SHIZUOKA - Foreign business owners in Japan are facing growing financial pressure following a sharp increase in the capital required to obtain a business management visa, with an Indian curry restaurant in Shizuoka warning that it may be forced to close unless its sales quadruple.
Namaste NIPPON, an Indian curry restaurant in Suruga Ward, Shizuoka City, is known for its authentic curries made with traditional Indian spices. However, the restaurant is now facing what its owner describes as its greatest crisis since opening.
Raz Pokhara, the restaurant's representative, said meeting the new financial requirements before his next visa renewal appears virtually impossible. "Raising 30 million yen by 2028 is impossible under our current circumstances. There isn't even a 1% chance," he said.
The difficulties stem from stricter rules introduced in October 2025 for foreign entrepreneurs seeking to obtain or renew a business management visa in Japan. Under the revised regulations, the required business capital was raised sixfold, from 5 million yen to 30 million yen.
One year after the changes were introduced, Pokhara has continued operating his restaurant, but monthly sales remain at approximately 2.5 million yen. He estimates that revenue would need to increase fourfold to accumulate the required 30 million yen before his next visa renewal in two years.
If he cannot meet the requirement, the restaurant could be forced to close, despite having an established business and a regular customer base.
The government tightened the visa requirements partly to prevent foreign nationals from establishing shell companies with little or no genuine commercial activity as a means of obtaining residency in Japan.
Fumito Suwabe, a lawyer at Oceanic Law Office, explained that the revised system is intended to exclude foreign applicants operating businesses that exist only on paper or lack substantial commercial operations.
However, concerns are growing that the higher capital threshold could also affect legitimate small businesses that have been operating successfully for years.
Some estimates suggest that only around 4% of foreign business owners in Japan have the financial resources to meet the new 30 million yen capital requirement, raising questions about the potential impact on immigrant entrepreneurs and the communities that depend on their businesses.
Pokhara said he understands the government's intention to prevent abuse of the visa system but believes the authorities should distinguish between fraudulent companies and entrepreneurs who are genuinely working to maintain their businesses.
"We are actually working hard, and simply requiring 30 million yen will not eliminate shell companies," he said. "The best approach would be for officials to come and see everything for themselves. That is what I hope for."
The tougher regulations were introduced as part of efforts to maintain public safety and strengthen oversight of foreign residents operating businesses in Japan.
However, critics warn that the measures could discourage foreign entrepreneurs, reduce the availability of international talent, and contribute to the decline of local industries and communities that rely on foreign-owned businesses.
The situation has raised broader questions about whether Japan's business management visa requirements adequately reflect the realities of small business operations and whether a more flexible approach is needed to protect legitimate entrepreneurs while preventing misuse of the immigration system.
Source: TBS
