677 Chinese Firms Found Registered at 5 Buildings in Osaka; Businesses Likely Established for Immigration Purposes

The Yomiuri Shimbun
A building registered as headquarters for 113 Chinese-affiliated companies in Taisho Ward, Osaka (The image is partially modified.)

Just five aging office and apartment buildings in Osaka City have been registered as the head offices of 677 Chinese-affiliated companies in the three years following the COVID-19 pandemic, according to data uncovered in a joint investigation by The Yomiuri Shimbun and Hannan University Prof. Yoshihisa Matsumura.

Matsumura suspects that many of these registrations were made to obtain Japan’s business manager visa, which grants residency to foreign citizens who operate companies.

By examining sources including corporate records, Matsumura found 9,660 Chinese-affiliated corporations in Osaka. The Yomiuri Shimbun analyzed the five buildings with the highest numbers of registered companies, ranging from 86 to 240 each.

Corporations were classified as “Chinese-affiliated” if their representatives’ primary addresses were in China prior to their arrival in Japan.

Between 2022 and mid-September this year, 677 companies listed these five buildings as their registered headquarters. All five structures are over 30 years old, with only a few dozen units each.

Of the 677 firms, 666 or 98.4% reported a capital of ¥5 million — the minimum amount that was required for a business manager visa before the rules were tightened on Oct. 16.

Notably, 641 of the companies stated their purpose as “operation of private lodgings under special district regulations.” Among the representatives who were based in China, 583 had moved addresses to Japan within the past three years.

With China’s economic slowdown, an increasing number of people have been seeking to move to Japan. The number of Chinese nationals residing in Japan under the business manager visa reached an all-time high last year.

Noting a surge in companies being registered for immigration purposes, the Japanese government has tightened requirements for this visa. The minimum capital has been raised from ¥5 million to ¥30 million, and companies must now employ at least one full-time staff member. In addition, applicants must meet new criteria concerning their business background, educational history and Japanese language ability.

Matsumura said: “The majority of these firms are likely shell companies created as a steppingstone for migration to Japan. There is probably a migration business with brokers involved behind this trend.”