Japan raises business visa capital bar sixfold to Rs 1.74 cr amid misuse concerns

Japan will tighten rules for its business manager visa starting next Thursday, sharply raising the minimum investment requirement for foreign entrepreneurs from ¥5 million to ¥30 million ($197,000), the Immigration Services Agency (ISA) announced on Friday, according to the Japan Times.

The move follows a surge in visa applications, which authorities say has led to misuse of the scheme by individuals seeking a shortcut to long-term residency rather than genuinely managing businesses.

Currently, applicants can qualify by investing at least ¥5 million or hiring two full-time Japan-based employees. The new policy will raise the investment bar sixfold and add stricter compliance and skill requirements.

Justice Minister Keisuke Suzuki said the new capital threshold reflects “the profitability benchmark for small enterprises” and is meant to ensure that applicants have the financial capacity to sustain genuine business operations. “To ensure the visa status is being used appropriately, it’s essential for us to accurately understand whether or not business activity is actually taking place,” Suzuki said.

Applicants will now need to employ at least one full-time Japanese national or a foreign resident with independent residency status, such as a permanent resident or spouse visa holder. The reform also introduces a business-level Japanese proficiency requirement — roughly equivalent to CEFR B2 or JLPT N2 — to strengthen integration and oversight.

In addition, applicants must prove at least three years of management experience or hold a graduate degree in business administration or a related field. The government will also begin verifying tax and health insurance payment compliance during visa renewals.

According to ISA data, there were 41,615 business manager visa holders at the end of 2024, up from 31,808 in 2022. Chinese nationals account for more than half, followed by residents from Nepal, South Korea, Vietnam, Sri Lanka, and Pakistan.

Junji Ito, director of the ISA division overseeing the program, clarified that buying property or outsourcing operations will no longer qualify as active business management. “This residency status is intended for individuals who are actively engaged in managing their business,” he said.

Existing visa holders will receive transitional relief until October 2028, during which renewals may be granted even if all new criteria are not fully met, provided their business remains sound. After that, compliance with the updated requirements will be mandatory.