Starting a Business in Kobe: A Guide for Kobe Startup Visa

Introduction

Since opening its port in 1868, Kobe has been known as an international city where cultures meet. Its location between mountains and the sea makes it unique. With 1.5 million residents, including over 50,000 foreigners, Kobe is rich in diversity. Historic spots like Kitano Ijinkan and Nankinmachi (Chinatown) showcase its international heritage, while its jazz, cuisine, and innovation draw attention from around the world.

Kobe has introduced a startup visa to help foreign entrepreneurs establish businesses and promote the globalization of its startup ecosystem. This article outlines the Kobe Startup Visa program in detail, covering city-provided support, eligibility criteria, requirements, the application process, and monthly interviews after approval.

Overview

The Startup Visa program, introduced in 2018 by Japan’s Ministry of Economy, Trade, and Industry (METI), seeks to attract foreign entrepreneurs to invest in Japan and drive innovation. This program offers a distinctive opportunity for individuals to launch businesses in Japanese cities, supported by local governments. Those looking to establish businesses in Japan can benefit from a residency status of up to one year, along with various forms of assistance.

Here is the region where the startup visa is available.

Fukuoka City	Aichi Prefecture	Gifu Prefecture
Kobe City	Osaka City	Mie Prefecture
Hokkaido	Sendai City	Yokohama City
Ibaraki Prefecture	Niigata Prefecture	Oita Prefecture
Kyoto Prefecture	Hyogo Prefecture	Shibuya City
Hamamatsu City Kita-kyushu City	Kaga City	Toyama Prefecture

Kobe, one of the approved cities to offer the program, aims to enhance its global competitiveness, promote industrial development, and ultimately encourage international business activities in Japan.

Kobe offers an excellent environment for businesses, with access to skilled talent from local universities and municipal technical colleges. Office rents are about half the cost of those in Tokyo or Osaka, reducing financial burdens for companies. Excellent transportation networks by land, sea, and air can be beneficial too. It’s only about 20 minutes from Sannomiya Station to Osaka, and Kobe Airport provides easy access to 13 domestic destinations. Moreover, Kobe hosts diverse industries, from heavy manufacturing to consumer-related sectors, and is a hub for cutting-edge fields such as biomedical sciences, tech/IT, renewable energy, food innovation, and aerospace. Entrepreneurs from overseas can leverage all those advantages to successfully start new businesses in Kobe.

Support from the City

Aside from the advantages described above, the city offers a variety of support for entrepreneurs.

Business Matching SupportThe supporting team with a strong local network facilitates connections with business partners in Japan, providing access to experts in recruitment, fundraising, and governmental assistance.
Financial SupportThe city provides several types of financial support including subsidies and tax reductions.
Visa SupportThe team assists foreigners seeking a startup or business manager visa with document preparation and obtaining the most suitable visa for individuals.
Office Set-Up SupportEligible companies can access a free temporary office for up to two and a half months. Startups are offered a co-working space with landing pad services for immediate use. Upon obtaining a startup visa, the space becomes available at no cost. Furthermore, subsidies for corporate registration fees may be available.
Administrative Support　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　An initial consultation is provided at no charge to facilitate connections with experts specializing in areas such as company registration, visas, taxation, employment, and other business needs.

In addition to the five types of support mentioned, the city offers programs and incentives as well as shares valuable information about business events and news

Eligibility

Applicants must ensure that they fulfill all the criteria outlined below prior to submission.

Eligible applicants: Individuals planning to start a business in Kobe 　　　　　　　　　　　* Those already living in Japan with residence statuses need to consult the administration office first.
Eligible fields: Your business must align with one of the following categories.
1. Utilize advanced technologies in areas such as IT, robotics, health, medical and welfare, environment, logistics, hydrogen and alternative energies (including storage batteries), Aerospace (including drones and flying vehicles)
2. Support the sustainable growth and management of SMEs through technologies including AI, IoT, robotics
3. Enhance or innovate existing industries by adding value.
Documents are available to verify the originality of the project.
A clear business plan has been prepared.
A product sample or prototype is ready.
A minimum of 5 million JPY is secured to start the company, or there is a clear prospect of raising this amount.
Sufficient savings are available to cover living expenses in addition to the 5 million JPY required for the business.
A 3-year business plan, including an income and expenditure plan, has been developed.
At least 3 years of experience in the relevant field of the planned business is held, or a degree in the business field is obtained, demonstrating the necessary expertise.

