Japan offers foreign entrepreneurs a two-stage pathway to build businesses in one of the world’s largest economies. The Startup Visa (Designated Activities status) provides up to two years to prepare your business before transitioning to the Business Manager Visa for long-term operations. Following major reforms in October 2025, Japan significantly raised the bar for the Business Manager Visa while simultaneously expanding the Startup Visa program nationwide—creating a clearer but more demanding pathway for serious entrepreneurs.
The January 2025 nationwide expansion of the Startup Visa program eliminated previous regional restrictions, allowing foreign entrepreneurs to establish businesses anywhere in Japan with up to two years of preparation time. However, the October 2025 Business Manager Visa reforms introduced substantially stricter requirements, including a sixfold increase in capital requirements from ¥5 million to ¥30 million (~$200,000 USD), mandatory local employee hiring, and new qualifications for management experience and Japanese language proficiency.
Japan’s startup ecosystem has grown significantly under the government’s “Startup Development Five-Year Plan,” which aims to create 100,000 startups and 100 unicorns by 2027, backed by a target of ¥10 trillion ($72.4 billion) in startup investment. Tokyo entered the global top 10 startup ecosystems in 2024, with venture capital funding exceeding ¥950 billion (~$6.2 billion) that year. The country’s strengths in deep tech, robotics, AI, biotechnology, and manufacturing create unique opportunities for entrepreneurs in these sectors.
Up to 2 years under the Startup Visa to build your business foundation before transitioning to a Business Manager Visa.
Time spent on a Startup Visa counts toward the 3-year management experience requirement for the Business Manager Visa.
Business Manager Visa validity ranges from 3 months to 5 years and is renewable indefinitely.
Spouse and children can obtain dependent status; spouses are permitted to work.
Clear eligibility for permanent residence and, subsequently, Japanese citizenship.
Eligible entrepreneurs receive accelerated permanent residence (1–3 years), immediate 5-year visa issuance, permission for spouses to work in professional roles, parent sponsorship under specific conditions, and priority application processing.
Allows founders to focus resources on business development rather than meeting initial capital thresholds.
Access to government-backed mentoring, networking opportunities, subsidized office space, and expert consultations.
Japanese banks have relaxed residency requirements for Startup Visa holders, improving access to financial services.
As of January 2025, businesses can be established anywhere in Japan.
Direct entry into the world’s fourth-largest economy with a stable, business-friendly environment.
Operate and manage your company without employment restrictions under the Business Manager Visa.
Research and select a participating Foreign Entrepreneurship Promotion Organization such as Tokyo (Invest Tokyo), Fukuoka, Shibuya, Osaka, Kyoto, Yokohama, Hokkaido, Aichi, or other regions included in the nationwide expansion (January 2025). Consider sector focus, startup support services, and the local startup ecosystem when choosing your location.
Prepare all required documents, including a valid passport, CV outlining relevant experience, a New Business Implementation Plan (business plan), market analysis and financial projections, proof of personal funds for living expenses, educational certificates (if applicable), and a portfolio of prior business ventures or achievements.
Submit your application to the selected municipality’s startup support office, attend consultations or interviews, and present your business concept. If approved, the municipality issues a Confirmation Letter or Certificate, typically valid for 3 months, confirming your eligibility to proceed with immigration formalities.
Submit your municipal Confirmation Certificate to the Immigration Services Agency and apply for a Certificate of Eligibility (if applying from abroad) or a Change of Status (if already in Japan).
If approved, you receive Designated Activities status for 6 months or 1 year, which can be renewed up to a maximum of 2 years in total under the Startup Visa framework.
During this period, establish your company in Japan, secure physical office space, build capital toward ¥30 million through investment or operations, hire at least one qualifying full-time employee, develop management experience, and ensure sufficient Japanese language capability (either personally or through staff).
Prepare a compliant business plan certified by a CPA, Tax Accountant, or SME Consultant. Ensure all Business Manager requirements are met, including company registration, office lease, capital evidence, employment contracts, tax and social insurance records, and language capability proof if applicable.
Apply for a Change of Status to the Business Manager Visa with the Immigration Bureau, submitting all supporting documentation demonstrating compliance with the visa criteria.
Processing typically takes 1–3 months. Once approved, you receive the Business Manager Visa, allowing you to continue operating and growing your business in Japan on a long-term basis.
CategoryEstimateRent (1 room)¥40,000-80,000Other expensesSimilar to TokyoTotal¥140,000-200,000
CategoryEstimateRent (2-3 bedroom)¥150,000-350,000Total monthly costs¥400,000-600,000+ covert in para
When securing accommodation, tenants should be prepared for significant upfront costs. These typically include a security deposit equal to one to two months’ rent, key money ranging from zero to two months’ rent (non-refundable), an agency fee of one month’s rent, and a guarantor fee of approximately half to one month’s rent. In total, initial housing expenses can amount to four to six months’ rent. To reduce these costs, foreigner-friendly options are available, such as UR Housing, which does not require key money or agency fees, international-focused agencies like GaijinPot and Real Estate Japan, as well as serviced apartments and guesthouses, which offer lower upfront costs but may have higher monthly rents or shared living arrangements.
Japan offers an exceptionally high quality of life, characterized by outstanding public safety, world-class public transportation, high-quality healthcare, clean and well-maintained cities, reliable infrastructure, and a rich cultural and culinary scene. However, newcomers may face certain challenges, including language barriers in daily interactions, smaller living spaces, demanding work culture expectations, banking limitations for foreigners, and complex administrative procedures.
Yes, though the process is easier for those already in Japan. You’ll need to contact your chosen municipality directly, often via email, and may need to work through a proxy for some procedures.
No. The Startup Visa has no capital requirement. The ¥30 million requirement applies only when transitioning to the Business Manager Visa.
The Startup Visa is specifically for preparing your business. You cannot engage in other employment, but you can conduct activities necessary for your startup.
You would need to leave Japan or transition to a different visa status if eligible. Careful planning during the Startup Visa period is essential.
Yes, spouses can obtain dependent status with the right to engage in part-time work (up to 28 hours/week) or can apply for their own work visa if qualified.
No. Japan requires renunciation of all other citizenships upon naturalization. This is a significant consideration for many foreign entrepreneurs.
Yes. Time spent on the Startup Visa counts toward the 3-year management experience requirement for the Business Manager Visa.
For the Startup Visa, English may be sufficient in some municipalities. For Business Manager, N2 level is typically required for either you or a full-time employee. For citizenship, approximately N4-N3 level (elementary school 3rd grade).
Businesses that violate laws or public morals are excluded. Additionally, businesses should align with Japan’s innovation priorities, though there are no strict sector restrictions.
There is no annual cap, so the process is not competitive in that sense. However, applications are evaluated rigorously, and you must demonstrate genuine business viability and your ability to meet Business Manager requirements.
Japan’s Startup Visa program offers a unique pathway for innovative entrepreneurs to establish and grow their businesses in one of the world’s most advanced economies. With the right business concept, thorough preparation, and expert guidance, you can take advantage of Japan’s supportive startup ecosystem and position your venture for long-term success.
