New Visa Regulations in Japan Pose Challenges for Nepali Entrepreneurs

Chan, a 47-year-old operator of a Hong Kong-style restaurant in Tokyo’s Nerima district, shared her experience as the new business visa capital requirements came into effect. Starting October 27, Japan has raised the capital threshold for the Business Manager visa to 30 million yen. The updated visa rules have forced many small foreign business owners to shut down operations and return to their home countries. Jagmohan S. Chandrani, President of the Edogawa Indian Association, warned that losing businesses weakens the community.

May 31, Kathmandu – New visa regulations recently implemented in Japan have placed small foreign entrepreneurs, including Nepalis, in serious difficulty. According to Japanese media, many foreign nationals running small and medium-sized restaurants, food importers, and retail businesses are compelled to close their ventures and return to their countries.

Japan’s Immigration Services Agency has tightened the capital requirement for the ‘Business Manager’ visa to 30 million yen (approximately 190,000 USD) from the previous 5 million yen, effective from October 27. This change has directly impacted small businesses operated by foreign communities.

Chan, who runs the ‘San Mai San Nerima’ restaurant—a Hong Kong-style eatery in Tokyo’s Nerima ward—decided to close the establishment as she could not meet the new capital requirement, reported the Japanese online news outlet The Asahi Shimbun. Having recently recovered from the COVID-19 pandemic and just starting to turn a profit, her restaurant will operate for the last time on May 20. ‘I did not want to leave the restaurant easily, but I had no other option,’ she said.

Growing up watching Japanese TV dramas and fulfilling her dream of living in Japan, Chan saved diligently to open the restaurant in 2020. Despite improving business, she was unable to accumulate the required 30 million yen and thus had to decide on closing.

Nepali and Indian entrepreneurs are also feeling the effects. Tokyo’s Edogawa area is home to Japan’s largest Indian community and is often called ‘Little India.’ Numerous Nepalese also run restaurants in this neighborhood. One businessman operating there noted that most small restaurant owners are unable to raise the 30 million yen capital. ‘We have been working hard to sustain our businesses, but the government has ignored our efforts,’ he said. ‘If foreigners cannot even enjoy their own cuisine here, they will stop coming to Japan, which will ultimately harm Japan itself.’

Many restaurants are now facing the risk of closure as they fail to renew their licenses. Jagmohan S. Chandrani, President of the Edogawa Indian Association, stated that Indian and Nepali entrepreneurs have been expressing continuous concerns since October.

He emphasized that local businesses serving vegetarian and religious dietary needs are crucial for the Indian and Nepali communities. ‘If these businesses disappear, it weakens the community,’ he said. ‘There is a real risk of displacing honest businesspeople.’

Kazuhiko Yamada, an administrative law expert based in Tokyo, described the 30 million yen capital requirement as ‘extremely harsh.’ He noted that even for Japanese nationals, such a large investment is not easy. Following the new rules, consultations for new visa applications from foreign entrepreneurs have nearly ceased. ‘Individuals with this much capital may prefer to invest in the US or Europe over Japan,’ he explained.

Atsushi Kondo, a business specialist, told The Asahi Shimbun that wealthy individuals who establish fake companies can circumvent the new rules, but genuine foreign entrepreneurs contributing to Japanese society through small businesses may be driven out. ‘This system will displace hardworking and honest individuals,’ he said. ‘Rules should be designed to prevent abuse while supporting legitimate entrepreneurs to survive.’