Japan Tightens Business Manager Visa Requirements, Prompting Surge in Departures

Japan’s Ministry of Justice announced revised criteria for the Business Manager visa, effective from October 2026. Applicants must now demonstrate that their company employs a minimum number of permanent local workers, a shift from the previous emphasis on investment capital alone.

The new rule aims to curb visa overstays and ensure that foreign‑owned firms create genuine employment for Japanese residents. Companies lacking permanent staff will no longer qualify for the visa, and existing holders must meet the new standards during renewal.

Data from the Immigration Services Agency show a sharp rise in departures. In the first six months of 2026, almost 1,000 foreign nationals on Business Manager visas left Japan, nearly four times the number who exited at the same point in 2025.

Industry groups warn the change could dampen foreign investment, especially in the tech and startup sectors where founders often rely on lean staffing models. The Japan External Trade Organization (JETRO) has called for a balanced approach that protects the labour market while still attracting entrepreneurial talent.

Legal experts note that the rule does not affect other work visas, such as the Highly Skilled Professional or Engineer visas, which retain their existing criteria. However, some firms may need to restructure, converting owners into shareholders and hiring Japanese staff to retain their visa status.

Potential alternatives for affected entrepreneurs include applying for the “Specified Skilled Worker” visa, which focuses on labour shortages, or establishing a Japanese partner company that can sponsor the visa under the new employment requirement.

The government says the policy will be reviewed after a year to assess its impact on both the economy and immigration compliance. Officials stress that the change aligns with broader efforts to tighten immigration oversight across the country.