Japan is attracting attention as a more affordable destination for immigration. Photo: The building housing Japan's Immigration Services Agency. April 25, Chiyoda, Tokyo. (©Kyodo)
In the days leading up to a major tightening of requirements for Japan's business manager visa, a surge of last-minute applications exploiting loopholes in the system was observed in Osaka. With Japan's capital requirement far lower than in many other countries, some experts have dubbed it a de facto "migration visa."
The misuse of the system has raised concerns over public safety, particularly due to tensions with local residents. It has also led to issues like "free-riding" on Japan's social security system, prompting growing calls for reform. The question now is whether the new, stricter rules will be enough to curb the exploitation.
A Surge of Registrations Just Before the Deadline
In a multi-tenant building in Osaka's Higashisumiyoshi Ward, the ground floor hosts a gym and eateries, while regular residents occupy the upper levels. But a closer look at the mailboxes reveals something unusual.
Company names like 410B ○○ Co, Ltd, 605B ×× Co, Ltd, and 804B △△ Co, Ltd fill the slots, most bearing Chinese names.
Corporate records show that these businesses were all registered roughly a week before Japan's new visa regulations came into effect. Each lists a representative with a registered address in China.
During a weekday visit in late October 2025, no one answered at the units supposedly housing these firms. One resident commented, "I sometimes hear people speaking a foreign language near the mailboxes, but I don't think any actual business is going on here."
Exploiting the Social Welfare System?
"These are most likely shell companies created for the purpose of migration," said Professor Yoshihisa Matsumura of Hannan University's School of International Studies. "It appears they rushed to establish businesses just before the regulations tightened."
The business manager visa permits stays ranging from three months to five years, with options for renewal and family accompaniment. According to some experts, certain Chinese nationals have used the visa as a gateway to Japan's generous social security system. Benefits extend to accompanying family members as well.
However, many visa holders reportedly have limited Japanese language skills and face cultural differences. In some areas of Osaka, this has led to friction with Japanese residents.
"That's why it came to be nicknamed the 'migration visa,'" explained Professor Matsumura. In other countries, similar residency programs can cost tens or even hundreds of millions of yen (roughly $130,000 to over $6 million USD). By contrast, Japan hadn't updted its capital requirement of ¥5 million JPY (about $33,000) in over 25 years, making it a relative bargain for would-be migrants.
Old Methods No Longer Work
Will stricter rules make a difference? Professor Matsumura believes so. He notes that those who previously took advantage of the system were often middle-class Chinese individuals unable to raise more than ¥30 million (about $200,000) in capital. Under the revised guidelines, either the applicant or a hired employee must now demonstrate a substantial level of Japanese language proficiency.
"The bar has been raised considerably," Matsumura said. "Old tactics will be virtually unworkable from here on."
The Japanese government has also announced a transitional measure. Individuals already residing in Japan under the business manager visa will have their renewal applications assessed on a case-by-case basis over the next three years, even if they don't yet meet the new criteria.
While Matsumura supports the reforms as a necessary step to curb exploitation, he also voiced concern over unintended consequences.
"I worry this could also affect people who genuinely love Japan, have studied the language, and are trying to become part of Japanese society," he said.
Revoking Licenses
A growing number of Special Zone Private Lodgings accommodations are being used to meet the surge in inbound tourism. These are short-term private lodgings permitted under Japan's National Strategic Special Zones system. However, some foreign entrepreneurs and investors are reportedly establishing companies in Japan not to run lodging businesses, but to obtain the business manager visa. In some instances, the visa holders remain overseas while outsourcing property management to others.
Currently, over 90% of these Special Zone Private Lodgings operations are concentrated in Osaka. Unlike other forms of lodging, they are not required to have on-site supervision, leading to a spike in local complaints about noise, trash, and disruptions.
In response, Osaka's municipal government will stop accepting new applications after May 2026 and plans to intensify monitoring and enforcement at existing sites.
"We will strictly instruct businesses that violate the approval rules and revoke licenses if necessary," Osaka Mayor Hideyuki Yokoyama told reporters in October 2025.
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(Read the article in Japanese.)
Authors: Daisuke Nagai, Asuka Ishibashi, The Sankei Shimbun
