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Regarding the New Criteria for the “Business/Management” Residence Status Application

1. When will the new screening criteria take effect?

1.1 Applications for newly obtaining residence status

The new criteria will apply to applications submitted to the Immigration Services Agency on or after October 16, 2025 for obtaining new residence status. Specifically:

Application for Certificate of Eligibility (COE)
This is the application for entry into Japan.

Application for Change of Residence Status
This applies when a foreign national who currently holds a status of residence other than “Business/Management” applies to change to “Business/Management” while residing in Japan.

For the above applications, the new screening criteria will apply to cases accepted on or after October 16, 2025.

1.2 Renewal applications by those who already hold “Business/Management” residence status

For a transitional period of three years, screening will be conducted under the same criteria as before. After this three-year period (i.e., for renewal applications submitted on or after October 16, 2028), screening will be based on the new criteria.

In other words, those who already hold “Business/Management” residence status must meet the new criteria within the next three years.

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2. What are the new screening criteria?

The revised criteria for “Business/Management” (effective October 16, 2025) are as follows:

(1) Employment of full-time staff

The applicant’s company must employ at least one full-time staff member.
Eligible “full-time staff” are limited to:

Japanese nationals
Special permanent residents
Permanent residents
Spouses of Japanese nationals
Spouses of permanent residents
Long-term residents

Foreign nationals residing in Japan with statuses other than the above do not qualify as full-time staff.

(2) Capital requirements

The company must have capital or equivalent of 30 million yen or more.

For corporations: Paid-in capital of a joint-stock company (Kabushiki Kaisha) or total investment of a general partnership, limited partnership, or limited liability company.
For sole proprietors: Total funds invested in securing business premises, one year’s worth of employee salaries, equipment costs, and other necessary business expenses.

(3) Japanese language proficiency

Either the applicant or at least one full-time staff member must possess sufficient Japanese language ability (equivalent to B2 level or above of the “Japanese Language Education Reference Framework”).

Proof can be demonstrated by one of the following:

JLPT N2 or higher
BJT Business Japanese Proficiency Test score of 400 or higher
20+ years of mid- to long-term residence in Japan
Graduation from a Japanese university or other higher education institution
Completion of compulsory education and high school graduation in Japan

(4) Business plan requirements

The submitted business plan must be specific, reasonable, and feasible. Verification by an expert with specialized knowledge in management is required.
Eligible experts (as of the enforcement date) include:

Small and Medium Enterprise Management Consultants
Certified Public Accountants
Licensed Tax Accountants

(Please note: Preparation of application documents for submission to government agencies by persons other than attorneys or certified administrative scriveners may constitute a violation of the Administrative Scriveners Act.)

(5) Academic and professional background

The applicant must meet one of the following:

Hold a doctoral, master’s, or professional degree in a field related to business management or the relevant business (including equivalent foreign degrees).
Have at least three years’ experience in business management or relevant business administration (including time spent in activities preparing for starting a business under the “Designated Activities” status).

(6) Business activities and office requirements

Activities that do not sufficiently demonstrate actual management, such as subcontracting without substantive managerial involvement, will not qualify as “Business/Management.”
A dedicated business office, suitable for the scale of business, must be secured. Using one’s residence as the office is generally not permitted.

(7) Permanent residency and other related applications

Permanent residence applications (from “Business/Management,” “Highly Skilled Professional (i)(c),” or “Highly Skilled Professional (ii)” based on business/management activities) will not be approved unless the revised criteria are met.
Proof of obtaining necessary permits and licenses for the business must be submitted. (If permits cannot be obtained until residence status is granted, they must be submitted at the time of the next renewal.)
Compliance with tax and social insurance obligations will be checked, including:

Employment and labor insurance procedures
Enrollment and payment of social insurance (health and pension)
Payment of national and local taxes

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3. Points to Note with the Enforcement

1. Applications accepted before enforcement
Applications submitted and under review prior to October 16, 2025 will be examined under the previous criteria.

2. Absence from Japan during residence period
If the applicant leaves Japan for a long period without justifiable reason, renewal will not be permitted.

3. Applications for change from “Designated Activities” to “Business/Management”

For those holding “Designated Activities (No. 51 – Future Creation Human Resources)” status before the enforcement date, changes to “Business/Management” will be judged under the old criteria.
Applications submitted after the enforcement date will be subject to the new criteria.

4. Renewals for existing “Business/Management” holders

Renewals submitted within three years from October 16, 2025 may be approved even if they do not meet the new criteria, depending on business performance and likelihood of future compliance. Supporting documents evaluated by experts may be required.
Renewals submitted after three years must fully comply with the new criteria.

5. Highly Skilled Professional status
Applications for “Highly Skilled Professional (i)(c)” and (ii) related to business/management will be treated under the same conditions as “Business/Management.”

Takashi Usui, Certified Administrative Scrivener
Usui Legal Office
Tel: 090-6560-7099
Email: [usuitks1967@gmail.com](mailto:usuitks1967@gmail.com)