2026 Update: Business Manager Status of Residence Renewal and 3-Year Transitional Measures

On October 16, 2025, the permission standards for the Status of Residence “Business Manager” were significantly tightened. Several new requirements have been added, including capital of 30 million yen or more, employment of at least one full-time employee, and Japanese proficiency. Many individuals already residing in Japan with a Business Manager visa and operating businesses are likely concerned that they might face denial if they do not meet these new standards at their next extension. In conclusion, transitional measures for a period of three years from the enforcement date (until October 16, 2028) are available for those who have been residing in Japan prior to the enforcement. In this article, an Administrative Scrivener will clarify the details of these transitional measures, what will be reviewed during the extension, and what needs to be prepared by when, incorporating perspectives from foreign business owners themselves and HR professionals at companies accepting foreign talent.

For those who wish to learn more about the new standards for the Business Manager visa from the perspective of new acquisition, please also refer to our separate article: “Administrative Scrivener Explains Stricter Requirements for Business Manager Visa.” This article focuses on the “extension for those already residing in Japan.”

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1. The Current Concern: Those Who Already Hold the Visa, Rather Than Those Who Will Acquire It

The tightening of Business Manager visa requirements is often perceived as an issue for those planning to start a business and acquire the Status of Residence. However, in practice, the pressing concern is the extension for existing business owners who already hold a Business Manager visa and continue to operate their businesses.

If individuals who have been operating businesses with a capital of 5 million yen are suddenly required to have “30 million yen” at the time of their extension, many small and medium-sized businesses will find it difficult to comply. What we want to emphasize here is that the Immigration Services Agency has established transitional measures for those who have been residing in Japan prior to the enforcement. Before panicking and making hasty decisions, let’s first accurately confirm the overall picture of the system.

• 🤔 “Do I have to prepare 30 million yen for each extension?”
• 😟 “Do I (the business owner) personally have to meet the Japanese language requirement?”
• 📅 “What exactly do the transitional measures defer, and until when?”

We will answer these questions sequentially, based on primary sources (publicly released materials from the Immigration Services Agency).

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2. Review of the October 2025 Amendment – The Five New Standards

First, let’s review the main standards added by the amendment enforced on October 16, 2025 (Immigration Services Agency, “Regarding the Amendment of Permission Standards for ‘Business Manager’ and Other Matters”).

Item	Amended Standard
Employment of Full-time Employees	Employ at least one full-time employee (limited to Japanese nationals, Special Permanent Residents, or those with Status of Residence listed in Appended Table II of the Immigration Control Act)
Amount of Capital, etc.	30 million yen or more (for corporations, the amount of paid-in capital or total investment)
Japanese Proficiency	Either the applicant or a full-time employee must have a proficiency level of B2 or higher (for non-Japanese nationals and non-Special Permanent Residents, this can be proven by JLPT N2 or higher, BJT 400 points or higher, or graduation from a Japanese higher education institution, etc.)
Work Experience	Doctorate, Master’s, or professional degree in a related field, or at least 3 years of work experience in business management.
Business Plan	Mandatory confirmation by a business expert such as a Small and Medium Enterprise Management Consultant, Certified Public Accountant, or Tax Accountant (at the time of new Status of Residence determination)

Before the amendment, there was an optional system of “capital of 5 million yen or more, or at least two full-time employees,” and no Japanese language requirement. After the amendment, both capital and employee employment became mandatory, and a new criterion of Japanese proficiency was added. The fact that the requirements have not only “increased” but also “must be met simultaneously” represents a significant change for existing business owners.

The essence of the stricter Business Manager visa requirements is not merely an increase in monetary amounts, but rather that capital, employment, Japanese proficiency, work experience, and business plan confirmation have each become independent mandatory requirements.

