Media

Recently, Japan’s Immigration Services Agency announced the latest draft amendment to the ministerial ordinance concerning the residence status for foreign entrepreneurs — the “Business/Managerial” visa — which is expected to take effect in October 2025.

At the same time, multiple Japanese media outlets reported that the new rules will introduce a mandatory Japanese language requirement: the applicant or one of the full-time employees must possess B2-level (Upper-Intermediate) Japanese proficiency. This marks the end of the “low-barrier entrepreneurship” era, meaning that foreign entrepreneurs will face higher entry requirements when starting a business in Japan.

Policy Tightening: Shifting Focus from Quantity to Quality

 

 

In recent years, the “Business” visa has attracted a large number of foreigners to Japan under the pretext of entrepreneurship, thanks to its low entry barriers and convenient procedures. However, some companies existed only on paper, and cases of illegal short-term rentals and shell companies used to obtain visas have emerged. These not only increased regulatory costs but also caused social friction.

Therefore, the Japanese government’s policy tightening aims to:

• Prevent the establishment of shell companies with low capital and curb exploitation of regulatory loopholes;
• Emphasize employment and sustainable development, shifting the policy focus from quantity to quality;
• Align with entrepreneurship visa systems in Europe and the U.S., enhancing international competitiveness;
• Ensure that entrepreneurs possess sufficient social integration capabilities, which is why the new Japanese language requirement has been introduced.

 

Overview of Key Changes

 

 

Implementation Timeline and Transition Arrangements

 

 

Current Stage: The draft ministerial ordinance has entered the public consultation phase.

Expected Implementation: Mid-October 2025

Transition Measures: The specific effective dates (e.g., date of enactment, application acceptance date, approval date) will be clarified upon official announcement.

*For current visa holders, updates and reviews are likely to refer to the new standards, but the Immigration Services Agency will handle each case flexibly on an individual basis.

Affected Groups:

• Individuals with limited funds who hope to switch from short-term stay or student visasto a business/entrepreneurship visa;
• Applicants with insufficient qualifications or inadequate proof of capital;
• Small-scale entrepreneurs who lack the capacity to hire and manage employees.

 

Response Strategies: How to Establish Yourself Under the New Regulations

 

 

Entrepreneurs with Strong Financial Capacity

• Design business models strictly in accordance with the new regulations;
• Provide legal and transparent proof of funds (bank statements, contracts, asset certificates);
• Employ at least one qualified full-time employee and establish a complete labor management and social insurance system.

Highly Educated, High-Income Talent

• Consider applying for a Highly Skilled Professional visa;
• Applicants with 70+ points can obtain a residence status of up to 5 years;
• Eligible to apply for permanent residency within 1–3 years.

Creative Entrepreneurs with Limited Funds

• Can first apply for a Start-up Visa, gaining a 6–12 month preparation period;
• During this period, carry out fundraising, company registration, and office leasing;
• After meeting the financial, staffing, and language requirements, apply for the Business/Managerial visa.

Applicants with Insufficient Japanese Language Skills

• Start systematic Japanese study in advance, aiming for B2 (Upper-Intermediate) proficiency;
• Alternatively, hire one qualified Japanese full-time employee to meet the language requirement, providing flexibility under the new rules.

 

Is It Worth Getting a Head Start?

 

 

If you wish to apply under the current system (capital JPY 5 million) before the new regulations take effect, you need to complete the following in advance:

• Company incorporation, office leasing, bank account opening, capital deposit, registration, tax filing, and immigration application;
• Submit a detailed business plan, including client sources, revenue model, and income/expenditure projections;
• Ensure that the source of funds is clear and reliable, supported by bank statements, contracts, or other proof;
• Office premises must be suitable for commercial use, as residential or virtual offices are generally not acceptable;

The entire approval process typically takes 6–9 months, but the key factor is the submission timing. As long as the company setup and documentation are completed and the application is officially submitted to the Immigration Services Agency of Japan before the new regulations take effect in October, the application will still be processed under the current system.

 

Why Applications Are Often Rejected

 

 

Many applicants are often rejected for the following reasons:

1. The business plan is too generic, lacking support from real market data;
2. The source of funds is unclear(e.g., short-term transfers or loans);
3. Office premises do not meet requirements(e.g., using a residential lease or shared workspace).

 

Key Elements of a Successful Business Plan

To improve the chances of approval, a business plan should be as specific and verifiable as possible, and at a minimum include:

Market Rationale

Target customer segments, client acquisition channels, and potential partnership contracts.

Financial Planning

Profit and loss statements and cash flow forecasts for the next 12–24 months, along with capital allocation and operational budget.

Governance Structure

Compliance statements regarding accounting, taxation, and labor management.

Employment Plan

Employee roles, salary standards, start dates, and social insurance arrangements.

Expert Confirmation

Include review comments from a certified SME management consultant.

 

Conclusion

Japan’s new regulations for the Business/Managerial visa have raised the entry requirements across capital, employment, and Japanese language proficiency. While this may seem to make applications more difficult, it also signals that the policy is increasingly favoring high-quality entrepreneurs.

For applicants who are truly capable and well-prepared, the changes can have positive effects:The overall market credibility will improve;Qualified entrepreneurs will be more easily identified, creating a fairer competitive environment;With early preparation, legal compliance, and a professional business plan, it becomes easier to stand out from the crowd.