TL;DR
Japan has increased the capital requirement for the business manager visa from 5 million to 30 million yen, causing a 96% drop in new applications and raising concerns among small foreign business owners. Many face difficulties in meeting the new criteria, risking their residency and businesses.
Japan has significantly increased the capital requirement for the business manager visa from 5 million yen to 30 million yen, causing a sharp decline in new applications and raising concerns among foreign entrepreneurs and small business owners.
Since the new rules took effect in October 2025, the number of monthly business manager visa applications has plummeted by 96 percent, from around 1,700 to just 70, according to the Cabinet Secretariat. The government states the revisions aim to crack down on fraudulent visa applicants, but critics argue that legitimate small businesses are disproportionately affected.
Many small foreign-run businesses, especially restaurants like Indo-Nepalese eateries, face difficulties in raising the required capital or hiring full-time Japanese staff, which is now a mandatory condition. Industry experts and affected business owners warn that these restrictions threaten their ability to stay operational and retain residency status.
Impact on Small Foreign Businesses and Residency Stability
The new visa requirements threaten the survival of many small foreign businesses, which are vital to Japan’s multicultural economy. The restrictions could lead to increased business closures, job losses, and a decline in foreign entrepreneurship, affecting Japan’s economic diversity and community fabric. Additionally, long-term residents may face deportation or loss of status if they cannot meet the new criteria, raising concerns about fairness and integration.
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Background of Japan’s Business Manager Visa Policy Changes
The business manager visa, introduced in 2015, was designed to encourage foreign entrepreneurship by allowing small business owners to reside and operate in Japan. The number of visa holders grew from 18,000 in 2015 to 40,000 in 2024. However, authorities have increasingly scrutinized visa holders amid concerns over illegal overstayers and shell company schemes, leading to stricter requirements announced in October 2025.
Critics, including politicians and industry representatives, argue that the new rules disproportionately impact genuine small business owners, especially those in the restaurant sector, who often operate with limited capital and staff. The government insists the measures target fraud but faces backlash over the potential collateral damage.
Notably, only 4 percent of existing visa holders hold the new 30 million yen capital threshold, indicating the requirement is beyond the reach of most small entrepreneurs.
“Raising 30 million yen in capital in a few years is extremely difficult even for profitable businesses. Small restaurant owners and young entrepreneurs are most affected.”
— Kazuki Yuda, Touch Immigration Law Firm
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Unclear Impact on Long-term Foreign Residents and Illegal Schemes
It remains unclear how many current visa holders will be able to meet the new capital requirement or how many will be forced to leave Japan. The government’s crackdown on shell companies suggests some illegal schemes may be uncovered, but precise data on the number of genuine entrepreneurs affected is not yet available.
Additionally, the extent to which the new policies will deter illegal overstayers versus harm legitimate small businesses is still being assessed.
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Government and Industry Responses to Capital Requirement Concerns
Industry groups and affected business owners are expected to continue lobbying for review or relaxation of the capital threshold. The government may also introduce support measures, such as loan programs, to help small businesses meet the new requirements. Monitoring application trends and legal challenges will reveal the policy’s ongoing impact.
Further discussions and potential revisions are anticipated as stakeholders seek a balanced approach that discourages fraud without undermining legitimate entrepreneurship.
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Key Questions
How many foreign small business owners are affected by the new visa rules?
While exact numbers are unclear, the sharp decline in visa applications suggests thousands of small business owners may be impacted, especially in the restaurant sector.
Can small business owners still qualify under the new rules?
Most likely only those with significant capital, full-time Japanese staff, and extensive managerial experience will qualify, making it difficult for many small entrepreneurs.
What are the main concerns among affected business owners?
They worry about their ability to raise sufficient capital, retain residency, and continue operations without risking closure or deportation.
Are there any government plans to ease the requirements?
There have been calls from industry and political figures for review, but no official plans for easing the thresholds have been announced as of now.
Source: Hacker News
