Manish Kumar, an Indian restaurant proprietor who has built a life in Japan over nearly three decades, is now confronting the possibility of deportation. Authorities recently rejected his visa renewal application, a decision that has brought renewed attention to Japan’s significant immigration overhaul and its severe implications for long-term foreign entrepreneurs.
Kumar, who operates an Indian restaurant in Saitama Prefecture, expressed profound distress during a protest rally in Tokyo. Japan’s Immigration Services Agency (ISA) informed him he must close his 18-year-old business and leave the country. His emotional plea has resonated widely, particularly as his children, born and raised in Japan, speak only Japanese and have spent their entire lives there.
Sweeping Reforms to Japan’s Business Manager Visa System
Kumar’s predicament follows major reforms to Japan’s business manager visa system, which came into effect in October 2025. These revised rules are part of a broader governmental initiative to curb the alleged misuse of the visa route by individuals seeking long-term residency without operating genuinely sustainable businesses.
The impact of these changes has been dramatic. According to figures reported by the Japan Times, business visa applications plummeted by nearly 96% after the new regulations were implemented, dropping from approximately 1,700 monthly applications to just 70.
New, Stricter Requirements for Entrepreneurs
Under the updated framework, foreign entrepreneurs applying for a business manager visa—or even renewing an existing one—now face considerably tougher criteria. Key changes include:
- Increased Capital Requirement: The minimum capital investment threshold has surged sixfold, from 5 million Yen to 30 million Yen, which is roughly equivalent to Rs 2 crore.
- Mandatory Local Hiring: Businesses are now obligated to employ at least one full-time local worker, adding financial pressure on smaller enterprises already operating on tight margins.
- Language Proficiency: Applicants or their designated staff must demonstrate Japanese language proficiency, typically at the JLPT N2 level.
- Enhanced Operational Scrutiny: Authorities have intensified compliance checks. Home offices are no longer accepted, and business plans require formal certification, alongside deeper scrutiny of tax records and management history.
Japanese authorities assert that this heightened scrutiny is essential to maintain the integrity of the immigration system and prevent shell businesses or fraudulent enterprises from exploiting residency pathways. However, critics argue that these measures are disproportionately harming legitimate small business owners who have contributed significantly to local economies for years.
Uncertainty for Small Businesses and Immigrant Communities
For many foreign entrepreneurs who established their businesses under the previous, more lenient rules, the new framework presents a sudden and potentially insurmountable financial burden. Community-run restaurants, retail stores, and family businesses—many of which serve immigrant populations while also contributing to local Japanese neighborhoods—now fear they could be forced to close if they cannot meet the revised standards. The situation underscores the profound human impact of these policy shifts on individuals and families deeply rooted in Japan.