Japan Introduces Stricter Visa Requirements for Foreign Entrepreneurs

Japan plans to implement stricter requirements for visas aimed at foreign entrepreneurs, significantly increasing the minimum capital investment from 5 million yen to 30 million yen, which is approximately $204,000. Additionally, applicants will now be required to employ at least one full-time employee within the country. This move comes in light of political changes following the July upper house election, where support for an anti-immigration opposition party contributed to a shift in the ruling coalition's majority.

In a draft proposal, the justice ministry has stated it will seek public feedback until September 24, with the intent to formalize these requirements by October. The “business and management visa,” which enables foreign nationals to establish and oversee businesses in Japan, previously allowed long-term stays of up to five years, with the option for renewal and inclusion of family members.

Under the old rules, entrepreneurs could qualify with either a capital investment or by providing employment for two full-time staff members alongside a viable business plan. This visa was originally designed to attract business innovators and enhance Japan’s global competitiveness, allowing holders to apply for permanent residency after ten years of maintaining a qualifying work visa status. Recent immigration data indicates that approximately 41,600 individuals held such visas at the end of 2024, marking an 11% increase from the previous year, with over half of the visa holders being Chinese nationals.