In Japan, What Type of Work Visa is Required for Startup? Streamlined Entry

Entrepreneurship Requires Work Visa

For foreigners to start a startup in Japan, the fundamental requirement is obtaining a visa as part of the immigration process. Visas range from short-term stays used for tourism or studying to visas allowing work, including permanent residency or long-term residency. Starting a business in Japan is considered a form of work, thus requiring a visa permitting employment.

Regarding work visa categories related to investments in Japan, there are various types such as management, high-level expertise, intra-company transferees, and technical skills. However, obtaining a business manager visa is common for entrepreneurship.

Preliminary Office Setup Makes Obtaining a business manager Visa Challenging

The business manager visa includes individuals initiating business management in Japan or investing in and managing operations in the country.

To acquire the business manager visa, it’s necessary to establish a business premise before entering Japan, employ at least two full-time employees, or have capital investment exceeding 5 million yen. An important note is that all these prerequisites must be fulfilled before entering Japan.

Offices can range from typical office spaces to shared offices or virtual offices, but in any case, proof of identity in Japan, such as a residence card, and a local bank account are necessary. A residence card is issued to foreigners residing in Japan for more than three months and isn’t provided for short stays, making establishing an office a significant challenge for foreigners.

Additionally, opening a bank account poses similar challenges for non-resident foreigners. Even if the capital is available, meeting the other conditions isn’t easy, making it challenging for entrepreneurs to start a business with a business manager visa.

Post-Entry Preparation: Startup Visa

A newly introduced initiative to expand foreign direct investment is the Startup Visa. Unlike the business manager visa requiring pre-entry preparations like establishing an office or arranging capital investment, the Startup Visa allows entry into Japan without these prerequisites.

With the Startup Visa, there’s a six-month period after entry to prepare for entrepreneurship before transitioning to a business manager visa. This feature significantly reduces the previously high hurdles and risks associated with pre-entry preparations. The Startup Visa has increased the feasibility of starting a business in Japan and reduced the risk of business operations.

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To utilize the Startup Visa, initially, necessary documents need to be submitted to “Business Concierge Tokyo.” This facility, located within “JETRO,” serves as a contact point supporting foreign entrepreneurs and foreign-affiliated companies conducting businesses domestically and internationally.

In Conclusion

Starting a business in Japan requires a work visa. While a business manager visa allows work for entrepreneurship, it previously demanded establishing an office and preparing capital investments before entry, posing significant hurdles for foreigners. However, the Startup Visa has made starting a startup in Japan more accessible by allowing preparations for business establishment within six months after entry.