Significant revisions to the eligibility criteria for the "Management" visa will take effect on October 16, 2025As a result, not only for new applications but also for renewal reviews of individuals already residing in Japan on a Management and Administration Visa, the actual state of the business, the stability of the company, and compliance with public obligations—such as taxes, social insurance, and labor insurance—have become more important than ever.
Revisions to the Licensing Standards for "Business Management" (Effective October 16, 2025)https://www.moj.go.jp/isa/content/001448070.pdf
This article is intended for individuals in Japan who hold a Management and Administration Visa and operate a company. It outlines the differences between the pre- and post-amendment regulations, the transitional measures applicable to existing visa holders, and practical points to keep in mind when renewing their visas.
*This article provides a general explanation based on materials published by the Japan Immigration Services Agency.
The actual likelihood of renewal depends on the company’s financial results, tax payment history, social insurance enrollment status, business operations, and immigration history.
1. Renewing a Management Visa is not merely an extension of the term
The following factors are generally considered important during the renewal review.
- Are you actually engaged in management or administrative activities in Japan?
- Is the company operating in a continuous and stable manner?
- Are adequate facilities in place?
- Whether the business is deemed viable based on factors such as sales, profit and loss, and capital position
- Are they fulfilling their public obligations, such as paying taxes, social insurance, and labor insurance?
- Have you been away from Japan for an extended period without a valid reason?
- Does it meet the revised licensing criteria, or is it expected to meet them in the future?
In other words, the renewal review is not a process that is automatically approved simply because you currently hold a visa; rather, it is a process designed to re-examine the actual state of your business and your compliance with legal obligations as of the date of application.
2. Key Changes Introduced by the October 16, 2025, Amendment
Effective October 16, 2025, the eligibility criteria for the Management and Administration Visa have been tightened. The following five points, in particular, are of significant importance even for current holders of the Management and Administration Visa.
| (data) item | Practical standards prior to the amendment | Revised Standards | Impact of the update |
|---|---|---|---|
| Hiring of Full-Time Staff | The main criteria for operation are a capital of 5 million yen or more or two or more full-time employees. | At least one full-time employee must be hired | For existing sole proprietorships, it is important to explain future hiring plans or current hiring practices |
| Capital, etc. | 5 million yen or more is the general standard | Capital of 30 million yen or more is required | Existing companies must also meet the requirements for renewals on or after October 16, 2028, as a general rule. |
| Japanese Language Proficiency | It was not explicitly highlighted as a separate requirement | Either the applicant or a full-time staff member must have Japanese language proficiency equivalent to Level B2 or higher (JLPT N2). | Supporting documents such as proof of JLPT N2 certification, a BJT score of 400 or higher, or graduation from a Japanese institution of higher education are important |
| Work Experience and Education | His business experience and management skills were highly regarded in the workplace | A master’s, doctoral, or professional degree in a related field, or at least three years of experience in business or management, is required. | It is important to provide background information on the representative and an explanation of how this relates to the business |
| A document providing a detailed description of the business management or administrative activities carried out during the most recent period of stay | Important for new applications and certain renewals | In some cases, verification by a management expert may be required. | You may be required to submit evaluation documents prepared by certified management consultants, certified public accountants, tax accountants, and others |
After the amendment, the mere fact that a company exists is no longer sufficient. It will be important to demonstrate a business foundation of a certain scale, managerial expertise, the ability to communicate in Japanese, and the feasibility of a long-term business plan.
3. Will current holders of business and management visas be denied immediately?
Many people are concerned about whether they will be able to renew their visa if they are already residing in Japan on a Management or Executive visa but cannot immediately meet the requirements for a capital of 30 million yen or full-time employees.
In this regard, official documents provide for certain transitional measures for holders of existing management and executive visas.
Already"Business and Management"who are residing in Japan, Until the date falling three years after October 16, 2025, namely October 16, 2028When applying for an extension of the period of stay, the system is not designed such that an application is automatically and mechanically denied solely on the grounds that the applicant does not meet the revised criteria.
However, the decision on whether to grant or deny the request will be made after taking the following factors into comprehensive consideration.
- Current Business Conditions
- Business Continuity
- Status of Compliance with Tax and Other Public Obligations
- Expected to meet the revised licensing criteria in the future
- Other Residence Statuses
- Whether a written evaluation by a management expert has been submitted
Practical Points
While the period up to October 16, 2028, can be viewed as a sort of preparation period, this does not mean that you can renew your license without making any preparations. With each renewal, there is an increasing need to explain how you are preparing to meet the revised standards.
