Guides

Tokyo & New York Business Rule Changes 2025–2026: What's New

Last checked: 2026-10-30 ・ Researched and written by AI from official sources. Published by Spooling Dreams.

Short answer: From November 2025 to October 2026, Japan raised its residence permit fees and Tokyo's minimum wage (both on October 1, 2026). Japan also started a new 4% defense surtax on corporate tax and cut the input-tax credit for purchases from suppliers that aren't invoice-registered. In New York, non-US LLCs registered to do business in the state must now disclose their beneficial owners, NYC employers must give an extra 32 hours of unpaid protected leave, and H-1B selection now favors higher wages. Upcoming dates: the New York minimum wage stays at $17.00 in NYC on January 1, 2027; Japan's new Employment for Skill Development (育成就労) system starts April 1, 2027; and the transition period for Japan's stricter Business Manager visa ends October 16, 2028. (Checked October 2026.)

What changed in the last 12 months? (newest first)

Just outside the window but still the biggest change for Tokyo founders: On October 16, 2025, Japan tightened the Business Manager (経営・管理) status. It now requires ¥30M in capital and at least one full-time employee (a Japanese national, special permanent resident, or holder of a status such as permanent resident or spouse of a Japanese national). It also requires B2-level Japanese from the applicant or a full-time employee, a doctoral, master's or professional degree or 3+ years of management experience, and a real office (a home office is generally not accepted). The business plan must be checked by a certified SME consultant, CPA or zeirishi (licensed tax accountant) (ISA).

What do the key changes mean in practice?

Japan residence fees. At the counter, an extension or change of status now costs ¥10,000 (3 months or less) up to ¥75,000 (5 years or more). A 1-year stay costs ¥33,000 (ISA). Online, a 1-year stay costs ¥27,000 and a stay of 5+ years costs ¥65,000, plus a ¥330–¥550 payment fee (ISA). Applications received by September 30, 2026 still pay the old fee (ISA). If you meet the conditions for financial hardship, the fee can be cut to ¥10,000 whatever the length of stay (ISA).

Japan defense surtax. The tax is (corporate tax − ¥5M) × 4%. A return must be filed even when the amount owed is zero (NTA).

NY LLC Transparency Act. A covered LLC reports each beneficial owner who holds 25% or more or exercises substantial control. It gives name, date of birth, address and an ID number, and pays a $25 fee (NY DOS). LLCs formed in New York or another US state are not covered (NY DOS FAQ).

NYC Protected Time Off. Employers must give 32 hours of unpaid leave that can be used right away. This is on top of 40 hours of paid leave (5–99 employees) or 56 hours (100+ employees) (NYC DCWP FAQ).

H-1B. Each registration gets one to four entries depending on the wage level offered: Level I gets one entry and Level IV gets four (USCIS compliance guide). USCIS also points to a separate Presidential Proclamation that requires an extra $100,000 payment (USCIS). A US immigration attorney can tell you whether that payment applies to your petition.

What changes are scheduled?

What should you do next?

1. Check your payroll against the new wage floors: ¥1,280 in Tokyo and $17.00 in NYC. In Tokyo, look closely at roles with fixed overtime pay, which the Labour Bureau flags as a common way to fall below the minimum (MHLW).
2. Budget for the higher Japanese visa fees for every founder and employee renewal from October 2026.
3. Plan for the Business Manager rules if you're setting up in Tokyo: ¥30M capital, one full-time hire and a real office. Ask a gyoseishoshi (immigration lawyer-scrivener) or immigration lawyer to check your plan.
4. If your Japanese entity is registered in NY as a foreign LLC, decide with a US corporate attorney whether to file before December 31, 2026.
5. Update your NYC leave policy and posted notice for Protected Time Off. An employment attorney can review it.
6. Ask a zeirishi (Japanese tax accountant) and a US CPA how the defense surtax, the invoice credit cuts and the 1099 threshold affect your filings.

We didn't find official changes in the last 12 months to Tokyo company registration procedures or NYC business licensing. Check the relevant agency for your industry before you open.

FAQ

Did Tokyo's minimum wage go up in 2026?

Yes. It rose to ¥1,280 per hour on October 1, 2026, up ¥54. It covers all workers in Tokyo, including those on probation or in training (MHLW).

Will New York City's minimum wage rise on January 1, 2027?

No. It stays at $17.00 because one of the law's economic "off-ramp" conditions was met (NY DOL). The Governor has proposed $17.60 from March 1, 2027, but that needs legislative approval (NY Governor).

Does the NY LLC Transparency Act apply to a Delaware or New York LLC?

No. Only LLCs formed under the law of a foreign country and authorized to do business in New York must file (NY DOS FAQ). A US corporate attorney can confirm whether your structure is covered.

I already hold a Business Manager visa. Do the new rules apply to my renewal?

Until October 16, 2028, a renewal won't be refused just because you don't meet the new standards. The decision considers things like how the business is doing and whether it is likely to meet the new standards (ISA). Ask a gyoseishoshi or immigration lawyer about your own case.

How much does a Japanese visa renewal cost now?

From October 1, 2026, a counter application costs between ¥10,000 and ¥75,000 depending on the length of stay granted. For example, a 1-year stay costs ¥33,000 (ISA). Online, a 1-year stay costs ¥27,000 plus a ¥330 payment fee (ISA).

Does the new Japanese defense tax apply to small companies?

It applies to every company that pays corporate tax, but only corporate tax above ¥5M a year is taxed at 4%. A return is still required when the tax is zero (NTA).

Sources

• ISA – Residence permit fee revision (Oct 1, 2026)
• ISA – Extension of period of stay (fees by length of stay)
• ISA – Online application fees (from Oct 1, 2026)
• ISA – Fee reductions and waivers
• ISA – Business Manager standards revision
• ISA – Employment for Skill Development Q&A
• MHLW Tokyo – Minimum wage 2026
• NTA – FY2026 invoice system revisions
• NTA – Defense Special Corporate Tax
• NY Department of State – Beneficial Owner Disclosure
• NY Department of State – Beneficial Ownership Disclosure FAQs
• NY Department of Labor – Minimum wage
• NY Governor – Minimum wage for 2027
• NYC DCWP – Protected Time Off Law
• NYC DCWP – Protected Time Off FAQs
• USCIS – H-1B weighted selection
• USCIS – H-1B Weighted Selection Small Entity Compliance Guide
• IRS – Form 1099-NEC and independent contractors

General information only, not legal, tax or immigration advice. Rules change, so confirm with the official source and a licensed professional before you act.