Japan is poised to implement significantly stricter requirements for its "Business and Management Visa" aimed at foreign entrepreneurs, signalling a potential shift in the country’s approach to immigration and economic openness.
According to a draft policy document released Tuesday by the Ministry of Justice, the revised rules will raise the minimum capital investment threshold sixfold, from 5 million yen to 30 million yen (approximately $204,000), and mandate the full-time employment of at least one local worker, up from the current requirement of two employees.
The proposed changes reflect growing political pressure following the July 2024 upper house elections, in which an anti-immigration opposition party gained significant traction, contributing to the ruling coalition’s loss of its parliamentary majority.
The new stance suggests a recalibration of Japan’s previously welcoming posture toward foreign investment and entrepreneurship.
The draft policy outlines several key changes to Japan’s Business and Management Visa for foreign entrepreneurs, including a significant increase in the minimum capital investment from ¥5 million to ¥30 million (approximately $204,000), and a revised employment requirement mandating the hiring of at least one full-time employee in Japan, down from the current two.
The Justice Ministry will conduct a public consultation period, gathering feedback on the proposed amendments until September 24, 2024, with the final rules expected to be formally adopted in October 2024.
The "Business and Management Visa" allows foreign nationals to establish and operate businesses in Japan, offering initial residency of up to five years with renewable options. It also permits family members to accompany the visa holder and provides a pathway to permanent residency after 10 years, provided the applicant has held a work-qualifying visa for at least five of those years.
Despite Japan’s historically conservative immigration policies, the number of foreign entrepreneurs using this visa has been rising.
As of the end of 2024, approximately 41,600 individuals held the Business and Management Visa, an 11 per cent increase from the previous year. Data from the Immigration Services Agency shows that over 50 per cent of holders are Chinese nationals, followed by Vietnamese, Thai, and South Korean entrepreneurs.
The visa was originally introduced to boost innovation, attract global talent, and enhance Japan’s international competitiveness in key sectors such as technology, retail, and green energy.
However, concerns have emerged that the low entry barrier has allowed some applicants to exploit the system without launching viable or sustainable businesses.
Business groups and immigration experts have expressed concern that the steep capital hike could discourage early-stage startups and small-scale innovators who lack access to large funding.
Others argue the move may push foreign investors toward alternative markets in Southeast Asia, where regulatory environments are more flexible.
The revised visa framework aligns with broader policy discussions within the ruling coalition about controlling immigration flows while still attracting high-value investors. By targeting the quality, rather than the quantity, of foreign entrepreneurs, the government aims to ensure that only serious, economically impactful ventures gain entry.
Still, the timing of the proposal, amid rising anti-immigration sentiment, suggests a political dimension to the reform. With public debate intensifying over labour migration and demographic challenges, the government may be seeking to strike a balance between economic necessity and social concerns.
Source: Japan Times, Nikkei Asia