How to Obtain a Startup Visa for Japan
The Startup visa in Japan is an initiative of the Japanese government to attract foreigners to start businesses in Japan.
Japan and Its Startup Visa
As per the now discontinued “Ease of Doing Business” index of the World Bank, Japan’s last rating of 2020 was classified as “Very Easy,” where Japan ranked 29th among 190 countries.
While starting a business in Japan is comparatively relatively easy, the process still presents big challenges for foreigners who wish to move to Japan to start a new business here. For example, the fundamental requirements to start a business here are as follows:
- Approved business plan.
- Having either a minimum of 2 employees or an initial paid-up capital of at least JPY 5 million.
- Renting a physical office.
- Based on the above, apply for the Certificate of Eligibility (COE) for a Business Manager’s visa.
- Wait for the COE approval.
- Apply for the Business Manager Visa.
- Move to Japan.
- Start the business activities.
Entrepreneurship isn’t generally associated with Japan’s more hierarchical work culture. However, Japan was named one of the top destinations for foreign entrepreneurs.
Moreover, There is a lot of focus on improving the ecosystem, which is reflected by the fact that Japan has over 10,000 startups and counting.
These startups are in diverse sectors, including software, robotics, advanced manufacturing, and consumer services.
The country is booming with opportunities for innovative entrepreneurs. And all these reasons make Japan a good destination for foreigners to launch their startups in Japan. And the startup visa offered by Japan makes it easier.
Benefits of the Japanese Startup Visa
While Japan is a good destination to launch a startup, the above-mentioned business requirements present significant hurdles.
Obviously, putting the skin in the game before knowing the lay of the land is a big obstacle for a person intending to launch a startup company.
The complete lack of the ability to know the market before making all the arrangements and making the investment is never easy. And these are enough to deter a foreigner from coming to Japan to start a new business.
The startup visa facility of Japan was an initiative to address the challenges mentioned above and make it easier for foreigners to launch startups in Japan. A startup visa allows a foreigner to move to Japan to understand the market and make all necessary preparations before actually investing capital in the business.
What does the Startup Visa Facilitate?
Japanese startup visa enables a foreigner seeking to start a new business in Japan to move to Japan before making the actual investments. You can come to Japan to do the initial groundwork before registering the company and starting the business activity.
A foreigner can stay in Japan on a startup visa for 6 to 12 months. Obviously, the onsite presence in Japan can help in doing the required in-depth market feasibility studies, the initial groundwork for understanding the lay of the land before putting the skin in the game by making the investments from the word “Go.”
Governmental Support and Accelerators & Incubators
Significantly, those in the startup visa program can access local government resources to help drive their business venture.
Additionally, we also recommend partnering with an accelerator or incubator. Accelerators and incubators are local collaborative organizations that provide mentorship, networking, and often funding for innovative startups.
Besides, they can also help with the visa process for both the startup visa and the transition toward the business manager visa.
Moreover, The Japanese startup visa ensures the following support of the concerned municipality governments:
- Logistic support: Provide consultation about office space and housing. Additionally, they may even help in the provision of free temporary offices.
- Consultation about any available subsidies.
- Consultation about taxation, accounting, and legal aspects.
Approved Japanese Municipalities for Startup Visa
As of 2022, the startup visa is supported by 14 authorized Japanese municipalities. However, some other municipalities offer a temporary deregulated Business Manager visa for 6 months for startup preparations. For your reference, the list of these special zones of Japan supporting the startup visa program is as follows:
- Fukuoka City
- Kobe City
- Osaka City
- Kyoto Prefecture
- Hokkaido Prefecture
- Gifu Prefecture
- Sendai City
- Ibaraki Prefecture
- Shibuya City Office, Tokyo
- Yokohama City
- Hamamatsu City
- Aichi Prefecture
- Mie Prefecture
- Oita Prefecture
- Niigata Prefecture*
- Hiroshima*
- Tokyo Metropolitan Government*
Out of these zones, Shibuya and Fukuoka municipal governments are the most active in promoting themselves to foreigners for their startup initiatives.
However, other promising places are Yokohama (Kanagawa), Osaka, Kobe, Gifu, and Hokkaido. Moreover, one important point to note is that out of these 14 zones, only Shibuya (Tokyo), Fukuoka, and Yokohama in Kanagawa, Kyoto, Hokkaido, Gifu, Kobe, Sendai, and Niigata have startup visa websites in English.
So naturally, this subtle point paints a bigger picture of their efforts to be more attractive to foreigners for their startup ventures.
*Note: Niigata, Hiroshima, and Tokyo Metropolitan Government do not offer the visa as a startup visa but a deregulated “Business Manager” visa for 6 months.
