistics)
  • Departures: Business Manager holders who left without re-entry procedures: 246 in H1 2025 and 953 in H1 2026 (about 3.9 times). Kyodo says many are thought not to be returning to Japan
  • Monthly trend (Nikkei): a few dozen per month until autumn 2025, 114 in December 2025, and between 100 and 200-something per month through June 2026
  • Residents: 46,781 Business Manager residents at the end of 2025, about 1.7 times the end-2020 figure of 27,235 (ISA table by status of residence)
  • Applications: applications in the five months after the tightening fell by about 96% compared with the preceding five months, as the ISA has already stated (Nikkei)

The reports do not give the reasons of individual departing persons, nor the number who gave up renewing their status. The figure is the number of people who left without re-entry procedures; it has not been reported as the number of people who abandoned a renewal.

Background: Criteria Tightened on October 16, 2025

The ISA amended the Landing Permission Criteria Ministerial Ordinance and related rules effective October 16, 2025. According to Kyodo, cases of setting up companies with no real substance to obtain the status had been a concern. Justice Minister Hiroshi Hiraguchi explained to the House of Councillors Legal Affairs Committee in June 2026 that the reasons were criticism that the criteria were looser than comparable systems in other countries and were being misused as a route to migration, and that some businesses were found to have no actual operations during residence screening (Nikkei). The main criteria after the amendment are as follows (ISA materials).

  • Full-time employee: the applicant's company must employ at least one full-time employee. Only Japanese nationals, special permanent residents and foreign nationals with the statuses "Permanent Resident", "Spouse or Child of Japanese National", "Spouse or Child of Permanent Resident" or "Long-Term Resident" count; holders of Appended Table I statuses do not
  • Capital: at least JPY 30 million — paid-in capital or the total of contributions for a company, or the total amount invested for the business for a sole proprietor (previously JPY 5 million or more)
  • Japanese ability: either the applicant or a full-time employee must have Japanese ability equivalent to B2 or higher under the Japanese Language Education Reference Framework
  • Background: a doctorate, master's or professional degree in business management or a field related to the business, or at least 3 years of experience in managing a business
  • Business plan: confirmation by a person with specialized management knowledge (such as a registered management consultant) is required

According to Tokyo Shoko Research, of the 143,367 companies incorporated in Japan in 2024 (excluding sole proprietors), only 1,491 (1%) had capital of JPY 30 million or more (Nikkei). Kenji Goto of its information department said it is difficult for small businesses to meet the new standard and that if foreign managers close their businesses, the impact would reach Japanese suppliers of raw materials and lessors of business premises (Nikkei).

How Renewals Are Treated for Current Holders

According to the ISA Q&A, for people already residing as Business Manager, a renewal application filed by the day three years after the effective date (October 16, 2028) will not be denied solely because the new criteria are not met. The claim that people must return home unless they prepare JPY 30 million is stated to be "not true". Even for renewals after that date, if the business is in good condition, tax obligations such as corporate tax are properly fulfilled, and the new criteria are expected to be met by the next renewal, the decision takes the overall residence situation into account and is not a uniform denial solely because the capital falls short of JPY 30 million.

Nikkei also reports voices saying that, separately from the new criteria, scrutiny of business substance has become stricter than before. The ISA Q&A likewise states that problems with compliance with labor laws, enrollment in and payment of social insurance, employment insurance and workers' accident insurance, or acquisition of required licences can be treated as negative factors, and that renewals have been denied in some cases.

Practical Points (including the scrivener's view)

  • The reported figure is the number of people who left without re-entry procedures; individual reasons are not given. Whether your own renewal will be granted depends on your individual situation (business condition, taxes, social insurance enrollment and payment, licences), not on this figure
  • Under ISA materials, if a person stays abroad for a long period without a justifiable reason during the period of stay, renewal is not granted as there is no actual activity in Japan. If you plan to travel abroad, organize the timing, duration and impact on the business in advance
  • At renewal, enrollment in labor and social insurance, payment of premiums, and payment of national and local taxes due by the business are checked. Keep these in order during the transitional period as well
  • Individual renewal prospects and conformity to the criteria require case-by-case review. Our renewal support for Business Manager is here

Sources