Japan’s decision to tighten its business manager visa requirements is leaving hundreds of foreign entrepreneurs uncertain about their future, with restaurant owners and small business operators warning that the new rules could force them to abandon companies they spent years building.
The policy shift comes at a time when Japan is grappling with severe labour shortages and one of the world’s fastest-ageing populations, highlighting the government’s increasingly difficult balancing act between addressing demographic challenges and responding to growing public concern over immigration.
For many immigrant business owners, the new regulations represent more than a bureaucratic hurdle—they threaten livelihoods, family reunifications, and long-term investments in the country.
Nepalese entrepreneur fears losing everything
Among those affected is 38-year-old Nepalese entrepreneur Budhathoki Samjhana, who spent years saving to establish a restaurant business in Tokyo after arriving in Japan as a student in 2016.
After opening her first restaurant in 2023 and expanding to three eateries by early 2026, she believed she had finally secured a stable future for herself and her daughter.
Following a decade of separation, she recently brought her teenage daughter from Nepal to live with her in Japan, where the girl is now attending school.
However, changes to Japan’s business manager visa rules have left Budhathoki worried that she may eventually be forced to leave the country.
“I always wanted to become a bridge between Japan and Nepal, but my dream is broken,” she said.
Her greatest concern, she explained, is no longer her business but the uncertainty surrounding her daughter’s future.
Capital requirement increased six-fold
The most significant change under the revised visa framework is the increase in the minimum capital requirement for business manager visa holders.
Entrepreneurs must now demonstrate capital of 30 million yen (approximately $185,000), a sharp rise from the previous threshold of 5 million yen (around $30,000).
Existing visa holders have been granted a three-year transition period to comply with the new rules, but many small business owners argue that raising such a large amount of capital is unrealistic.
Business owners must also satisfy additional conditions, including employing at least one Japanese citizen or permanent resident.
Critics argue that this requirement is particularly difficult in a country already struggling with labour shortages.
Restaurant owners report stricter immigration scrutiny
Some foreign entrepreneurs say immigration authorities have also intensified documentation requirements during visa renewal applications.
Indian restaurant owner Manish Kumar, who has operated a restaurant near Tokyo for nearly two decades, said he was informed that his business manager visa would not be renewed despite his long-established business.
According to immigration advisers, officials are increasingly requesting detailed financial records, tax documentation and evidence of social insurance payments before approving visa extensions.
The stricter enforcement has sparked concern among immigrant business communities, particularly in Tokyo neighbourhoods known for their concentration of foreign-owned restaurants and shops.
A public petition calling for the suspension of the revised visa rules has attracted more than 67,000 signatures.
Immigration becomes a political issue
The tougher visa requirements reflect a broader shift in Japan’s immigration policy.
In 2025, the government introduced new measures aimed at tightening oversight of foreign residents, while also increasing visa fees for certain tourist categories for the first time in nearly five decades.
The policy changes come amid growing domestic debate over overtourism, rising property prices and increased foreign investment.
Immigration also emerged as a prominent issue during Japan’s recent upper house elections, where the nationalist Sanseito party gained support with calls for stricter immigration controls.
Prime Minister Sanae Takaichi has since pledged stronger screening of foreign nationals entering and remaining in Japan.
Authorities defend reforms
Government advisers argue that reforms were necessary because the business manager visa had increasingly been used by individuals with limited commercial intentions.
The number of business manager visa holders reportedly rose to around 46,000 by the middle of 2025, representing roughly a 70% increase from 2020. Around half of those visa holders were Chinese nationals, according to official figures.
Immigration specialists say some applicants were encouraged to purchase Japanese property or establish minimal businesses primarily as a pathway to residency rather than genuine entrepreneurship.
Nevertheless, experts acknowledge that stricter enforcement is also affecting legitimate small business owners who contribute to local economies and employment.
Japan’s Justice Ministry has indicated that while there are no immediate plans to reverse the new requirements, immigration authorities will continue assessing applications on a case-by-case basis.
For many foreign entrepreneurs, however, uncertainty remains, with visa renewals now carrying higher financial and administrative hurdles despite the country’s continuing need for workers and business investment.