Importantly, this deregulated Business Manager visa does not require the applicant to invest upfront for the paid-up capital and rent the office space. Such visa holders can use the six months to prepare for launching their startup. Toward the end of this period, they can apply for the normal Business Manager visa
Municipality-wise Approved Business Activities for Startup Visa
| Area | Startup Visa Eligibility |
|---|---|
| Fukuoka City | – Fintech, semiconductor-related, software development, content production, robotics – Health, medical, and welfare-related industries – Environmental and energy-related industries – Logistics-related industries – Trade-related industries with novelty or those that contribute to the growth of operators in Fukuoka |
| Kobe City | – New technologies in the IT, health, medical / welfare, environmental, and logistics – Businesses that produce high added value and innovation in existing products and services regardless of industrial field. – Other projects deemed necessary by the mayor of Kobe |
| Osaka City | – Growing manufacturing field – Fields related to the 4th Industrial Revolution – Green energy field – Healthcare and life science fields – Tourism, sports, culture, town development fields |
| Kyoto Prefecture | – Energy & Environment – Healthcare & life-sciences – Hardware, Niche information technology areas, IoT, Robotics, Edtech startups |
| Hokkaido Prefecture | – Businesses that promote growth and industrialization in the fields of agriculture, forestry and fisheries, which support local communities – Those Businesses that promote the development of food-related industries that utilize regional resources – Businesses that promote Hokkaido tourism and help to elevate tourism in Hokkaido to that of an advanced region in the tourism industry – Those Businesses that promote developing manufacturing industries that generate added high-values – Businesses that promote the creation of industries that correspond to market size and shifts in market needs – Other businesses deemed necessary by the governor |
| Gifu Prefecture | – IT and IoT, etc. related field – Tourism field |
| Sendai City | – Knowledge-creating industries (e.g., semiconductor-related, software development, content creation, robot-related, etc.) – Health, medical care, welfare, and education-related industries – Environment, energy, and disaster prevention-related industries – Trade and tourism-related industries |
| Ibaraki Prefecture | – Life sciences – Nice technology areas in IT, telecom, robotics – Other businesses if found good, necessary and approved by the governor |
| Shibuya, Tokyo | – Health, Medical, and Welfare – Environment/Energy – Food/Agriculture/Forestry/Fisheries – Information Technologies – Culture/Art/Fashion |
| Yokohama City | – IoT field and life innovation field – Business using innovative technology – Knowledge-intensive and value-creating business – Other businesses aiming to create new industries |
| Hamamatsu City | – Next-generation transportation equipment, Health/medical care, innovations for agriculture, Environment/Energy, Optoelectronics/electronics, digital, Robotics – Businesses aiming for growth using innovative technologies and services – Projects subject to other fields approved by the mayor |
| Aichi Prefecture | – Information and communication industry – Businesses aiming for high growth using innovative technologies and skills |
| Mie Prefecture | – IoT/AI business – Food-related business, tourism-related industry – Next-generation energy-related industry – Next-generation healthcare-related business, life-related service-related business – Trade-related industry |
| Oita Prefecture | – Automobile-related, electronics/electrical/mechanical-related – Materials / shipbuilding-related, aviation-related, logistics-related industries, Service industry – Health / medical / welfare-related, Food & agriculture, forestry and fisheries-related – Environment and energy-related – Information Technology related |
| Niigata City | Not Specific |
| Hiroshima | Nothing Specific |
| Tokyo Metropolitan Govt. | Nothing Specific |
Some of the Active Startup Hubs for Startup Visa
Shibuya Startup Support
Shibuya Ward, in the middle of Tokyo, is one of Japan’s most popular startup incubators.
Shibuya Startup Support assists foreign entrepreneurs in obtaining a startup visa. They also provide the necessary administrative procedures for setting up a business, including finding an office and residential space and setting up bank accounts.
Startup Fukuoka
As one of the fastest-growing cities in Japan, entrepreneurs are flocking to Fukuoka as the economy, coupled with the startup incentives, make the city an ideal place to found a new company.
Furthermore, Fukuoka is ideally situated in the center of East Asia. Obviously, the location makes it simple to import from and export to all major East Asian cities, including Seoul, Beijing, Taiwan, and Shanghai.
Additionally, along with visa support, the tight-knit startup community will allow you to benefit from the wisdom and perspectives of some top CEOs in various fields.
Osaka Innovation Hub (OIH)
The Kansai region is growing rapidly in tourism and innovation and is an attractive spot for entrepreneurs who want to experience a slower pace of life in Japan. OIH offers startup visas and administrative support to foreign entrepreneurs through incubation and acceleration programs.
Kyoto Startup Ecosystem
The beautiful city of Kyoto, the old capital of Japan, is famous as one of the best tourist attractions where you can still get a peek into ancient traditional Japan. Surprisingly, while the city keeps its traditional face alive, Kobe is also a front-runner for innovations.
Kyoto University is one of the top universities in Japan and ranks very high worldwide; however, Kyoto is an academic powerhouse with 34 universities overall and has produced 11 Nobel prize winners.
