FAQ Regarding Japan “Business Management Visa” reform

● Will individuals currently residing in Japan under the “Business Management” status of residence prior to the amendment have their applications for renewal of their period of stay denied if they do not meet the new criteria when applying for renewal within three years after the amendment takes effect?

Until three years have passed since the amendment took effect (until October 16, 2028), even if you do not meet the new criteria, your application for renewal of your period of stay will not be denied solely on that basis.

● Will my renewal application be denied even if there are no issues with my business performance or tax compliance?

Applications for permission to extend the period of stay also involve verification of the rules that business owners must comply with. For example, if there are issues regarding compliance with labor-related laws and regulations (such as the Labor Standards Act and the Minimum Wage Act), enrollment in and payment of social insurance, employment insurance, and workers’ compensation insurance, or the acquisition of necessary business licenses and permits, these may be deemed negative factors during the review process, and the renewal may not be granted.

● For individuals currently residing in Japan under the “Business Management” status of residence, are they required to return to their home country if they cannot prepare 30 million yen by the end of the three-year period following the amendment’s enforcement (by October 16, 2028)?

Even if an application for renewal of the period of stay, filed after three years have elapsed from the effective date of the amendment, does not meet the post-amendment approval criteria, a decision will be made after comprehensively considering other aspects of the individual’s residence status if the business is in good financial standing, corporate tax and other payment obligations are being properly fulfilled, and there is a reasonable expectation that the post-amendment approval criteria will be met by the time of the next renewal. In the case of a corporation, the fact that the capital stock is less than 30 million yen, or in the case of a sole proprietor, the fact that the total amount invested as necessary for conducting the business is less than 30 million yen, does not in and of itself result in a blanket denial of the application.　

● Do sole proprietors also have to prepare 30 million yen in capital?

The “30 million yen” (total value of assets used for the business covered by the application) specified in the Ministerial Ordinance on Landing Standards refers, in the case of sole proprietors, to the total amount invested as necessary for conducting the business. This includes the cost of securing business premises, salaries for employees (for one year), capital expenditures for equipment, and other expenses necessary for conducting the business.