Business Manager Visa: 30 Million Yen Capital Requirement Explained

If you want to start or run a company in Japan as a foreigner, the status of residence you usually need is Business Manager. The capital requirement was long known as the 5 million yen rule, but under the revised landing criteria effective October 16, 2025, the threshold is now capital or total business investment of at least 30 million yen (¥30,000,000), together with the mandatory employment of at least one qualifying full-time employee — this guide explains what the new requirements really mean, where the money can come from, and how Immigration checks them. But the capital figure is only one piece. Approval depends just as much on a genuine independent office, a credible business plan, and an operation that looks real, stable, and continuous.

This guide explains the Business Manager visa in practical detail for the person actually applying: the meaning of the 30 million yen capital requirement, the mandatory full-time employee requirement, and other criteria including language and background requirements, the office requirement, the documents you must prepare, the step-by-step procedure, processing time, realistic costs, what the screening officer is really checking, the most common reasons applications are refused, and a focused FAQ. The goal is to help you build an application that survives scrutiny the first time.

What the Business Manager Visa Is

The Business Manager status of residence permits a foreign national to operate or manage a business in Japan. It covers two broad situations: starting and running your own company (as a representative director or executive), and being engaged in the management of an existing business in Japan (for example, an investor sent to manage a Japanese subsidiary).

• It is fundamentally different from work statuses such as Engineer / Specialist in Humanities / International Services, which are for employees performing specialist work under an employer.
• Under Business Manager status you are the one directing the business — making management decisions, bearing business responsibility, not simply being employed.
• The legal basis is the Immigration Control and Refugee Recognition Act and the Ministerial Ordinance on Criteria, supplemented by the Immigration Services Agency's published guidelines on what counts as a genuine, stable, and continuous business.

Who Needs This Status

You generally need Business Manager status if you are:

• A foreigner founding a company (kabushiki kaisha or godo kaisha) in Japan and acting as its representative.
• A foreigner buying or taking over an existing Japanese business and managing it.
• An executive or manager dispatched by an overseas parent company to run its Japanese subsidiary or branch.
• A foreigner already in Japan on another status (for example a student or an employee) who wants to change status to run their own business full-time.

The 30 Million Yen Capital Requirement

The best-known requirement is the scale of business condition. Under the revised ministerial ordinance effective October 16, 2025, the business must have capital or total investment of at least 30 million yen, and must also employ at least one full-time employee who is a Japanese national, special permanent resident, or a foreign resident with unrestricted work status such as Permanent Resident, Spouse or Child of Japanese National, Spouse or Child of Permanent Resident, or Long-Term Resident. The former 5 million yen threshold and the alternative two-employee route no longer apply to new applications.

Key points that are often misunderstood:

• The 30 million yen is capital or total business investment provided for the business, not a fee paid to anyone and not money that simply sits frozen. It becomes the company's working capital — you can and should use it to actually run the business (office, equipment, inventory, initial operating costs).
• It is set as the company's stated capital on incorporation in the great majority of cases, and the funds are deposited into the corporate (or founder's) bank account to prove they exist.
• The figure is a threshold for "scale of business," not a guarantee of approval. Meeting it does not by itself secure the visa; the business plan, office, and feasibility still must convince Immigration.
• It is not a deposit you get back from Immigration — it is your real investment into your real company.

Source of Funds — How Immigration Checks It

Where your 30 million yen comes from is examined as carefully as the amount. Immigration wants the money to be lawful and clearly traceable. Acceptable sources, with proper evidence, include:

• Your own accumulated savings — shown through bank statements covering a reasonable period, ideally demonstrating how the balance was built up.
• A gift from family — supported by a gift agreement, the giver's proof of funds, and remittance records into your account.
• A legitimate loan — with a loan contract, evidence of the lender's funds, and a realistic repayment plan. Be aware heavy debt can weaken the business plan's credibility.
• An overseas remittance — with international transfer records linking the foreign source to your Japanese account.

What causes problems:

• Funds of unexplained origin, or a large deposit appearing just before incorporation with no backstory.
• Money that passes through your account briefly then leaves (a sign of borrowed "show money").
• Inconsistencies between your declared savings, your past income, and your tax records.

