TOKYO, Oct 17 (News On Japan) - Investigators from the Immigration Services Agency conducted on-site inspections in Osaka on October 14th amid a surge in so-called 'paper companies' created by foreign nationals seeking residency.
Officers were seen photographing a residential building believed to house several companies registered by Chinese nationals. Despite four firms listed at the address, investigators found no sign of activity or personnel inside. When contacted, a man believed to be the owner arrived 30 minutes later and allowed officials to inspect the premises and company records, which are now under review.
The investigation comes as Japan tightens requirements for the "business and management visa," a route increasingly used by foreign nationals to relocate to Japan. According to government data, the number of Chinese nationals obtaining such visas grew from around 8,700 in 2015 to roughly 2.5 times that figure over the past decade. From October 16th, applicants must demonstrate at least three years of relevant management experience or hold a master’s degree in a related field. The minimum capital requirement will also increase from 5 million yen to 30 million yen, and businesses must now employ at least one full-time Japanese national or permanent resident.
The changes aim to address growing concerns about sham companies set up solely to secure residency and to mitigate community tensions, particularly around short-term rental operations. In Osaka, more than 40% of special deregulated private lodging businesses are operated by Chinese nationals or Chinese-affiliated firms.
Experts say multiple factors are driving the rise in Chinese migration to Japan. Japan’s comparatively affordable real estate market, combined with higher rental yields than in China, has attracted wealthy individuals who sell properties in cities like Shanghai to fund investments in Japan. Japan’s universal healthcare system, reliable medical services, and stable living environment are also key draws, as are opportunities for children to receive a freer and higher-quality education.
Another factor is the growing disillusionment among some Chinese citizens with domestic policies and social pressures. The government’s strict zero-COVID controls in 2022 spurred many to consider emigration, and concerns about China’s slowing economy, policy unpredictability, and intense academic and social competition continue to fuel the trend. For some, Japan is seen as a “safety net” against such risks.
Looking ahead, foreign nationals are expected to make up more than 10% of Japan’s population by 2070. Legal experts and policymakers are urging the government to strengthen both enforcement and communication, ensuring that those who follow the rules are supported while those who violate them face stricter penalties. Authorities are also calling for more proactive outreach to foreign residents to explain Japan’s laws and expectations clearly, while accelerating policy reforms to address demographic and labor challenges.
Source: FNN
