A Pivotal Shift in Japan’s Business Visa Policy: Eliminating the Fake Company Dilemma

In recent years, reports and investigations have revealed a disturbing surge in fake companies that exist merely on paper, created solely to secure visas and residence rights. For example, inspectors from the Osaka Immigration Bureau have conducted covert operations, visiting seemingly abandoned apartments, photographing mailboxes with no official signage, and knocking insistently on locked doors—each visit exposing the inconvenient truth about these unsubstantiated businesses. One stark illustration was a company operating from an empty unit, with no employees, no inventory, and only a nameplate on a locked door; a ghost enterprise with no real activity. Such blatant misuse of the visa system threatens to undermine Japan’s economic integrity, prompting the government to act decisively. They are planning to dramatically increase the required capital investment from 500 million yen to a formidable 3 billion yen and to rigorously verify the applicant’s business management experience and employment of active staff—making the creation of fake companies increasingly impractical and unattractive. These measures not only serve as a formidable barrier to exploitation but also send a clear signal that Japan values authentic entrepreneurship—particularly enterprises with real potential to contribute to the country’s dynamic economic and technological development. Through these comprehensive reforms, Japan aims to attract only those entrepreneurs who are genuinely committed to building sustainable, innovative businesses that will foster long-term growth and societal advancement.