Can You Use the Startup Visa to Launch a Business in Japan?

In this article, we explain in detail whether foreign nationals can utilize the Startup Visa when starting a business in Japan, covering the nationwide rollout of the system, differences from the conventional system, the application flow, and a comparison with the Business Manager Visa.

Nationwide Rollout of the Startup Visa

From January 2025, the Startup Visa system has been rolled out nationwide.
This Startup Visa is a system established to promote entrepreneurial activities by foreign nationals in Japan.

We would like to explain how this nationwide expansion of the Startup Visa will be utilized and what the Startup Visa system is in the first place.

"Wouldn't it be better to apply directly for a Business Manager Visa?"

Differences Between the Old and New Systems

About the Old System

First, regarding the system up until now, the Startup Visa was essentially established as a preparation step for ultimately acquiring a "Business Manager Visa".
The flow is to eventually acquire a Business Manager Visa.

To acquire a Business Manager Visa, requirements such as a capital investment of 30 million yen or more, or the employment of one or more full-time staff members (limited to Japanese nationals, permanent residents, etc.), and the securing of a business office must be met. Unless these are met and applied for, permission would not be granted.

However, it was said that preparing 30 million yen in capital—a requirement for the Business Manager Visa—or securing a business office in Japan before entering the country was a high hurdle.

Therefore, to promote entrepreneurial activities by foreigners in Japan, the government established a system to grant a grace period for meeting requirements such as capital of 30 million yen or more, one or more full-time staff members, and the securing of a business office.

This grace period system consisted of two programs under the old system: the "Program to Promote Startup Activities by Foreign Nationals in National Strategic Special Zones" and the "Program to Promote Startup Activities by Foreign Nationals".

Under these two systems, requirements were waived for a maximum of 1 year and 6 months through the combined use of the systems, etc.

Foreign entrepreneurs utilized this maximum grace period of 1 year and 6 months to meet the requirements of 30 million yen in capital, one or more full-time staff members, and the securing of a business office, and then proceeded to apply for the Business Manager Visa.

This means the 1 year and 6 months grace period was used as a preparation period to meet the requirements for the Business Manager Visa.

Changes in the New System

So, what has changed in the new system?

First, until now, it was limited to certain areas such as National Strategic Special Zones, but it has now been expanded nationwide.

Another point is that the grace period for meeting the two requirements of securing a business office and business scale has been extended from the conventional maximum of 1 year and 6 months to a maximum of 2 years. This is the new "Startup Visa".

To summarize, the first point is that it has been expanded nationwide from limited regions, and the second point is that the grace period has been extended from 1 year and 6 months to a maximum of 2 years. These are the two major changes.

Overall Flow of the System

Now, let's confirm the overall flow of the system.

First, local governments or private business operators must apply to the national government for a plan for this system and receive certification.
If the Ministry of Economy, Trade and Industry (METI) does not grant certification, this system cannot be utilized.

For example, if you want to use this Startup Visa in Saitama City, Saitama Prefecture, you cannot use this system if Saitama City has not received certification from METI.

Regarding private business operators, since the system has just started, no certified operators have been announced yet, but it is considered that local governments will basically play a central role in this system.

Therefore, even though it is a nationwide rollout, it does not mean it can be used everywhere.

If the municipality or prefecture where you plan to start a business has not received certification from the national government, you cannot utilize the Startup Visa.

The Ministry of Economy, Trade and Industry's website lists the local governments that have currently received certification, so please check there first.

For example, if Saitama City, Saitama Prefecture has received certification from the national government, a foreign entrepreneur will submit a business plan, etc., to Saitama City when starting a business there.

The local government will examine from the business plan whether the business will be conducted stably and continuously in Japan.

If approved, a document called a "Certificate of Confirmation" will be issued.

Once the "Certificate of Confirmation" is issued by the local government, the foreign entrepreneur takes that certificate and applies to the Immigration Services Agency (Immigration Bureau).

