Japan Tightens Business Visa Requirements Amid Concerns of Abuse
Tokyo, Japan – Japan is significantly increasing the financial and staffing requirements for it’s Business Manager visa, a move prompted by reported abuses of the system and a desire to attract a higher caliber of foreign entrepreneur.The changes, set to be implemented soon, will raise the minimum investment capital from 5 million yen (approximately $33,000 USD) to 30 million yen (approximately $200,000 USD) and mandate the employment of at least one full-time employee.
The Business Manager visa, formerly known as the Investor/Business Manager visa (renamed in 2015 to broaden its appeal to skilled workers), allows foreign nationals to reside in Japan while conducting business. Over the past decade, the number of visa holders has more than doubled, rising from roughly 18,100 in 2015 to 41,600 at the end of 2024, according to the Immigration Services Agency. Recent regulatory relaxations, including removing requirements for foreign capital and allowing funds from share sales to count towards capital requirements, contributed to this growth.
Though, this expansion has been accompanied by concerns about fraudulent applications. A recent crackdown by Kanagawa prefectural police in July revealed instances of Sri Lankan nationals fraudulently obtaining the visa through the use of “paper companies.” This, coupled with broader anxieties about the ease with which the visa could be acquired, fueled calls for reform from both ruling and opposition parties during this year’s Diet session.While some reports focused on a perceived surge in Chinese nationals utilizing the visa to establish short-term rental businesses (“minpaku”), official data indicates that Chinese nationals have consistently comprised roughly 48-53% of Business Manager visa holders over the past decade.The new requirements align Japan more closely with international standards. South Korea requires a minimum capital of 300 million won (approximately $32 million yen), the United States asks for $100,000-$200,000 (approximately $15-30 million yen), and Singapore requires SG$100,000 (approximately $11 million yen).
To mitigate potential negative impacts on attracting highly skilled foreign personnel, the government will offer exceptions. Holders of Startup Visas – granted through the foreign entrepreneurial activity promotion program approved by the economy ministry – and Future Creation Individual Visas (available to graduates of top universities seeking employment or entrepreneurial opportunities) will be able to transition to the Business Manager visa under the existing, less stringent criteria.
The government’s aim is to attract foreign entrepreneurs who can contribute significantly to the Japanese economy, while simultaneously addressing vulnerabilities in the visa system that have allowed for exploitation.