4. As a general rule, compliance with the revised standards will be required starting October 16, 2028.
After the transitional period ends, that is,On or after October 16, 2028When applying to renew a Management and Administration Visa, applicants must, in principle, meet the revised eligibility criteria.
Therefore, current holders of business and management visas need to make long-term preparations for the following matters.
| Items to Prepare | Items to Check |
|---|---|
| capital stock | Are there plans to raise capital to 30 million yen or more? |
| full-time staff | Can we hire full-time employees who meet the criteria, such as Japanese nationals, special permanent residents, permanent residents, and spouses of Japanese nationals? |
| Japanese Language Proficiency | Can you provide proof that the representative or a full-time staff member possesses Japanese language proficiency equivalent to JLPT N2 or higher? Alternatively, are there any full-time staff members who possess a comparable level of Japanese proficiency? |
| Work Experience and Education | Can you provide proof that the representative has at least three years of management experience or holds a relevant degree? |
| business plan | Are the future sales, employment, investment, and business plans specific? |
| taxes and public dues | Are there any issues regarding non-payment or non-enrollment in taxes, social insurance, or labor insurance? |
In particular, the requirement for 30 million yen in capital may be difficult to meet within a short period of time. Holders of existing Management and Administration Visas need to prepare capital increases, hire staff, and refine their business plans with a view not only to their next renewal but also to the one after that.
5. Compliance with taxes and public charges, which is particularly important during renewal
According to the revised official guidelines, when renewing a Management and Administration Visa, Status of Tax and Public Charge PaymentsIt is reported that they have confirmed this.
In simple terms, "public taxes and levies" refers to the public obligations—such as taxes, social insurance, and labor insurance—that companies or self-employed individuals are required to pay.
Key items that may be reviewed for corporations
| classification | Key Points to Verify |
|---|---|
| labor insurance | Acquiring eligibility for employment insurance, paying employment insurance premiums, and applying for workers' compensation insurance |
| social insurance | Enrollment in Health Insurance and Employees' Pension Insurance |
| National Tax | Withholding income tax and Special Income Tax for Reconstruction, corporate income tax, consumption tax, and local consumption tax |
| Local taxes | Corporate Resident Tax, Corporate Business Tax |
If you have employees but have not properly filed for employment insurance or social insurance, or if you have outstanding payments for corporate income tax, consumption tax, or corporate resident tax, this may be viewed negatively during the renewal review.
The Business Management Visa is a status of residence granted to "business owners who operate a business legally and stably in Japan." Therefore, tax and social insurance issues are not merely accounting matters; they are also critical factors in the visa screening process.
6. Risks Associated with Leaving Japan for an Extended Period
The Business Management Visa is a status of residence granted to individuals engaged in the management or administration of a business in Japan. Therefore, if you leave Japan for an extended period without a valid reason during your period of stay, it may be determined that your actual activities in Japan are insufficient.
For example, in the following situations, a statement of reasons or supplementary materials may be required.
- If you have been abroad for an extended period for business reasons, such as overseas sales, client visits, or meetings at headquarters
- In cases of unavoidable circumstances such as family matters, illness, childbirth, or caregiving
- Although the Japanese subsidiary continued to operate, in cases where the representative was abroad for an extended period
- If employees or executives in Japan were responsible for the actual operations
In some cases, simply stating that “I was abroad but the company continued to operate” is insufficient. It is important to provide specific details regarding the necessity of your departure, your relationship with the Japanese subsidiary, the system of supervision and management within Japan, and your activities upon your return.
7. Can a company operating at a loss renew its management and administration visa?
Being in the red does not automatically mean that your application to renew your Business Management Visa will be denied. However, if you are consistently operating at a loss, are insolvent, or have virtually no revenue, you will need to provide an explanation regarding the sustainability and stability of your business.
In particular, we need to clarify the following points.
- Reasons for the deficit
- Is it a temporary deficit or a structural deficit?
- Is there any prospect of a recovery in sales?
- Are there any specific contracts, quotes, business negotiations, or ongoing transactions?
- How are the representative's living expenses covered?
- Do you have any plans for future capital increases, borrowing, cost reductions, or the launch of new business ventures?
