Japan tightens business visa rules

Foreign entrepreneurs in Japan are facing growing uncertainty after the government introduced stricter requirements for its Business Manager visa, raising concerns that many small business owners could be forced to leave the country if they fail to meet the new conditions.

The tougher regulations, introduced by Japan's ruling Liberal Democratic Party towards the end of 2025, come despite the country's ageing population and persistent labour shortages across multiple sectors.

Under the revised policy, applicants for a Business Manager visa must now demonstrate a minimum capital investment of ¥30 million (around $185,000), a sixfold increase from the previous requirement of ¥5 million. Visa holders are also required to employ at least one Japanese citizen or permanent resident, alongside providing additional documentation such as tax records and social insurance certificates.

The new rules have left many small-scale foreign entrepreneurs fearing for the future of businesses they spent years building.

Among them is 38-year-old Nepali entrepreneur Budhathoki Samjhana, who runs a small Nepalese restaurant in Tokyo's Okubo district. Having arrived in Japan as a student in 2016, she saved for years before opening her first restaurant in 2023 and expanded to a third outlet earlier this year.

"I always wanted to be a bridge between Japan and Nepal, but now it feels like that dream has been shattered," she said.

Samjhana also expressed concern about her 14-year-old daughter, whom she was finally able to bring to Japan this year after a decade apart.

"My daughter has started school here. If my visa cannot be renewed, I don't know what her future will be," she said.

Indian-born entrepreneur Manish Kumar, who has lived in Japan for nearly 30 years, said he had also been informed that his Business Manager visa would not be renewed under the tightened rules.

Immigration specialists say Japan's authorities have significantly increased scrutiny of visa applications in recent months, demanding more comprehensive financial and employment records than before.

The policy shift has sparked public criticism, with more than 67,000 people signing an online petition calling for the revised regulations to be reconsidered.

The tougher approach follows the Japanese government's 2024 pledge to eliminate illegal residency and comes amid growing political support for 'Japan First' policies after last year's Upper House election.

Experts, including public administration specialists Kazuki Yuda and Daisuke Komori, argue that while the reforms are intended to curb visa abuse, they disproportionately affect legitimate small business owners, young entrepreneurs and foreign residents who have invested legally in Japan.

They also warn that the requirement to hire Japanese workers could prove especially difficult to meet at a time when many businesses are already struggling to recruit staff in the country's tight labour market.