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3. [Core Point] Transitional Measures for Three Years for Those Residing in Japan Prior to Enforcement

This is the core of this article. The Immigration Services Agency explicitly states that individuals residing in Japan with the “Business Manager” Status of Residence prior to the enforcement date (October 16, 2025) will be handled as follows:

In other words, for an extension application filed by October 16, 2028, even if the new standards such as 30 million yen in capital are not met at that time, it will not immediately lead to a denial solely on that basis, but rather a decision will be made after comprehensively considering the business conditions and the “prospect of meeting the new standards in the future.”

In addition, the following points are also indicated in the publicly released materials.

• In the review, you may be requested to submit a document evaluated by a business management expert.
• For applications for Extension of Period of Stay made after three years have passed from the enforcement date (after October 16, Reiwa 10), it is necessary to comply with the revised permission criteria.
• However, even after three years, if the revised criteria are not met, but the business situation is good, corporate taxes and other payment obligations are properly fulfilled, and there is an expectation that the new criteria will be met by the time of the next application for Extension of Period of Stay, the decision on approval or denial will be made by comprehensively considering other Status of Residence conditions.
• The same treatment applies to “Highly Skilled Professional (i) (c)” (which assumes “Business Manager” activities).

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4. Transitional Measures are Not an “Unconditional Grace Period” – Points to be Reviewed During Extension of Period of Stay

When hearing about Transitional Measures, it’s easy to misunderstand it as “you can renew without doing anything for three years,” but this is incorrect. Transitional Measures mean that “comprehensive consideration will be given even if the new criteria are not met,” and the review itself is not exempted. In particular, the following two points will be checked even during the Transitional Measures period.

(1) Fulfillment Status of Public Dues (Taxes and Insurance Premiums)

The Immigration Services Agency explicitly states that it will confirm the fulfillment status of payment obligations for public dues at the time of Application for Extension of Period of Stay. Specifically, these are as follows:

• Labor Insurance: Status of acquisition of insured person qualification for employment insurance, payment of insurance premiums, application procedures for workers’ accident compensation insurance, etc.
• Social Insurance: Acquisition of insured person qualification for health insurance and employees’ pension insurance, and fulfillment of social insurance premium payments.
• National and Local Taxes: For Corporations, withholding income tax, corporate tax, Consumption Tax, corporate inhabitant tax, corporate enterprise tax, etc. For sole proprietors, withholding/declared income tax, Consumption Tax, individual inhabitant tax, individual enterprise tax, etc.

Non-payment or non-enrollment in taxes and social insurance premiums may be negatively evaluated in the Extension of Period of Stay review, regardless of the presence of Transitional Measures. Before addressing the new criteria, ensuring the fulfillment of current tax and social insurance obligations is the starting point for preparing for Extension of Period of Stay.

(2) Evaluation of “Prospects” for Conforming to New Criteria

As mentioned in the previous section, during the review process within the Transitional Measures period, even if the new criteria are not met, whether there is a “prospect of conforming in the future” will be considered. To substantiate this prospect, you may be requested to submit a document evaluated by a business management expert (such as a Small and Medium Enterprise Management Consultant, Certified Public Accountant, or Tax Accountant). It is important to prepare concrete plans for capital enhancement and employee hiring as materials reviewed by experts, rather than acting on an ad hoc basis.

(3) Other Activity Status Reviewed During Extension of Period of Stay

The revised materials also indicate the following treatments related to Extension of Period of Stay:

• Using one’s home concurrently as a business office is generally not permitted (it is necessary to secure a business office appropriate to the scale, etc., after the revision).
• If the actual status of activities as a Business Manager is not sufficiently recognized, such as by engaging in outsourcing, it will not be recognized as engaging in activities falling under “Business Manager.”
• If a person has been out of Japan for a long period without justifiable reason during their Period of Stay, their Extension of Period of Stay may not be approved on the grounds that there is no actual activity in Japan.

