Key facts
- Japan increased the capital requirement for the Business Manager Visa from 5 million yen to 30 million yen in October 2025.
- The Startup Visa, intended as a pathway to the Business Manager Visa, is now harder to transition from.
- New requirements include employing full-time Japanese nationals or permanent residents and stronger Japanese language capability expectations.
- Many foreign entrepreneurs and small businesses are concerned about the impact of these stricter rules.
Japan has significantly tightened its visa requirements for foreign entrepreneurs, aiming to curb misuse of the "business manager" residency status while potentially hindering genuine startup growth. In October 2025, the government revised regulations, most notably increasing the capital requirement from 5 million yen to 30 million yen. Previously, an alternative to the capital requirement was employing at least two full-time workers; this has been replaced with a mandate to employ full-time Japanese nationals or permanent residents. Additionally, stronger Japanese language proficiency is now expected from applicants or their employees.
These changes directly affect the "Startup Visa" pathway, which is designed to transition into the Business Manager Visa. Reviewers are now reportedly rejecting Startup Visa applications that do not present a credible plan to meet the substantially higher 30 million yen capital threshold within the typical one-to-two-year transition period.
The government states these measures align Japan with international standards, citing South Korea's 300 million won (approximately 30 million yen) and Singapore's 100,000 Singapore dollars (roughly 11 million yen) capital requirements. However, the stricter rules are expected to disproportionately impact small businesses and genuine foreign entrepreneurs.
Surveys indicate a significant concern within the foreign business community. A Tokyo Shoko Research survey found that 45.2% of 299 foreign-run companies anticipate some impact from the new rules, with an additional 5.3% considering shutting down operations. Business owners, such as those running imported food stores or ethnic restaurants, have expressed distress, questioning the feasibility of meeting the new capital demands and suggesting that stricter operational inspections would be a more appropriate measure than a blanket increase in financial requirements.