
From Today’s News – September 11, 2025
Regarding the ‘Business Manager’ residence status for foreigners aiming to start a business in Japan, the Immigration Services Agency is finalising negotiations to tighten Japanese language proficiency requirements. This is in addition to a proposed revision to the ministerial ordinance that would increase the minimum capital requirement sixfold and require either the entrepreneur or a full-time employee to demonstrate “considerable Japanese language proficiency”.
This “considerable Japanese language proficiency” refers to the “B2 (Upper-Intermediate)” level (JLPT N2), the third highest of six international standards. It requires the ability to understand more complex content and express opinions, as well as engage in daily conversation.
This indicates that the Japanese language proficiency requirement could become a stricter hurdle than the increase in minimum capital.
The Japanese language proficiency requirement could therefore present a greater challenge than the increase in minimum capital. The reasons are as follows:
It can be more difficult than fundraising. Increasing capital can be achieved through fundraising efforts. However, acquiring a B2-level proficiency in Japanese requires a significant investment of time and money. Even individuals with business experience and specialised skills may find the language barrier to be a significant obstacle when starting a business.
Japanese proficiency may not be essential, depending on the nature of the business. Many global or IT-related businesses, for example, can be conducted with little to no use of Japanese. For entrepreneurs planning such businesses, the requirement to be proficient in Japanese becomes an unnecessary burden that is unrelated to the essence of the business.
Difficulty in securing personnel: While it is possible to meet this requirement by employing a full-time Japanese speaker, securing personnel with B2-level proficiency can be challenging in the early stages of starting a business. This will be especially challenging for small and medium-sized enterprises and start-ups, as the recruitment costs and personnel expenses will be significant.
Therefore, it can be concluded that this Japanese language proficiency requirement is not merely a financial hurdle, but rather a stricter examination of the eligibility of foreign entrepreneurs. Although this measure aims to ‘mitigate social friction’, there are concerns that it may also deter highly skilled individuals from starting a business in Japan.

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