Japan’s Tougher Visa Rules Put Foreign Entrepreneurs Under Pressure

Tokyo-Foreign entrepreneurs in Japan are facing growing uncertainty as stricter business manager visa requirements introduced by the government threaten the future of small businesses, despite the country’s ageing population and persistent labour shortages.

The revised rules, introduced by the ruling Liberal Democratic Party in late 2025, significantly raise the financial and operational thresholds required to obtain or renew business manager visas. The changes come amid rising public concern over immigration, overtourism and foreign investment in Japan’s property market.

Business owners say the tougher requirements are placing established enterprises at risk. Nepalese entrepreneur Budhathoki Samjhana, who opened her first restaurant in Tokyo in 2023 after years of saving, said she may be forced to leave Japan because she cannot meet the new capital requirement.

“I always wanted to become a bridge between Japan and Nepal, but my dream is broken,” the 38-year-old said.

Under the revised regulations, applicants must meet a minimum capital requirement of 30 million yen ($185,000), up from 5 million yen ($30,000). Existing visa holders have been granted a three-year transition period to comply.

Budhathoki said she recently reunited with her teenage daughter after a decade of separation, but now fears her family may once again be forced apart if her visa is not renewed.

Other business owners have also reported difficulties. Indian restaurateur Manish Kumar, who has operated a restaurant near Tokyo for 18 years, said immigration authorities informed him that his business manager visa would not be renewed despite the transition period.

Immigration advisers said officials have tightened document verification, requesting additional records including tax filings and social insurance payments during renewal applications.

More than 67,800 people have signed a petition calling on the government to suspend the new rules.

The policy shift follows the Justice Ministry’s announcement in May 2025 of a plan aimed at achieving “zero illegal foreign residents,” reflecting growing political pressure over immigration.

Prime Minister Sanae Takaichi has pledged stricter screening of foreign nationals since taking office in October. Her government also announced a substantial increase in visa fees for certain tourist categories, marking the first such increase in nearly five decades.

Government data show the number of business manager visa holders rose to around 46,000 by mid-2025, approximately 70% higher than in 2020. Around half of those visa holders were Chinese nationals.

Administrative affairs adviser Kazuki Yuda said the visa programme had increasingly been used by applicants with limited business intentions, including some seeking residency through property purchases.

However, Yuda and fellow adviser Daisuke Komori said stricter enforcement was also affecting legitimate small business owners and young entrepreneurs who had established viable enterprises in Japan.

Justice Minister Hiroshi Hiraguchi told parliament in April that the government had no plans to revise the new regulations but said authorities would consider applications based on individual circumstances.

Among the additional requirements, visa holders must employ at least one Japanese national or long-term resident. Some foreign entrepreneurs argue that fulfilling that condition has become increasingly difficult because of Japan’s shrinking workforce and labour shortages.