New rules reshape business entry into Japan

Under Japan’s previous business manager visa framework, applicants could generally qualify by investing JPY 5 million or employing two qualifying full-time employees. Under the revised rules, a new company must generally have paid-in capital of at least JPY 30 million and employ at least one qualifying full-time employee in Japan.

Importantly, not every employee authorised to work in Japan will qualify. The employee must generally be a Japanese national or a foreign national with unrestricted work rights in Japan, such as a permanent resident or certain family-based status holders. Employees on ordinary work visas generally do not meet this requirement.

The changes go further. The applicant or qualifying employee must demonstrate Japanese-language ability at approximately the JLPT N2 business level. Applicants must also generally have relevant advanced education, or at least three years of business-management experience; while the business plan must be reviewed by a qualified professional such as a certified public accountant, tax accountant, or a small- and medium-enterprise (SME) management consultant.

For foreign businesses, the impact extends beyond the visa application itself.

In a recent matter, a European company planned to establish a Japanese subsidiary, sending one of its existing employees to Japan as the representative director under a business manager visa. However, during preparations, the new requirements came into effect.

After reassessing the proposed structure, the company concluded that obtaining business manager status for the intended representative would be difficult. It therefore changed its approach: another individual became representative director, while the originally selected employee entered Japan as an employee of the subsidiary under a different work status.

The case illustrates how market-entry planning, corporate structure, and personnel assignments are closely connected. A foreign company cannot necessarily send an existing employee to Japan under an ordinary work status and count that person toward the new full-time employee requirement.

For advisers supporting cross-border expansion, these changes make early coordination of corporate structure and personnel planning important. Decisions about who will manage the Japanese entity, how overseas personnel will be assigned, and how the business will be capitalised can directly affect whether the proposed market-entry structure is workable. 

Japan remains an attractive market, but the new framework places greater emphasis on substance, planning, and local commitment. For international businesses and their advisers, the key question is no longer simply whether a person can obtain a visa, but whether the Japan business is structured so the right person can actually operate it.

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Hirokzau Amemiya is a partner at Kojima Law Offices, located in Tokyo, Japan. He has over 20 years of experience in handling various cross-border corporate, M&A, employment, and litigation matters. 

Abbey Schultz serves as a US-licensed Associate at Kojima Law Offices. She handles various cross-border matters, including corporate, M&A, international arbitration, international inheritance, and employment. 

Kotaro Kogai is an Associate at Kojima Law Offices. He handles various cross-border matters, including Corporate, M&A, and Labor & Employment.