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

Tokyo Metro has unveiled its new headquarters ahead of a full relocation at the end of August, featuring an open office design filled with route symbols, station names and other elements inspired by the subway network.

Tokyo is preparing to allow hunting of Asian black bears for the first time in about 20 years, with a proposed hunting season from November through February and an annual capture target of around 34 animals in parts of the Tama region, including Hachioji.

Typhoon No. 18 (Soudelor) formed near the Truk Islands on August 19 and is forecast to strengthen as it gradually turns northwest, potentially approaching the Ogasawara Islands before moving toward Okinawa or the Pacific coast of western Japan.

After 10 p.m., the clouds that had covered the sky above Shirakoma Pond gradually began to clear, revealing countless stars and the Milky Way rising vividly over the mountain lake in Nagano Prefecture's Northern Yatsugatake range.

A fire broke out at Sairinji temple in Saga city on the morning of August 18, engulfing the building in flames and prompting the dispatch of 10 fire engines and two ambulances, with no injuries reported so far.

MEDIA CHANNELS
         

MORE Business NEWS

The bankruptcy of payment processing company Zento Shin has raised concerns over the impact on restaurants and other small and midsize businesses, while highlighting regulatory gaps in Japan's rapidly expanding cashless payment industry.

Tokyo stocks fell sharply on August 19, with the Nikkei 225 closing at 65,326.42, down 3.2%, its lowest finish since August 4, as renewed selling in artificial intelligence and semiconductor-related shares combined with rising bond yields, higher oil prices and geopolitical concerns to trigger a broad risk-off move.

Real estate company Rewrite has built a business around properties that owners struggle to give away, sometimes listing them for just 1 yen in a strategy that produces virtually no immediate profit but can generate lucrative deals years later through referrals and repeat customers.

Pan Pacific International Holdings, the operator of Don Quijote discount stores and other retail businesses, posted net profit of 110.1 billion yen for the year through June 2026, up 21.6% from a year earlier and exceeding 100 billion yen for the first time.

JA Zen-Noh Niigata decided on August 18 to set its advance payment for standard Koshihikari rice from the 2026 crop at 18,500 yen per 60 kilograms of brown rice, about 40% lower than a year earlier as inventories continue to build.

An international meeting on Pacific bluefin tuna resource management reached agreement on August 18 to raise the catch quota for large fish in the western and central Pacific by 25% while reducing the quota for smaller fish by 6%, a shift that could eventually lower prices for the prized tuna used in high-end sushi and sashimi.

Japan's benchmark long-term interest rate briefly rose to 2.945% as government bonds were sold on August 18, reaching a fresh high not seen in about 30 years as uncertainty in the Middle East pushed up crude oil futures and fueled expectations that inflation could accelerate.

Tokyo stocks rose on August 17, with the Nikkei 225 closing at 69,220.25, up 506.45 points, as buying in artificial intelligence and semiconductor-related shares outweighed weaker-than-expected economic growth, rising bond yields and renewed concern over household spending.