TL;DR
Japan has raised the minimum capital requirement for foreign business managers from 5 million to 30 million yen, causing widespread concern among small foreign business owners. Many are struggling to meet the new threshold, risking their residency and livelihoods. The policy aims to curb visa fraud but impacts legitimate entrepreneurs.
Foreign business owners in Japan are urgently seeking additional capital to meet the new 30 million yen requirement for their visas after the government tightened the rules in October 2025. The change has caused a sharp decline in visa applications and renewals, threatening the residency status and operations of many small, legitimate businesses.
Japan’s Immigration Services Agency increased the minimum capital requirement for the business manager visa from 5 million yen to 30 million yen, citing concerns over fraudulent applications and shell companies. Since the announcement, visa applications have dropped 96 percent, from roughly 1,700 per month to about 70, according to the Cabinet Secretariat. Experts and affected business owners say the new threshold disproportionately impacts small, family-run businesses, especially restaurants like Indo-Nepalese eateries, which are prominent in Japan’s foreign cuisine sector.
Many of these small business owners lack the capital or access to loans needed to meet the new requirement, risking the loss of their visa status and ability to operate. Immigration authorities are now scrutinizing whether visa holders are engaged solely in managerial roles, which complicates renewal processes for small business owners who perform multiple roles. Public concern has led to an online petition signed by over 67,000 people calling for a review of the capital threshold.
Impact on Small Foreign Businesses and Immigration Policy
The new capital requirement threatens the survival of many small foreign-run businesses in Japan, potentially leading to job losses and decreased cultural diversity. It reflects a broader government effort to crack down on illegal overstayers and shell companies, but critics argue it unfairly penalizes legitimate entrepreneurs who have contributed to local economies for years. The policy’s implementation raises questions about the balance between immigration control and economic inclusivity, especially for long-term residents.
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Background of Japan’s Business Visa Regulations and Recent Changes
The business manager visa was introduced in 2015 to promote foreign entrepreneurship, with the number of visa holders rising from 18,000 to 40,000 by 2024. The government has cited concerns over visa fraud, with investigations revealing cases of shell companies and illegal employment schemes, such as a Sri Lankan national setting up 600 shell companies. In response, authorities increased the capital threshold from 5 million to 30 million yen, along with stricter requirements for Japanese language ability, managerial experience, and employment of Japanese staff. Critics argue these measures are disproportionate and threaten legitimate small businesses, especially in the restaurant sector, which is a significant part of Japan’s foreign cuisine industry.
“Raising 30 million 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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Unclear Impact on Long-Term Foreign Business Residents
It remains unclear how many existing visa holders will be able to meet the new requirements or if a significant number will be forced to leave Japan. The long-term effects on the foreign business community and the overall economy are still developing, as authorities continue to enforce and interpret the new rules.
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Next Steps for Affected Business Owners and Policy Review
Affected entrepreneurs are expected to seek alternative funding sources, such as loans, or consider restructuring their businesses to meet requirements. Public pressure may lead to a review or adjustment of the capital threshold. Authorities are also likely to continue scrutinizing visa applications and renewals, with ongoing investigations into illegal schemes. The government has yet to announce any changes to the new policy or specific support measures for small foreign businesses.
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Key Questions
How many foreign business owners are affected by the new rules?
While exact numbers are unclear, the sharp decline in visa applications suggests thousands are impacted, particularly small, family-run businesses like restaurants.
Can small business owners access loans to meet the new capital requirement?
Some Japanese firms are preparing loan products, but access varies and may involve risky debt for small entrepreneurs.
Will the government revise the capital threshold?
There has been public and political pressure to review the policy, but no official announcements have been made yet.
What sectors are most affected by the new visa rules?
Small restaurants, especially those serving foreign cuisines like Indo-Nepalese food, are among the most impacted.
What are the long-term implications for Japan’s foreign business community?
The policy could reduce foreign entrepreneurial presence, impacting cultural diversity and economic contributions, but the full effects are still unfolding.
Source: Hacker News
