Winning Bizness Desk
Mumbai.A sweeping change in Japan’s immigration and business visa rules has pushed thousands of Indian restaurants towards an uncertain future. The move, aimed at curbing the alleged misuse of business permits by wealthy foreign investors, has sharply increased financial and employment requirements for restaurant operators, leaving small migrant entrepreneurs struggling to survive.
Thousands of Indian restaurants operating across Japan, many owned and managed by Nepali migrants, now face the prospect of closure after authorities tightened regulations governing Business Management visas. Industry observers warn that the new rules could severely disrupt one of the country’s most visible immigrant-led business sectors.
Capital requirement jumps six times
The Japanese government has raised the minimum capital requirement for obtaining a Business Management visa from 5 million yen (around Rs 29.82 lakh) to 30 million yen (about Rs 1.78 crore).
The revised framework also makes it mandatory for every restaurant to employ at least one full-time Japanese citizen or permanent resident.
Key changes include:
- Minimum capital raised from 5 million yen to 30 million yen
- Mandatory hiring of one full-time Japanese citizen or permanent resident
- Existing operators given only three years to comply
- Visa applications plunge by 96% after the policy shift
Officials believe some wealthy Chinese investors were allegedly creating shell companies to exploit the permit system. The tougher conditions are intended to close those loopholes.
Small businesses bear the biggest burden
Experts say the policy may have unintended consequences for genuine entrepreneurs running small-scale businesses.
According to Japan’s Ministry of Internal Affairs, fewer than 9% of domestic companies possess capital exceeding 30 million yen. For small Indian curry houses and migrant-owned eateries, arranging such a large amount is proving nearly impossible.
Restaurant owner Anju Khatri, 32, questions how small migrant businesses can recruit Japanese staff when even large corporations are struggling to fill vacancies.
A community institution faces uncertainty
Among those affected is Himalayan Caravan, a popular restaurant in eastern Tokyo that has served customers for nearly two decades.
Its Nepali owner, Sanjay Sahani, first arrived in Japan as a chef in 2006. Over the years, regular patrons have become like an extended family. The restaurant’s 850-yen curry-and-naan lunch set remains particularly popular among office workers, readers and elderly residents seeking affordable meals.
The venue is known for:
- Budget-friendly lunch offerings
- Strong local customer loyalty
- Consistent footfall during lunch hours
- A long-standing role in the neighbourhood food scene
Closure fears extend beyond Indian cuisine
Foreign chefs and migrant entrepreneurs have helped shape Tokyo’s diverse culinary culture while offering economical dining options. Industry voices fear that if Indian, Thai and Vietnamese restaurants disappear, local workers will lose some of their most affordable and preferred lunch choices.
Indian restaurants outnumber McDonald’s outlets
Although only around 59,000 Indians live in Japan, the country hosts nearly 5,000 Indian restaurants — more than the total number of McDonald’s outlets operating there. The industry has largely expanded through small private investments rather than large corporate backing.
Japan’s foreign population accounts for just 3% of the national population, significantly below the OECD average of 15%. Most Indian restaurants are operated by Nepali migrants, whose population in Japan is estimated at around 300,000.
For many entrepreneurs, the coming three years may determine whether decades of hard work can survive Japan’s tougher approach to foreign-run businesses.
