TL;DR
Japan’s new visa rules increase the minimum capital requirement from 5 million to 30 million yen, causing foreign business owners to scramble for funding. Many small entrepreneurs, including Indian restaurant owners, face uncertain futures as applications plummet.
Japan’s government has implemented stricter requirements for the business manager visa, increasing the minimum capital from 5 million yen to 30 million yen, causing a significant drop in new applications and raising concerns among foreign entrepreneurs currently operating small businesses.
The new rules, announced in October 2025, mandate a higher capital threshold, a full-time Japanese or permanent resident staff member, Japanese language proficiency, and three years of managerial experience or a master’s degree. Since the announcement, monthly visa applications have fallen by 96 percent, from approximately 1,700 to just 70, according to the Cabinet Secretariat.
Many small business owners, especially those running family-operated restaurants such as Indian and Indo-Nepalese eateries, report difficulty in meeting the new capital requirement. Industry experts, including immigration lawyer Kazuki Yuda, highlight that these thresholds are unrealistic for small-scale, community-based businesses, which often operate with limited capital and multi-role staff.
In addition, visa renewal processes have become more scrutinized, with authorities examining whether visa holders are genuinely engaged in managerial duties, further complicating the situation for existing entrepreneurs.
Impact on Small Foreign Entrepreneurs in Japan
This policy shift threatens the survival of numerous small, legitimate foreign-owned businesses, risking economic contributions from long-term residents. It may lead to increased business closures, job losses, and a decline in cultural diversity within Japan’s local economies. The restrictions could also discourage new foreign entrepreneurs, affecting Japan’s efforts to attract global talent and investment.
Breaking Grass: Down in Mississippi
As an affiliate, we earn on qualifying purchases.
As an affiliate, we earn on qualifying purchases.
Background of Japan’s Business Visa Policy Changes
Introduced in 2015, Japan’s business manager visa aimed to promote foreign entrepreneurship, with application numbers rising from 18,000 in 2015 to 40,000 by 2024. The policy was designed to attract foreign talent and support small business growth. However, authorities have expressed concerns over fraudulent schemes, such as shell companies and illegal overstayers, prompting the recent tightening of requirements.
The government argues that increased capital requirements are necessary to prevent abuse, but critics contend that the new rules disproportionately impact genuine small business owners, especially those from immigrant communities like Indian and Indo-Nepalese restaurateurs, who form a significant part of Japan’s vibrant foreign business landscape.
“Raising 30 million yen in capital in a few years is extremely difficult even for profitable businesses.”
— Kazuki Yuda, Touch Immigration Law Firm
business loan options for foreign entrepreneurs in Japan
As an affiliate, we earn on qualifying purchases.
As an affiliate, we earn on qualifying purchases.
Unresolved Concerns About Policy Impact and Enforcement
It remains unclear how many current visa holders will be able to meet the new capital requirements or secure alternative funding. The extent of enforcement against legitimate small businesses and the potential for widespread closures are still developing issues. Additionally, government officials have not provided detailed plans to support affected entrepreneurs or clarify future policy adjustments.
Japanese business visa support products
As an affiliate, we earn on qualifying purchases.
As an affiliate, we earn on qualifying purchases.
Next Steps for Foreign Entrepreneurs and Policy Review
Affected business owners and advocacy groups are expected to continue petitioning the government, with some calling for a review of the capital threshold. The government may face pressure to modify or clarify the policy, especially as more businesses seek exemptions or alternative pathways to maintain their operations. Monitoring of visa application trends and enforcement actions will provide further insights into the policy’s impact.
Your Next Five Moves: Master the Art of Business Strategy
As an affiliate, we earn on qualifying purchases.
As an affiliate, we earn on qualifying purchases.
Key Questions
How many foreign business owners are affected by the new rules?
While exact numbers are unclear, government statistics show a sharp decline in new visa applications, indicating many are unable to meet the new requirements.
What types of businesses are most impacted?
Small, family-run restaurants, especially Indian and Indo-Nepalese eateries, are among the most affected due to their limited capital and multi-role staffing structures.
Are there any government plans to support affected entrepreneurs?
Currently, there are no specific announced support programs, but some stakeholders are advocating for policy reconsideration and financial aid options.
Could the policy lead to increased illegal employment or overstaying?
Authorities are concerned that stricter requirements may push some entrepreneurs to operate outside legal channels, but concrete data on this is still emerging.
Source: Hacker News
