23 February, 2026
If you’re considering launching a business in Japan under the Business Manager Visa, significant changes were made. This visa type has always required substantial starting capital, however the starting capital requirement increased in late 2025, raising the bar several times over.
Before October of 2025, the Business Manager Visa required:
Compared to many other business visa programs globally, Japan’s criteria had been relatively accessible. For small business owners or freelancers looking to establish roots in Japan, the business manager visa was a popular and practical pathway.
Japan’s foreign entrepreneurial landscape changed dramatically.
The Japanese Immigration Services Agency increased the required initial capital from 5 million yen to 30 million yen (approximately $203,000 USD). [2] This shift brings Japan’s requirements more in line with stricter systems like South Korea’s. [3]
For many aspiring entrepreneurs, the 5 million yen threshold was within reach. For instance, we had seen foreign residents fund their move by selling property. But a 30 million yen bar significantly narrows the playing field and makes the visa far less attainable for many.
“Some visa holders did little more than launch a minpaku [short-term rental] apartment, opening the system to allegations of abuse,” according to the Asahi Shimbun. [2] But it also raises the question: when does rental management cross the line from legitimate business to immigration loophole?
In addition to the capital hike, the revised requirements mandate hiring at least one full-time employee with Japanese citizenship or permanent residency. There is no longer the option to substitute staff with capital investment alone.
So, what drove this change?
Some observers point to underlying cultural and political concerns. Japan’s foreign resident population recently surpassed 3.8 million, sparking renewed debate about immigration, national identity, and long-term sustainability. The Business Manager Visa, in particular, had earned a reputation as a relatively “easy” path to permanent residency, drawing both praise and scrutiny. [4]
Haruko Arimura, a member of Japan’s ruling Liberal Democratic Party, has voiced concern that the program could pose public safety risks and disrupt the local business environment if left unchecked. [3] There’s also speculation that the tightening was in response to the increasing number of Chinese nationals using this visa route to secure residency. [3]
Others argue that the changes are simply an effort to restore the original intent of the visa: to attract serious, growth-minded entrepreneurs, not opportunistic applicants making low-risk investments.
These reforms are significantly reshaping Japan’s startup ecosystem, reducing both the volume and diversity of new businesses entering the market.
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What makes these changes even more puzzling is their timing.
In early 2025, Japan expanded its Startup Visa program nationwide. Previously available only in select municipalities, this visa now gives aspiring entrepreneurs up to two years to prepare for the Business Manager Visa, offering more time and flexibility than ever before. [5]
At the same time, Japanese financial regulators pushed banks to allow foreigners to open business accounts without having to reside in Japan for six months, removing one of the biggest initial hurdles for non-residents. [5]
These measures seemed to signal Japan’s commitment to welcoming foreign talent and capital. So why pivot now?
Back in 2022, former Prime Minister Fumio Kishida launched a campaign for a “new form of capitalism,” with a clear focus on boosting startups and innovation. [6] Raising the capital requirement by 600%, the government risks contradicting its own pro-business messaging and alienating the very entrepreneurs it set out to attract.
Let’s face it, navigating the legal paperwork, securing office space, and crafting a solid business plan can be challenging, but they’re manageable. For most applicants, the real barrier is the upfront investment.
Consider Gregorio Narvasa, an American graphic designer who opened Monsta Sweets in Tokyo’s Koenji neighborhood. He began by selling cookies at pop-ups and eventually launched a brick-and-mortar bakery in 2024. His journey was impressive. But even with a modest business model, he faced high startup costs, including Japan’s infamous rental deposits and non-refundable key money. [7] With the capital increase, stories like his are becoming increasingly rare.
Despite the policy tightening, hope is far from lost. Japan’s startup ecosystem is expanding steadily, and funding is increasingly accessible for entrepreneurs who know where to look.
According to JETRO (Japan External Trade Organization), foreign interest in Japanese startups is accelerating. In the first half of 2023, 61 new startup funds were launched in Japan, with a combined capital of 217 billion yen (around $1.5 billion USD). Of those, seven funds each surpassed 10 billion yen (about $70 million USD). [8]
Venture capital, angel investors, and regional innovation hubs are on the rise. Organizations like Trusted Corporation (Tokyo/Switzerland) specialize in connecting foreign startups with major Japanese firms, including Toyota, Fujitsu, Yamaha, and Panasonic. Their model? Identify innovation needs, research the global startup landscape, and deliver ready-made solutions to Japanese corporations. For small businesses with cutting-edge ideas, this could be a highly lucrative entry point into the Japanese market. [9]
That depends on your goals and your resources.
The Startup Visa remains a viable entry route for many. It typically requires a detailed business plan, proof of funding, and a commitment to hiring. As of May 2024, over 716 individuals had obtained residency through this program. Of these, 359 successfully transitioned to the Business Manager Visa. That’s nearly a 50% success rate. [10]
Of course, that also means half did not make it through. Whether due to funding issues, shifting priorities, or bureaucratic obstacles, this path isn’t guaranteed. But it is a real opportunity.
And Japan has a lot going for it:
However, with the capital threshold increase, achieving the dream may become significantly harder, especially for solo founders and self-backed startups.
If you’re serious about starting a business in Japan, sorry to say it’s too late to apply under the old system. The 5 million yen requirement period has closed.
But even when the rules change, don’t be discouraged. With smart planning, the right partners, and a willingness to adapt, building a business in Japan is still possible. And for the right kind of entrepreneur, it’s well worth the effort. We’re always looking for pathways to help make your vision a reality.
The rules have changed. The opportunity remains. Talk to us for a customized strategy on how to turn your entrepreneurial dreams into reality.
1. “What to Know About Japan’s Start‑up Visa Expansion 2025.” Japan Remotely, 13 June 2025, japanremotely.com.
2. Nikaido, Yuki, “Japan to tighten requirements for popular business manager visa.” The Asahi Shimbun, 4 Aug. 2025, www.asahi.com.
3. “Japan’s Immigration Agency to Tighten Visa Requirements for Foreign Entrepreneurs.” Asia News Network, June 2025, asianews.network.
4. “Japan to Launch Cabinet Team on Issues Related to Foreign Residents.” Japan Today, 8 July 2025, japantoday.com.
5. “Japan to ease startup‑visa rules to lure foreign entrepreneurs.” Nikkei Asia, asia.nikkei.com.
6. Lee, Wonkyung, “Globalization of the Japanese Startup Ecosystem through Transnational Entrepreneurship” (2025). CISLA Senior Integrative Projects. 80. digitalcommons.conncoll.edu/.
7. Koichi, et al. “Tokyo Updates: The Story Behind Monsta Sweets, One of Tokyo’s Buzziest Baked Goods Startups” Tokyo Metropolitan Government Updates, Jan. 2024, www.tokyoupdates.metro.tokyo.lg.jp.
8. Japan External Trade Organization (JETRO). “City‑Tech.Tokyo – Driving Sustainable New Global Growth.” JETRO PLUS (Reuters Plus), posted by Reuters Plus, 27–28 Feb. 2023, www.reuters.com.
9. “Japan’s role in the global market: real business opportunities.” Japan Remotely, japanremotely.com.
10. “Invest in Japan: JETRO Global Campus Report 2024.” Japan External Trade Organization (JETRO), 2024, www.jetro.go.jp.
23 February, 2026
