Japan Startup Visa: Build Your Business in Japan!

Dreaming of building a business in Japan? While Japan's immigration system can seem complex, there's great news: the Japan Startup Visa is specifically designed for global innovators like you. Unlike other work visas requiring immediate proof of an established company, this visa offers dedicated "prep time" to get your venture off the ground. Let's dive into everything you need to know, all in one place!

Why Japan is Your Next Big Move

Beyond its rich culture, Japan offers a truly compelling environment specifically for your venture. If you're considering setting up business in Japan, here's why it's a smart choice for entrepreneurs:

• Innovation Powerhouse: A global leader in robotics, AI, and electronics, with heavy R&D investment. Japan aims for 100 "unicorn" companies by 2027.
• Strategic Asia Gateway: Perfect launchpad for expanding into the rapidly growing Asian market.
• Skilled Talent Pool: Access to a highly educated and specialized workforce in engineering and science.

Target Sectors: Japan specifically welcomes startups in Information & Digital Tech, Life Sciences, Environment & Energy, Manufacturing, Tourism, and Finance. Aligning your idea here is a big plus for visa approval.

What is the Japan Startup Visa?

This visa is officially a "Designated Activities" status of residence (Program to Promote Startup Businesses by Foreign Nationals). Unlike other work visas, it offers you dedicated time to prepare your business before meeting the stricter requirements of a long-term "Business Manager" visa.

The Big News

Starting January 2025, the Japan Startup Visa got a massive upgrade, making it even more accessible and valuable:

• Nationwide Access: Previously limited to just a few designated cities, you can now apply from and set up your business in any municipality across Japan (this includes both city and prefectural governments that have been approved to offer this Startup Visa support program) like the Business Development Center TOKYO, Shibuya, Fukuoka, and Osaka.
• Up to TWO Years! You now have 2 full years (extended from the previous 6-month initial period) to:
  • Conduct in-depth market research on the ground.
  • Find and secure your actual, dedicated office space.
  • Officially register your company in Japan.
  • Build your initial team and hire employees, if needed.
  • Secure that crucial initial investment (the ¥5 million JPY capital or equivalent).

How to Start Your Business in Japan

The Startup Visa is designed for foreign individuals and companies with a genuine intent to establish a lasting business in Japan. It's not just about having an idea; it's about demonstrating a clear path to execution and long-term viability.

• Commitment to the Business Manager Visa: The Startup Visa is a stepping stone. You must genuinely intend to meet the full requirements of the Business Manager visa.
• Clean Record: A history free from immigration violations (like overstaying) or criminal records in Japan is essential.
• Relevant Experience: While not always a strict requirement, having relevant experience is highly beneficial. This could include at least 3 years of work experience directly related to your proposed business field, or at least 1 year of experience in business management or entrepreneurship abroad.
  • "Relevant" experience often refers to formal employment, prior startup founding, or specialized skills directly applicable to your proposed Japanese venture's core operations or management.

Your Detailed Business Plan

The core of your application is your meticulously crafted business plan. It's the persuasive document that must convince a local Japanese city or prefecture (your initial approver) that your idea is:

• Feasible: Can it actually work in Japan?
• Innovative: Does it bring something new, better, or address an unmet need?
• Beneficial to Japan: How will your business contribute to the Japanese economy? Think job creation, strengthening international competitiveness, introducing new technologies, or solving local issues. Municipalities often prioritize plans that align with their regional development goals.

Get Your Startup Visa: Step-by-Step

Starting your business in Japan with the Startup Visa involves a unique multi-stage process. It requires close collaboration with a local Japanese municipality.

Step 1: Get Your Business Plan Approved by a Local City/Prefecture

You'll need to connect with a Japanese municipality that has an approved startup support program.

• What you do:
  1. Craft a strong business plan: This is your most critical document.
  2. Gather Supporting Documents: Prepare your resume, a copy of your passport, solid proof that you can support yourself financially during your stay (typically means demonstrating funds to cover at least 6-12 months of living costs), and a clear plan for your initial residence in Japan.
     
     1. A realistic estimate for a single individual's living costs in major cities like Tokyo is around ¥150,000 - ¥250,000 JPY per month (approx. $1,000 - $1,700 USD, though exchange rates fluctuate), not including rent. For a family of 3 or 4, non-rent living costs could range from ¥300,000 - ¥500,000 JPY per month (approx. $2,000 - $3,400 USD, though exchange rates fluctuate), depending on lifestyle and children's ages.‍
  3. Submit to the Local Municipality: Applications are often submitted via email.

• What happens: The municipality will rigorously review your plan and documents. This stage usually includes an interview.
  • The interview format can be online or in-person. Expect questions not only about the specifics of your business plan (market, financials, strategy, contribution) but also your personal motivations, commitment to living in Japan, and your understanding of the Japanese market and business culture.
• Timeline: Typically takes 1 to 2 months, though it can sometimes extend to 2-3 months.
• Outcome: If approved, the local government will issue a special "Certificate of Confirmation of Startup Activity". This certificate is valid for 3 months.

