Starting a business in Japan: the Business Manager visa after the reform

Starting a business in Japan has become much more demanding. Since October 2025, the Business Manager status of residence (keiei kanri) requires ¥30 million in capital, at least one full-time employee and management experience or a master's degree. Applications have fallen by 96%. Here is what changed and how to prepare.

Before and after the reform

Sources: Nippon.com; Baker McKenzie, 20 February 2026.

The employee must be a Japanese national or hold an equivalent status: permanent resident, special permanent resident, spouse or child of a Japanese national or permanent resident, or long-term resident. Companies comparable in size to listed companies are exempt from the business plan approval (Baker McKenzie).

The effect: a 96% drop in applications

Over the five months after the reform, new applications fell to an average of about 70, compared with about 1,700 over the five months before (Nippon.com).

To put the new threshold in perspective: of the 143,367 companies set up in Japan in 2024, 90% had less than ¥10 million in capital.

In a survey of 299 foreign business owners, 135 said the reform affected them. Of these, 82 planned to increase their capital or take other measures, 35 were considering a sale or merger, and 16 were considering closing down.

Already hold this status?

A three-year transition period applies. When you renew during this period, the authorities review the company's results and its ability to meet the new requirements. After that, a company with less than ¥30 million in capital no longer allows you to renew: you will need to increase the capital or change status (Baker McKenzie).

Plan your relocation budget

On top of the capital, there are the personal costs of moving:

• Residence fees: a 5-year permit now costs ¥75,000 at the counter (¥65,000 online). See our guide to Japan visa renewal fees.
• Housing: move-in costs often add up to two months' rent or more. See our guide to renting in Tokyo.
• Hiring: the job market is tight, with 1.19 job offers per applicant in September 2026. See our guide to working in Japan.

Focus on your business

While you set up your company, Kizuna Relo takes care of your move and your family's, with home search, everyday formalities and concierge support. Let's talk about your project.