Japan is not just a great place to visit or live, but is an incredible place to do business. While it is perhaps best known for the 1980s boom, Japan’s economy remains strong, and its place as both a Western ally with excellent trade deals (including the Economic Partnership Agreement with the European Union) as well as a wealthy and discerning domestic consumer base mean that starting a business here can be extremely lucrative.
However, no matter how desirable it may be, it’s all for naught if you can’t get the right visa to get your business off the ground. So what is necessary for expats to be able to start business in Japan? What are the limits of Japan’s Startup Visa? In this article, using information from resources such as Startup Visa Japan, we’ll go through everything that is needed, and everything that is expected of anyone looking to start a new business in Japan.
The Japan Startup Visa: What is it?
The best place to start is by understanding what the Japanese Startup Visa is, and why it was launched. Created in 2022, the Startup Visa initially centered around a select few cities and regions that would allow people from overseas to start businesses, such as Tokyo, Osaka, and Aichi prefecture.
However, the success of the scheme, and the Japanese government’s observation that greater foreign investment into the country would be extremely beneficial meant that, as of January 2025, the visa has been extended nationwide, and the permitted period of stay was extended from one year to two.
The purpose of the visa is for businesspeople to carry out activities such as renting an office, employing people, and conducting research into potential local partners. In many ways, the Startup Visa is in preparation for the Business Manager Visa, which offers more long-term residence options, but was previously difficult to obtain for many people seeking to start a new business in Japan from scratch.
How to Obtain a Startup Visa
Well, even if the Startup Visa is easier to obtain than a Business Manager Visa, how do you go about securing one? The first thing that you’ll need to do is gather the necessary documentation. Although this is less onerous than the Business Manager Visa, you will still need to submit basics, like a passport, documentation showing your bank balance, and other typical material, such as proof of a university degree.
The big departure from other visas is that you will need to submit a New Business Implementation Plan. This is your chance to detail what kind of business you’re starting, expected costs, predicted revenue, who is involved in the business, and so on. This will then be checked by the local government. If they approve, then you can submit their approval certificate to immigration in order to get a certificate of eligibility, and so complete the visa application process.
After Getting Your Visa
Because this is a new type of visa, and Japan is keen to make sure that it is being used effectively, and in a manner that will mean the holder will one day transition to a Business Manager Visa, the local government will be making regular checks. Typically, you will be required to take part in an online interview once a month to demonstrate your progress and report on your achievements and goals.
Your visa will initially be one year, and it can be extended to two years if you are determined to be reaching your goals and it is not necessary to obtain a Business Manager Visa yet. However, at the end of these two years, you are expected to make this transition, which will be determined by two factors:
- You should be renting a dedicated physical office. Using co-working spaces or virtual offices is not sufficient
- You should be hiring at least two full time employees, or have ¥5 million in your business’ bank account.
Support and Help
You will be able to get support from local governments for a variety of issues once you arrive with your visa. However, to get the visa itself, there are businesses that can help with your documentation and give advice on interviews, such as Startup Visa Japan. Even if the process is simpler than it has been before, Japanese bureaucracy can still be challenging, so it’s always a good idea to seek out advice if you’re unsure.
In Summary
Japan is a nation filled with opportunity for anyone with the right idea for a startup venture. With the newly expanded startup visa, anywhere in Japan can be home for you and your new enterprise.
