Japan Immigration News

Foreign Entrepreneurs Find Life in Japan Tangled in Red Tape

Release Date: 2025-02-28
Media: Yahoo Finance
Summary: Japan’s immigration system is making it difficult for foreign entrepreneurs to establish long-term businesses. Beau Becker, who runs a health drinks startup, is awaiting his visa renewal, fearing delays that could lead to his bank account being frozen, as happened last year. While Japan has introduced special startup visas to attract foreign talent, rigid renewal requirements, difficulties in opening bank accounts, and real estate challenges make it hard for them to operate and settle.

Former Prime Minister Fumio Kishida aimed to create 100,000 startups and 100 unicorns by 2027, but currently, there are only around 10,000 startups. Despite the government’s push for innovation, visa extension rules demand proof of profitability within a short time, making it nearly impossible for startups to sustain operations.

Amarsanaa Tsembel, a Mongolian entrepreneur, has successfully built his business in Japan but struggles with financial limitations due to his short-term visa, preventing him from securing a housing loan or credit card. Other foreign entrepreneurs face similar challenges, including the need for a Japanese guarantor to rent office space and strict credit card approval processes.

Some experts criticize Japan’s overly cautious approach, saying it creates numerous small obstacles that collectively hinder entrepreneurship. However, Japan remains attractive due to its stability, highly educated workforce, and interest in innovation.

Becker, despite contributing to Japan’s economy, worries about the consequences of a delayed visa renewal, which could disrupt his payments. Many entrepreneurs believe that the disconnect between immigration policies and Japan’s startup ambitions is holding back the country’s entrepreneurial growth.
Tags: Business Manager

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