How to Build Trust in Foreign Entrepreneurs
Effective October 16, the Japanese government will significantly tighten the requirements for Business Manager Visas, which are needed for foreigners seeking to start businesses in Japan.
The capital requirement will increase from 5 million yen to 30 million yen.
Furthermore, business owners must have at least three years of management experience, or a master’s degree or higher in a relevant field.
In addition, at least one full-time employee working at the applicant company will be required to have a certain level of Japanese language proficiency. Furthermore, a business plan review by a certified public accountant or tax accountant will also be mandatory.
Startup Requirements Tougher Than Those for Japanese Nationals
It may be natural that many people are surprised by these new standards.
Japanese nationals can start a company with capital of just 1 yen.
In contrast, foreign entrepreneurs will face very high hurdles, including financial resources, experience, language proficiency, and employment structure.
These changes stem from cases in which residency screenings found that businesses had no real operations. In other words, the aim is not to exclude foreigners but to focus on entrepreneurs who are serious about building real businesses.
Stricter regulations are a step toward trust, not exclusion.
These revisions are certainly challenging.
However, entrepreneurs who meet these requirements may be more trusted by Japanese society and more likely to receive support from the government, financial institutions, and partner companies.
In other words, it’s a shift from quantity to quality.
We’re moving from an era in which anyone could start a business to an era in which trusted foreign entrepreneurs can continue to work long-term.
You can find a clear overview of the core structure of Japan’s foreign-resident system here: Inside Japan’s New ESDP: What the Government’s Basic Policy Reveals .
Next Read
For a deeper look at Japan’s long-term direction on foreign-worker policy, see this Insight: From Technical Intern Training to ESDP: Japan’s New Foreign Worker Roadmap .
Hajime’s Note
Working in Japan and taking on new challenges in Japan is not an easy path. But the path is certainly open.
These revisions not only present a new barrier for foreigners, but also a turning point that tests their determination to build a serious business in Japan.
The stricter the rules, the more valuable success becomes.
We will continue to follow the latest developments so that those who choose Japan as their business base can realize their dreams.
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