Nearly 1,000 foreign nationals holding business manager visas left Japan in the first half of 2026, a figure that is almost four times higher than the same period a year earlier, following the government's decision to sharply tighten visa requirements in autumn 2025 [1]. The revised rules now mandate that company owners employ permanent workers and meet a higher capital threshold to qualify for or maintain the business manager visa [1]. Despite a grace period for compliance, these stricter regulations have led to a significant increase in foreign business managers exiting Japan [1].
The exodus is directly attributed to the more stringent immigration policies, which have made it more challenging for smaller enterprises and startups run by foreign nationals to operate in Japan [1]. The new framework's requirements for higher initial investment and mandatory employment of permanent workers are seen as particularly burdensome for these groups [1].
These changes occur amid broader efforts by Japanese authorities to reform immigration policy. Notably, the tightening of the business manager visa criteria stands in contrast to ongoing discussions about encouraging foreign entrepreneurship and investment in Japan [1]. Market observers have noted that while Japan aims to attract more startups, the new visa rules may inadvertently discourage foreign investment and entrepreneurship, especially among smaller and newer businesses [1].
Although the article does not provide specific financial data or market chart analysis, the quadrupling of foreign business owner exits highlights a significant trend with potential long-term implications for Japan's startup and small business ecosystem [1].
CONCLUSION
Japan's stricter business manager visa requirements have led to a sharp increase in foreign business owners leaving the country, raising concerns about the impact on the startup and small business environment. Market observers warn that these policies may undermine efforts to attract foreign entrepreneurship and investment.