The transitional period attached to Japan's revised Business Manager criteria ends on 16 October 2028. Until that date, someone already holding the status cannot have an extension refused on the single ground that they fail the new ¥30 million capital test or the new full-time employee test. Permanent residence applications get no such protection, and have not since the revised criteria took effect on 16 October 2025.
The status has been shrinking while that window has been open. Immigration Services Agency figures published on 16 October 2026 put Business Manager holders at 42,747 at the end of June 2026, down 8.6 per cent from 46,781 at the end of December 2025.
What the grace period covers, and what it does not
The wording is narrow. For an extension filed on or before 16 October 2028, failing the revised criteria will not by itself produce a refusal; the agency weighs the state of the business and the prospect of meeting the criteria at a later renewal. Falling short of ¥30 million is named specifically as something that will not trigger an automatic refusal on its own.
That is protection against one reason for refusal, not a suspension of the criteria, and the agency may ask for an assessment of the business prepared by a management specialist. An extension filed after 16 October 2028 must meet the revised criteria outright, with a comprehensive judgement available where the business is sound, corporate tax has been paid, and the criteria look reachable by the following renewal.
The window does not soften the rest of a renewal. The agency still checks enrolment in labour and social insurance, payment of taxes and public dues, and the licences the business needs, as set out on the page for extending or renewing your status.
The five tests an application now has to pass
Capital or total investment of at least ¥30 million for a company. A sole proprietor is assessed on the total put in, counting premises, a year of staff salaries and equipment.
At least one full-time employee resident in Japan besides the person running the business. That employee must be a Japanese national, a special permanent resident, or hold an Annex II status: permanent resident, spouse or child of a Japanese national or of a permanent resident, or long-term resident. Work statuses under Annex I do not count.
Japanese at B2 on the Reference Framework for Japanese Language Education, held either by the applicant or by a full-time employee. JLPT N2 and BJT 400 are among the accepted proofs.
A doctorate, master's or professional degree in business management or the relevant field, or three years or more of management experience. Time spent on start-up preparation under a designated activities status can count.
A business plan checked by a registered SME management consultant, a certified public accountant or a tax accountant, who cannot be an officer or employee of the applicant. Checklists by category are on the Business Manager visa page.
Permanent residence sits outside the window
Where the revised criteria are not met, the agency will not grant permanent residence from Business Manager, from Highly Skilled Professional (i)(c), or from Highly Skilled Professional (ii) resting on business management. A change from (i)(c) to (ii) is refused on the same ground. None of this waits for 2028; it has applied since 16 October 2025.
The grace period buys time to keep the status, not time to qualify for permanent residence. The requirements are set out on the permanent residency page.
If you are applying from abroad or switching status
New certificate of eligibility applications are assessed on the revised criteria with no transitional relief. Applications received on or before 15 October 2025 and still under examination are judged on the previous ones.
Two designated activities routes keep the old criteria on a change into Business Manager: item 44, the foreign entrepreneur route, where the confirmation certificate was issued on or before 15 October 2025, and item 51, future creation human resources, for anyone who applied before 16 October 2025 or already held it. Category 3 and Category 4 applicants filing on or after 15 April 2026 also submit a declaration concerning the representative.
Work back from your own expiry date
The status is granted for five years, three years, one year, six months, four months or three months, so the window is a different length for everyone. Check the expiry date on your residence card, count the renewals that fall before 16 October 2028, and treat that count as the time available to reach ¥30 million, hire a qualifying employee, or conclude the business will not get there.
Sources: ISA — Revision of the landing criteria for Business Manager and transitional measures, ISA — Status of residence: Business Manager, ISA — Landing criteria ministerial ordinance, Business Manager extract (PDF), ISA — Number of foreign residents, end of June 2026