The capital requirement for the Business Manager status has been raised from ¥5 million to ¥30 million, increasing the practical hurdles. Existing business operators have a grace period, but some are closing their businesses or returning home.
The Business Manager status is for foreign nationals operating a business in Japan, and its capital requirement was raised last October from ¥5 million to ¥30 million. Additional conditions, including the employment of a full-time employee who is a Japanese national, permanent resident or other eligible person, have also been introduced, tightening the authorization criteria.
As a result of these tighter requirements, cases have emerged in which business continuity has become difficult, particularly for operators of small and medium-sized restaurants and other food-service businesses. In Tokyo’s Shin-Okubo district, it has been pointed out that some foreign nationals with actual business operations have been unable to meet the residence-status requirements and have had no choice but to close their businesses or return home.
Renewal of the residence status is subject to screening, which also affects family members’ ability to remain in Japan. If dependents cannot renew their residence status, not only the holder but also the family may no longer be able to live in Japan. There are currently approximately 44,760 holders (as of June 2025), and the period of stay ranges from 3 months to around 5 years.
The tighter requirements are expected to affect Japan’s economy and local communities as well. Although a grace period has been provided until October 2028, operational difficulties could spread among small and medium-sized food-service businesses in particular.