Can You Renew Your Japan Business Manager Visa After 2028? The ¥30 Million Requirement, Social Insurance, and Labor Compliance Explained

A Japanese Certified Social Insurance and Labor Consultant explains visa renewal, the differences between companies and sole proprietors, and compliance with Japanese labor and social insurance laws.

Who Is This Article For?

This article is primarily intended for:

• Foreign nationals who currently hold Japan's Business Manager status of residence (経営・管理) and operate a company or sole proprietorship in Japan.

• Foreign business owners concerned about renewing their status of residence from October 2028 onward.

• Business owners whose company's paid-in capital or business investment is below ¥30 million.

• Foreign entrepreneurs who employ workers in Japan and want to understand Japanese labor laws and social insurance requirements.

• Foreign business owners who wish to continue operating and developing a genuine, legally compliant business in Japan.

Key Conclusion: Renewal May Still Be Possible Even If You Do Not Meet the ¥30 Million Requirement

From October 16, 2028, existing Business Manager status holders who do not meet the ¥30 million requirement may still be eligible for renewal, depending on their individual circumstances.

Japan's Immigration Services Agency (ISA) has indicated that renewal applications will be assessed individually, taking into account factors such as business performance, tax compliance, prospects of meeting the revised requirements, and other circumstances relating to the applicant's residence in Japan.

However, this does not mean that the ¥30 million requirement has been waived or that renewal is guaranteed.

The way the ¥30 million requirement is calculated also differs between incorporated companies and sole proprietors.

In addition, business owners should review their compliance with labor laws and their obligations concerning health insurance, employees' pension insurance, employment insurance, and workers' accident compensation insurance.

The most important steps are to review your actual business operations, confirm compliance with applicable laws, and develop a realistic plan to meet the revised immigration requirements.

On October 16, 2025, Japan significantly tightened the requirements for obtaining Business Manager status of residence.

One of the most significant changes was the introduction of a requirement involving at least ¥30 million in capital or qualifying business investment.

Foreign entrepreneurs who are already operating businesses in Japan may understandably be concerned that they will be unable to continue their businesses unless they secure ¥30 million by October 2028.

However, the official guidance published by the Immigration Services Agency indicates that the situation is not necessarily so straightforward.

This article explains the rules applicable to renewals from October 2028 onward and the labor and social insurance matters that foreign business owners should address now.

The explanation is based on official materials published by the Immigration Services Agency and Japan's Ministry of Health, Labour and Welfare (MHLW), from the perspective of a Japanese Certified Social Insurance and Labor Consultant (Shakai Hoken Romushi, or Sharoshi).

1. What Changed in October 2025?

The October 2025 amendments introduced substantially stricter requirements for Business Manager status of residence.

The principal changes include:

• A minimum of ¥30 million in qualifying capital or business investment.

• Employment of at least one qualifying full-time employee.

• A specified level of Japanese-language proficiency held by the business manager or a qualifying full-time employee.

• Specified educational qualifications or business management experience.

• Review of the business plan by an appropriate professional.

Other requirements, including the establishment of a suitable business office, also apply.

An important point concerns the full-time employee requirement.

Employing any foreign national does not automatically satisfy this requirement.

Qualifying employees generally include Japanese nationals and certain foreign nationals with residence statuses such as Permanent Resident, Spouse or Child of Japanese National, Spouse or Child of Permanent Resident, and Long-Term Resident, as well as Special Permanent Residents.

For example, employing a foreign national who holds the Engineer/Specialist in Humanities/International Services status of residence does not, by itself, satisfy the revised full-time employee requirement.

These changes represent a significant tightening of the previous standards.

2. Will Renewal Be Refused After October 16, 2028, If Capital Is Below ¥30 Million?

Not necessarily.

An existing Business Manager status holder will not automatically be refused renewal solely because the ¥30 million requirement has not been met.

In Question 3 of its official FAQ, updated on June 26, 2026, the Immigration Services Agency explains that renewal applications from existing Business Manager status holders will continue to be assessed on an individual basis after October 16, 2028.

Relevant considerations include:

1. Whether the business is operating in a financially sound manner.

2. Whether corporate taxes and other applicable taxes have been properly paid.

3. Whether the applicant is expected to meet the revised requirements by the next renewal.

4. Other circumstances concerning the applicant's residence in Japan.

This is particularly important for entrepreneurs who have operated legitimate businesses in Japan for many years.

For example, a business owner who employs workers, maintains stable operations, and fulfills tax obligations will not necessarily be refused renewal solely because the company's capital is below ¥30 million.

However, there is an important distinction.

The Immigration Services Agency has not announced a general exemption from the ¥30 million requirement.