An examination will also be conducted at the Immigration Bureau, and if approved, a "Designated Activities" status, that is, a "Startup Visa," will be granted.

Receiving a Certificate of Confirmation from a local government and then applying to the Immigration Bureau—this is the procedure for the Startup Visa.

Future Potential and Personal View

So, what will be the future utilization of this Startup Visa?

The conclusion is that it is highly likely not to spread very much. This is because it is not user-friendly and takes time and effort.

The reason is that if you apply directly for a Business Manager Visa, you only need an examination by the Immigration Bureau.
On the other hand, if you use the Startup Visa, you need to undergo an examination by a local government or private business operator, and then further undergo an examination by the Immigration Bureau.
In other words, two stages of examination are required, which is time-consuming.

The merit of using the Startup Visa is that requirements such as "capital of 30 million yen or more," "one or more full-time staff members," and "securing a business office" are waived for the first two years, but eventually, you must meet those requirements by the time you apply for the Business Manager Visa.

Rather than saying "I'll take the Startup Visa first because it takes time to meet the requirements," it is smoother to apply for the Business Manager Visa once the requirements are met.

Here, practitioners and those familiar with the Business Manager Visa may have a question: "Isn't there a problem where a company cannot be established without a collaborator in Japan?"

Certainly, there is a problem where a personal bank account cannot be opened because the person does not have an address in Japan, so there is no payee for the capital. Therefore, the company cannot be established, and as a result, the Business Manager Visa cannot be acquired.

This can be cleared by utilizing the 4-month Business Manager Visa.

Both the Startup Visa and the 4-month Business Manager Visa are the same in the sense that they are preparation periods for ultimately acquiring a 1-year Business Manager Visa.

If asked which is superior as a preparation visa, the Startup Visa or the 4-month Business Manager Visa, it is thought to be the 4-month Business Manager Visa.

The reason is that the 4-month Business Manager Visa only requires an application to the Immigration Bureau. On the other hand, the Startup Visa requires two examinations: one by the local government and one by the Immigration Bureau.

If there is a merit to utilizing the system, it would be that "securing a business office" is waived, so wasteful rent does not occur during the examination.

For example, if you live overseas, establish a company in Japan, and acquire a Business Manager Visa, the examination by the Immigration Bureau currently takes about half a year.

If you do not use the 4-month visa when applying for the Business Manager Visa, you need to complete the office contract in advance.

Therefore, even if you live overseas, you must contract an office first, and you will continue to pay rent for an office you are not using during the examination period.

In terms of being able to avoid such wasteful rent, it can be said that the Startup Visa has a certain practical benefit.

However, that benefit is limited, and considering the total picture, I believe the merit of using the Startup Visa is not very large at this time.

However, since it is assumed that special provisions or operational policies may change in the future, depending on the content, it is quite possible that foreign entrepreneurs will come to Japan utilizing the Startup Visa.

Summary *Latest Information: Enforced on October 16, 2025

From October 16, 2025, the requirements for the Business Manager Visa have been revised and enforced.

The previous requirement of "capital of 5 million yen or more" has been raised six-fold to "30 million yen or more" at once. Also, the requirement for full-time staff has been changed from "2 or more" to "1 or more," but the eligibility has been strictly limited to Japanese nationals, permanent residents, etc.

With the capital requirement becoming 30 million yen in this way, the hurdle for acquiring a Business Manager Visa has become dramatically high. It is extremely difficult to prepare 30 million yen right from the start.

On the other hand, with the Startup Visa, the fulfillment of these requirements (30 million yen or 1 full-time staff member) is waived for a maximum of 2 years.

Therefore, first starting a business using the Startup Visa, building a track record in Japan, and then establishing a structure for "30 million yen" or "full-time staff" within two years to switch to a "Business Manager Visa" — taking such steps will likely become a more realistic and important option in the future.

It is thought that the value of the Startup Visa, which offers a grace period, will increase relatively precisely because the hurdles have been raised.