The approval criteria for the “Business Manager (Business Management/Administration) 経営・管理 residence status were revised in mid-October 2025. My office has received multiple inquiries about this revision from foreign business owners holding this residence status.
I also filed a last-minute application for Business Manager (Business Management/Administration) 経営・管理 status in an area outside the jurisdiction of the Fukuoka Regional Immigration Bureau at the end of September, just before the revision took effect. This application was successfully approved under the old criteria.
For new applications for a Certificate of Eligibility for the “Management and Administration” status or applications to change to this status, the new criteria can be confirmed on the Immigration Services Agency website.
Photo by Luca Bravo on Unsplash
① It is necessary to employ at least one full-time employee.
※ Employment of full-time staff holding Japanese nationality or residence statuses such as “Permanent Resident（永住者）,” “Spouse or Children of Japanese National（日本人の配偶者等）,” “Spouse or Child of Permanent Resident（永住者の配偶者等）,” or “Long-term Resident（定住者）” is required.
② For corporations, the capital amount must be set at 30 million yen or more.
For individual businesses: The total amount invested as necessary for business operations, including securing the business premises for one year, salaries for employed staff, and equipment investment expenses.
③ Either the applicant or a full-time employee must possess a considerable level of Japanese language proficiency.
For individuals other than Japanese nationals or special permanent residents, one of the following must be met:
• Japanese Language Proficiency Test (JLPT) N2 or higher
• 400 points or higher on the BJT Business Japanese Proficiency Test
• Resided in Japan for 20 years or more as a mid-to-long-term resident
• Graduated from a Japanese university or other higher education institution
• Completed Japanese compulsory education and graduated from high school
④ Requirements for fulfilling background (academic and work history)
• Doctorate, master’s, or professional degree in a field related to the technical skills or knowledge necessary for business management or the operations of the business for which the application is made (including degrees awarded abroad)
• Three or more years of experience in business management or administration (including the period of activities based on the “Designated Activities” status of residence, such as securing a business office and other preparatory actions necessary to commence trade or other business operations (startup preparation activities).
⑤ The business plan submitted at the time of residence status determination requires prior confirmation by a Small and Medium Enterprise Management Consultant (中小企業診断士）, Certified Public Accountant (公認会計士）or Tax Accountant (税理士).
There are other points to note regarding the application.
For example, excessive outsourcing or prolonged absences from Japan are highly likely to be judged negatively as lacking substantive direct management.
Furthermore, since the Highly Skilled Professional Type 1-c 高度専門職１号ハ）(status also presupposes meeting the Business Manager [management/administration]) （経営・管理）residency qualification requirements, it is explicitly stated that if an applicant obtains 80 or more points under Highly Skilled Professional Type 1-c and applies for permanent residency after one year of residence, permanent residency will not be granted if they do not meet the revised approval standards. (Permission to change status from “Highly Skilled Professional Type 1-c (高度専門職１号ハ)” to “Highly Skilled Professional Type 2（高度専門職２号）” must also meet the revised criteria.)
It is explicitly stated that combining the workplace and residence is generally not permitted, and that verification of tax payment obligations will be conducted.
Application for Renewal of Residence Status “Business Manager (Management/Administration)”
For individuals already residing under “Business Manager (Management/Administration)” status who apply for renewal of their management/administration residence period between now and the date three years after the new standards take effect (October 16, 2028), renewal may still be granted even if they do not meet the revised standards, provided their business situation is deemed satisfactory and there is a reasonable expectation they will meet the revised standards. In some cases, applicants may be required to submit written evaluations or opinions regarding their management from professionals such as certified public tax accountants.
However, applications for renewal of the period of stay submitted after the three-year period following the effective date must comply with all the revised standards. If the business situation is sound and obligations such as corporate tax payments are being properly fulfilled, and it is judged that the new criteria are likely to be met by the next renewal application, renewal may be granted after comprehensive consideration of other residency circumstances. However, if stable business continuity is desired, preparations to establish a system capable of meeting the new criteria should begin promptly.
To conclude…
The stricter requirements for the “Business Manage (Management/Administration)” residence status may make it difficult for some foreign business owners to continue to operate their companies. While there are several methods for capital increases, I will omit mentioning them here. Naturally, if a company decides to cease operations, it must responsibly complete the dissolution and liquidation process. I hope Japanese society won’t see widespread cases where companies are simply abandoned, tax obligations ignored, and the foreigner simply leaves the country when their residence period expires.
In some cases, companies may consider options like M&A. Many firms will face difficult choices whether to abandon or continue their business.
I personally find these amendments very stringent. That said, I also feel the requirement to employ full-time staff proficient in Japanese is necessary for conducting business operations. Considering that the ability to communicate in Japanese is often a requirement even when opening a corporate bank account, I believe this revision to the permitting criteria reflects the public sentiment expressed in the public comment period.
How do you view this revision, which places even greater emphasis on the “substance, stability, and continuity” of the business?
Disclaimer: While utmost care has been taken to ensure the accuracy of the information in this article at the time of publication, it is not intended to serve as legal advice as each individual situation will vary. Should you require further advice or wish to delve deeper into the topics discussed, please reach out to the author.
Text by: Masayo Boston (Certified Administrative Procedure Legal Specialist), November 2025
Legal Associates Office Boston (Fukuoka City)
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Website: https://www.admin-legal.com/
