⇒　(“Business Management” Visas) Japanese version page here 

Contents

Direction of the Amendment of Requirements of the Business Manager Visa. 2

Three Major Risks Chinese Entrepreneurs Face in the Lodging Business. 3

Success is difficult without experienced Gyoseishoshi Lawyers. 4

In recent years, we have received numerous inquiries from Chinese business owners considering investment and management in Japanese lodging facilities (ryokan, hotels, lodgings) anticipating a recovery in inbound demand. However, it has been reported that the requirements for the residence status “Business Manager” are expected to be significantly tightened soon. While the business manager visa was previously considered relatively accessible due to the requirement of “capital of 5 million yen”, this amendment represent a game-changing shock. Starting a business with a careless plan could lead to serious consequences, such as “failing to obtain the visa” or “being unable to recover investment funds”. We explain this crucial amendment, detailing the new risks especially for Chinese entrepreneurs who would like to launch lodging businesses. We also examines the problems with “Tokku Minpaku” （lodging in special zone), which has seen reported growth in areas like Osaka Prefecture, partly due to the Expo, from an expert perspective.

Direction of the Amendment of Requirements of the Business Manager Visa

The most significant changes in this amendment concern the requirements for capital and employment. According to reports, the government plans to tighten the requirements as follows to prevent easy visa acquisition.

【Commentary】

Under the previous system, meeting either requirement “preparing capital of 5 million yen” or “employing two or more full-time staff members” was sufficient to qualify for application. However, after the amendment, it is expected that meeting both “preparing capital of 30 million yen or more” and “employing at least one full-time staff member” will be required.

This change does not merely increase the initial investment amount. It means that the business plan itself must convincingly demonstrate the ability to continuously pay the salary and social insurance premiums for one employee, while also proving sufficient profitability, stability, and sustainability to justify the 30 million yen investment. 

Three Major Risks Chinese Entrepreneurs Face in the Lodging Business

With the tightening of these visa requirements, particularly in the highly popular lodging industry, even more careful judgment is required.

Risk 1: Visa acquisition becomes extremely difficult

Under the new requirements, obtaining a business management visa will become extremely difficult for operations on the scale of running a single small-scale lodging facility or guesthouse.

The Immigration Services Agency’s review will rigorously examine whether the business genuinely requires a ¥30 million investment and whether it can generate stable profits sufficient to sustain employees. For example, it is unrealistic for a small-scale lodging operation with annual sales of several million yen to develop a business plan meeting these requirements. At minimum, the business scale will likely need to be equivalent to operating a small hotel or multiple properties.

Risk 2: Institutional Pitfalls of the “Lodging in Special Zone” System

Under the Residential Lodging Business Act, “lodging businesses” are subject to restrictions such as an annual 180-day limit. You may have heard claims that “Special Zone lodging has no restrictions and can operate daily, making it easier to obtain a business visa.” This is a significant misunderstanding.

Issues with Lodging in Special Zone (National Strategic Special Zones Foreign Resident Facility Management Business):

• Limited Areas: Only available in a very small number of special zones, such as Ota Ward or Osaka City.
• Visa Screening Evaluation: Crucially, even if certified for special zone lodging, this alone tends not to be viewed as a “stable business.” Immigration authorities clearly distinguish between mere “real estate investment” and “business operation,” and relying solely on special zone lodging operations is highly likely to be judged as lacking substantive business activity.

Please note that the Tanishima Legal Firm Group has experience in obtaining the business manager visa within lodging businesses licensed under the Hotel Business Act.

This amendment will further reinforce this trend. One should no longer consider the simplistic plan of using special zone lodging as a stepping stone to obtain a visa as viable.

Risk 3: Friction with the local community and operational complexity

Even if you successfully obtain permits and licenses to open your business, operational risks are always present.

• Complex legal regulations: The laws you must comply with are extensive, including the Hotel Business Act, the Residential Lodging Business Act (new Minpaku law), the Fire Service Act, and various local ordinances. It is extremely difficult for foreign business owners to navigate all of these on their own.
• Neighborhood disputes: Cases of conflicts arising with local residents due to noise, violations of garbage disposal rules, and differences in cultural customs are endless. Once relations deteriorate, continuing the business itself can become difficult. Recently, an incident occurred near Mount Fuji where a Chinese hotel operator was arrested for illegally cutting down trees. This highlights the increasingly critical view toward foreign operators that cannot be ignored. 

Success is difficult without experienced Gyoseishoshi Lawyers

The tightening of requirements for the business manager visa residency status sends a clear message: the Japanese government seeks “business operators who genuinely contribute to the Japanese economy through stable operations.”

Proceeding with the mindset of “Let’s buy the property first and worry about the visa later” is extremely risky. Should the visa be denied despite significant investment, the resulting damage would be immeasurable.

Benefits of Consulting Our Firm

• Staying abreast of the latest legal amendments and review trends: We constantly gather the most current information to accurately assess your chances of approval.
• Support in developing a feasible business plan: We provide strong support in creating a compelling business plan that meets the new visa requirements.
• Handling various applications and notifications, including company establishment and lodging: We serve as your one-stop point of contact, handling everything from company formation to lodging notifications (if other offices are needed, we offer advisory collaboration plans, etc.).
• Preventing Risks Proactively: We provide concrete advice to preemptively avoid foreseeable issues.

Investing in Japan’s lodging industry remains an attractive option with the right knowledge and strategy. However, the first step is entrusting the process to reliable professionals like certified lawyers.

Before being misled by superficial information and facing irreversible consequences, please feel free to contact the Tanishima Legal Firm Group.