【Business Manager Visa Renewal】 What You Need to Know & What You Should Start Doing Now

As many of you know, there were significant regulatory changes to the Business Manager Visa this year — here’s what immigration looks at during renewal, common issues, and what you should start preparing now.

1. What you need to know about the new requirements

(1) Capital requirement

From the new regulation, the required capital for a company managed by a Business Manager visa holder has increased to 30 million yen.

What Immigration is looking for:

  • Whether your company has at least 30 million yen in capital.

  • Whether the capital has been properly injected from a legal source and can be proven.

How to increase your capital?

Many of business manager holders originally set up business with 5 million yen capital. So how do you increase the capital?

1. Director Injects Additional Capital

This is a straightforward method.

How it works:

  • The director (or shareholder) deposits additional money into the company’s bank account.

  • A judicial scrivener prepares and submits the registration documents to the Legal Affairs Bureau.

  • Once registered, the new capital amount becomes official.

Pros:

  • Fast and simple.

  • Clean financial record for immigration.

  • Works well when the director has personal funds available.

Cons:

  • Requires actual fresh money from the director or shareholder.

2. Debt–Equity Swap (Conversion of Existing Loans Into Capital)

This is a method of increasing capital without injecting new cash, by converting existing company debt into equity.

How it works:

  • If the director or a shareholder has previously loaned money to the company (“director loan” or “shareholder loan”), that debt can be converted into capital.

  • A judicial scrivener registers the capital increase at the Legal Affairs Bureau.

Pros:

  • No need for new cash — uses existing shareholder loans.

Cons:

  • Requires more complex documentation than a simple capital injection.

  • Official tax/accounting coordination is important.

(2) Academic background / management experience

Under the new rules, a Business Manager must have either:

  • 3+ years of management experience, or

  • A Master’s degree or higher in a field related to management/business.

Common issues:

  • Experience that cannot be proven with official documents.

  • Degrees unrelated to management (e.g., arts, sports, nursing) without management experience.

(3) Hiring requirement

The new regulation requires:

  • At least one full-time employee other than the visa holder.

Who counts as a full-time employee:

  • Japanese nationals

  • Permanent Residents

  • Spouse of Japanese national

  • Spouse of Permanent Resident

  • Long-term Residents (定住者)

(Note: Most visa holders such as Engineer/Specialist, Student, Dependent do not count.)

What Immigration is checking:

  • Whether the full-time employee is actually on payroll, with:

    • Social Security (社会保険) enrollment

    • Year-round employment

    • Regular salary payments

Common issues:

  • Hiring only seasonal or part-time staff.

  • Submitting an employee who does not belong to an eligible residency category.

  • Not paying social insurance properly.

(4) Japanese language requirement

The regulation now requires a certain level of Japanese ability by either:

  • The Business manager visa holder, OR

  • The full-time employee

Immigration expects approximately JLPT N2 level.

(5) Approved business plan by licensed professional

A new requirement is that the business plan must be reviewed by a qualified expert, such as:

  • Certified tax accountant

  • Certified public accountant

  • Small/medium enterprise consultant

What Immigration is checking:

  • Whether the business plan is realistic, financially viable, and consistent with the company’s performance.

  • Whether the expert has actually reviewed or signed off on the plan.

Common issues:

  • Business plan prepared only by the applicant with no expert verification.

  • Unrealistic revenue projections or missing financial modeling.

2. What other factors matter when it comes to renewal?

Aside from the main changes in regulations, there are some other things to consider that will help strengthen your case.

(1)Is the business actually operating?

Immigration wants to see that the business is not “on paper only.”
Key evidence includes:

  • Sales records / invoices

  • Proof of ongoing services (booking records, receipts, etc.)

  • Employment situation - Having at least one full time staff has been added as “compulsory“ .

(2) Is the business stable enough to continue?

They check:

  • Profitability (or a realistic plan toward profitability)

  • Monthly cash flow

  • Whether the company can pay salary continuously

A business doesn’t need to be profitable yet, but it must show logic and sustainability.

(3) Are you receiving salary as a manager?

Immigration requires:

  • A monthly salary paid regularly

  • Salary level appropriate for a manager’s role

  • Proper payroll records, withholding tax, and year-end tax documents

Irregular payments or “no salary paid for months” often cause delays or refusals.

(4) Compliance with employment laws and taxes

This includes:

  • Tax payments (corporate tax, consumption tax, withholding tax)

  • Social/health insurance obligations

  • Employment contracts and payroll for any staff

Even if the business is small or seasonal, immigration checks these points more strictly than before.

3. So, what if you cannot meet new requirement for your renewal

Even though the new rules are strict, Immigration is providing a transition period. Current Business Manager visa holders are expected to fully meet the new requirements by 2028 October 16, so there is still time to adjust your capital, hiring, and operational structure.

However, many clients have already experienced Immigration asking for additional documents during renewal — such as proof of progress toward hiring, capital planning, or business stability — which understandably causes worry. This does not mean you must complete every requirement immediately, but Immigration wants to see that you are actively moving in the right direction.

(1) Show your effort and progress

Immigration understands that businesses take time to grow. Careful documentation of ongoing efforts can make a big difference, this includes the following;

  • Contracts in progress

  • Marketing efforts, bookings, or partnership agreements

  • Any other evidence showing that the business is active and moving forward

  • Proof of company hiring process (such as use of recruitment website)

Even if you are not yet meeting new requirement, showing these actions proves that you are actively managing and developing your business.

(2) Negotiation Space Through Explanation

In addition to providing required documents for renewal, supplementary documents can also be provided to strengthen your case.

  1. A clear written explanation detailing why the new requirements are challenging at this stage

  2. Supporting documents that demonstrate ongoing business activity or plans to meet the requirements

  3. A timeline or plan showing when and how you will comply with the new standards

In many cases, we have successfully submitted renewal applications where clients did not fully meet the updated requirements — but because we provided thorough explanations and backup evidence, immigration granted the extension with understanding.

If you’re unsure, we’re here to help

Since new regulation, Hashi immigration Office assisted multiple Business Managers who were worried about their situation. Some came to the office after they applied for renewal themselves and immigration requested a lot of extra documents - and we successfully helped them renew their visa.

We’re always happy to review your situation and guide you through the process with clarity and confidence.

Previous
Previous

Understanding the “Full-Time Employee” Requirement for Business Manager Visa Renewal

Next
Next

Japan's Startup Visa: What You Need to Know