Japan has significantly tightened requirements for its Business Manager residence status, a visa pathway designed to attract foreign entrepreneurs, in a move aimed at curbing misuse while safeguarding the integrity of its immigration system. However, experts warn that the stricter rules could inadvertently deter genuine investors and innovators.

The revised framework raises the minimum capital requirement from 5 million yen to 30 million yen, alongside new conditions such as employing at least one full-time staff member—preferably a Japanese national or permanent resident—and demonstrating Japanese language proficiency. The policy shift follows investigations by the Tokyo Regional Immigration Services Bureau, which found irregularities in nearly 90% of 300 suspected cases, including shell companies with no real business activity.

The visa programme had seen rapid growth, with approximately 45,000 holders, nearly half of them from China, reflecting strong demand from foreign entrepreneurs seeking opportunities in Japan. While the government aims to restore credibility, the crackdown has raised concerns among existing business owners, some of whom face difficulties meeting new hiring and capital thresholds amid labour shortages.

Experts, including Matsushita Namiko, caution that overly restrictive policies may push entrepreneurs towards alternative markets, potentially impacting Japan’s long-term competitiveness. As the country grapples with demographic decline and workforce shortages, policymakers now face the challenge of balancing regulatory oversight with the need to attract global talent and investment.