Japan is significantly tightening its business manager visa requirements this October, a move designed to curb immigration loopholes but one that critics warn could stifle legitimate foreign entrepreneurship and startup investment.
The new regulations, effective this month, raise the minimum investment required for applicants to JPY 30 million, approximately $207,000. This marks a sixfold increase from the previous requirement.
Businesses must also now employ at least one full-time staff member who is a Japanese citizen or permanent resident. Additionally, applicants must demonstrate at least three years of business management experience or hold a master’s degree or higher.
These changes aim to prevent individuals from using the visa for immigration purposes without genuine business intent. Junji Ito, an official from Japan’s immigration agency, stated that many past applications used non-operational companies to gain entry.
Ito called this “unacceptable” and criticized the “too lenient” old rules for facilitating such misuse.
The crackdown follows an unexpected surge in the visa’s popularity. Over 41,000 individuals held business manager visas last year, more than double the number a decade ago. Over half of these visa holders are Chinese citizens.
Many Chinese applicants reportedly used the visa to escape strict COVID-19 lockdowns and intense academic pressure for university entrance exams in their home country. Families sought a less stressful educational environment for their children in Japan.
However, legal firms assisting visa applicants report growing concerns. The requirement to hire a full-time employee is particularly burdensome for small businesses or foreign startups.
Namiko Matsushita, a Japanese economic policy expert, warned that the “barriers to starting a business in Japan have risen significantly.” She suggested this could deter investors who genuinely wish to contribute and might negatively impact promising startups.
The business manager visa was initially introduced a decade ago to attract foreign entrepreneurs and create jobs. Japan’s immigration agency plans to closely monitor the new rules’ impact, balancing immigration screening with attracting quality business talent.