In August 2025, Japan’s Immigration Services Agency (ISA) entered the final stage of discussions to revise the minimum capital requirement for obtaining the “Business Management” residence status.
The current requirement of 5 million yen is set to increase sixfold to 30 million yen in principle.
The amendment is expected to take effect later this year, with the official implementation date to be announced.
Background of the Amendment: Ensuring System Integrity
Traditionally, foreign nationals could obtain the “Business Management” residence status by meeting one of the following conditions:
- A minimum capital or total investment of 5 million yen
- Employment of at least two full-time staff residing in Japan
However, concerns have emerged regarding companies established with only 5 million yen in capital and lacking substantial business operations. Some of these entities have been found to serve primarily as a means to acquire residence status, particularly in the real estate sector. To address these concerns and prevent visa misuse, the ISA aims to tighten standards to better reflect applicants’ business viability and financial credibility.
Current Statistics (As of June 2024)
As of the end of June 2024, there were 39,616 foreign nationals residing in Japan under the “Business Management” status. Among them, 37,005 (about 93%) were from Asian countries, with Chinese nationals comprising the largest group at 20,551 (approximately 52%).
Since the 2015 immigration reform, the number of individuals holding this status had been steadily increasing. However, in recent years, the net annual growth has slowed to between 1,500 and 4,000 people, reflecting a shift toward more stringent review processes.
As of the end of 2024, the total number of foreign residents in Japan had reached approximately 3.77 million, accounting for about 3% of the country’s total population.
Comparison: Current vs. Revised Requirements
[Capital Requirement]
* Current: 5 million yen or more
* Revised: 30 million yen or more (in principle)
[Full-Time Staff Requirement]
* Current: Employing two or more residents in Japan may substitute for capital
* Revised: Both capital and employment conditions may be required concurrently
[Implementation Timeline]
* Current rules: Applications still accepted
* Revised rules: Scheduled to take effect within 2025 (date pending)
Impact on SMEs and Recommended Actions
This revision will significantly raise the financial threshold for foreign entrepreneurs looking to start a business in Japan.
At the same time, the change may attract more serious and financially stable foreign business owners, potentially offering high-quality partnership opportunities for Japanese SMEs.
Japanese SMEs are advised to consider the following actions:
* If planning joint ventures or partnerships with foreign entrepreneurs, confirm the updated capital criteria and prepare accordingly
* If hiring foreign staff with future business ownership in mind, encourage early application under the current rules
* Review and reinforce internal procedures to support applications for “Business Management” residence status
**Our Office’s Services**
Our firm provides comprehensive support for foreign entrepreneurs and the Japanese businesses assisting them, including:
* Incorporation procedures for Kabushiki Kaisha (KK) and Godo Kaisha (GK)
* Licensing for secondhand goods dealers, restaurants, and other regulated businesses
* New and renewal applications for “Business Management” residence status
* Business plan drafting and financial planning assistance
* Document preparation, application review, and consultation on residence status changes
We also offer a free one-hour initial consultation. If you have questions about application schedules, required documentation, or the new requirements, please don’t hesitate to contact us.
**Reference:**
Asahi Shimbun, “Entrepreneur Visa to Be Tightened — Capital Requirement to Be Raised Sixfold to 30 Million Yen,” August 4, 2025
