By guest contributor Thisanka Siripala
Japan’s decision to tighten the requirements for the business manager visa has sparked panic among foreign residents who run small family-run businesses.
Foreign business owners could lose their residency status after the government increased the capital requirement from 5 million yen (approx. $31,000) to 30 million yen (approx. $187,000).
The changes also mandate a full time Japanese or permanent resident staff member, Japanese language ability equivalent to an average Japanese person, and three years of business managerial experience or a masters degree equivalent.
The government said the revisions are in response to the increase of fraudulent business visa applicants who set up shell companies to gain residency status.
But long term foreign residents, who have set up legitimate businesses and roots in the community, have become collateral damage.
Immigration Services Agency statistics shows that only 4 percent of business manager visa holders hold 30 million yen in capital.
The business manager visa, introduced in 2015, was designed to encourage foreign entrepreneurship. The number of visa holders grew from 18,000 in 2015 to 40,000 by the end of 2024.
The number of applications have now plummeted 96 percent from roughly 1700 to 70 per month since the new rules were announced in October 2025, according to a report by the Cabinet Secretariat.
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