The prospect of meeting the revised requirements by the next renewal is also an important consideration.

Business owners should therefore maintain sound operations while developing a practical plan to satisfy the new requirements.

Each application is assessed individually, and approval cannot be guaranteed.

3. The ¥30 Million Requirement Differs Between Companies and Sole Proprietors

This distinction is particularly important for foreign entrepreneurs.

Incorporated Companies

For a Japanese stock company (Kabushiki Kaisha, or KK), the relevant amount is generally its paid-in capital.

For other corporate structures, such as a limited liability company (Godo Kaisha, or GK), the applicable measure is the total amount of contributions.

For example, a company with paid-in capital of ¥5 million may generate annual sales of ¥100 million.

However, annual revenue of ¥100 million does not, by itself, satisfy the ¥30 million capital requirement.

Revenue, profit, and capital are different financial concepts.

Sole Proprietors

A sole proprietorship does not have share capital in the same way as an incorporated company.

Instead, the requirement is assessed based on the total qualifying funds invested in operating the business.

Question 4 of the Immigration Services Agency's official FAQ identifies examples such as:

• Costs associated with securing business premises.

• One year's wages for employed staff.

• Expenditure on equipment and facilities.

• Other qualifying funds invested for business operations.

In other words, a sole proprietor does not need to demonstrate ¥30 million in corporate share capital.

However, this does not mean that every business expense automatically counts toward the requirement.

The eligibility of particular expenditures and the necessary supporting documents must be assessed according to the Immigration Services Agency's official guidance.

Although the headline figure is the same, the calculation of the ¥30 million requirement differs between incorporated companies and sole proprietors.

4. Social Insurance Obligations Also Differ Between Companies and Sole Proprietors

As a Certified Social Insurance and Labor Consultant, I pay particular attention to the relationship between the revised immigration requirements and Japanese employment and social insurance laws.

Question 2 of the Immigration Services Agency's official FAQ indicates that problems involving compliance with labor laws, enrollment in social insurance and labor insurance, or payment obligations may negatively affect the assessment of a renewal application.

However, the legal obligations concerning Employees' Health Insurance and Employees' Pension Insurance differ between companies and sole proprietors.

Incorporated Companies

Japanese corporations, including KK and GK companies, are generally subject to mandatory coverage under Employees' Health Insurance and Employees' Pension Insurance.

Even a corporation with only one representative director may be required to enroll that representative, depending on remuneration and the actual circumstances.

Where employees are hired, the company must also enroll workers who satisfy the applicable eligibility requirements.

Sole Proprietors

As of October 2026, a sole proprietorship is generally subject to mandatory Employees' Health Insurance and Employees' Pension Insurance coverage if it operates in one of the 17 legally specified industry categories and regularly employs five or more workers.

A sole proprietorship with fewer than five employees is generally not subject to mandatory establishment-level coverage under these rules.

In addition, certain industries outside the 17 specified categories, including agriculture, forestry, fisheries, restaurants, and accommodation services, are generally outside the mandatory coverage rules for sole proprietorships under the system applicable in October 2026, even where five or more employees are employed.

It is therefore important to identify the applicable legal obligations before assessing whether a business is compliant.

5. Why Sole Proprietors Should Consider Voluntary Enrollment in Social Insurance

I would like to explain my professional view on this issue.

Even when a sole proprietorship is not legally required to enroll in Employees' Health Insurance and Employees' Pension Insurance, I encourage business owners who employ workers to consider voluntary coverage.

Under Japan's voluntary coverage system, a sole proprietorship that is not subject to mandatory coverage may apply for approval to become a covered establishment.

Generally, this requires the consent of at least half of the employees who would become insured, an application by the business owner, and approval from the Minister of Health, Labour and Welfare.

Voluntary coverage may also be considered where there is only one employee, provided the applicable conditions are met.

Participation in Employees' Health Insurance and Employees' Pension Insurance can provide important benefits to workers, including:

• Improved pension benefits in retirement.

• Sickness and Injury Allowance when eligible employees cannot work due to illness or injury.

• Maternity Allowance for eligible employees.

• Greater financial security.

• Potential improvements in recruitment and employee retention.

Of course, enrollment also creates an employer contribution obligation, so the financial position of the business must be considered.

Another important distinction is that a sole proprietor is generally not personally covered as an insured employee merely because the sole proprietorship has obtained voluntary coverage.

This differs from the treatment of eligible directors of incorporated companies.

How Does Voluntary Coverage Relate to Visa Renewal?

An important legal distinction must be made.

If a sole proprietorship is not legally required to participate in Employees' Health Insurance and Employees' Pension Insurance, the absence of voluntary coverage is not, by itself, a violation of the law.

