Japanese immigration officials are conducting on-site investigations into foreign entrepreneurs to prevent the abuse of the "経営・管理" (management) residency status [1].
These probes signify a crackdown on "paper companies" used to secure residency. The move threatens not only fraudulent applicants but also long-term foreign business owners who may struggle to meet updated financial requirements.
Following the tightening of visa requirements in October 2023, officials in Tokyo began inspecting rental office buildings in the city center [1, 3]. During one such inspection, investigators found 15 companies registered to a single set of mailboxes [3].
"We are visiting to conduct a factual survey to see if the application details are being carried out correctly," a Tokyo immigration investigator said [3].
The government is specifically targeting applications that lack actual business activity [1, 2]. This scrutiny comes as Japan manages a growing foreign population, which has reached 3.96 million residents [4].
One significant hurdle for entrepreneurs is the capital requirement. The minimum capital required for a management-visa company is 30 million yen [2]. For many long-term residents who started businesses under previous or different criteria, this financial threshold creates a "wall" that could lead to the revocation of their status.
If these entrepreneurs cannot prove substantial business operations or meet the capital mandates, they face the possibility of being forced to return to their home countries [1, 2].
“15 companies registered to a single set of mailboxes”
This crackdown reflects a tension in Japan's immigration policy: the desire to attract foreign investment and talent versus the need to prevent residency fraud. By shifting from document-based reviews to physical on-site inspections, the government is signaling that passive ownership is no longer sufficient for residency. This creates a precarious situation for legitimate but small-scale entrepreneurs who may not meet the 30 million yen capital threshold but have contributed to the local economy for years.
