Key facts
- Japan has significantly increased the capital requirement for the "business manager" visa from 5 million yen to 30 million yen.
- New rules require businesses to employ at least one full-time Japanese national, permanent resident, or similar.
- Applicants or employees must now demonstrate Japanese language ability sufficient for natural communication (JLPT N2 or higher).
- A Tokyo Shoko Research survey found 45.2% of foreign-run companies expect an impact from the new rules, with 5.3% considering closure.
- The changes aim to close loopholes where visas were obtained for purposes other than genuine business management.
Japan's government has implemented significantly tighter visa regulations for foreign entrepreneurs, sparking concerns among business owners who fear being forced to close their establishments. The changes, which took effect recently, include a sixfold increase in the capital requirement for the "business manager" residency status, from 5 million yen (approximately $31,400) to 30 million yen (around $188,500).
In addition to the capital hike, new rules mandate that businesses must employ at least one full-time Japanese national, permanent resident, or equivalent. Furthermore, either the applicant or a full-time employee must now possess Japanese language proficiency equivalent to JLPT N2 or higher, enabling natural communication. These measures are part of a broader government effort to address perceived loopholes in the visa system, where some individuals reportedly obtained status for purposes other than genuine business management.
However, the stricter requirements are disproportionately affecting small businesses, particularly ethnic restaurants. Owners from countries like Bangladesh, Vietnam, Hong Kong, India, and Nepal have expressed distress, stating that accumulating 30 million yen is an insurmountable hurdle in their tight-margin industries. Some have already decided to close their businesses, while others face uncertainty about future renewals, even with a three-year grace period before full enforcement.
A survey by Tokyo Shoko Research Ltd. indicated that 45.2% of 299 foreign-run companies anticipate some impact from the new rules, with an additional 5.3% considering shutting down operations. Proponents of the changes argue they align Japan with international standards, citing South Korea's requirement of 300 million won and Singapore's 100,000 Singapore dollars. Critics, however, contend that the broad tightening unfairly penalizes legitimate foreign entrepreneurs who contribute to Japan's economy and cultural diversity.