There are three types of startup visas for foreign nationals desiring to start a business in Japan. One of these is a system in which regional municipalities that intend to undertake “Projects for Encouraging Foreign Entrepreneurs to Start Businesses” are approved by the Ministry of Economy, Trade and Economy.
Approved regional municipalities will manage and support the preparatory activities for foreign nationals to start their businesses.
Currently, the following regional municipalities have been approved:
Fukuoka City, Aichi Prefecture, Gifu Prefecture, Kobe City, Osaka City, Mie Prefecture, Hokkaido, Sendai City, Yokohama City, Ibaraki Prefecture, Oita Prefecture, Kyoto Prefecture, Shibuya Ward (in Tokyo), Hamamatsu City, and Kaga City.
Please check with your local government for more details.
Features of the Startup Visas for Projects for Encouraging Foreign Entrepreneurs to Start Businesses
Grant of residence status for up to 1 year
Normally, for a foreign national who wishes to start a business in Japan to be approved for a “Business Manager” visa, when applying for the visa at the Immigration Bureau, the applicant would need to have at least 2 full-time employees or have at least 5 million yen in capital or total investments when applying for the visa at the Immigration Bureau. In addition, the applicant is also required to have a physical place of business.
Under the Project for Encouraging Foreign Entrepreneurs to Start Businesses, foreign nationals who may not meet the requirements for a residence status under a Business Manager visa as described in the preceding paragraph, may submit a business plan and other documents to the municipal authorities which determine whether the requirements are likely to be met, and if so certified by the municipal authorities with a Certificate of Confirmation of Business Startup Activities, the Immigration Bureau will examine the visa application and grant a 6-month status of residence for “Designated Activities”. This residence status for Designated Activities may be renewed one for a total of one year of residence. Foreign entrepreneurs only need to satisfy the requirements for a Business Manager visa during their period of stay.
Relaxation of Requirements for Offices
For foreign entrepreneurs with a Business Manager visa from a National Strategic Special Zone, the office requirements will be relaxed such that co-working spaces and shared offices will be treated as meeting the office requirements from the first renewal until the expiration of the next visa (up to one year).
However, under the Project for Encouraging Foreign Entrepreneurs to Start Businesses, there is no such relaxation for office requirements. Therefore, when changing the status residence to that of Business Manager, it is necessary to have a physically, separate office.
Change status of residence
Normally, when foreigners already residing in Japan apply for a startup visa, the startup visa of the National Strategic Special Zone can only be granted to international students who change to business management status. In contrast, the Project for Encouraging Foreign Entrepreneurs to Start Businesses Promotion Program does not have such restrictions, and foreigners residing in Japan can change their status of residence without having to return to their home country once they are in Japan.
Eligible projects are unique to each community
Not every business can be certified for a start-up visa under the Project for Encouraging Foreign Entrepreneurs to Start Businesses. Rather, each municipality decides for itself which businesses can be certified. Please check with each municipality for more details.
Applying for a Startup Visa
To obtain a visa for Designated Activities using this system, it is necessary to prepare and submit a preliminary business activity plan and the like for the business you intend to conduct to each local government (new application), and receive approval of your preparatory activities.
Approval of the preliminary business activity plan for starting a business means that each local government will determine whether the contents of the preliminary plan for which a new application has been submitted, are likely to meet the requirements for a Business Manager visa within one year after landing or changing the status of residence.
Foreign entrepreneurs who have received approval of their preliminary business activity plan for starting a business will be issued a "Certificate of Confirmation of Preparatory Activities for Starting a Business". After that, they will apply for status of residence at the Immigration Bureau and conduct entrepreneurial activities after being approved for Designated Activities.