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Japan’s Startup Visa: A Comprehensive Guide
Japan’s Startup Visa is a special immigration program designed to attract foreign entrepreneurs and foster innovation in the Japanese economy. This visa system represents Japan’s strategic effort to create a more dynamic startup ecosystem and achieve its ambitious goal of producing 100 unicorn companies by 2027.
What is the Startup Visa?
The Startup Visa is a “Designated Activities” visa that allows foreign entrepreneurs to stay in Japan for up to 2 years (renewable every 6 months) to prepare for establishing their business before meeting the traditional requirements of a Business Manager visa.
Key Features:
Duration: Up to 2 years maximum (initially 6 months to 1 year, renewable)
Purpose: Business preparation and market research phase
Flexibility: No immediate office space or ¥5 million capital requirement
Support: Municipal guidance and consultation services
Background and Strategic Context
Government Initiative
Japan launched this program as part of the “Five-Year Plan for Startup Development” formulated in 2022, aiming to revitalize regional economies through foreign entrepreneurship. The initiative follows global trends, with over 28 countries implementing similar startup visa programs.
National Strategic Special Zones
The program operates under the “National Strategic Special Zone” framework, where selected municipalities can offer this special visa to qualified foreign entrepreneurs.
How It Differs from Traditional Business Manager Visa
Aspect Startup Visa Business Manager Visa
Duration Up to 2 years 1-3 years (renewable)
Office Requirement Not required initially Physical office required
Capital Requirement No upfront capital needed ¥5 million minimum
Staff Requirement Not required initially 2+ full-time employees
Purpose Business preparation Active business management
Participating Municipalities (14 Locations)
Currently, 14 municipalities across Japan offer the Startup Visa program:
Major Cities & Prefectures:
Tokyo Metropolitan Government
Yokohama City
Osaka City
Kyoto Prefecture
Aichi Prefecture
Fukuoka City
Kobe City
Sendai City
Additional Locations:
Hokkaido
Ibaraki Prefecture
Gifu Prefecture
Mie Prefecture
Hamamatsu City
Oita Prefecture
Application Process
Step 1: Choose Your Municipality
Select from the 14 participating municipalities, each with unique policies and support systems.
Step 2: Preliminary Consultation
Mandatory consultation with local startup visa coordinators to discuss your business concept and requirements.
Step 3: Prepare Documentation
Submit comprehensive documentation including:
Business plan (typically in Japanese)
Resume with photo
Passport copy
Financial statements
Proof of accommodation in Japan
Market research and financial projections
Step 4: Municipal Endorsement
Undergo rigorous evaluation by local government officials who assess your business plan’s viability and alignment with regional economic goals.
Step 5: Immigration Application
Submit your Certificate of Eligibility (COE) application to the Immigration Services Agency with municipal endorsement.
Step 6: Visa Issuance
Upon approval, receive your Designated Activities visa allowing you to enter Japan and begin business preparations.
Benefits and Support Services
Municipal Support
Business plan development assistance
Temporary office spaces
Expert consultations
Networking opportunities
Living support (housing, daily life assistance)
Regulatory Advantages
Streamlined business setup process
Access to government subsidies
Reduced initial investment barriers
Flexible timeline for meeting traditional requirements
Eligible Business Fields
Preferred Sectors (Example from Yokohama):
AI and DX technologies
Health and medical fields
Knowledge-intensive businesses
Innovative products/services
Excluded Sectors:
Traditional retail/wholesale
Food and beverage services
Lodging services
Basic service industries
Transition to Business Manager Visa
Critical Requirements for Transition:
Before your Startup Visa expires, you must demonstrate:
Business viability: Operational business meeting performance goals
Financial stability: ¥5 million capital or sustainable revenue
Local economic contribution: Hiring local staff or community engagement
Success Metrics:
Entrepreneurs must prove their business is ready for full operations and can contribute meaningfully to Japan’s economy.
Program Achievements and Expansion
Recent Developments:
Nationwide rollout beginning January 2025
Expanded from initial pilot municipalities to broader coverage
Increased government support and streamlined processes
Success Indicators:
The program has gained momentum as Japan positions itself as a global innovation hub, attracting foreign talent and fostering technological advancement.
Key Considerations for Applicants
Language Requirements:
Business plans typically must be submitted in Japanese
Consultations and interviews often conducted in Japanese
Professional translation services may be necessary
Timeline:
Application process: 3-6 months average
Preparation phase: Up to 2 years maximum
Early planning essential for successful transition to Business Manager visa
Professional Support:
Many applicants work with immigration lawyers (gyoseishoshi) and business consultants to navigate the complex application process and increase success rates.
Conclusion
Japan’s Startup Visa represents a significant opportunity for foreign entrepreneurs to establish businesses in one of the world’s most advanced economies. While the application process is rigorous and requires careful preparation, the program offers unprecedented support and flexibility for international business founders.
The visa serves as a strategic bridge between initial business concepts and full-scale operations, allowing entrepreneurs to test markets, build networks, and establish foundations for long-term success in Japan’s dynamic business environment.
For foreign entrepreneurs with innovative ideas and strong business acumen, Japan’s Startup Visa provides a valuable pathway to participate in the country’s growing startup ecosystem and contribute to its economic revitalization goals.