Tighter Scrutiny and Monitoring—Is Japan’s Business Manager Visa Facing Greater Restrictions?

On June 6, 2025, Japan’s Kyodo News reported that the Japanese government convened a meeting at the Prime Minister’s Office titled “Conference on the Acceptance and Coexistence with Foreign Talent.” During the meeting, it was pointed out that some foreign residents in Japan have failed to voluntarily pay into national health insurance and income taxes. In response, the Japanese authorities are planning urgent countermeasures, expressing a policy of zero tolerance toward these “social parasites.” A new regulatory body will be established under the Cabinet to strengthen oversight. Foreign nationals who are found to be delinquent in paying social insurance premiums will not be permitted to renew their residence status. Tourists with unpaid medical expenses may be denied re-entry into Japan.

Translation: “A new policy has been introduced to tighten immigration screening for foreign nationals with a history of unpaid medical expenses in Japan and to deny residence status renewal for those who have defaulted on social insurance premium payments.”

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According to a June 10 report by Yomiuri Shimbun, the number of Chinese nationals in Japan holding the Business Manager Visa has reached 20,551—more than double the figure from 2015—accounting for over half of all issued visas in this category. The surge in foreign arrivals, combined with some visa holders failing to comply with local laws and regulations, has negatively impacted Japan’s public safety and business environment. The Immigration Services Agency of Japan has begun coordinating efforts to raise the current application requirements, including the existing condition that mandates a minimum of JPY 5 million in capital to establish a company in Japan. The aim is to curb the mass inflow of foreign nationals via this visa route.

Translation: “Japan plans to raise the visa requirements for foreign entrepreneurs, aiming to curb the large-scale influx of individuals—particularly Chinese nationals—who enter the country for purposes other than intended, under the current low threshold of ‘a minimum capital of 5 million yen.’”

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Recent developments have sent a clear signal: to ensure a safe and comfortable living environment for local residents, the Japanese government will tighten its oversight of foreign nationals and strictly penalize those with poor social records or who exploit loopholes. Does this signal a shift in Japan’s immigration policy? Will it become increasingly difficult to obtain a Business Manager Visa?

The Business Manager Visa was introduced in 2006 as part of Japan’s efforts to revitalize its economy by encouraging foreign entrepreneurship. Originally known as the “Investor/Business Manager Visa,” it required applicants to establish a company in Japan with a minimum capital of JPY 5 million. In 2014, the visa was renamed following the revision of the Immigration Control and Refugee Recognition Act. This visa does not require Japanese language proficiency, has no academic qualifications or age restrictions, and imposes no limitations on the business industry—making it highly popular. It allows the applicant to bring their spouse and children to live, work, and study in Japan. If residence conditions are met, the holder may be eligible for permanent residency or even citizenship.

The original intention of this visa was to boost the local economy. Running a legitimate company requires employing local staff, thereby improving employment rates. A properly functioning company contributes to tax revenue and supports local government budgets. However, in practice, many individuals have taken advantage of the visa’s relatively low barriers to obtain residence status without engaging in legitimate business activities. Issues such as shell companies, failure to pay social insurance and pension contributions, and evading corporate taxes are common. Despite this, these individuals still benefit from Japan’s education and healthcare systems, contributing little to the economy while putting pressure on social welfare and public resources. On June 6, the Japanese Prime Minister stated: “To build an orderly and inclusive society, we will accept foreigners who follow the rules. Those who do not will be dealt with strictly.”

Japan is facing serious demographic challenges, with an aging population and a declining youth labor force. This labor shortage makes the country increasingly reliant on foreign workers. As such, Japan is unlikely to make sweeping changes to its visa policies aimed at attracting foreign talent in the short term. However, due to concerns over public safety and abuse of visa programs, authorities are expected to tighten screening processes and penalties. The Business Manager Visa, as one of the most popular visa types among foreigners, is likely to be among the first affected.

So, what should prospective applicants who intend to move to Japan via the Business Manager Visa be aware of?

1. Work with a professional and compliant agency

A reputable and compliant immigration agency is essential for navigating Japan’s evolving immigration policies. A good agency can provide up-to-date information, customized solutions, and assist applicants in meeting all requirements. They will help prepare and review all necessary documents to ensure accuracy and completeness, minimizing the risk of rejection due to incomplete or incorrect paperwork.

2. Comply with local laws and regulations upon arrival in Japan

The Japanese government is currently caught between a desire to attract foreign talent and concerns over an unregulated influx. Once a Business Manager Visa is granted, strict adherence to local laws is mandatory. Authorities have made it clear that violations—such as non-compliance with tax or insurance obligations—may result in visa cancellation and denial of future entry. Maintaining legal and compliant business operations is critical to ensuring long-term residency. A professional agency can offer guidance on Japan’s legal framework and provide practical advice for operating a genuine company to avoid misuse of the visa and safeguard the possibility of renewal or permanent residency.