As Japan’s immigration boom continues to grow, a Startup Visa has become an attractive option for foreign entrepreneurs looking to start a business in the country. This article provides a detailed explanation of the Startup Visa, including its eligibility requirements, benefits, and application process. We will also explore the new possibilities offered by agreements with regional governments.
What is a Startup Visa? How Can it be a Path to Permanent Residency?
A Startup Visa is a visa type offering resident status for foreign entrepreneurs who want to start a business in Japan. Unlike the traditional “business manager visa,” the Startup Visa has relaxed requirements, such as office space establishment and significant amount of capital investment, allowing entrepreneurs to focus on business growth preparation.
Starting from January 2025, regional restrictions will be lifted, making the visa available nationwide. This means entrepreneurs can freely start and grow businesses in both metropolitan and regional cities.
This regulatory reform is a significant step in strengthening Japan’s startup ecosystem and attracting foreign entrepreneurs. While the previous system limited the stay period for business preparation, the revised regulations now allow entrepreneurs to dedicate up to two years to business preparation in Japan. This is particularly beneficial for startups in high-risk fields like deep tech, which often require more time for planning and fundraising.
The current Startup Visa Japan system is a merger of two previous systems: the “National Strategic Special Zone System” initiated in 2015 and the “Startup Visa System” introduced by the Ministry of Economy, Trade, and Industry in 2018. This consolidation simplifies the process and extends the maximum stay period to two years for all participants.
In addition to the Startup Visa, Japan offers various other visa types, including the Highly Skilled Professional Visa, Work Visa, General Visa, Specified Activity Visa, Diplomatic Visa, and Official Visa. Each visa has specific requirements and restrictions tailored to the applicant’s needs and qualifications.
Benefits of a Startup Visa
Obtaining a Startup Visa offers several advantages for those looking to start a business in Japan:
- Extended Business Preparation Period: Enjoy a maximum stay of two years to focus on business plan financial development, fundraising, and building a business foundation.
- Regional Economic Revitalization: Contribute to the revitalization of regional economies by promoting entrepreneurship in regional cities.
- Flexible Fund Utilization: Unlike traditional visas, the Startup Visa does not require a large initial amount of capital investment, allowing funds to be allocated to business growth.
- Easier Bank Account Opening: Recent regulatory changes have made it easier to open bank accounts, even for shorter stays.
- Government Support: Receive support from local governments and support organizations, including mentoring, networking opportunities, and visa application guidance.
- Support for Growth Industries: Encourage entrepreneurship in growth sectors such as AI, biotechnology, and medical technology, which Japan prioritizes.
- Access to Abundant Resources: Gain access to various resources, including mentorship, networking opportunities, and co-working spaces. These resources help entrepreneurs build the knowledge, experience, and connections necessary for business growth in Japan.
Key Considerations:
- Requirements Variability: It’s important to understand that the “Requirements” column provides general information. Specific criteria can vary significantly. Always consult official sources such as the Immigration Services Agency of Japan for the most up-to-date and detailed required documentation.
- Purpose Specificity: Each visa type is designed for a particular purpose. Engaging in activities outside the permitted scope of the visa is illegal.
- Official Resources: When pursuing any visa application, reliance on official websites such as those belonging to the Immigration Services Agency of Japan is very important.
Eligibility Requirements for a Startup Visa
To qualify for a Startup Visa, you must meet the following requirements to start a business:
- Business Plan Creation: Develop a promising business plan financial and submit it to a local government. The plan should detail the business overview, market analysis, financial plan, and operational plan.
- Recommendation from a Local Government: Obtain a recommendation from a local government participating in the Startup Visa program. Each local government has specific criteria and procedures for obtaining a recommendation.
- Other Requirements: Prepare required documentation, such as a resume, passport copy, and proof of funds for living expenses. Specific requirements may vary depending on the local government and applicant’s circumstances.
Startup Visa Application Process
The Startup Visa application process involves the following steps to start a business:
- Select a Local Government: Choose a local government participating in the Startup Visa program that aligns with your business. Each local government offers different levels of support and target business areas.
- Create a Business Plan: Develop a detailed business plan financial in Japanese and submit it to the local government.
