Nikkei reports on 26/Aug/2025 that the Japanese government plans to significantly strengthen requirements for “business/management visas” issued to foreign entrepreneurs starting businesses in Japan.
Key Changes:
- Capital requirement increase: Minimum capital will rise from 5 million yen to 30 million yen (6x increase)
- Employment requirement: Must hire at least one full-time employee (previously optional)
- New qualifications: Applicants must have either 3+ years of management experience OR a master’s degree or higher in business/management
- Professional verification: Business plans must be verified by certified public accountants or small business consultants
Background and Rationale: The number of business visa holders reached approximately 41,000 in 2024, a 50% increase from five years ago. Authorities cite growing abuse of the system, with foreigners creating shell companies without actual business operations to gain residency. Critics in parliament called it a “loophole for easy permanent residence.”
Japan’s current requirements were considered lenient compared to other countries – South Korea requires about 32 million yen in capital, while the US requires $100,000-200,000.
Implementation Timeline: The Immigration Services Agency aims to revise regulations in October 2025 after public comment periods.
Concerns: While aimed at preventing fraudulent applications, the stricter requirements may discourage legitimate foreign entrepreneurs from starting businesses in Japan, potentially undermining economic revitalization goals.