The Mandatory Full-Time Employee Requirement

Until October 15, 2025, the business could satisfy the "scale of business" criterion through either capital or by employing at least two full-time staff residing in Japan. The revised ministerial ordinance effective October 16, 2025 abolished that choice: the business must now have both 30 million yen in capital or total business investment and at least one qualifying full-time employee. Eligible employees are Japanese nationals, special permanent residents, or residents with the status of Permanent Resident, Spouse or Child of Japanese National, Spouse or Child of Permanent Resident, or Long-Term Resident; holders of working statuses such as Engineer / Specialist in Humanities / International Services do not count.

• The full-time employee must be genuinely full-time and properly enrolled in social and labor insurance; part-timers or paper hires do not count.
• The business must be large enough to be recognized as a real, stable, continuous operation, with the capital and employee working together to demonstrate genuine scale and viability.

The Office Requirement

Many applications fail not on capital but on the office. Immigration requires a physical, independent business premises secured in Japan before approval.

• The space must be used for business and separate from living quarters. A plain residential apartment used as a home is normally not accepted.
• A virtual office or a mere mailing address with no dedicated, usable space is generally rejected.
• If you rent, the lease should permit business use and ideally be in the company's name (or be transferable to it). A lease that forbids commercial use undermines the application.
• The office should look operational: desks, equipment, a company nameplate or signage, and a realistic relationship between the space and the planned business.
• After the October 16, 2025 amendment, using a home as the business office is in principle not accepted, because the premises must be appropriate to the revised scale and operation requirements. A separate, independent office lease is the required approach.

The Business Plan and "Stability and Continuity"

At the heart of every Business Manager decision is a single question: is this a genuine business that can stably and continuously operate? The business plan is where you answer it.

A convincing plan typically includes:

• A clear description of what the business sells, to whom, and why customers will buy.
• Concrete evidence of demand — letters of intent, supplier or client contracts, quotations, a website, or early sales where possible.
• Realistic financial projections for at least the first one to three years, with sales, costs, and the path to profitability explained, not just optimistic numbers.
• A logical link between the 30 million yen capital and how it is spent (office, equipment, inventory, marketing, running costs).
• Your own relevant background — either at least three years of experience in business management, or a doctoral, master's, or professional degree in business management or a field involving the technology or knowledge necessary for the business.

Required Documents

The exact list varies with the business and whether you apply for a Certificate of Eligibility (COE) or a change/extension of status, but a typical Business Manager filing includes:

• Application for the Certificate of Eligibility (or change/extension form) and a photograph.
• Company registration certificate issued by the Legal Affairs Bureau.
• Articles of incorporation of the company.
• Proof of capital — bank statements / passbook copy showing at least 30 million yen in capital or business investment deposited, plus documents tracing the source of funds.
• Business plan with financial projections, confirmed by a qualified professional such as a small and medium enterprise management consultant or certified public accountant (required for applications from October 16, 2025).
• Full-time employee evidence — employment contract, payroll and social insurance records, and confirmation that the employee is a Japanese national, special permanent resident, or a foreign national with unrestricted work status.
• Japanese-language ability evidence — JLPT N2 or equivalent (B2 level or above) for the applicant or relevant full-time employee.
• Management background evidence — the applicant's three or more years of business management experience, or a master's or professional degree in business management or a related field.
• Full-time employee evidence — employment contract, payroll and social insurance records, and confirmation that the employee is a Japanese national, special permanent resident, or a foreign national with unrestricted work status.
• Japanese-language ability evidence — JLPT N2 or equivalent (B2 level or above) for the applicant or relevant full-time employee.
• Management background evidence — the applicant's three or more years of business management experience, or a master's or professional degree in business management or a related field.
• Office evidence — lease contract, floor plan, interior and exterior photos, and the building's registration where relevant.
• Company seal certificate and seal registration.
• Tax and public-dues documents as applicable (notification of establishment to the tax office, and for renewals, corporate and withholding tax records).
• For renewals: financial statements, evidence of social insurance enrollment, and proof of ongoing operation.
• Your personal documents — passport, residence card (if in Japan), CV/career history, and any relevant qualifications.

