Japan Startup Visa

Written by Mike Arnold Moderated by Oleksandra Dosii

Mike Arnold

Mike is a freelance writer with eight years of experience and a love for travel, all things business, tabletop games and green tea.

Oleksandra Dosii

Oleksandra is a dedicated marketer with a passion for growing HR-tech products. She believes content marketing is about delivering high-quality content that provides value—not just generating leads. Since 2016, Oleksandra has been involved in tech talent relocation.

Last update: September 13, 2024

Next update: Scheduled for February 1, 2025

Japan's startup ecosystem is experiencing a dynamic transformation fueled by a surge in foreign capital and government support. With initiatives like the "New Form of Capitalism," the country aims to boost startup numbers and attract international talent.

In the first half of 2023 alone, new startup funds raised a substantial ¥217 billion (approximately $1.5 billion). This, combined with eased visa restrictions and tax benefits, makes Japan an increasingly attractive destination for global entrepreneurs.

If you have a groundbreaking business idea and the drive to make it happen, the Japan Startup Visa could be your gateway to success in this burgeoning market.

 

What are the eligibility and conditions for the Japan Startup visa?

The Japan Startup Visa is explicitly designed for foreign entrepreneurs who want to start innovative businesses in Japan.

While there are general requirements for the visa, the exact eligibility criteria might differ depending on the city or region where you plan to set up your company.

General eligibility requirements

• Innovative business idea: Your business concept must be innovative and demonstrate potential for growth and scalability. This means your product or service should offer a unique solution or a significant improvement over existing offerings in the market.
• Startup committee approval: your business plan must be reviewed and approved by the Startup Committee of your chosen municipality. This committee consists of experts who assess your proposal based on specific criteria, ensuring it aligns with the region's economic development goals and has a genuine chance of success.
• Financial self-sufficiency: While there's no minimum investment requirement for the Startup Visa, you must demonstrate sufficient financial means to support yourself during your stay in Japan. This typically involves providing evidence of having at least ¥5,000,000 (approximately US$35,000) in your bank account or other verifiable assets.

Municipality-specific requirements

Each participating municipality may have additional requirements or focus areas for the Startup Visa program. These include:

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• Aichi Prefecture: Prioritises IT and robotics-related businesses.
• Fukuoka City: Focuses on sectors like fintech, software development, healthcare, medical technology, environmental solutions, and logistics.
• Gifu Prefecture: Welcomes innovative startups in various sectors.
• Hamamatsu City: Known as a "Manufacturing Startup Hub," offering support such as grants and business-matching services.
• Hokkaido Prefecture: Supports various innovative startups.
• Hiroshima: Supports startups, but details on specific focus areas are limited.
• Ibaraki Prefecture: Open to various business ideas.
• Kobe City: Welcomes startups in manufacturing, healthcare, life sciences, and tourism.
• Kyoto Prefecture: Focuses on manufacturing, AI, IoT, environment, and energy sectors.
• Mie Prefecture: Supports startups, but details on specific focus areas are limited.
• Niigata Prefecture: Supports startups, but details on specific focus areas are limited.
• Oita Prefecture: Supports startups, but details on specific focus areas are limited.
• Osaka City: Welcomes startups in manufacturing, healthcare, life sciences, and tourism.
• Sendai City: Open to various business ideas.
• Shibuya City Office, Tokyo: Open to a broader range of business ideas.
• Tokyo Metropolitan Government: Open to a broader range of business ideas.
• Yokohama City: Welcomes various innovative startups.

Each municipality supporting the Startup Visa has specific areas of focus and requirements. Do your research to make sure your business idea aligns with their priorities — this will boost your chances of visa approval.

Important note: Some municipalities, like Niigata, Hiroshima, and Tokyo Metropolitan Government, offer a deregulated Business Manager visa for six months instead of the Startup Visa. This allows entrepreneurs to prepare for their business launch without the immediate need for investment or office space.

What is the role of local governments?

In Japan, local governments are key partners in helping foreign entrepreneurs succeed. They provide various services and resources to assist you with your visa application, business setup, and integration into the community.

Key support services offered by local governments:

• Visa application assistance: The local government can provide guidance and support throughout the visa application process, ensuring you understand the requirements and submit a complete and accurate application.
• Business setup consultations: They offer consultations on various aspects of setting up a business in Japan, including legal and regulatory requirements, tax obligations, and available resources.
• Temporary office spaces: Some municipalities provide free or subsidised temporary office spaces for entrepreneurs to use while they establish their businesses.
• Subsidy information: Local governments can provide information about potential subsidies and grants to support your startup's growth and development.
• Networking opportunities: They may also organise events and networking opportunities to help you connect with other entrepreneurs, investors, and potential partners in the local ecosystem.