Step 2: Apply for Your "Golden Ticket" (Certificate of Eligibility - COE)

The COE is a pre-approval from Japan's Immigration Services Agency. It's a vital document that shows you have met the initial requirements for entry and your proposed activities are legitimate, significantly streamlining the final visa application process.

• Who applies for it? A proxy, such as the supporting local municipality, or more commonly, an authorised immigration lawyer typically submits the application to the Immigration Services Agency within Japan.
• Documents needed: The COE application form, a copy of your passport, a recent photo, and the original "Certificate of Confirmation of Startup Activity". Additional documents related to your business plan and financial stability may also be required.
• Timeline: Typically takes 1 to 3 months.
• Validity: Once issued, it is valid for 3 months. You must apply for your visa and enter Japan within this period.

Step 3: Get the Actual Startup Visa!

• Where to apply: At the Japanese embassy or consulate in your home country (or country of residence).
• Documents needed: Your valid passport, the visa application form, a recent passport-sized photo, and your original COE.
  • Nationality-Specific Documents: Be aware that additional documents may be required based on your nationality. For example:
    • Chinese Nationals: May need to submit a copy of your Chinese Family Register and, if applicable, a Temporary Residence Permit/Certificate.
    • Nationals of Russia, CIS countries, or Georgia: Typically require two visa application forms and two passport-sized photographs instead of one.
• Timeline: With a COE, the visa issuance process is usually very quick, often around 5 business days! Without a COE, this process can take much longer.

Japan Visa Costs & Timelines

Let's talk about what this all costs and how long it really takes.

• Costs:
  • COE Application: Free!
  • Visa Issuance: Around ¥3,000 JPY for a single-entry visa (check your local embassy for exact fees and currency, as these can vary slightly).
  • Professional Help: If you choose to hire an immigration lawyer or consultant, their fees can range from ¥100,000 to ¥500,000+JPY, depending on the complexity of your case and the services provided.
  • Business Capital (for later): Aim for a minimum capital or investment of ¥5,000,000 JPY (approximately $32,000 USD, though exchange rates fluctuate).
• Overall Timeline:
  • From business plan approval to visa, expect 2 to 6+ months. It's wise to prepare for the longer end of this estimate and build in a buffer for unexpected delays, especially if you anticipate any language barriers or complex document requirements. Patience is key!

Your Long-Term Stay

The Startup Visa is your bridge, but the ultimate goal is to transition to the "Business Manager" visa, which is for actually running your company long-term. You must meet its requirements before your Startup Visa expires.

Consequences of Not Meeting Requirements

If, by the end of your two-year Startup Visa period (including any renewals), you haven't successfully met the requirements for the Business Manager visa and haven't secured a transition or another valid visa, you will generally be expected to leave Japan. There is no automatic grace period for this visa type if the conditions for progression are not met.

Flexibility in Evaluation:

Japan's immigration authorities are increasingly flexible in evaluating "stability" and "continuity" for startups. Even if your startup is operating at a loss in the early stages, you might still get your Startup Visa extended or your initial Business Manager visa approved if you can show clear progress. This includes evidence like:

• Successful fundraising efforts.
• Positive third-party evaluations of your business.
• Concrete proof of product development and growing customer base.They understand that innovative startups often prioritize rapid expansion over immediate profitability and have a different growth curve than traditional businesses.

Your Support in Japan

• Local Government Support Centers: Many cities have dedicated offices (like Shibuya Startup Support) that offer free consultations, help with refining your business plan, and even introduce you to suitable office spaces.
• JETRO (Japan External Trade Organization): This government organization is a powerhouse for foreign investors, providing extensive information, consultations, and networking opportunities.
• Private Professionals:
  • Immigration Lawyers: They specialize in immigration procedures and can handle all the complex paperwork, translations, and communication with immigration authorities, making your life much easier.
  • Bilingual Law and Accounting Firms: These firms provide comprehensive support for company registration, tax planning, accounting, and legal compliance in Japan. These bilingual services are crucial for bridging the language gap in official and business communications.
• Incubators & Accelerators: Many programs across Japan offer invaluable mentorship, connections to funding sources, and often provide shared office spaces or incubation facilities.

Historically, opening a bank account as a new foreign resident without a long-term visa has been notoriously difficult due to strict regulations. However, the Financial Services Agency is actively urging banks to relax residency requirements, which means it will be more likely to be able to open accounts immediately upon entering Japan.

Ready to Take the Leap?

The Japan Startup Visa is more accessible and supportive than ever. If you have an innovative business idea and a passion for Japan, this visa provides a clear, structured path to making your entrepreneurial dreams a reality. Do your research, prepare thoroughly, and don't hesitate to tap into the amazing support network available. Japan is waiting for your big idea!

At Omnilinks, we provide comprehensive consulting services to startups/entrepreneurs aiming to establish their presence in Japan. From initial market entry strategies and crafting business plans to navigating complex legal and immigration processes like the Startup Visa, we offer end-to-end support.

Ready to start your business in Japan?

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