Note how this differs from other statuses: a naturalization application, by contrast, requires an entirely different and far broader document set (family register or birth documents, proof of continuous residence, income and tax records, evidence of livelihood, and a personal statement of motive), while an Engineer / Specialist in Humanities / International Services application focuses on the applicant's degree or experience and its relationship to the job duties. The Business Manager file is distinctively about the company and its viability.

Step-by-Step Procedure

Processing Time and Realistic Costs

Processing time has two parts. The setup before filing — securing funds and office, incorporating, opening the bank account — usually takes one to two months. The Immigration review of a Certificate of Eligibility then typically takes one to three months, sometimes longer for complex cases. Plan for a realistic total of three to six months.

Realistic costs beyond the 30 million yen capital itself (which stays in your business) commonly include:

Remember the 30 million yen is your working capital, not a sunk fee — it funds the actual business. The figures above are the additional setup costs.

What the Screening Officer Checks

Behind every document, the officer is testing a few core judgments:

• Is the 30 million yen capital or total business investment real and lawfully sourced? — not borrowed show money.
• Is there at least one qualifying full-time employee? — not a paper hire or an employee who does not count under the current criteria.
• Is there a genuine, independent office? — not a virtual address or a home used as the business office.
• Is the business plan feasible and properly confirmed by a qualified expert? — realistic customers, revenue, and a path to continuity, with the required confirmation by an expert such as a Small and Medium Enterprise Management Consultant, certified public accountant, or tax accountant.
• Does the applicant meet the Japanese-language and background requirements? — B2-level Japanese ability through the applicant or relevant full-time staff (such as JLPT N2 or equivalent), and the applicant's required management experience or relevant graduate-level degree.
• Do the documents agree with each other? — registration, bank records, plan, and tax filings tell one consistent story.
• Will the business be tax- and insurance-compliant? — an operation that ignores obligations is not "stable."

Common Reasons for Refusal

• Weak or vague business plan — no clear customers, suppliers, or revenue logic; numbers that look invented.
• Undocumented capital — the 30 million yen exists but its source cannot be traced, or it appears and disappears.
• No genuine office — virtual office, home apartment, or a lease forbidding business use.
• Role looks like employment — the applicant appears to be a regular worker rather than a manager directing the business.
• Document inconsistencies — mismatches between the application, the company registration, the bank records, and tax filings.
• Unrealistic for the industry — a business that legally cannot operate without a license it does not have, or projections that cannot cover costs.
• Insufficient applicant credibility — no relevant experience and no convincing explanation of how the business will be run.

Renewal, Period, and Permanent Residence

• Status periods are 5 years, 3 years, 1 year, 6 months, 4 months, or 3 months. First-time applicants often receive 1 year; longer periods follow a track record of stable operation and clean compliance.
• Renewal focuses on whether the business actually operated: financial statements, tax payment, social insurance enrollment, and continued office and activity. A company that filed losses can still renew if the plan and finances are credible, but persistent unexplained losses are a risk.
• Toward permanent residence: the general route requires around 10 years of continuous residence (with at least 5 years on a work status), proper tax and pension payment, and good conduct. In addition, after the October 16, 2025 amendment, a Business Manager applicant who does not meet the revised Business Manager criteria may be unable to obtain permanent residence from this status, so compliance with the new requirements is important.
• Naturalization is a separate Ministry of Justice process with its own broad document set; a stable Business Manager track record and clean tax history help, but the criteria and paperwork differ entirely from a visa renewal.

How It Compares to Other Statuses

The crucial distinction: the Engineer / Specialist in Humanities / International Services status turns on the relationship between your education or career and the specific job, and you work for an employer. Business Manager turns on whether your company is a genuine, viable business that you actually manage. Choosing the right status from the start avoids wasted incorporation costs and refused applications.

Frequently Asked Questions

Summary

The 30 million yen capital or total business investment requirement gets the most attention, but the Business Manager status is really decided on a broader question: is this a genuine, viable business that you actually manage and that satisfies the current legal criteria? Treat the capital as real business money with a clean, documented source, secure a real independent office, employ a qualifying full-time staff member, ensure B2-level Japanese ability, demonstrate your required management experience or relevant degree, and build an expert-confirmed business plan that an officer can believe. Do those things well and the application stands on stronger ground.