Active startup hubs

Several municipalities are particularly active in promoting their Startup Visa programs and offering comprehensive support to foreign entrepreneurs. These include:

• Shibuya Startup Support: Located in the heart of Tokyo, Shibuya Ward is a vibrant startup hub that offers assistance with visa applications, administrative procedures, and finding office and residential space.
• Startup Fukuoka: Fukuoka, a rapidly growing city in southern Japan, provides a supportive environment for startups, with a focus on sectors like fintech, healthcare, and logistics. They offer visa support, business consultations, and access to a thriving startup community.
• Osaka Innovation Hub (OIH): OIH, based in Osaka, offers startup visas and administrative support through incubation and acceleration programs. They focus on sectors such as manufacturing, healthcare, life sciences, and tourism.
• Kyoto Startup Ecosystem: Kyoto, the ancient capital of Japan, is also emerging as a hub for innovation. The Kyoto Startup Ecosystem provides various support services, including immigration assistance, free coworking space, subsidies, and business consultations.

What is the application process and required documents?

Getting a Japan Startup Visa involves a few key steps here's a general overview:

Step #1 - Initial screening and interview

• Document submission: You'll need to submit a set of documents, including a business plan, resume, passport copy, and proof of residence and funds, to the local government or designated visa agency.
• Processing time: The initial screening of your documents typically takes about a month.
• Interview: If your documents pass the initial screening, you'll be invited for an interview with the local immigration bureau. The interview assesses your credibility, experience, and commitment to your business idea. It's usually conducted in Japanese, but you can have an administrative scrivener represent you if you don't speak the language.

Step #2 - Application for the Certificate of Eligibility (COE)

• Confirmation certificate: Upon completing the interview, you'll receive a "Confirmation of Business Startup Activity" certificate.
• COE application: Submit this certificate, along with the previously submitted documents and any additional requirements, to the local immigration bureau within three months.
• Processing time: The COE application typically takes 4-8 weeks to process.

Step #3 - Application for the Startup visa

• Receive COE: Once your COE is approved, you'll receive it from the immigration bureau.
• Visa application at Embassy/Consulate: Submit your COE and other required documents to the Japanese embassy or consulate in your country of residence to apply for the Startup Visa.
• Processing time: The visa application itself usually takes 1-2 months to process.

Required documents

While specific document requirements may vary by municipality, here are some common documents you'll likely need:

• New Business Implementation Confirmation Form
• New Business Implementation Plan (detailed business plan)
• Resume/CV
• Copy of your passport
• Proof of residence in Japan for at least six months (if applicable)
• Financial documentation (bank statements, proof of business expenditures, etc.)
• Documents showing your business experience in your home country (not mandatory but recommended)

After receiving a Japanese startup visa

Congratulations on securing your Japan Startup Visa. This is just the beginning of your exciting entrepreneurial journey in Japan.

Remember, your Startup Visa is valid for six months. During this time, you'll need to focus on setting up your business and preparing to transition to a Business Manager Visa.

Monthly progress reviews

• During your six-month stay on the Startup Visa, the local municipality will conduct periodic reviews, often monthly, to assess your progress in establishing your business. These reviews ensure you are actively working towards your goals and making tangible strides in your entrepreneurial journey.
• Satisfactory progress: If the authorities are satisfied with your progress, you may be eligible to renew your Startup Visa for an additional six months, giving you one year to complete your preparations.

Transition to business manager visa

• No renewal beyond 12 months: it's important to remember that the Startup Visa cannot be renewed beyond the initial 12-month period (including the potential six-month extension).
• Business manager visa application: Towards the end of your Startup Visa validity, you must apply for a Business Manager Visa to continue your stay in Japan and officially launch your business.
• Fulfilling requirements: To qualify for the Business Manager Visa, you must meet specific requirements, such as having a registered company, a physical office space, and at least two employees or a minimum capital investment of ¥5,000,000.

Key points to remember

• Active engagement: Actively engage with the local government and utilise the support services they offer. This includes attending consultations, seeking advice on business registration and taxation, and exploring available subsidies.
• Network and collaborate: Connect with other entrepreneurs, investors, and mentors in the local startup ecosystem. Building a strong network can provide valuable insights, support, and potential partnerships.
• Prepare for the business manager visa: start gathering the necessary documents and fulfilling the requirements for the Business Manager Visa well in advance of your Startup Visa expiration.

By staying proactive, utilising available resources, and diligently working towards your business goals, you can successfully transition from the Startup Visa to the Business Manager Visa and establish a thriving venture in Japan.

To bring your innovative business idea to life in Japan's dynamic market, the Startup Visa is your entry ticket.

To assist with the process, a visa consultant can guide you through the complexities of the application process, ensuring your focus remains on building your business.

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