Conservative Prime Minister Sanae Takaichi has made immigration one of the key issues of her term. Since October 2025, foreign professionals, particularly entrepreneurs, have had to deal with stricter immigration rules. Early surveys reveal a significant drop in the number of entrepreneur visa applications.
Tighter rules for foreign entrepreneurs
According to the Immigration Services Agency (ISA), business manager visa applications have dropped by 95% since October 2025. As a reminder, the October 2025 reform tightened the criteria for obtaining and renewing the business manager visa. Applicants must now:
- Raise a minimum capital of 30 million yen to start their business (up from 5 million yen previously).
- Have at least 3 years of management experience or hold a Master's degree or higher.
- Employ at least one Japanese worker or permanent resident on a full-time, permanent contract.
- Have their business plan validated by a certified tax advisor.
- Demonstrate a "certain level" of Japanese language proficiency.
Entrepreneurs who don't yet meet the new rules have 3 years (from October 2025) to comply.
Are large companies being prioritized?
While experts acknowledge that the previous capital requirement (5 million yen) was well below what other countries require for entrepreneur visas (for example, the United States), they're concerned about the negative impact on immigration at a time when Japan, facing a major demographic crisis, needs foreign workers and investors.
According to a recent survey by Tokyo Shoko Research, 45.2% of foreign entrepreneurs surveyed believe the new immigration rules are affecting their business. Concern is growing among entrepreneurs, especially small business owners. Many feel they won't be able to meet the Japanese government\'s new requirements. The survey found that 95.2% of the companies polled have capital of less than 10 million yen. The Ministry of the Interior acknowledges that the new capital requirement poses a challenge: only 8.7% of businesses operating in Japan have capital of at least 30 million yen.
Useful links:
Sources:
- Powderlife - Foreign Entrepreneurs Grapple With New Visa Rules
- The Japan Times - After rule change, Japan sees 96% drop in business manager visa applications
- Nippon.com - Le Japon durcit grandement les conditions d’obtention du visa de cadre et de directeur d’entreprise pour les étrangers
- NHW World - Japan's business manager visa dilemma: crackdown, or discouraging foreign entrepreneurs
