One of the most sensitive issues for foreigners preparing to start a business or already operating one in Japan is the "Business Manager" (経営・管理) status of residence. Recently, along with news of the Japanese government's revision of visa criteria, anxious rumors such as "If you can't raise 30 million yen within three years, you must leave Japan" have spread on online communities and social media, causing confusion among many foreign entrepreneurs.
In response, the Immigration Services Agency of Japan (ISA) updated its "Frequently Asked Questions (Q&A)" regarding the Business Manager visa revision on June 26, 2026, to state its official position. This announcement focuses on easing the anxieties of current residents and providing accurate screening criteria.
Rumors of "Return Home if Under 30 Million Yen in 3 Years" Are Groundless
Regarding rumors circulating online that "if you cannot prepare 30 million yen within three years, your visa renewal will be rejected and you must return home," the ISA clearly drew the line, stating, "This is not true."
For foreigners who have already obtained a Business Manager visa and are residing in Japan before the law revision, a transitional measure (a type of grace period) will apply for three years after the revised law takes effect (until October 16, 2028). During this period, applications for extension of period of stay will not be denied solely because the applicant "fails to meet the new criteria." This measure is designed to prevent existing business owners from being forced to shut down their businesses or face deportation due to sudden policy changes.
Sole Proprietors Do Not Need 30 Million Yen in Capital
One of the common misunderstandings among foreign entrepreneurs is the uniform standard of "30 million yen in capital." In particular, those running small-scale businesses as sole proprietors (個人事業主) without establishing a corporation had many concerns about how this standard would apply to them.
According to the ISA's explanation, sole proprietors do not necessarily need to prepare 30 million yen in capital separately. Instead, they are evaluated based on the total scale of assets actually invested to run the business smoothly. Specifically, the total sum of the following items (total business assets) will be reviewed:
- Cost of securing business premises: Rent and maintenance costs for offices or stores
- Labor costs: One year's salary for employed staff
- Equipment investment and other expenses: Essential equipment and expenditures for business operations
In other words, since the actual total assets invested to run the real business serve as the standard, there is no need to be bound solely by a formal capital amount.
Comprehensive Review Still Applies After 3 Years
What happens after three years have passed since the revised law took effect? When renewing the period of stay after the three-year grace period ends, even if the total assets do not reach 30 million yen, the visa renewal will not be immediately rejected.
The ISA stated that if the company's business condition is favorable, tax obligations are faithfully fulfilled, and there is a concrete outlook for meeting the criteria by the next visa renewal, this will be taken into consideration. Since decisions are made by comprehensively considering the overall residency status, the policy is not to issue a blanket denial solely for failing to meet the asset threshold.
Additional Checklist Highlighted During Renewal Reviews
In the renewal review of the Business Manager visa, the ISA does not look solely at financial figures such as sales or asset size. The agency places great importance on whether foreign managers faithfully comply with Japanese legal obligations. The main checkpoints are as follows:
- Compliance with labor laws: Compliance with the Labor Standards Act and the Minimum Wage Act
- Social insurance and employment insurance: Enrollment and payment status of health insurance, welfare pension, employment insurance, and industrial accident compensation insurance
- Acquisition of permits and licenses: Proper acquisition of administrative permits or licenses required to operate the business
Therefore, to stably continue business in Japan, it is essential not only to secure financial soundness but also to align the employee hiring environment with the law and diligently pay various taxes and insurance premiums on time. While the ISA's clarification has eased vague anxieties, the screening regarding legal compliance is expected to become even more rigorous.
Tools: Internet Finder
Source: 出入国在留管理庁