—A New Barrier to Permanent Residency Revealed by an Immigration Notice—
A Quick Recap of the 2025 Reform
On October 16, 2025, Japan revised the permission standards for the “Business Manager” residence status. As explained in our previous article, the reform clearly shifts policy toward evaluating business managers who operate real, substantive businesses, rather than those maintaining only formal or paper companies.
The main requirements under the new standards include:
- A physical business office located in Japan
(home offices are generally not allowed) - Employment of at least one full-time staff member
- Business assets of at least 30 million yen
- Basic Japanese language ability by the manager or staff
- A relevant degree in business/management or at least three years of management experience
These requirements emphasize genuine, sustainable business activity in Japan.
An Actual Immigration Notice Issued After a Renewal Approval
Recently, in a real case where a Business Manager visa extension was approved,
an official notice was sent by the Immigration Services Agency together with the new residence card.
The notice not only explained the revised standards, but also included the following critical statement:
If the revised standards are not met,
- a change from “Business Manager” to “Highly Skilled Professional (Business Management)”
- and permanent residence applications
will not be approved.
This single paragraph reveals the true impact of the reform.
The Reform Affects Permanent Residency More Than Renewals
Many foreign business owners in Japan follow a typical life plan:
- Stay in Japan for several years on a Business Manager visa
- Apply for permanent residency
However, the notice makes it clear that:
If the new standards are not met, the path to permanent residency itself may be blocked.
This is not merely a tightening of renewal conditions.
It is a change that affects:
- Long-term residence prospects
- Eligibility for higher-status visas
- Overall immigration strategy
In other words, the reform reshapes the entire residency career path for foreign entrepreneurs.
The End of the “Paper Company” Route to Permanent Residency
The message behind the notice is clear.
Businesses with the following characteristics may face serious risks:
- Minimal or no revenue
- No employees
- Only a home office
- Little or no actual business activity
Under the new framework:
Permanent residency may be denied if the business lacks substance.
In the past, some applicants assumed that:
- As long as they stayed in Japan for a certain number of years,
- Permanent residency would eventually be possible.
The new policy direction suggests that this assumption will no longer hold true.
From now on, only business owners with real operational achievements are likely to qualify for permanent residency.
The Highly Skilled Professional Route Is Also Affected
The notice also states that a change to:
- Highly Skilled Professional (Business Management field)
will not be permitted if the revised standards are not met.
This is significant because the Highly Skilled Professional status offers major benefits:
- Faster path to permanent residency
- Open work authorization for spouses
- Permission to bring a domestic helper
However, under the new rules:
Business managers who do not meet the revised standards may be excluded from this preferential route as well.
The Type of Business Owner Japan Now Expects
The notice provides a clear picture of the type of business manager the immigration authorities want to see.
The Expected Profile
- A separate, dedicated business office in Japan
- At least one full-time employee
- Sufficient business assets
- Basic Japanese communication ability
- Proven management experience or expertise
In short, Japan now expects:
Business owners who operate real companies and are rooted in Japanese society.
Existing Residents Are Not Exempt
The notice also explains that even current Business Manager visa holders will be affected.
It states that:
After three years from the enforcement date, renewal applications must meet the revised standards.
This means:
- Around 2028, renewals will be assessed under the new criteria
- Existing residents will not be permanently grandfathered in
For those planning to apply for permanent residency, this effectively creates a three-year preparation window.
Practical Steps Business Owners Should Take Now
Entrepreneurs who aim for permanent residency or Highly Skilled status should start preparing immediately.
Recommended Practical Measures
- Secure a separate, dedicated office
- Consider hiring at least one full-time employee
- Stabilize revenue and business assets
- Improve Japanese language ability
- Document business performance (financial statements, contracts, etc.)
If your current situation includes:
- No employees
- Very low revenue
- Only a home office
then it may be necessary to rethink your entire residency strategy.
Conclusion: The Core Message of the Reform
The essence of the 2025 reform can be summarized in one sentence:
Without a real, functioning business, permanent residency will become increasingly difficult.
The immigration notice should be read not merely as:
- An explanation of renewal criteria
but rather as:
- A warning about access to permanent residency and highly skilled pathways.
For business managers who see the Business Manager visa as a stepping stone to permanent residency,
the next three years will be a critical period to build a solid and sustainable business foundation in Japan.