It is important not to simply say, “We’ll do our best going forward,” but to present a concrete improvement plan based on figures and objective data.
In some cases, it may also be necessary to submit a written opinion or evaluation report prepared by an expert, such as a certified management consultant.
8. What will happen to visa renewals for sole proprietors in the future?
Following the amendment, the requirement to employ at least one full-time staff member has been explicitly established as a key criterion. For companies that have previously been operated by a single representative, a comprehensive assessment may be conducted during the transitional period even if they do not yet meet the revised criteria.
However, we need to consider our long-term hiring plans.
In particular, it is advisable to prepare the following items.
- Reasonable reasons for currently running the business alone
- Distinguishing Between Outsourcing and Contract Work and the Representative’s Management Activities
- Future Plans for Hiring Full-Time Staff
- Hiring Schedule, Job Description, Expected Salary
- Preparing for Social Insurance and Employment Insurance Enrollment
- Sales Volume and Employment Potential
It is important to note that simply having business contracts or outsourcing arrangements does not, in and of itself, satisfy the employment requirements for full-time staff. Furthermore, if the applicant’s actual management activities are minimal and the structure effectively delegates all operations to the contractor, the eligibility of the activities for the Management and Administration Visa may itself be called into question.
9. When should I start preparing to renew my Executive/Managerial Visa?
You can apply to renew your Management and Administration Visa approximately three months before the expiration date of your period of stay. However, since it is necessary to verify financial statements, tax records, social insurance records, employment relationships, and documentation regarding the actual state of your business, it is advisable to begin reviewing these materials at least three months in advance, and ideally four to six months in advance.
In particular, you should consider this as soon as possible if any of the following apply.
- If the most recent financial results show a loss
- If sales have dropped significantly
- If your company has not yet generated sufficient revenue after its establishment
- If you have no employees or your social insurance procedures are not in order
- If you have spent an extended period abroad
- If the office is similar in nature to a shared office, a home office, or a virtual office
- If you are planning to renew after October 2028
- If you have not yet met the requirement of a capital stock of 30 million yen
10. Summary: For future renewals of the Management and Administration Visa, the "substance of the business" and the "business plan" are crucial.
Following the 2025 revisions, renewing a Management Visa now requires more strategic preparation than ever before.
In particular, current holders of management and administrative visas must view the transitional period ending October 16, 2028, not merely as a grace period, but as a preparation period to bring their companies into compliance with the revised standards.
The following points will be important in future updates.
- The company is actually in operation
- The representative's management activities are clearly defined
- There are no issues regarding non-payment or non-enrollment in taxes, social insurance, or labor insurance
- If you plan to be abroad for an extended period, you must provide a reasonable explanation.
- Prepare in advance for the long term regarding the capital of 30 million yen, the hiring of full-time staff, Japanese language proficiency, and requirements for work experience and educational background.
- Prepare expert evaluation documents and specific business plans as needed
Renewing a Management and Administration Visa is not merely a matter of submitting documents; it is a process that involves explaining your company’s current status and future business plans to the Immigration Bureau. If you are facing a renewal, it is important to review your company’s current tax, labor, and business operations well in advance, rather than rushing to prepare just before your period of stay expires.
Consultation Regarding the Renewal of a Management Visa
We recommend that you verify the following points before submitting your renewal application.
- If you have not yet met the requirement of a capital stock of 30 million yen
- If you have concerns about employee hiring
- When a company is operating at a loss or experiencing a decline in sales
- If you have concerns about social insurance or taxes
- If you have a history of long-term stays abroad
- If you wish to apply for a 3-year or 5-year permit at the next renewal
- If your company needs to be brought into compliance with standards effective in 2028 and beyond
The process for renewing a Management Visa varies significantly depending on the company’s circumstances, including the documents required and the approach to explaining the company’s situation. It is important to accurately assess the current situation and consider the likelihood of renewal, any supplementary materials needed, and future plans for capital increases, hiring, and business operations.
Inquiry / Access
Horiuchi Gyoseishoshi Lawyer Office (Shinjuku, Tokyo)
Attn: Gyoseishoshi Scrivener Yukiko Horiuchi
Affiliation: Tokyo Gyoseishoshi Lawyers Association, Shinjuku Branch
Tokyo Immigration and Residency Management Bureau, Application Agency Gyoseishoshi Scrivener
Member of Foreign Employment Support Organization (FESO)
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