- Review and Interview: Undergo a review and interview process conducted by the local government to assess the feasibility of your business plan. The review process may take several weeks or months.
- Certificate of Eligibility (COE) Application: If recommended by the local government, apply for a COE from the Immigration Bureau. The COE application process may take several more months.
- Startup Visa Application: After obtaining the COE, apply for a Startup Visa at a Japanese diplomatic mission. The Startup Visa application process may take several weeks.
- **Transition to “business manager visa“: The Startup Visa is valid for a maximum of two years, with an initial six-month visa and a possible one-year extension. To transition to a “business manager visa,” entrepreneurs must meet specific requirements, such as establishing an office space and investing at least 5 million yen or hiring at least two full-time employees.
New Opportunities Through Regional Agreements
Our publishing company has partnered with Japanese local governments to support foreign entrepreneurs seeking Startup Visas. Regional areas offer advantages such as lower living costs and less competition compared to metropolitan areas like Tokyo. Additionally, entrepreneurs may benefit from unique support programs and preferential treatment offered by local governments.
For example, some local governments provide office space, housing assistance, subsidies, tax breaks, and expert consulting services. Furthermore, the national government actively promotes corporate attraction to regional areas as part of its regional revitalization efforts, offering various incentives.
Moreover, the outflow of talent from regional areas to Tokyo has become a significant issue, with young people and women tending to concentrate in the capital. To address this, regional cities are actively working to build startup ecosystems to secure talent and revitalize their economies. By starting a business in a regional area, entrepreneurs can contribute to the local community and make a greater impact.
Recently, there has been a growing interest among Japanese students in working for startups, with approximately 44% of university graduates in 2021 expressing a desire to join a startup. This cultural shift brings new energy to Japan’s startup ecosystem and drives innovation.
Business Plan Creation and Application Support Services
The Startup Visa application process involves complex procedures and document preparation. We offer services to support foreign entrepreneurs, from business plan financial creation to application support.
Startup Visa Support Services
The Startup Visa application process involves complex procedures and required documentation. We provide specialized support services for foreign entrepreneurs to streamline the process and increase their chances of success.
Our Services
- Business Plan Creation Support: Our experienced consultants, including a TEDx-featured Japanese entrepreneur, will help you create a persuasive and well-structured business plan financial.
- Application Document Preparation Support: We take care of the required documentation, saving you time and effort. Since all communication with Japanese authorities must be in Japanese, we will communicate with you in English while handling all discussions with government offices in Japanese, ensuring a smooth visa application process.
Service Fees
- Business Plan Creation Only – $100
- Business Plan Creation & Initial Document Preparation – $500
- Full Startup Visa Support – $3,000
- Full refund if the visa is not approved ($500 service fee is non-refundable).
Application Information
Due to the recent surge in Startup Visa applications, we may soon have to stop accepting new applications. If you’re interested, please apply as soon as possible using the form below.
We look forward to helping you succeed in your Startup Visa journey!
Frequently Asked Questions
Q. Is the Startup Visa application process difficult?
A. The application process involves several steps, including business plan financial creation, obtaining a recommendation from a local government, and preparing various required documentation. The business plan is a crucial aspect of the review process and requires careful preparation. Additionally, communication with local governments and the Immigration Bureau can be complex and time-consuming. However, our services provide expert support to guide you through the process smoothly.
Q. What are the advantages of starting a business in a regional area?
A. There are three main advantages to starting a business in a regional area: lower living costs and reduced expenses for office space rent, less competition compared to metropolitan areas, and potential access to unique support programs and preferential treatment offered by local governments.
Q. What is the validity period of the Startup Visa?
A. The Startup Visa is valid for a maximum of two years. Initially, a six-month visa is issued, followed by a possible one-year extension based on business progress. Renewal requires demonstrating the successful development of your business.
Q. Can I work while on a Startup Visa?
A. Yes, you can work, but only within the scope of your permitted business activities. You cannot engage in other forms of employment.
Q. Can I apply even if I don’t speak Japanese?
A. Yes, you can. However, application documents must be submitted in Japanese. We offer translation services to assist non-Japanese speakers.
If you have any further questions, please feel free to contact us!
