Japan is preparing to introduce tougher requirements for its Business and Management Visa, the residency status that allows foreign nationals to launch and operate businesses in the country.

According to a recent draft from the Ministry of Justice, the changes would raise the minimum capital requirement from 5 million yen to 30 million yen (about $204,000) — a sixfold increase. In addition, applicants would need to employ at least one full-time staff member in Japan.

The proposed revision comes after this year’s upper house election, where anti-immigration sentiment gained momentum and influenced the ruling coalition’s loss of its majority. The government has opened the plan for public feedback until September 24, with implementation expected in October.

The Business and Management Visa is designed to support entrepreneurs in establishing companies in Japan. It provides long-term residency of up to five years, with renewal options, and allows family members to join. Under the current system, eligibility required either a capital investment of 5 million yen or hiring two full-time employees.

Initially introduced to strengthen Japan’s international competitiveness, the visa also offers a path to permanent residency — after 10 years in Japan, provided at least five years are spent under a work-qualifying visa.

As of the end of 2024, about 41,600 people held this visa, representing an 11% increase from the previous year. More than half of these visa holders were Chinese nationals, according to immigration data.

If the draft is approved, the new rules could significantly raise the barrier for small- and mid-sized foreign entrepreneurs looking to start businesses in Japan, shifting opportunities toward those with larger financial backing.