News On Japan

Chinese Paper Companies Surge in Osaka Ahead of Visa Tightening

OSAKA - In a quiet neighborhood of Osaka stands a four-story building with around 40 rooms. Yet more than 100 companies are registered there, despite the absence of any visible workers.

“About 120 or 130 companies,” said an expert familiar with the city’s minpaku (private lodging) business, pointing to partitions that divide each room into smaller sections. “You can see the walls separating them.”

At night, nearly every window glows with light, but no one can be seen inside. “All the rooms have lights on,” reported a TV crew member, “but there’s no sign of people.”

Most of the firms, according to experts, are Chinese-run companies with little or no actual business activity. Their primary purpose, it appears, is to establish eligibility for Japan’s business management visa — a residence status created in 2015 to attract foreign entrepreneurs, allowing them to live in Japan if they invest more than 5 million yen or employ at least two full-time workers.

The Osaka city government recently decided to end new applications for “special district minpaku” lodging licenses at the end of May next year, following complaints over noise and garbage problems. The system had allowed year-round short-term rentals in designated zones to meet the surge in foreign visitors.

Since the city announced the cutoff, administrative scriveners have reported a sharp rise in last-minute applications — many from Chinese nationals. One Osaka office said the number of requests has grown about 2.5 times since the announcement, with roughly half of the applicants being Chinese.

Professor Matsumura of Han University, who studies the minpaku industry, said, “These firms often rent small rooms just to register a head office. In reality, they’re paper companies set up to obtain a visa.” He pointed to one apartment building in Osaka’s Chuo Ward where more than 130 companies were registered, almost all Chinese.

Although the building has only 40 rooms, mailboxes show over 100 company names, some with multiple mail slots assigned to a single room. Residents nearby say they rarely see anyone entering or leaving. Even late at night, the lights remain on, but the building stays eerily quiet.

The building’s owner told reporters that the entire property had been leased to a real estate agency and that he was not involved in its management.

Japan’s business management visa was intended to encourage foreign investment, but critics have long said the requirements were too lenient. On Chinese social media, posts claim that “moving to Japan is as easy as breathing” and that “all you need is 5 million yen.”

The number of Chinese nationals staying in Japan under the business management visa has tripled in the past decade. Some are suspected of using shell companies to obtain residency without conducting real business.

In response, the Immigration Services Agency raised the capital requirement for the visa to 30 million yen on October 16th. But according to Matsumura, a rush of new company registrations took place in the days before the rule took effect.

“At this location alone, about 90 firms are registered, and 80 of them were established after September 20th,” he said. “Almost all are Chinese companies that scrambled to set up before the deadline.”

A representative from a firm that assists Chinese entrepreneurs said many clients genuinely want to live and work in Japan. “Japan is admired by everyone,” he said. “They want the freedom, the safety, and the clean environment.”

However, the growing number of paper companies tied to immigration purposes has alarmed Osaka city officials. Mayor Yokoyama commented, “The management visa issue is a national matter, but we expect the government to enforce stricter oversight. We will not hesitate to revoke licenses for operators that violate the intent of the minpaku system.”

Experts warn that similar trends are appearing in Tokyo, where wealthy Chinese families are reportedly using paper companies to move to Japan for their children’s education. “In some prestigious public schools, nearly all top students are Chinese,” one commentator said. “It’s becoming a form of education migration.”

With China’s economy slowing and many citizens disillusioned with government policies, Japan’s stability and relative openness are drawing increasing interest — even as authorities scramble to close the loopholes that allowed fake firms to flourish.

Source: KTV NEWS

News On Japan
POPULAR NEWS

Japan’s World Cup campaign ended in the cruelest possible fashion on June 29, as Gabriel Martinelli scored in the fifth minute of stoppage time to give Brazil a 2-1 victory over the Samurai Blue in their knockout match in Houston. Japan had led in the first half and were still level at 1-1 in the final moments, but Martinelli’s late strike sent Brazil into the Round of 16 and eliminated Japan from the tournament.

Strong earthquakes have continued to shake parts of Japan in recent weeks, with 11 temblors measuring lower 5 or above on the Japanese seismic intensity scale recorded across the country since April 2026.

A Kintetsu Railway train derailed inside Kyoto Station on the morning of June 29, forcing partial suspensions on the Kintetsu Kyoto Line for the rest of the day and causing long delays that hit commuters, students and tourists.

A section of stone wall at Hikone Castle, one of Japan’s few surviving original Edo-period castles and a National Treasure whose main keep remains intact more than 400 years after its construction, collapsed after heavy rain caused by Typhoons No. 7 and No. 8, Hikone city officials said.

Japan advanced to the knockout stage of the World Cup after a 1-1 draw with Sweden on June 25, finishing second in Group F and setting up a Round of 32 clash with Brazil in Houston.

MEDIA CHANNELS
         

MORE Business NEWS

Tokyo stocks edged higher on June 29 as investors bought back selected shares after a sharp AI-led selloff, but gains were capped by caution over high technology valuations, Middle East tensions and a weakening yen that fell to its lowest level against the dollar since 1986.

Tokyo stocks fell sharply on June 26 as investors locked in profits from Japan’s record-setting AI-driven rally, with SoftBank Group and chip-related shares leading a broad retreat after reports that OpenAI may delay its initial public offering.

Japanese households held 2,386 trillion yen in financial assets at the end of March, up 7.1% from a year earlier, as rising share prices, wider use of the new NISA investment program and the weaker yen lifted the value of assets held by individuals.

The sale of religious corporations that operate temples and shrines across Japan is drawing growing scrutiny from authorities, who fear the transactions could be used for tax evasion and money laundering, as brokers openly advertise properties and corporate status for tens or even hundreds of millions of yen.

The Nikkei Stock Average fell for a second straight session in Tokyo as investors locked in profits from a rapid rally in artificial intelligence and semiconductor-related shares, briefly sending the benchmark down more than 1,300 yen before bargain hunting helped it recover part of the loss.

Imabari Shipbuilding, Kawasaki Heavy Industries, and Namura Shipbuilding are aiming to resume construction of liquefied natural gas carriers around 2035, as Japan’s shipbuilding industry looks for a path to recovery after losing much of the global market to lower-cost rivals in South Korea and China.

Finance Minister Katayama held online talks with U.S. Treasury Secretary Scott Bessent as the yen approached its weakest level in about 39 years, with the two sides believed to have discussed possible responses, including foreign exchange intervention.

Every year, thousands of people save money by buying through the Japanese auction process. But many do not realize they've paid too much until the vehicle arrives.