Japan Immigration News

Japan's business manager visa dilemma: crackdown, or discouraging foreign entrepreneurs

Release Date: 2026-05-05
Media: NHK
Summary: Japan has significantly tightened the requirements for its “business manager” residence status, a visa designed for foreign entrepreneurs starting businesses in Japan. The reforms were introduced after concerns grew that some applicants were abusing the system by establishing shell companies or using the visa primarily as a pathway for immigration rather than genuine business activity.

Previously, applicants needed only 5 million yen in capital, but since October this has increased to 30 million yen. New conditions also require hiring at least one full-time employee—such as a Japanese national or permanent resident—and demonstrating Japanese language ability.

Immigration authorities found widespread misuse. Investigations into 300 suspected cases between 2023 and 2024 uncovered problems in about 90 percent of them, including businesses with no real operations. Many cases involved empty offices or unreachable applicants. The issue became particularly associated with Chinese applicants, who make up roughly half of the approximately 45,000 holders of the status. Social media in China had promoted the visa as an easy and inexpensive route to move to Japan, especially after dissatisfaction with China’s COVID-19 restrictions and educational pressures.

While the government says the crackdown is necessary to restore trust in the system, many legitimate foreign entrepreneurs are now struggling. Chinese business owners expressed fears that they may no longer qualify to remain in Japan, especially because hiring full-time staff is difficult amid Japan’s labor shortage. Some have already closed businesses or switched residence statuses.

Experts warn that stricter rules could discourage talented foreign entrepreneurs and investment from coming to Japan. They argue that Japan must carefully balance preventing abuse with maintaining openness to foreign business activity, especially as the country faces population decline and severe labor shortages. The debate reflects a broader challenge: how Japan can regulate immigration while still remaining economically attractive and socially sustainable.
Tags: Business Manager

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