Article on the Startup Visa in Japan

1. What is the Startup Visa?

The Startup Visa is a special framework within Japan’s immigration system designed to facilitate the entry and temporary stay of foreign entrepreneurs who wish to establish a business in Japan.

Its primary purpose is to allow applicants to carry out the necessary preparatory activities for launching their business while residing in Japan, before fully meeting the requirements of the Business Manager visa (Keiei Kanri).

Officially known as the Program for Promoting Foreign Entrepreneurs, this system represents a strategic exception to Japan’s traditionally strict immigration framework regarding foreign entrepreneurship.

Foreign nationals who hold Permanent Resident (Eijusha), Spouse of Japanese National, Spouse of Permanent Resident, or Long-Term Resident (Teijusha) status are free to engage in business activities and any type of employment. Therefore, individuals with these statuses do not require either the Startup Visa or the Business Manager visa.

2. Legal Background and Purpose of the System

Foreign nationals who do not hold Permanent Resident, Long-Term Resident, or Spouse visas and who wish to manage a company in Japan must obtain the Business Manager visa (Keiei Kanri – 経営管理).

To apply for the Business Manager visa, the company must already be operational or at least immediately ready to operate. This typically requires:

• Incorporation of a company

• Sufficient capital investment

• Securing an independent commercial office

• Obtaining necessary licenses or administrative permits (if applicable)

For entrepreneurs residing outside Japan, completing these steps in advance is often difficult. Making substantial investments before visa approval carries significant financial risk if the application is ultimately denied.

Moreover, certain contractual and administrative procedures cannot be effectively completed without physical presence in Japan.

The Startup Visa was designed to address this structural problem. Rather than requiring a fully operational company from the outset, the system acknowledges the need for a preparatory period during which the entrepreneur can:

• Analyze the Japanese market

• Adjust their business model

• Gradually meet legal and administrative requirements

3. Applicable Status and Period of Stay

The status of residence granted under the Startup Visa framework is “Designated Activities” (Tokutei Katsudo – 特定活動).

The authorized period of stay depends on the scheme adopted by the receiving entity. In practice, it is typically granted for:

• 6 months or

• 1 year initially

with possible renewals up to a maximum total period of approximately 2 years.

During this time, the entrepreneur must demonstrate concrete progress, such as:

• Development of the business plan

• Preparation of the corporate structure

• Securing office space

• Hiring employees

• Obtaining necessary business licenses

4. Role of Implementing Entities and Decentralized Structure

A distinctive feature of the Startup Visa is that it is not administered uniformly at the national level.

The initial evaluation of the business project is conducted by local governments or certified private organizations, referred to as implementing entities for the promotion of foreign entrepreneurship.

Each entity has discretion to establish its own evaluation criteria, standards, and priority sectors. As a result, a project may be considered suitable in one region but not in another.

This decentralized structure makes the choice of receiving entity a strategic decision in the application process.

The official list of implementing entities is published by Japan’s Ministry of Economy, Trade and Industry (METI), and a prior analysis of eligible regions is strongly recommended before initiating the application.

5. Evaluation Criteria

The central element of the evaluation process is the business plan.

The business plan must demonstrate:

• Internal consistency

• Practical feasibility

• A reasonable projection of sustainability

Authorities do not require absolute certainty of success, but they do require a sufficient level of economic rationality and preparation.

Additional factors typically evaluated include:

• The applicant’s prior experience

• Knowledge of the industry

• Suitability of the business model for the Japanese market

• Potential contribution to local economic development

6. General Application Procedure

Although procedural details may vary by region, the general process typically follows these steps:

1. Preliminary consultation with the implementing entity in the region where the business will be established

2. Preparation and submission of the business plan and supporting documents

3. Substantive evaluation of the project by the entity

4. Issuance of a confirmation certificate

5. Application for a Certificate of Eligibility (COE) with the Immigration Services Agency of Japan

6. Issuance of the Certificate of Eligibility

7. Obtaining the visa at the relevant Japanese embassy or consulate

8. Entry into Japan and commencement of preparatory activities

7. Practical Advantages of the Startup Visa

Unlike applying directly for the Business Manager visa, the entrepreneur is not required to assume all costs and obligations of a fully operational company from the beginning.

During the preparatory period, the applicant may:

• Validate the business concept

• Build local networks

• Negotiate with partners and suppliers

• Become familiar with Japanese commercial practices

Furthermore, residing legally in Japan facilitates:

• Opening bank accounts

• Signing contracts

• Completing procedures requiring in-person identity verification

8. Limitations and Strategic Considerations

Despite its benefits, the Startup Visa is temporary.

If the applicant fails to transition to the Business Manager visa by the end of the authorized period, continued residence in Japan will not be possible.

For this reason, it is essential from an early stage to design the project with a clear transition strategy. The business plan must align not only with the initial Startup Visa evaluation but also with the stricter requirements of the Business Manager visa.

Special attention must also be paid to the timing of company incorporation. Generally, if a company has already been established prior to applying for the Startup Visa, the program may not be applicable.

9. Importance of Professional Legal Advice

Due to the complexity of the system, proper legal planning is essential.

The Startup Visa is not merely a visa category; it is a strategic tool that must be integrated into a comprehensive plan for establishing a business in Japan.

A well-structured preliminary assessment can make the difference between a successful transition to the Business Manager visa and the inability to continue the entrepreneurial project in Japan.