Japan’s More Rigorous Business Manager Work Permit Requirements Now in Effect

The stricter eligibility requirements for the business manager (“keiei kanri” in Japanese) work permit became effective on October 16, 2025 with additional eligibility criteria.

As we reported in our September 12 LawFlash, as scheduled the Immigration Services Agency of Japan (ISA) has amended the eligibility criteria for business managers and the new rules became effective as of October 16, 2025.[1] 

Originally, the ISA proposed that

• the company the applicant manages (Company) shall employ at least one full-time worker[2] resident in Japan;
• the Company shall have JPY 30 million or more of stated capital or capital contribution;
• the applicant shall either (1) hold a doctoral degree, master’s degree, or professional degree in a field related to business management or related to the technical skills or knowledge necessary for the business operations or (2) have at least three years of business management experience; and
• the applicant shall submit a business plan evaluated by a business management expert (such as a CPA, tax lawyer, or certified management consultant).[3]

In addition to this eligibility criteria, the ISA added another requirement concerning Japanese language ability. Under the new rules, either the applicant or a full-time employee[4] shall have a “sufficient level of Japanese language ability” (i.e., “B2 or above” in the “Frame of Reference for Japanese Language Education”).

In other words, the applicant or full-time employee (except for Japanese nationals or special permanent residents) shall have Japanese language ability equivalent to one of the following criteria:

• Have been certified at level N2 or above on the Japanese Language Proficiency Test administered by the Japan Educational Exchanges and Services Public Interest Incorporated Foundation and the Japan Foundation
• Achieve a score of 400 or more on the BJT Business Japanese Proficiency Test administered by the Japan Kanji Aptitude Testing Foundation
• Have resided in Japan for more than 20 years as a mid- to long-term resident
• Are a graduate of a university or other higher education institution in Japan
• Have completed compulsory education in Japan and graduated from high school

Please also note that if the business activities as a business owner are not fully recognized (such as outsourcing most business to a third party), the applicant will not be recognized as engaging in activities that fall under the “Business Manager” status of residence.

Foreigners who are currently living in Japan under a business manager work permit are granted a three-year grace period; that is, if such foreigner applies to extend the period of stay on or before October 16, 2028 (i.e., three years from the enforcement date) the application could be approved considering all aspects of the applicant’s residence status, including that their business situation is good, corporate tax obligations have been properly fulfilled, and it is likely that the applicant will meet the new eligibility criteria by the time of the next renewal application.

Paralegals Mai Ishii and Ayako Hiraiwa contributed to this LawFlash.