TL;DR
Japan has increased the capital requirement for foreign business managers from 5 million to 30 million yen, causing a sharp decline in visa applications and raising concerns among small foreign entrepreneurs. The new rules aim to combat visa fraud but threaten legitimate small businesses.
Japan’s government has significantly increased the capital requirement for foreign business manager visas from 5 million yen to 30 million yen, leading to a dramatic drop in visa applications and raising concerns among small foreign entrepreneurs about their ability to stay and operate in Japan.
Since the implementation of the new requirements in October 2025, visa applications from foreign business owners have plummeted by 96 percent, from approximately 1,700 to 70 per month, according to the Cabinet Secretariat. The government states that the changes are intended to prevent fraudulent visa applicants who set up shell companies, but critics argue that legitimate small business owners, particularly in sectors like Indian restaurants, are disproportionately affected.
Many small restaurant owners, including those running the popular Indian-Nepalese eateries, now face the challenge of raising capital far beyond their current means or hiring full-time Japanese staff, which they say is often impractical. Immigration authorities are also scrutinizing existing visa holders more closely, creating uncertainty for long-term residents. An online petition with over 67,000 signatures has called for a review of the capital threshold, emphasizing the impact on small businesses and community contributions.
Impact on Small Foreign Entrepreneurs in Japan
The new visa rules threaten to displace many small foreign-owned businesses, which are vital to Japan’s diverse culinary scene and local economies. The policies may lead to increased debt for business owners and reduce foreign entrepreneurship, potentially affecting cultural diversity and economic contribution. Critics warn that the crackdown on visa fraud may have unintended consequences, harming legitimate businesses that have integrated into Japanese society.
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Background of Japan’s Business Visa Policy Changes
Japan introduced the business manager visa in 2015 to encourage foreign entrepreneurship, growing from 18,000 visa holders at inception to 40,000 by 2024. The government’s recent crackdown is part of a broader effort to combat illegal overstayers and visa misuse, with the aim of achieving ‘zero illegal foreigners.’ The stricter capital requirement was announced in October 2025 amid concerns over shell companies and illegal employment schemes, with some investigations revealing extensive fraud involving hundreds of shell companies and multiple visa applications.
Critics, including opposition politicians, argue that the policy is overly harsh and driven by xenophobic motives, disproportionately impacting small, legitimate business owners who contribute to local communities. The policy also coincides with a broader push to tighten immigration controls amid rising concerns over foreign land ownership and illegal employment.
“Raising 30 million yen in capital in a few years is extremely difficult even for profitable businesses.”
— Kazuki Yuda, administrative scrivener at Touch Immigration Law Firm
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Unresolved Questions About Visa Policy Impact
It remains unclear how many legitimate small business owners will be forced to leave Japan due to the increased capital requirements, and whether the government will modify or relax these rules in response to public and industry criticism. The long-term economic impact of the policy change is also still being assessed, with ongoing investigations into visa fraud and illegal employment schemes.
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Next Steps for Foreign Business Owners and Policy Review
Legal and business communities are advocating for a review of the capital threshold and visa criteria, with petitions and political pressure mounting. The government may face calls to adjust the policy to better balance anti-fraud efforts with support for legitimate small businesses. Further developments are expected as affected entrepreneurs seek legal advice and explore alternative funding options to maintain their operations in Japan.
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Key Questions
How has the new visa requirement affected small foreign-owned restaurants in Japan?
Many are struggling to meet the 30 million yen capital requirement or hire Japanese staff, leading to fears of losing their visas and businesses.
Why did the Japanese government implement these stricter visa rules?
The government states the changes aim to prevent visa fraud and shell company schemes, but critics say they disproportionately impact legitimate small businesses.
Are there any efforts to reverse or modify the new visa policies?
Yes, petitions and political voices are calling for a review of the thresholds, but no official policy changes have been announced yet.
What sectors are most affected by the new visa rules?
Small restaurants, especially Indian and Nepalese eateries, are among the most impacted, as they often operate with limited capital and staff.
What can affected business owners do to stay in Japan?
They are exploring options such as raising capital, applying for different visa categories, or seeking legal assistance to navigate the new requirements.
Source: Hacker News