Apart from the startup visa, the Kyoto startup ecosystem provides various assistance, including immigration assistance, free coworking space, a subsidy for the company registration fee, and other services.
Kobe Startup Visa and Support System
Along with Osaka and Kyoto, Kobe is another thriving place for startups in Japan’s Kansai region.
As one of the 14 areas approved for the startup visa program, Kobe City also provides support for the free provision of temporary offices, the support for leasing an office, support for housing, various subsidies, acceleration performance programs, and consultation in specialized fields like law, taxation, and accounting.
How Long is the Startup Visa in Japan?
The startup visa program allows applicants to stay in Japan for up to one year and prepare to start a business before fulfilling the requirements to launch the business by establishing a company in Japan.
However, it is important to note that the startup visa is not recognized as an official visa category under immigration law. Unlike other visas, this visa category offers no renewability option beyond 12 months.
The purpose of a startup visa is to prepare for starting a business. When the preparations are over and the business is registered, the visa holder must change the visa status to the “Business Manager” visa category to formally register the business entity in Japan.
Should I go for the Japanese Startup Visa?
While entrepreneurship is growing, obtaining a startup visa can be difficult. Since the ultimate goal behind a startup visa is to transition into a Business Manager visa and launch the startup business within a year of arrival in Japan, it is better to be sure about the foundation.
Therefore, you should only consider applying for the Japanese startup visa if you already have a business that has been proven successful in another market or an excellent proof-of-concept for your business idea.
How can I get a Japan startup visa?
Although the requirements for a startup visa aren’t as rigorous as those for a business manager or HSP visa, the application process is still quite rigorous.
Typically, applicants are only allowed to apply from overseas, although some municipalities will consider applicants already in Japan. If you apply from overseas, you’ll need an administrative scrivener known as a gyouseijoshi (行政書士) to submit all of the paperwork on your behalf.
Obviously, the required paperwork can vary between municipalities, but in general, applicants should prepare some common documents across Japan’s approved startup zones.
Infographic of the process of getting a Startup Visa in Japan
The following infographic illustrates the process flow, required documentation and eligibility criteria for getting a Japanese startup visa:
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Detailed Explanation of Documentation and Process Flow
Documents for the Startup Visa
- New Business Implementation Confirmation Form
- New Business Implementation Plan
- Resume/CV
- Copy of Applicant Passport
- Documents that clarify where the applicant will reside in Japan for at least six months
- Financial documentation (bank book, account balance, business expenditures, etc.).
- Documents showing your business in your home country and experience as a business manager (not required but beneficial)
Process Flow
1. Initial Screening and Interview
The screening of the documents can take up to a month after the submission. Then, successful applicants will be invited to the agency for an interview and final assessment.
In essence, the interview is designed to scrutinize an applicant’s credibility and experience. Please note that the discussion will be in Japanese, so we recommend applicants have a business-level understanding of Japanese.
However, if you do not speak Japanese, an administrative scrivener can attend the interview on the applicant’s behalf.
2. Application for the Certificate of Eligibility for Startup Visa
On passing the interview, the applicant receives the “Confirmation of Business Startup Activity” certificate.
The certificate must be submitted to the local immigration bureau along with the above-mentioned documents within three months. Please make sure to keep copies of all documents for your records.
Keeping copies of submitted documents is important, as the immigration bureau does not return documents after review. Hence, if there is a need to check and review your application in the future, a lack of documentation records may prove problematic.
3. Finally, Application for the Startup Visa
Subsequently, after 1-2 months, you’ll receive a Certificate of Eligibility (COE) to submit to the Japanese embassy for a 6-month startup visa for the designated activity.
This document should be submitted within three months to the local immigration bureau along with a set of documents prepared for the governmental agency.
Now comes the waiting time for approval of the COE. Generally, COE approval usually takes 4 to 8 weeks in Japan. Thereafter, you’ll need to apply for the startup visa at the concerned Japanese embassy or consulate.
As you have already been found eligible for the startup visa by the concerned Japanese authorities, getting the visa will be a cakewalk.
After Receiving a Japanese Startup Visa
The initial visa is for 6 months duration. However, during these 6 months, the municipality concerned will review your progress periodically.
It is a monthly review at most municipalities authorized for the startup visa in Japan. If the authorities find the progress of your preparations satisfactory, you will be allowed to renew your startup visa once for another 6 months.
Obviously, because a startup visa is a facility offered to make the initial business preparations, it is not renewed after 12 months. Towards the end of this duration, you must apply for a longer-term “business manager” visa by fulfilling the requirements to launch your startup in Japan.
Jamila Brown is a 5-year veteran in Japan working in the education and business sector. Jamila is currently transitioning into the digital marketing world in Japan. In her free time, she enjoys traveling and writing about the culture in Japan.