Japan’s Immigration Services Agency has confirmed that it will significantly tighten the criteria for the popular Business Manager Visa by the end of 2025. This visa, once seen as an accessible entry point for entrepreneurs and small business owners, will soon require far higher levels of capital investment and staffing.
The current rules allow applicants to qualify with a minimum of 5 million yen (currently around USD 35,000) in capital or by employing two full-time workers. Under the new reforms, the threshold will rise to 30 million yen (about USD 200,000), and visa holders will also be required to employ at least one full-time staff member.
This sixfold jump in capital requirement places Japan’s criteria closer to those of South Korea and the United States, where business visa programmes already demand substantial financial commitments.
What is the Business Manager Visa?
The Business Manager Visa is one of Japan’s key residency categories for foreign entrepreneurs. It is designed to allow non-Japanese nationals to start, manage, or expand businesses within the country.
To qualify, applicants must traditionally demonstrate that they are actively managing a business in Japan. This involves securing a physical office space, submitting a viable business plan approved by the authorities, and either showing sufficient capital investment or employing staff to demonstrate serious business intent. Holders of the visa are permitted to remain in Japan for periods ranging from three months to five years, and renewals are possible as long as requirements continue to be met.
Until now, the bar for entry, with its relatively low capital investment stipulation, has been relatively accessible compared to many other countries. For this reason, the visa has become popular among small businesses and solo entrepreneurs as well as multinationals expanding globally, seeking to establish a presence in Japan without tying up excessive amounts of capital.
Why Japan Is Tightening the Rules on the Business Manager Visa
The move comes after years of criticism that Japan’s visa programme was too lenient, allowing some applicants to utilize it to enter the country primarily for residence purposes rather than creating businesses to positively impact the local economy. Notable numbers have established small-scale property rental operations — known as “minpaku” — with minimal investment. Authorities argue that the higher capital requirement will deter abuse and ensure that only serious entrepreneurs use the visa to build sustainable businesses.
At the same time, the decision highlights Japan’s complex relationship with foreign entrepreneurship. While the government has promoted its startup ecosystem through initiatives like the nationwide rollout of the Startup Visa, it is now creating steeper hurdles for those aiming to transition into longer-term residency through the Business Manager Visa.
For policymakers, the intent is clear: to attract high-value businesses that contribute meaningfully to Japan’s economy and workforce. But for many entrepreneurs, the change could put Japan out of reach.
Impact on Businesses and Entrepreneurs
Raising the capital requirement from 5 million yen to 30 million yen fundamentally alters the accessibility of the Business Manager Visa. For small business owners, self-funded founders, and early-stage startups, this amount of upfront capital is prohibitive.
Many businesses that may have previously used this route to establish a foothold in Japan — including service-based firms, niche consultancies, and small-scale creative ventures — could now be excluded. For foreign organisations testing the Japanese market, the new rules increase both financial and compliance risks at the very earliest stage of entry.
This creates a paradox: while Japan continues to face demographic challenges and a shrinking workforce, it is simultaneously raising barriers for the foreign entrepreneurs who might otherwise bring innovation and investment into the market.
Where EOR Solutions Come In
For companies reluctant or unable to commit 30 million yen in capital, an Employer of Record (EOR) service provider offers a practical and strategic alternative.
By partnering with an EOR such as Eos Global Expansion, businesses can employ staff in Japan without establishing a legal entity or meeting the capital requirements of the Business Manager Visa. This approach allows companies to test the Japanese market, hire local or foreign talent, and operate compliantly — all without tying up hundreds of thousands of dollars in upfront investment. Once their local business model is proven and successful, and headcount grows,many EOR clients then proceed to establish local entities (which Eos can do on their behalf ) and move the staff across.
EOR solutions remove the need for visa sponsorship, complex entity set-up, and extensive legal compliance. Instead, companies can focus on their business objectives while the EOR manages payroll, HR compliance, and employment contracts under Japanese law.
This model is particularly advantageous for:
- Companies exploring Japan for the first time and looking to test market viability
- Startups that want to scale gradually without overextending capital reserves
- Multinationals that need to establish teams quickly while avoiding administrative delays
In the current climate, where the cost of entry is rising sharply, EOR arrangements are emerging as a smarter, more cost-effective way to access the Japanese market.
Looking Ahead
The Japanese government’s decision to tighten the Business Manager Visa criteria underscores its desire to attract “serious” investment. But for many foreign businesses, the cost of compliance will be steep.
The good news is that opportunities in Japan remain plentiful, especially in industries like healthcare, technology, and advanced manufacturing. For companies willing to explore alternative pathways, EOR offers a faster, leaner, and less risky way forward.
At Eos Global Expansion, we help businesses stay agile in the face of regulatory change. As Japan’s immigration landscape evolves, our EOR services provide a reliable entry point for organisations that want to build in Japan without prohibitive upfront costs.
Contact Eos Global Expansion to discover how we can help your business expansion in Japan. Check our full-range of EOR services here or book a free consultation now.
