Introduction

Kyoto, known as the cultural capital of Japan, is a major tourist destination. Its outstanding cultural resources include historical architecture, arts, and crafts. In addition to its aspect as a tourist city, Kyoto has an ideal environment for innovative companies and entrepreneurs. In 2019, The global innovation platform PLUG AND PLAY established a base in Kyoto. Many advanced leading research institutes like Kyoto University also drive the innovative environment. 

This article introduces the Startup Visa program in Kyoto, which Kyoto prefecture offers to invite new businesses from abroad, including the eligibility, application process, and other necessary information. 

Overview

Startup Visa is a scheme that the Ministry of Economy, Trade, and Industry 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:

Kyoto Prefecture, one of the approved municipalities, offers the startup visa system and other support measures, including expert consultation on various market fields, legal support by administrative and judicial scriveners at the time of incorporation, and free provision of coworking space and subsidized rent for a temporary office. 

Kyoto Prefecture provides the following coworking spaces free of charge:

• Garden Lab Coworking Building
• Impact Hub Kyoto
• Serviced Office OFFISTERIA
• Innovation Creating Community
  (Science, Technology & Culture Commercialization Community)
• KRP BIZ NEXT

In addition, the Kyoto Overseas Business Center offers the following support measures for the participants of the Startup Visa program. 

• Information session to share general local information
• Consulting on startup strategy
• Connecting with local companies and venture capitals 
• Provision of co-working space
• Hands-on assistance from experts
• Information on events, incentives, and support programs suited to the requirements of entrepreneurs
• General assistance for living in Japan

Startup Visa in Kyoto includes various support programs that facilitate foreign entrepreneurs to start new businesses in the prefecture.

Eligibility

Any foreign nationals wishing to start a business in Kyoto Prefecture are eligible for the Startup Visa program.

The Startup Visa program in Kyoto aims to increase the international competitiveness of Kyoto Prefecture’s industries, expand employment, circulate the local economy, and develop the prefecture as a global economic center. 

Therefore, new businesses must fall under the following sectors:

• (1) Manufacturing fields such as traditional industries and advanced industries
• (2) AI・IoT・Information and communication field
• (3) Environment ・Energy field
• (4) Life sciences ・Wellness
• (5) Social business field
• (6) Culture ・Art ・Contents
• (7) Fields related to agriculture, forestry and fisheries, Food culture of Kyoto
• (8) Tourism field (excluding tourist souvenir sales facilities and restaurants mainly used by tourists)
• (9) Other fields recognized by the Governor of Kyoto Prefecture

Application Procedure

1. Pre-consultation: Fill out the contact form

Go to the official page for Startup Visa in Kyoto and click the “CONTACT US” button to submit the contact form. It asks for your information and several questions about your new business plan. 

You can also contact the consultation and support desk. Your email must include your name, address, nationality, current occupation, and outline of your business plan (up to about 200 words). Make your email title “Pre-consultation.” If you can attach the business plan presentation to this email, it will make the consultation process smoother.

2. Support for Creating Plan for Business Startup Activities: Communicate with the consultation and support desk

Once you have completed Step 1 and have been approved as an applicable entrepreneur, the consultation and support desk will contact you for assistance in preparing your activity plan.

3. Application for Confirmation of Business Startup Activities: Submit all the necessary documents

After Steps 1 & 2, you must submit the following documents in Japanese and English. The applicant must book the submission before your visit and deliver the application documents in person or by an authorized agent.

1. Application for Confirmation of Business Startup Activities
2. Plan for Business Startup Activities
3. Resume
4. Letter of Commitment
5. Documents that prove your address for the six months after landing in Japan or changing your status of residence (e.g., copy of house rental agreement)
6. Documents prove you possess accommodation fees for the six months and expenses for returning to your home country. (e.g., the applicant’s bank account statement, etc.)
7. Documents certifying any of the following
   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.
   3. Have been engaged in managing or administrating a business related to the field in a foreign country for one year or more. 
8. A photocopy of your passport (pages containing the applicant’s photo and passport number). If you already reside in Japan, add a copy of both sides of your residence card.
9. Other documents required by the GovernorIssuance of “Certificate of Confirmation of Business Startup Activities”

If your application is approved, you will receive a “Certificate of Confirmation of Business Startup Activities.” After the consultation and support desk notifies you of your acceptance, you or your representative must come to the desk to collect the documents. Mail service is not available.

Once you receive the certificate, you will apply to the Regional Immigration Bureau for the “Business Manager” residence status.

For details on the application for status of residence, contact the Regional Immigration Bureau.

• Labor Examination Department of the Osaka Immigration Bureau

Tel: 06-4703-2101

• Kyoto branch office of the Osaka Immigration Bureau

Tel: 075-752-5997

• https://www.moj.go.jp/isa/?hl=en

Beginning Your Startup in Kyoto

After finishing the application, successful applicants can start preparing for their startup on-site. There are some key steps to start your business successfully.

1. Successful applicants must submit the “Report of Acquisition (Renewal) of Status of Residence of Designated Activities”  to the Kyoto Prefectural Government within 7 days after landing in Japan.
2. The status of residence for this program expires in 6 months. You can renew your status for up to 6 more months by submitting the necessary documents.
3. If you want to stay in Japan after the expiration of your residency status for this program and continue managing your business, you can apply to change your status to “Business Manager” at the Regional Immigration Bureau.

For more information, please visit the official page of the Kyoto Overseas Business Center.

Conclusion

Kyoto Startup Visa offers foreign entrepreneurs an attractive opportunity to start new businesses in Japan’s cultural center. Startup Visa not only provides the status of residence for startup preparation but also makes it easier to set up new businesses by offering various supportive measures. By taking advantage of this scheme, you can try new business ventures more smoothly with reliable support. Kyoto looks forward to entrepreneurs that will impact the local community.

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.

1. 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, forming a business plan and/or cap table.
2. Promotion: Publishing press releases, building media relations, branding.
3. Startup Advisory: Business ideation, researching, conducting interviews, MVP analysis, investment access.
4. Human Resources: Personnel strategy, hiring support, institution building.
5. 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

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Reference:

https://www.kyoto-obc.jp/startupvisa/

https://www.kyoto-obc.jp/en/startupvisa/sougyou/

https://www.meti.go.jp/policy/newbusiness/startupvisa/index.html

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