The Japanese government has announced that the requirements for the “Business/Management” visa will be significantly tightened, with implementation expected around mid-October 2025. (Japan plans stricter terms for visas to foreign entrepreneurs 2025-8-27 The Asahi Shimbun) This reform will raise the bar for both new applicants and those seeking renewal of their residence status. A key point of concern is how individuals who already hold the “Business/Management” status will be treated when they next apply for renewal after the new rules take effect. Below is a structured summary of what is currently known, what remains unclear, and possible scenarios.
1. What is Known
- Stricter Requirements
According to reports and legal practitioners, the amendment will:- Raise the capital requirement from the current ¥5 million to ¥30 million or more.
- Require at least one full-time employee in addition to the manager.
- Demand stricter proof of actual business activity, stability, and continuity, with more detailed supporting documents expected.
- Timing of Implementation
The revised ministerial ordinance is expected to come into force in mid-October 2025. - No Retroactive Application
Experts generally believe it is unlikely that existing visa holders will suddenly have their status revoked or be forced to leave immediately for failing to meet the new ¥30 million capital threshold. Retrospective application would be inconsistent with administrative practice. - Application to Renewals
However, once the new rules are in force, renewal applications will most likely be assessed under the revised criteria. Thus, existing holders may face stricter scrutiny at their next renewal.
2. What Remains Unclear
Despite the official announcements, several issues remain uncertain:
- Transitional Measures: It is not clear whether the Immigration Services Agency will allow leniency during the first renewal after the reform, e.g., accepting companies with less than ¥30 million capital if they can demonstrate sufficient business track record, stable employment, and tax compliance.
- Evaluation of Alternatives: How far factors such as consistent profitability, steady revenue, employee retention, and social insurance enrollment might compensate for a lack of capital is unknown.
- Definition of Capital: Whether only paid-in capital counts, or whether certain forms of investment, shareholder loans, or retained earnings can be included, remains to be clarified.
- Employment Requirement Details: It is not yet defined how “one full-time employee” will be interpreted—whether the employee must be Japanese or a permanent resident, what kind of contract is acceptable, and whether social insurance enrollment is mandatory.
- Length of Renewal Periods: The new rules may influence whether holders receive one-year, three-year, or five-year renewals, depending on how fully they meet the criteria.
- Risk of Refusal: The extent to which undercapitalized or loss-making businesses will face outright refusal remains uncertain.
- Appeal/Resubmission: The procedure for supplementing documents or re-applying after a refusal is also not yet clear.
3. Possible Scenarios
Based on current information, several likely scenarios can be envisioned:
| Case | Example Situation | Possible Outcome | Risk/Countermeasure |
|---|---|---|---|
| A. Stable and Compliant Business | Capital above ¥5m, employs staff, consistent profits, tax and social insurance compliance | Renewal likely approved, even if capital < ¥30m, provided strong documentation is submitted | Prepare comprehensive records (financial statements, tax filings, employment contracts). Consider early renewal before reform takes effect. |
| B. Weak Business with Limited Resources | Capital only ¥5m, no employees, low sales, ongoing losses | Renewal may be refused or limited to a short period | Increase capital, hire staff, ensure social insurance enrollment. Strengthen business performance before renewal. |
| C. High Capital but Weak Operations | Capital ≥ ¥30m but no proper employment or continuous losses | May still be questioned, since capital alone will not satisfy “stability and continuity” | Improve compliance with employment and insurance requirements. Show a credible business plan. |
| D. Start-ups or Newly Established Firms | Recently established, low capital, no employees, little or no revenue | Renewal will be very difficult under the new rules | File renewal before October, or seek alternative residence statuses (e.g., start-up visa) while building capital and employment base. |
4. Overall Assessment
- It is unlikely that existing holders will be denied renewal solely because their capital is below ¥30 million. However, the new rules will significantly raise the bar, and renewal will require much stronger supporting documentation than before.
- Immigration authorities may adopt a graduated approach: those with solid track records (profitability, employment, tax compliance) may still obtain renewal, while those with weak or unstable businesses may face short-term renewals or refusals.
- The key practical measures for current holders will be to increase capitalization if possible, hire at least one full-time employee, and prepare extensive documentation to demonstrate stability and continuity.
- Ultimately, while the reform is aimed at filtering out undercapitalized or “paper companies,” its effect on legitimate small and medium-sized businesses will depend heavily on how flexibly the authorities handle transitional cases.