Furthermore, the Immigration Services Agency has not guaranteed that voluntary enrollment will result in more favorable treatment during visa renewal.

Nevertheless, improving employees' social protection and establishing a stable working environment can contribute to sound and sustainable business operations.

My recommendation is not to enroll in social insurance simply to improve immigration prospects, but to consider it as part of responsible business management and respect for employees.

6. Workers' Accident Compensation Insurance and Employment Insurance

Unlike Employees' Health Insurance and Employees' Pension Insurance, Workers' Accident Compensation Insurance generally applies to businesses that employ even one worker.

This basic principle applies to both incorporated companies and sole proprietorships, subject to limited statutory exceptions.

Employment Insurance also applies where an employee meets the relevant eligibility requirements.

As of October 2026, the general requirements include:

• Scheduled working hours of at least 20 hours per week.

• An expected employment period of at least 31 days.

Other applicable conditions and exceptions must also be considered.

Business owners should review whether their employees are properly enrolled and whether the necessary procedures have been completed.

7. How Will Employment, Tax, and Social Insurance Compliance Be Assessed After 2028?

Consider the following example.

A foreign entrepreneur has operated a Japanese company for more than ten years.

The company has:

• Paid-in capital of ¥10 million.

• Three Japanese employees.

• Stable annual sales and profits.

• A record of appropriate corporate tax payments.

• Proper employment contracts and labor management.

• Appropriate enrollment in health insurance, pension insurance, employment insurance, and workers' accident compensation insurance.

What happens if the company's capital remains below ¥30 million after October 16, 2028?

According to Question 3 of the Immigration Services Agency's official FAQ, the application will not necessarily be refused solely because the ¥30 million requirement has not been met.

In my professional view, a history of genuine business operations, stable employment, and proper tax compliance may be important circumstances in the assessment.

However, it is essential to understand that:

Compliance with employment laws, tax obligations, and social insurance requirements does not automatically exempt a business from the ¥30 million requirement.

The prospect of satisfying the revised requirements by the next renewal remains an important factor.

Business owners should therefore consider practical measures such as increasing capital, strengthening business operations, or otherwise developing a credible plan to meet the revised standards.

For sole proprietors, the assessment of qualifying business investment differs from the capital-based assessment applicable to incorporated companies.

8. What Should Foreign Business Owners Do Before October 2028?

There are approximately two years between October 2026 and October 16, 2028.

Foreign business owners already operating in Japan should begin reviewing the following matters.

1. Confirm Your Business Structure

Determine whether the business is incorporated or operated as a sole proprietorship.

Review the relevant capital or qualifying business investment requirements.

2. Review Full-Time Employment

Confirm whether the business employs at least one full-time worker who qualifies under the revised immigration rules.

Review employment contracts and actual working arrangements.

3. Check Compliance With Labor Laws

Review employment contracts, written statements of employment conditions, wage records, and working-time records.

Check compliance with minimum wage requirements, overtime payments, and working-hour regulations.

4. Review Labor and Social Insurance Enrollment

Confirm whether the business has completed all legally required enrollment procedures.

Sole proprietors should also consider voluntary Employees' Health Insurance and Employees' Pension Insurance coverage where appropriate.

5. Review Tax Compliance and Business Performance

Work with a qualified tax accountant where necessary to review tax payments, financial statements, and business sustainability.

6. Develop a Plan to Meet the Revised Immigration Requirements

Identify any requirements that are not yet satisfied.

Develop a practical plan explaining what needs to be done, how it will be achieved, and when compliance can reasonably be expected.

9. Business and Human Rights: The Responsibility of Foreign Business Owners

My professional work focuses on Business and Human Rights (BHR).

Under the United Nations Guiding Principles on Business and Human Rights, businesses have a responsibility to respect human rights, regardless of their size or the nationality of their owners.

This responsibility applies equally to Japanese and foreign business owners.

Paying lawful wages, properly managing working hours, and complying with applicable labor and social insurance obligations help protect workers' dignity and livelihoods.

Access to appropriate social protection is also an important element of decent work.

The International Labour Organization (ILO) describes decent work as productive work carried out in conditions of freedom, equity, security, and human dignity.

I believe that foreign entrepreneurs who wish to build sustainable businesses in Japan should consider not only immigration requirements but also the working conditions and well-being of their employees.

Respecting employees is an important foundation for long-term business success.

10. Conclusion: Use the 2028 Changes as an Opportunity to Strengthen Your Business

October 16, 2028, will be an important milestone for existing holders of Japan's Business Manager status of residence.

However, failure to meet the ¥30 million requirement does not necessarily mean that every renewal application will automatically be refused.

At the same time, proper tax payments, employment practices, and social insurance enrollment do not automatically exempt a business from the revised financial requirements.

