Japan cracks down on shell companies, toughens requirements for business manager visas
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Under the proposed new requirements, visa applicants must employ at least one full-time staff member at their companies.
PHOTO: AFP
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TOKYO - Japan plans to raise the bar on requirements for foreigners entering the country on business manager visas amid mounting concerns over abuse of the system, officials said on Aug 26.
The changes proposed will involve the increasing of the minimum capital investment to 30 million yen (S$260,880) from 5 million yen.
The revision of a ministerial ordinance put forward by the Immigration Services Agency of Japan also includes requiring visa applicants to employ at least one full-time staff member at their companies.
The move came after revelations of cases in which people established firms with no actual operations simply to obtain the visa.
The new requirements for the business manager visa – designed to allow foreign nationals to start, operate or manage a business in Japan – are expected to take effect in October after comments are solicited from the public through Sept 24.
The agency said it compared similar systems in the United States and South Korea when deciding to make the substantial increase in the minimum capital requirement.
Under the new system, visa applicants will be required to have at least three years of work experience or an academic qualification related to company management.
They will also need to have their new business plans checked by specialists who hold small and medium enterprise management consultant certificates.
Currently, individuals can qualify for the visa if they have an office for their business in Japan, regardless of whether operations have started, and have capital of at least 5 million yen or employ two or more full-time workers.
As of the end of 2024, foreigners living in Japan on the visa hit a record 41,615. By nationality, Chinese were the highest proportion at 21,740, followed by Nepalis at 2,830 and South Koreans at 2,741.
Of those holding the visa, some 4 per cent would satisfy the new envisioned requirement of a minimum capital of 30 million yen, it said, casting doubt on the future of many in Japan. KYODO NEWS
