Why Japan Now Requires a Full-Time Employee

Why “One Full-Time Employee” Is Important

When the Business Manager Visa system was revised and took effect in October 2025, many foreign business owners focused on the fact that the “minimum capital requirement was raised to 30 million yen.”

However, what caught my attention was not the increase in capital.

“Employing one full-time employee”

has become one of the key requirements.

Upon hearing this, some of you may have thought:

“Why do I have to hire an employee just to set up a company in Japan?”

However, I feel this requirement reflects the direction the Japanese government is aiming for.

In this article, I’ll explain the background of the system and what this requirement means in an easy-to-understand way.

The Purpose of the System Revision Is to Increase the Number of “Companies Seriously Engaged in Business”

The Business Manager Visa is a status of residence for foreign nationals starting a business in Japan.

On the other hand, the following cases have been pointed out as issues in the past:

• Companies that have been established but are not actually conducting business
• Companies maintained solely for the purpose of visa renewal
• Management without any substantive operations

Consequently, under the current system, greater emphasis is placed on this aspect than ever before.

“Is the business actually being continuously operated in Japan?”

Why Is “Hiring Employees” Important?

When a company hires employees, it’s not simply a matter of increasing headcount.

To hire employees, the following are required:

• Stable revenue
• Monthly salary payments
• Enrollment in social insurance
• Compliance with labor laws
• Daily labor management

In other words,

a “company capable of hiring people” is considered highly likely to be operating its business on an ongoing basis.

For this reason, “the employment of full-time employees” is regarded as an indicator of the company’s actual business operations.

You can’t say, “It’s easy because there’s only one person”

“If it’s just one person, I can hire them right away.”

Some people might think that way.

However, in reality, hiring an employee means taking on responsibilities such as:

• paying a monthly salary
• managing working hours
• handling social insurance and labor insurance procedures
• and clearly specifying working conditions

“Continuing to employ someone appropriately” is more important than “hiring someone”.

Not just any full-time employee will do

One important point to note here is that

not just any “full-time employee” will do.

Under the system, there are conditions for being recognized as a “full-time employee,” and this applies only to individuals with a status of residence that has no work restrictions, such as Japanese nationals or permanent residents.

In other words, simply hiring part-time or short-hour employees may not meet the requirements.

We’ll explain this point in detail in the next article.

What Is Required of Foreign Business Owners

Due to changes in the system, the requirements for foreign business owners have shifted significantly from “establishing a company” to “continuously operating a company”.

Therefore, these factors are also relevant to the Business Manager Visa.

• Employment Contract
• Payroll
• Social Insurance
• Labor Insurance
• Work Rules

All of these are essential elements for properly operating a company.

A Quick Tip from Administrative Scriveners and Labor and Social Security Attorney

Some foreign business owners take the approach of, “Let’s hire employees first, and worry about the paperwork later.”

However, in reality, numerous laws come into play the moment an employee is hired.

• Employment Contract
• Notice of Working Conditions
• Social Insurance
• Labor Insurance
• Work Hours Management

That is precisely why

getting everything in order before hiring helps protect both the company and its employees.

Summary

The requirement for “one full-time employee” is not simply about increasing headcount.

The reasoning behind it is as follows:

To increase the number of companies operating continuously and appropriately in Japan

For foreign business owners, hiring an employee is not the end goal.

Moving forward, proper employment management and creating a workplace where employees can work with peace of mind lead to stable business operations.

Professional Tip

Hiring One Employee Is Only the Beginning.

Even if you hire one full-time employee, that alone may not be sufficient.

For the “Business Manager” status of residence, not only the fact of employment but also actual employment management is crucial

• Is there an appropriate employment contract?
• Is salary being paid consistently?
• Have social insurance and labor insurance procedures been completed?
• Are working hours and days off being managed appropriately?

and so on.

From the perspective of Administrative Scrivener, we verify whether the requirements for the residence status are met.

From the perspective of Labor and Social Security Attorney, we verify whether the employee is being employed appropriately in accordance with the law.

In other words, what is needed is not simply “hiring one employee,” but establishing a company system that allows for the continuous and proper employment of that person.