What matters is the overall picture: genuine business operations, compliance with applicable laws, and a credible prospect of meeting the revised requirements.

It is also essential to understand the differences between incorporated companies and sole proprietors, both in the calculation of qualifying investment and in social insurance obligations.

I encourage foreign entrepreneurs to use these changes as an opportunity to review and strengthen their businesses.

Proper tax compliance, lawful employment, appropriate social insurance enrollment, and respect for employees are fundamental elements of responsible business management.

As a Certified Social Insurance and Labor Consultant, I aim to help foreign entrepreneurs operate sustainable businesses in Japan while protecting the rights and well-being of their employees.

To Foreign Entrepreneurs Who Are Genuinely Operating Businesses in Japan

I want to support foreign entrepreneurs who are sincerely working to build and maintain legitimate businesses in Japan.

Regardless of nationality or business size, I welcome business owners who respect Japanese laws, value their employees, and seek to contribute to Japanese society through their business activities.

However, I do not assist with establishing fictitious companies, preparing false documentation, or creating businesses that exist only for the purpose of obtaining immigration status.

My services are intended for entrepreneurs who genuinely operate businesses in Japan and wish to continue developing them responsibly.

Support Through Collaboration With Qualified Professionals

One of the strengths of Karasuwaki Social Insurance and Labor Consultant Office is its network of professionals, including:

• Administrative Scriveners (Gyoseishoshi): Immigration applications and other administrative procedures within their authorized scope.

• Judicial Scriveners (Shiho-shoshi): Company registration and commercial registration matters.

• Certified Public Tax Accountants (Zeirishi): Tax filings, taxation advice, and tax compliance.

• Small and Medium Enterprise Management Consultants (Chusho Kigyo Shindanshi): Business planning and management improvement.

• Certified Social Insurance and Labor Consultants (Sharoshi): Employment management, labor laws, social insurance, and workplace-related human rights issues.

Operating a business in Japan involves many different legal and administrative requirements.

No single professional can necessarily handle every issue.

By cooperating with qualified specialists, we aim to help foreign business owners address these matters appropriately.

My own role focuses on labor and employment compliance, social insurance, and respect for workers' rights.

Our goal is not simply to help entrepreneurs obtain or renew immigration status, but to support the lawful and sustainable operation of their businesses in Japan.

Consultation and Inquiries

We can assist incorporated companies and sole proprietors with matters such as:

• Japanese labor laws and employment management.

• Employees' Health Insurance and Employees' Pension Insurance.

• Employment Insurance and Workers' Accident Compensation Insurance.

• Employment contracts, working conditions, and workplace rules.

• Reviewing and improving employment and social insurance compliance.

• Workplace human rights and responsible business practices.

• Coordination with qualified professionals regarding broader business issues.

Immigration applications, company registrations, tax filings, and other regulated professional services are handled in cooperation with appropriately qualified professionals.

Inquiries in Languages Other Than Japanese

I am not fluent in foreign languages.

For this reason, I use AI-assisted translation when preparing foreign-language articles and communicating with people who contact me in languages other than Japanese.

AI translations may contain inaccuracies or unnatural expressions. Important details will therefore be checked as necessary.

Please contact me by email whenever possible.

Email allows me to review your message carefully, use translation tools where needed, and prepare an appropriate response.

You are welcome to contact me in your native language, even if you do not speak Japanese.

I look forward to hearing from foreign entrepreneurs who are sincerely operating businesses in Japan.

Official Website and Contact:
Karasuwaki Labor & Social Security Attorney Office

Official References

1. Immigration Services Agency of Japan — Amendments to the Ministerial Ordinance Establishing the Criteria for Business Manager Status of Residence (including the official FAQ, updated June 26, 2026).
   https://www.moj.go.jp/isa/applications/resources/10_00237.html

2. Ministry of Health, Labour and Welfare — Structure and Principles of Japan's Pension System: Expansion of Employees' Insurance Coverage.
   https://www.mhlw.go.jp/stf/nenkin_shikumi_009.html

3. Ministry of Health, Labour and Welfare — Social Insurance Coverage for Employees Working at Sole Proprietorships.
   https://www.mhlw.go.jp/tekiyoukakudai/seido/kojinjigyosyo/

4. Ministry of Health, Labour and Welfare — Information for Sole Proprietors Considering Voluntary Social Insurance Coverage.
   https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/0000143356_00036.html

Disclaimer: This article provides general information based on official materials available as of October 2026. It does not guarantee approval of any application for renewal of status of residence. For advice concerning individual immigration applications, please consult the Immigration Services Agency or an appropriately qualified immigration professional. Japanese-language official sources take precedence over this English explanation.