Japan tightens rules for business manager visa

57 min ago
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Japan's business manager residence status, introduced a decade ago to lure entrepreneurs from overseas, has become increasingly popular. More than 41,000 people held it last year.

But concerns have grown that the status was being misused as an easy path to immigration, prompting the government to tighten rules this month - including a steep increase in capital requirements.

Worries about abuse


Press conference of then-justice minister Suzuki Keisuke on October 10
With the number of business manager visas issued more than doubling in ten years, worries have grown that it was being misused - a view highlighted by then-justice minister Suzuki Keisuke earlier this month.

Suzuki Keisuke
"It was pointed out that the residential status is abused by some foreigners as a means of moving to Japan, as permit standards are lax compared to the same systems in other countries."
How have the requirements changed?

Japan introduced this visa 10 years ago to attract foreign entrepreneurs. The goal was to boost investment and create jobs. But new rules for the visa were introduced in October.

The capital requirement was raised six-fold, from 5 million to 30 million yen. That means incoming applicants will need nearly 200,000 dollars in the bank.

The rules also require companies to hire at least one full-time employee, who must be, for example, a Japanese citizen or permanent resident.

It also requires that applicants have at least three years of business management experience or hold at least a master’s degree.

Why tighten the rules?

Authorities said the capital requirement was too low. In addition, they've seen a number of fraudulent applications using shell companies that aren't actually operative in the real world.


Ito Junji, Residency Management Division Director of Immigration Services Agency
Ito Junji
"Someone who has no intention of engaging in business activities can obtain business manager residence status as a means of immigrating to Japan. But that is not acceptable from our viewpoint. We made these changes because we believe the previous requirements were too loose."

Over 41,000 people had business manager residence status last year. That number has more than doubled over the last decade.

Social situation in China may be one cause of the increase

More than half of the people holding this residence status are Chinese. Of course, there are legitimate applications. But the visa has also been widely advertised on social media as a means of moving to Japan.


Post on Chinese social media
And some Chinese residents are looking for a way to escape their country's harsh rules. For example, Beijing's strict lockdown policies during the coronavirus pandemic pushed people away. And China's high-pressure "entrance exam war" is another reason why people want to leave China. They want to raise their children in Japan to avoid that kind of pressure.

Anxiety about the new rules

A growing number of people are saying the rules have become too strict. One legal office that helps people apply for visas says clients are concerned, especially about the new hiring rule.


Lee Hwisa, Osaka International Legal Office
Lee Hwisa
"There have been inquiries about how to recruit employees for their business. There's a labor shortage in Japan right now. So foreigners are worried about how many people will apply."
How will the new rules affect Japan down the line?

Experts say the rule changes should stop people from misusing the visa. But the number of non-Japanese who are willing to start a business could decrease.


Matsushita Namiko, Professor at Suzuka University
Matsushita Namiko
"The barriers for starting a new business here have gone up significantly. People who like Japan and want to invest here may not be allowed in easily. I think this will have an impact on startup companies that have a potential to grow significantly in Japan."
The Immigration Services Agency says it will keep an eye on how the new rules play out.