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Japan has increased the capital requirement for foreign business managers from 5 million to 30 million yen, causing widespread concern among small foreign business owners. Visa applications have plummeted, and many fear losing their residency status, with ongoing debates about the policy’s fairness.
Foreign business owners in Japan are scrambling to meet the new requirement of holding 30 million yen in capital to qualify for the business manager visa, a sharp increase from the previous 5 million yen. This change has caused a dramatic decline in visa applications and widespread anxiety among small entrepreneurs, many of whom face the risk of losing their residency status.
Japan’s Immigration Services Agency increased the minimum capital requirement for the business manager visa from 5 million to 30 million yen in October 2025, citing concerns over fraudulent visa applicants. The move has drastically reduced new visa applications, which have fallen 96 percent since the announcement, from about 1,700 to 70 per month, according to government reports.
Many small foreign business owners, especially those operating family-run restaurants such as Indian and Indo-Nepalese eateries, say the new rules are unrealistic and threaten their ability to remain in Japan. These entrepreneurs often cannot afford the required capital or hire a full-time Japanese employee, as mandated by the new regulations. Experts like Kazuki Yuda of Touch Immigration Law Firm highlight that the policy disproportionately impacts legitimate small businesses rather than fraudsters.
Public response includes an online petition signed by over 67,000 people requesting a review of the capital threshold. Meanwhile, visa renewals are becoming unpredictable, with authorities scrutinizing whether visa holders are engaged solely in managerial tasks, which many small business owners find incompatible with their day-to-day operations.
Impact on Small Foreign Entrepreneurs in Japan
The new visa requirements threaten the existence of many small foreign-owned businesses, which are vital to Japan’s multicultural economy. If these entrepreneurs are forced out or face closure, it could lead to a decline in foreign culinary and service sectors, affecting cultural diversity and local employment. The policy also raises broader questions about Japan’s approach to foreign entrepreneurship and integration.
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Background of Japan’s Business Visa Policy Changes
Introduced in 2015, Japan’s business manager visa aimed to promote foreign entrepreneurship with relatively accessible requirements. The number of visa holders increased from 18,000 in 2015 to 40,000 by 2024. However, concerns over illegal overstayers and shell company schemes prompted stricter regulations in October 2025, including the significant increase in required capital and employment criteria. Critics argue these measures disproportionately impact legitimate small businesses founded by long-term residents, many of whom have contributed to local communities for years.
“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 Scope of Genuine Business Owner Impact
It remains uncertain how many current visa holders will be able to meet the new capital requirements or will face deportation or visa revocation. The full extent of the impact on small, legitimate businesses and the potential for policy revisions is still developing, with ongoing government reviews and legal challenges.
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Next Steps for Policy Review and Business Support
Legal challenges and public petitions may prompt the Japanese government to reconsider or amend the new requirements. Stakeholders are expected to engage in negotiations, and some small business owners are exploring alternative funding options, including loans. Further government statements and possible policy adjustments are anticipated in the coming months.
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Key Questions
How many foreign business owners are affected by the new rules?
While exact numbers are unclear, government statistics suggest that only about 4 percent of visa holders meet the 30 million yen capital requirement, indicating a significant impact on many small entrepreneurs.
Can existing visa holders renew their status under the new rules?
Visa renewals are now under increased scrutiny, with authorities examining whether holders are engaged solely in managerial roles, which complicates renewals for small business owners involved in daily operations.
What sectors are most affected by these changes?
Small restaurants, especially Indian and Indo-Nepalese eateries, are among the most impacted, as their business models do not align easily with the new capital and employment requirements.
Are there any efforts to challenge or review these policies?
Yes, public petitions and legal challenges are underway, and some politicians have criticized the policy as overly strict and unfair, calling for a review of the thresholds and criteria.
Source: Hacker News
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