Japan to Tighten Residency Requirements for Foreign Entrepreneurs... Plans to Raise Capital Threshold Sixfold
Implementation Under Discussion Within the Year
"Criticism Raised Over the Abuse of Lenient Requirements"
On August 4, the Asahi Shimbun reported that the Japanese government is considering strengthening the capital requirements for foreign entrepreneurs eligible to stay in Japan for up to five years, raising the threshold to six times the current level.
Citing multiple government officials, the Asahi Shimbun stated that final discussions are underway to revise and implement the regulations for the "Business Management" residence status within the year. Currently, this residence status is granted to foreign entrepreneurs who secure a business location and meet either the requirement of "capital of at least 5 million yen (approximately 4.7 million won)" or "at least two full-time employees."
However, if the proposed revision is adopted, foreign entrepreneurs will be required to have at least 30 million yen in capital and, at the same time, secure at least one full-time employee in order to qualify. As of the end of last year, there were 41,600 foreign residents holding this status, more than double the approximately 18,100 at the end of 2015.
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Nevertheless, to ensure that the new regulations do not hinder the influx of highly skilled foreign talent, the previous criteria will continue to apply to holders of startup visas and similar categories. The Asahi Shimbun noted, "While the purpose of this residence status is to attract entrepreneurs and enhance international competitiveness, there have been criticisms that the requirements are too lenient compared to other countries and have been subject to abuse."
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