Kathmandu, 14 May: Foreign small business owners, including Nepalis, are facing a serious crisis due to newly implemented visa regulations in Japan. Japanese media reports that many foreign nationals running small and medium-sized businesses—particularly restaurants, food import, and retail shops—are being forced to shut down and return to their home countries.
Japan’s Immigration Services Agency has tightened the capital requirements for the “Business Manager” visa, effective from October 27. Under the new rule, a minimum capital of 30 million yen (approximately 190,000 USD) is required to operate a business. Previously, 5 million yen was sufficient. This change has directly impacted small businesses run by foreign communities.
A 47-year-old woman, Chan Ka Yi, who has been operating a Hong Kong-style restaurant in Tokyo’s Nerima area, has decided to close her restaurant after failing to meet the new requirements, according to a report by the Japanese online outlet The Asahi Shimbun. Her restaurant, “San Mai San Nerima,” which had only recently become profitable after surviving the COVID-19 pandemic, will operate for the last time on May 20. “I didn’t want to give up the restaurant so easily, but I had no choice,” she said.
She shared that she grew up watching Japanese TV dramas and had long dreamed of living in Japan. After years of saving, she opened the restaurant in 2020. Although the business had started to perform well, she ultimately decided to close it as raising 30 million yen was not feasible.
Nepali and Indian business owners also affected
The Edogawa area in Tokyo is home to one of the largest Indian communities in Japan. The Nishi-Kasai area is often referred to as “Little India,” and it also hosts restaurants run by Nepalis. According to one business owner in the area, most small restaurant operators are unable to raise 30 million yen.
“We have been running our businesses through hard work, but the government has not recognized our efforts,” the business owner said. “If foreigners cannot access their own country’s food, they may stop coming to Japan. Ultimately, that will also affect Japan itself.” He added that many restaurants are now worried about visa renewals.
Jagmohan S. Chandrani, President of the Edogawa Indian Association, said that since October, Indian and Nepali business owners have been continuously expressing concerns. He noted that for communities relying on vegetarian and religious diets, local businesses are extremely important. “If these businesses disappear, the community itself will weaken,” he said.
“Honest entrepreneurs at risk of displacement”
Kazuhiko Yamada, an administrative law expert based in Tokyo, described the 30 million yen requirement as “extremely strict.” He stated that even for Japanese citizens, such a large investment is not easy.
He also noted that since the new rule was introduced, consultations from foreign entrepreneurs regarding new visa applications have nearly stopped. “Those who have such large capital may choose the United States or Europe over Japan,” he said.
Another business expert, Atsushi Kondo, told The Asahi Shimbun that those who establish fake companies are often wealthy and may easily bypass the new rules. However, foreign entrepreneurs who are genuinely contributing to Japanese society through small businesses may be forced to leave.
“This policy will displace hardworking and honest people,” he said. “The rules should be designed in a way that prevents misuse while helping genuine entrepreneurs to survive.”
