Kritika 
(C): Unsplash
Japan’s business visa policy has been updated—and for thousands of international business owners who currently operate businesses in Japan, the changes make a big difference. Capital requirements have increased significantly, new conditions for eligibility have been added, and foreign business owners now have three years to comply or risk losing their right to remain. From startups to established businesses, here is what you need to know about starting your business in Japan.
Quick Facts on Japan Business Visa Rules
| Category | Details |
| What changed | The capital and eligibility requirements for the Business Manager Visa are set out below: |
| When | Late 2025 rules by the ruling party |
| Capital requirement (old) | ¥5 million (~$30,000) |
| Capital requirement (new) | ¥30 million (~$185,000) |
| Grace period | This is applicable to existing holders of a visa who are required to obey within 3 years. |
| Who’s affected | Individuals who are self-employed, businessmen or entrepreneurs in Japan who are foreigners. |
| Broader context | As Japan’s overall immigration and foreign investment policy becomes more stringent. |
What Are the New Japan Business Visa Rules?
The new business visa regulations focus on the most important business visa category, the Business Manager Visa, which mostly applies to foreign nationals desiring to start, operate or manage a business in Japan.
The biggest change that has caught the headlines is the hike in the capital requirement, which has grown six times:
| Requirement | Previous Rule | New Rule |
| Minimum capital | ¥5 million (~$30,000) | ¥30 million (~$185,000) |
| Time allowed to current owners of existing licenses. | N/A | 3 years |
| Business structure | Company registration required | Company registration required |
| Physical office | Required | Required |
These requirements apply to new applicants at the time of their application. Business owners who already have the visa have three years to catch up to the new thresholds, but the clock has already been ticking.
Why Is Japan Tightening Its Business Immigration Rules?
Although Japan’s immigration policy has long been conservative, the number of foreigners in the country, foreign visitors and foreign investment increased significantly in recent years, with an emphasis on real estate. Some quarters have been feeling the heat of the backlash, concerns over rising land values, over-tourism, and the rate of foreign investment in local real estate markets is growing.
This has been met with a blanket tightening from the government in several areas, including increases in the fees charged to tourists for visas (up fivefold for some categories), a rise in the departure tax to ¥3,000 (~$18) for all travellers, and now more stringent requirements for the Business Manager Visa. The objective is a more selective, high-value foreign investment and business immigration drive in Japan.
Who is impacted?
The surge in capital needs is being felt the hardest by small and micro business owners, especially those operating in immigrant-rich urban neighbourhoods such as restaurants, retailers and service providers. There are quite a few of these that are profitable and community-based but run with much lower than the new ¥30 million level of capital.
So, let’s say that the foreign entrepreneur came to Japan as a student, spent several years building a business and ended up with a Business Manager Visa. Now, he is in a major compliance issue, even if his business is doing well by all other metrics.
The three-year grace period gives a bit of breathing room, but for those companies that can’t afford to increase or show capital of ¥30 million, the future remains unclear.
What About the Japan Startup Visa?
Japan’s Startup Visa (officially known as the Foreign Startup Activity Promotion Program) provides an extra year-long preparatory period for entrepreneurs wishing to start a business in Japan but in need of time before making an all-or-nothing decision. It is offered via the designated municipalities and allows entrepreneurs a period of transition from registration of the company, finding office space, to developing a business plan, before they become full Business Manager Visa holders.
The new capital requirements make the Startup Visa route a planning tool — providing foreign entrepreneurs time to put their business in place before these requirements kick in on their principal visa application.
How to Approach the New Rules: Key Steps
Moving to and living in Japan like a business person, or moving there on a Business Manager Visa, is a different world and here are some tips for navigating it:
- Re-assess your current capital state against the benchmark of ¥30 million at once
- Talk to a Japanese immigration lawyer — the guidelines for what is considered “capital” are not straightforward
- For those who are planning and have not yet incorporated, check out the Startup Visa path.
- See the expiration date of your visa — the three-year grace period is not calculated from the date of your next visa renewal, but rather from the date that the rules came into effect.
- Don’t wait! 3 years may seem like a long time, but doing business in a way that requires 6 times as much capital will take some time.
FAQs
Do these changes include all foreign workers in Japan?
No, these changes are for the Business Manager visa route only. This update does not directly impact most employment visas or other work visas.
Do you need cash of ¥30 million?
Immigration rules define capital as the amount of paid-in capital of a registered company. This can be organised in various ways, and different criteria may apply; professional immigration advice is recommended.
What if I’m starting out fresh? Can I still apply for a Japan Business Manager Visa?
Yes, but new applicants will have the higher threshold immediately. The grace period only applies to people who already have the visa under the previous rules.
If they are unable to meet the new requirements within the three years, what happens to those who already have visas?
It is possible that they won’t be allowed to renew their visa. For those small business owners who are now being run under the old regulations, this may be their primary worry.
Can foreigners still start up a business in Japan?
Although the new Japan business visa regulations indicate that the country is moving away from micro enterprises and sole traders, the country remains open to foreign business immigration.
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