In addition, Question 2 in the section of particularly frequent questions on the Immigration Services Agency’s page “Revision of the Landing Standards Ordinance, etc. for the ‘Business Manager’ Status of Residence” (in Japanese) cautions that there are cases where an Extension of Period of Stay is not granted even if there are no problems with business performance or tax payments. In an application for Extension of Period of Stay, compliance with the rules a business owner must follow is also checked. Problems with compliance with labor laws such as the Labor Standards Act and the Minimum Wage Act, with enrollment in and payment of social insurance, employment insurance, workers’ accident compensation insurance and the like, or with obtaining the permits and licenses required for the business, among others, are judged as negative factors in the review. If you employ staff, also check that working conditions and wage payments comply with the law.

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5. What Happens After Three Years (After October 16, Reiwa 10 / 2028)?

Transitional Measures have a deadline. For applications for Extension of Period of Stay made after October 16, Reiwa 10 (2028), it will generally be necessary to comply with the revised permission criteria (e.g., capital of 30 million yen or more, one or more full-time employees, Japanese proficiency).

It is important to note here that the three-year Transitional Measures period is a “grace period for preparation.” Even if one tries to suddenly meet the criteria after three years, capital enhancement and securing human resources cannot be achieved overnight. Planning and executing a gradual approach to meet the new criteria while the Transitional Measures are in effect is the only way to safely approach the Extension of Period of Stay three years from now.

Furthermore, if the revised permission criteria are not met after the enforcement date, Application for Permission for Permanent Residence from “Business Manager” or certain changes of Status of Residence related to Highly Skilled Professional are also said to be disallowed. Business owners who are considering Permanent Residence in the future are urged to take early action, keeping this point in mind.

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6. Options When It Seems Difficult to Meet the New Criteria

If it is anticipated that meeting the new criteria will be difficult within the Transitional Measures period, we will outline possible directions. As each case depends on individual circumstances, please make your final decision after consulting with an expert.

Direction	Overview	Points to Note
Grow the business to meet the criteria	Systematically proceed with capital increase, retention of earnings, and employment of full-time staff to reach the new criteria within three years.	Substantiate the “prospect” with a plan evaluated by an expert.
Consider changing to another Status of Residence	Depending on the business and the individual’s background, another Status of Residence such as Engineer/Specialist in Humanities/International Services may be an option.	Careful examination is required to determine if it matches the requirements and activity content of the changed Status of Residence.
Review the business structure	Address capital requirements by reviewing joint management, investment structure, etc.	A nominal structure will not be evaluated from the perspective of actual activity.

For any of these options, the earlier you start considering them while Transitional Measures are still in effect, the more options you will have available. If you wait until just before the Extension of Period of Stay deadline, you may find yourself with no options left other than a “stopgap capital increase.”

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7. When and What to Prepare — Thinking About Your Renewal Schedule

For Foreign National Business Owners

1. Check your Period of Stay and the timing of your next renewal. Confirm the expiration date of your Period of Stay on your Residence Card and work backward to begin renewal preparations 2-3 months prior.
2. First, ensure compliance with public dues and taxes. Check for any omissions in corporate tax, consumption tax, withholding income tax, and enrollment and payment of social insurance and labor insurance. This aspect is reviewed regardless of the Transitional Measures.
3. Based on the deadline for the Transitional Measures (October 16, 2028), formulate a plan to meet the new standards. Capital increases and employee hiring take time. Formalize this as a plan evaluated by a specialist (e.g., tax accountant, small and medium-sized enterprise consultant).
4. Consult a specialist early for any points of doubt. It is advisable to decide on a course of action—whether to renew, change Status of Residence, or review your business structure—while many options are still available.

For HR and Acceptance Personnel in Companies

For joint ventures involving foreign national business owners or companies inviting foreign nationals as executive officers, please note the following points:

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8. Frequently Asked Questions (FAQ)

Q1. How long do the Transitional Measures last?
They apply to Applications for Extension of Period of Stay filed during the period from the enforcement date (October 16, 2025) until three years thereafter, specifically October 16, 2028 (Reiwa 10). Within this period, even if the new standards are not met, a comprehensive assessment will be made considering the business situation and the prospect of meeting the standards.

