New Entrants Down 80.9% After Capital Requirement Raised Sixfold
The threshold for foreign nationals preparing to start a business in Japan or convert their existing status of residence to a business-related visa has risen significantly.
According to the "Foreign Resident and Entry Statistics for the First Half of 2026" released by the Immigration Services Agency of Japan on October 16, 2026, a total of only 635 foreign nationals entered Japan under the "Business Manager" status of residence during the first half of 2026. This represents an 80.9% drop compared to the same period in the previous year (3,329 foreign nationals).
As of the end of June 2026, the number of foreign nationals holding a "Business Manager" visa in Japan also stood at 42,747, down 8.6% from the end of 2025.
Revision of Ministerial Ordinance to Prevent Paper Companies Is Key Cause
This sharp decline is analyzed as a direct result of the revision to the Ordinance of the Ministry of Justice implemented in October 2025. At that time, the Japanese government significantly tightened approval conditions to prevent visa abuse through shell companies.
The main revisions and changes are as follows:
- Substantial Increase in Capital Requirement: The capital threshold was raised sixfold from the previous "5 million yen or more" to "30 million yen or more."
- Mandatory Dual Conditions: Previously, applicants could meet either the 5 million yen capital threshold or the "employment of two or more full-time staff" requirement. Following the revision, applicants must fulfill both conditions simultaneously: "capital of 30 million yen or more" and "employment of at least one full-time staff member (a Japanese national or permanent resident, etc.)."
Total Foreign Residents Reach Record High of 4.28 Million
Although the number of "Business Manager" visa holders fell sharply, the total foreign resident population in Japan continues to grow.
As of the end of June 2026, the total number of foreign residents in Japan reached 4,281,026, up 3.8% from the end of 2025, setting a new record high. This growth was driven by increases in foreign nationals entering under other statuses, such as Specified Skilled Worker visas and international student visas.
International Students and Residents Seeking Business Startups Need Caution
The statistical results demonstrate that the changes pose a significant burden not only for overseas entrepreneurs looking to enter Japan, but also for foreign residents seeking to switch from student visas or other residence statuses to business startup visas.
With the simultaneous imposition of capital fundraising burdens and full-time employee hiring requirements, visa procedures have become considerably more difficult for small-scale startups and individual proprietors lacking initial investment capital. Therefore, those planning to launch a business or switch visas in Japan in the future should carefully review and prepare for the tightened capital standards and employment requirements in advance.
Tools: Internet Finder
Source: 毎日新聞