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

Introduction

Hokkaido, the northernmost prefecture of Japan, is rich in nature and famous for its agriculture and dairy farming. Although the prefecture is struggling with the aging population like other regions, there is demand for online education, medical care, and public transportation services, as well as the possibility of shifting to new industries by digitalizing agriculture and dairy farming. In addition, Hokkaido promotes the space industry by cooperating with research institutes, such as Hokkaido University, and companies in the prefecture. Therefore, it is implementing initiatives with these partners to develop space startups.

The Startup Visa program streamlines foreign entrepreneurs’ immigration process by offering various supportive initiatives. This article introduces the Startup Visa program in Hokkaido, which was launched in 2019 and has published 25 certificates, including the eligibility, application process, and other necessary information.

Overview

Startup Visa is a scheme that the Ministry of Economy, Trade, and Industry (METI) offers to support startups in Japan by foreign entrepreneurs. This scheme provides an exceptional chance to start a business in Japanese cities with extensive support from local governments. The significant advantage of this program is that approved entrepreneurs can obtain residency status for up to one year. This startup visa system makes it much easier for foreign entrepreneurs to start new businesses in Japan.

Now, Startup Visa is available in the following regions:

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

Support Measures & Subsidies

Hokkaido, an approved municipality, offers the Startup Visa program and other support measures, such as entrepreneurial support from the Hokkaido Small Business Support Center and living support from the Hokkaido International Exchange and Cooperation Center (HIECC). There are also a variety of other organizations in Hokkaido that offer entrepreneurial support and subsidies.

Sapporo Softlanding Subsidy is one of the subsidies designed for foreign entrepreneurs who want to start businesses in Sapporo City, Hokkaido’s prefectural capital. This subsidy covers half of entrepreneurs’s initial expenses up to 300,000 yen. This attractive initiative can be applied to flight tickets, temporary housing, exportation fees, and rent for the first 3 months.

The Hokkaido Small Business Support Center offers 3 types of subsidies. As a part of its Business Startup Promotion Support Program, it subsidizes half of the necessary costs to start new businesses up to 1 million yen. Moreover, a grant of up to 2 million yen to cover half of the expenses is available for startups that aim to use digital technology to help solve social issues in the community.

As the capital of Hokkaido, Sapporo City is notably strengthening its support for startups. Indeed, it provides up to 2.5 million yen in startup capital for entrepreneurs to launch their businesses as Sapporo-based startup companies. In addition, the city established the Sapporo Innovation Fund in 2021, the first public-private partnership regional fund specializing in the life science field as an ordinance-designated city.

Eligibility

Any foreign residents living in Hokkaido who wish to start new businesses are eligible for the Startup Visa program. However, new businesses must meet one of the following conditions:

Businesses that promote the growth of agriculture, forestry, and fisheries industries that support the region
Businesses to promote food-related industries using regional resources
Businesses to promote the realization of Hokkaido as an advanced tourism destination
Businesses to promote manufacturing industries that create high-added value
Businesses that promote the creation of industries that respond to changes in market size and needs
Other businesses deemed necessary by the governor

Application Procedure

Hokkaido accepts online applications for the Startup Visa Program. The applicants must follow the application procedure below.

Submit the Pre-Entry Online Form 　　　　　　　　　　　　　　　Before submitting the application, the applicant must fill out the Pre-Entry Online Form on the official website. Upon confirmation, the applicants will receive an email from the prefecture’s office.
Application for Receiving a Certificate of Confirmation for Startup Activities Prepare all the following required documents in Japanese or English and submit them to the prescribed online form.
1. Schedule for startup preparation
2. Expected profits and financing plan
3. The applicant’s resume
4. Documents that clarify the applicant’s residence for one year after landing or change of status of residence (copy of lease contract, etc.)
5. Documents that clarify the applicant’s accommodation expenses for one year after landing or change of status of residence (copy of the applicant’s bankbook, etc.)
6. Photocopy of the applicant’s passport (the page containing the applicant’s photo and passport number)
7. Documents certifying any of the following (if applicable)
  1. Graduated from a university or received education equivalent to or higher than the university level.
  2. Have at least three years of work experience related to the target field of your new business plan.
8. Other documents deemed necessary by the governor
  The application materials must be submitted by the following persons:
  ①The applicant
  ②A lawyer or an administrative scrivener who has notified the Director of the Regional Immigration Bureau via the bar association or administrative scrivener association to which he/she belongs
  If persons falling under 2 to 4 bring the application, please submit documents that show their relationship with the applicant and documents that prove their positions.
Issuance of “Certificate of Confirmation of Business Startup Activities”After the document screening process, the prefectural office will issue a Certificate of Confirmation of Startup Preparation Activities upon the approval of the application, which facilitates the recipients to apply for residential status in the immigration bureau.
Application for Residence Status at the Immigration BureauAfter receiving the Certificate of Confirmation for Startup Preparation Activities, the applicants must apply for a Certificate of Eligibility for “Specified Activities” at the Sapporo Regional Immigration Bureau as soon as possible.
Immigration, Startup ActivitiesAfter the applicant is granted the “Specified Activities” residency status, they are allowed to stay in Japan and carry out various startup-related activities for up to one year (with a renewal required after six months).

Renewing the Residential Status

The Startup Visa is valid for six months and can be extended for another six months by applying for renewal. To renew the residential status, the applicant must submit the following documents:

Schedule for startup preparation
Expected profits and financing plan
Documents that verify the applicant’s address for the six months after the renewal (e.g., copy of a rental agreement or copy of a rental application form)
Documents that verify the applicant’s expenses for staying in Japan for the six months after the renewal (e.g., copy of the applicant’s bankbook)
Other documents deemed necessary by the governor

Once the renewal application is approved, the successful applicant will receive a “Renewal Certificate for Confirmation of Startup Activities.” Then, the applicant must apply for a Certificate of Eligibility for “Specified Activities” at the Sapporo Regional Immigration Bureau again.

Conclusion

The Startup Visa program in Hokkaido helps those who want to start a business in the prefecture by streamlining the application for the status of residence and providing various support measures. The abundance of subsidies is noteworthy, showing how committed Hokkaido is to the development of an innovative startup ecosystem. Hokkaido welcomes all those who take up the challenge of entrepreneurship in the vast northern lands of 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 for 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 the financial health of startups and proposing an optimal fundraising plan by applying for government grants and facilitating investor introductions. Activities include drafting a pitch deck, and 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 for inquiries.

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

Written by Pramod Sharma & Yuji Ishiyama