Requirements & Application Process

<<Required Documents>>

Further information and document templates are available on the official website.

(1) Application Form

(2) Plan for Business Startup Activities

(3) Application for the Local Authority to Confirm Business Startup Activities and Letter of Consent

(4) Resume / Curriculum Vitae (English): The following details need to be provided: name, address in Japan, phone number, email address, education, experience, and qualifications/certificates.

(5) Copy of a lease application for one year

(6) Proof of savings for one year:

– Copy of bank statements

– Alternatively, documentation verifying any received investment

(7) Copy of applicant’s passport

<<Application Process>>

Prepare the application form and other required documents
Send the documents by email Contact details are provided on the website.
Documents screening The review process generally takes at least three to four months. However, delays may occur if your documents are incomplete, fail to meet the requirements, or if there is a high volume of applications.
InterviewAfter the application is accepted, applicants will be invited for an interview. In some cases, multiple interviews may be required.
Confirmation Once the documents are approved, applicants will receive a confirmation letter as acknowledgment.
Apply for the visa at immigration services agencyThe confirmation letter from Step 5 is not a residence permit. To obtain a residence permit, all necessary documents must be submitted to the Kobe Branch of the Immigration and Residence Office and have them approved.

After the Approval

– Monthly interviews

Interviews will be held once a month to review the business plan. During these interviews, it may be necessary to submit documents such as a rental agreement or bank account balance.

– Prepare for launching a business in Kobe
The Startup Visa program is a temporary visa leading to a Business Manager Visa, required to begin commercial activities in Kobe or Hyogo. This involves forming a team of at least two full-time employees or investing a minimum of JPY 5 million.

Conclusion

Kobe actively promotes business opportunities in Japan through its startup visa program, along with a wide range of support services, including business matching, financial assistance, office setup guidance, administrative support, and various additional programs and incentives. With its vibrant ecosystem and abundant resources, the city offers entrepreneurs an ideal setting to launch and expand their ventures.

In summary, Kobe delivers a great environment for entrepreneurs, establishing itself as a top choice for those looking to establish and scale their businesses in Japan.

About EXPACT

EXPACT provides a variety of operational support to domestic and international startups.

EXPACT offers market entry strategy advisory for international businesses looking to establish a presence in Japan. Our services are as follows:

– Advice for visas and programs: Providing guidance on suitable visas and government programs for foreign entrepreneurs (e.g., Startup visa).

– Market research assistance: Evaluating the potential market size and demand for the product or service

– Geographical evaluation based on the company’s target: Carrying out a location analysis to determine the most suitable region, prefecture, and city according to the startup’s specific needs.

– Support for applying financial aid programs: Sourcing and supporting the application process for applicable government grants and subsidies.

– Assistance for forming partnerships: Serving as a liaison to help the startup establish connections with local partners, investors, and government institutions.

– Advice for a business plan: Offering a business plan review with insights from a Japanese perspective.

– Translation services: Providing translation services for in-person meetings, virtual discussions and document preparation.

Additionally, the company also offers One-Stop support from Startup advisory to Finance, PR, Recruitment and EXIT.

Finance and Fundraising: Advisory on financial health of startup and proposing an optimal fundraising plan, by applying for government grants and facilitating investor introductions. Activities include drafting a pitch deck, forming a business plan and/or cap table.
Promotion: Publishing press releases, building media relations, branding.
Startup Advisory: Business ideation, researching, conducting interviews, MVP analysis, investment access.
Human Resources: Personnel strategy, hiring support, institution building.
EXIT: IPO support, M&A support, exit system design.

For assistance or additional information, please contact us at info@EXPACT.jp.

Inquiries on market entry strategies can be directed to pramod@EXPACT.jp