Q2. During the Transitional Measures period, is it guaranteed that I can renew even without 30 million yen in capital?
No, it is not “guaranteed.” The Transitional Measures mean that even if the new standards are not met, a comprehensive assessment will be made for approval or denial; they do not guarantee renewal. Compliance with public dues and taxes, actual business activities, and the prospect of meeting the new standards will be reviewed.

Q3. Who is eligible for the Transitional Measures?
The measures apply to individuals who have been residing in Japan with the Business Manager Status of Residence prior to the enforcement date. For new applications filed on or after the enforcement date, the revised standards will generally apply (applications accepted and under review before the day preceding the enforcement date will be subject to the pre-revision standards).

Q4. What documents will be required for renewal?
In addition to documents proving compliance with public dues and taxes (tax, social insurance, labor insurance), during the Transitional Measures period, you may be asked to submit documents evaluated by a business specialist to demonstrate the prospect of meeting the new standards. Depending on the business content, documents proving the acquisition of necessary licenses and permits may also be required.

Q5. Does the business owner themselves need to meet the Japanese proficiency requirement?
No. It is stated that either the applicant themselves or a full-time employee must meet the B2 equivalent level or higher (e.g., JLPT N2 or higher). You can consider which option to use for proof, taking into account your company’s personnel structure.

Q6. What happens after the 3-year Transitional Measures period ends?
Renewal applications filed after October 16, 2028, will generally require compliance with the revised permission standards. However, even if the standards are not met, if the business situation is favorable, tax obligations are properly fulfilled, and there is a prospect of meeting the standards by the next renewal, it will be considered comprehensively. In any case, it is crucial to prepare systematically now while the Transitional Measures are in effect.

Q7. Can I consult about Business Manager visa renewal in Miyazaki?
Yes. Our office, based in Miyazaki City, accepts consultations regarding Applications for Extension of Period of Stay for foreign national business owners. We will propose strategies for complying with the new standards and organizing necessary documents, based on your business situation.

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9. Summary: Now is the Time to Prepare While Transitional Measures Are in Effect

There are three key points to remember regarding Business Manager visa renewal:

1. For those residing in Japan prior to the enforcement, there are Transitional Measures for three years until October 16, 2028. Renewals during this period will be judged based on a comprehensive consideration of the business situation and the prospect of meeting the standards, even if the new standards are not fully met.
2. The Transitional Measures are not an unconditional grace period. Compliance with public dues and taxes (tax, social insurance) and actual business activities will be reviewed regardless of the Transitional Measures, and demonstrating the ‘prospect’ of meeting the new standards with an evaluation document from a specialist may be required.
3. After the three-year period, compliance with the new standards will generally be required. Since capital increases and employment take time, systematically preparing now while the Transitional Measures are in effect is the shortest path to a secure renewal.

When systems change, anxiety often takes precedence. However, by correctly understanding the deadline for Transitional Measures and the points examined during the immigration review, what needs to be done now becomes clear. Solidifying current tax payments and social insurance, and drawing up a plan to meet the new standards with an expert – that is the most reliable step to calmly face the next renewal. If you are unsure, please consult an expert early.

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This article is written based on publicly available information as of July 2026. Details of the system and implementation dates may change in the future. For actual applications, please refer to the official information from the Immigration Services Agency or contact our office. (Added October 25, 2026: The content of Question 2 in the section of particularly frequent questions on the Immigration Services Agency’s page “Revision of the Landing Standards Ordinance, etc. for the ‘Business Manager’ Status of Residence” (in Japanese) was added to Section 4.)

Author of this article: Administrative Scrivener Satoshi Nakayama
Representative, Administrative Scrivener Corporation Miyazaki International Legal Office
Location: Miyazaki City, Miyazaki Prefecture