TOKYO – Japan has implemented a sweeping overhaul of its business manager visa regulations, increasing the capital requirement sixfold from ¥5 million (approximately US$31,666) to a daunting ¥30 million. The new rules, which took effect recently, are prompting foreign entrepreneurs to reconsider their presence in the country, raising concerns about Japan's ability to attract and retain vital talent amidst its demographic challenges.
Stricter Requirements Spark Exodus
Beyond the substantial capital increase, applicants for the business manager visa now face additional stringent requirements, including an annual income threshold of ¥5.75 million, higher pension contributions, and mandatory Japanese language proficiency. These changes are not limited to business visas; the fee for permanent residency has also seen a twentyfold increase to ¥200,000.
The immediate impact has been dramatic. In the first half of 2026, 953 foreign nationals holding business manager visas departed Japan, nearly quadrupling the number from the same period the previous year. Furthermore, applications for these visas plummeted by 96 percent in the five months following the announcement of the new regulations.
For many, like Sarah, a British business owner residing in Japan for over a decade, the new rules mean abandoning long-held dreams. "We have always had a dream of setting up a godo kaisha [limited liability company], but these changes mean that it is out of reach now," she stated, indicating that she and her husband are accelerating their plans to leave Japan.
Government Justification vs. Economic Concerns
Prime Minister Sanae Takaichi championed these stricter immigration policies as a key part of her platform, which led her Liberal Democratic Party to a landslide victory in the February general election. Takaichi framed the changes as a way to address public concerns about the growing number of foreign residents and to ensure a more "orderly" approach to foreign national policies. Officials further justified the higher visa fees by claiming previous figures were too low compared to other developed nations.
However, economists and business leaders warn that these measures could severely undermine Japan's efforts to combat its declining birth rate, aging population, and critical labor shortages. Martin Schulz, chief policy economist for Fujitsu’s Global Market Intelligence Unit, highlighted the growing frustration among small business operators. "It was already difficult to find these people because the yen is weak and wages are low in comparison with other countries, and firms are going to struggle even more to attract talent," Schulz commented.
Increased Scrutiny for Foreign Businesses
Compounding the financial and administrative hurdles, foreign business owners report a noticeable increase in immigration enforcement. Andy Lunt, owner of a popular izakaya bar in Tokyo, recounted how his business had been raided twice, leading to the removal of two employees. "They are checking up on people’s papers a lot more, and the message I’m hearing is that Japan is not going to tolerate this any more," Lunt observed.
As foreign entrepreneurs look elsewhere, questions remain about the long-term economic repercussions of Japan's tightened immigration stance and its impact on the nation's global competitiveness.