News On Japan

Impact of Japan’s Stricter Foreign Business Manager Visa Rules

TOKYO - A Nepalese manager of a busy Indian restaurant in Kodaira, Tokyo, says he fears for the future of his business after Japan tightened the requirements for foreign entrepreneurs seeking to stay in the country under the business manager visa.

Peter, who runs the restaurant, lives in Japan with his family, and his son attends school in the country. "I really want to keep trying in Japan for a little longer, but it is painful," he said.

Japan revised the requirements for the residence status for foreign business owners in October last year. The minimum capital requirement was raised sixfold, from 5 million yen to 30 million yen. Applicants are also now required to hire at least one Japanese national or permanent resident, sharply raising the hurdle for small operators.

Peter said the 30 million yen requirement is especially difficult for restaurant owners. "For a restaurant, preparing 30 million yen is tough now," he said. Rising ingredient costs have added to the pressure. He said three cases of chicken that once cost about 10,000 yen now cost around 30,000 yen.

He said he raised prices once, but only slightly. "The hardest thing is the 30 million yen and hiring a Japanese person," he said.

Customers voiced concern that the restaurant may not be able to continue. One regular said losing the shop would be "extremely sad," adding that eating there once a week had become part of daily life. "They remember my face and name right away, and they even remember my order. When I sit down, they bring it without me saying anything," the customer said.

Another customer said the food had a gentle quality that reflected Peter's personality. "I really want the restaurant to stay open," the customer said.

Inside the restaurant, messages of appreciation from children at a nearby nursery school are also displayed, including one saying, "Thank you always."

"For the customers, and for myself, I want to keep going," Peter said. "I want to serve good food to Japanese people, so I thought I would try a little longer."

Yamada, an administrative scrivener who has supported residency applications for about 5,000 foreign nationals over the past 15 years, said the stricter rules pose several problems. He said that among roughly 40,000 people with business manager status in Japan, probably only about 1% have 30 million yen in capital.

"The Immigration Services Agency seems to be imagining a business model based on large companies," Yamada said. "I think this is a terribly mistaken policy. I cannot help feeling that immigration officials are working with an attitude of looking for ways to reject applications."

The Immigration Services Agency said the revision was intended to ensure that the status is operated in line with its original purpose of contributing to the revitalization of Japan's economy and society. Officials said they considered what requirements were necessary and revised the criteria in October last year.

The agency said that during a grace period lasting three years after the change took effect, applications may still be judged comprehensively even if they do not meet the new standards. However, it also said applicants are expected to work toward meeting the revised requirements.

"We have reviewed the standards, so we would like people to make efforts toward them," an agency official said. "Saying that people do not need to pay any attention to the new standards would be different from the purpose of this revision. We hope they will make as much effort as possible to comply with the new criteria."

Despite the difficult circumstances, Peter said he has not given up hope of continuing his restaurant in Japan. "I want to keep trying as long as I can," he said. "I want to stay in Japan as long as possible. I love Japan."

Source: TOKYO MX NEWS

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