2. Japan's Startup VISA

KOBE
Jan 08

2. Japan's Startup VISA

Japan Business Startup Series

Until recently, the first step in entering the Japanese market as a foreign entrepreneur was to obtain a Business Manager VISA. To obtain this category of VISA, foreign nationals had to meet these three requirements:

 

1.    Own an office space for running a business (other than your home).

2.    Have a minimum of 5 million JPY (¥5,000,000) as capital or two full-time employees living in Japan. 

3.    Have a sustainable business plan, written in Japanese. 

 

Fortunately, Japan has come a long way over the past decade in streamlining this process, and the Startup VISA program is a prime example. The Startup VISA is intended to help foreign entrepreneurs stay in Japan for up to a year in preparation for obtaining a Business Manager VISA.


The Startup VISA is currently administered by 10 municipal governments certified by the Ministry of Economy, Trade and Industry. You are required to get approval from one of these municipal governments before you are eligible to apply for the Startup VISA.  You will be issued a certificate by the municipal government upon approval, and you are required to submit this certificate as well as other necessary documents for Startup VISA application to the Immigration Bureau of Japan.

 

Contents

 

1.    What is a Startup VISA?

2.    Application Procedure for a Startup VISA

3.    The Startup VISA in Kobe City

 

1. What is a Startup VISA?

 

 

A Startup VISA is a temporary conditional residence permit for entrepreneurs who want to build a company in Japan. This VISA is intended to help foreign entrepreneurs meet the requirements necessary to obtain a Business Manager VISA.

 

Eligibility

Foreigners to whom one of the following conditions apply are eligible.

 

1.    Graduated from a university or have the same level of qualification.

2.    Completed a post-secondary course of specialized training college in Japan.

3.    Have more than three years of experience in the field you want to start the business.

4.    Have more than one year of experience in management or administration in the field you want to start the business.

5.    Expected to achieve (a) and any of the other conditions mentioned below within six months of entering Japan or after obtaining the Startup VISA.

a.    An office space for running the business in Japan

b.    More than 5 million JPY (¥5,000,000) capital

c.     Two full-time workers living in Japan

d.    Conditions equivalent to (b) or (c)

 

People who live in Japan with other residential status are also allowed to apply for a change to Startup VISA status.

 

VISA Status 

“Startup VISA” is a commonly used term for the the official residency status of Designated Activities VISA (foreign entrepreneur). “Foreign entrepreneur” is one of 52 categories available for the Designated Activities VISA.

 

Certified Municipal Governments

At present, ten municipal governments in Japan are certified as administrators of the Startup VISA. 

1.    Aichi Prefecture

2.    Fukuoka City

3.    Gifu Prefecture

4.    Hokkaido Prefecture

5.    Ibaraki Prefecture

6.    Kobe City

7.    Kyoto Prefecture

8.    Mie Prefecture

9.    Oita Prefecture

10. Osaka City

 

Period of Stay

The period of stay for residents who possesses a Startup VISA in Japan is up to a year (initial 6 months + 6 months after extension). You are required to submit an updated business plan to your municipal government after the first 6 months to get permission to extend your stay for another 6 months. 

 

2. Application Procedure for a Startup Visa


 

a. Prepare the following documents and submit them to your local municipal government.

·      Entrepreneurship preparation activity confirmation application (起業準備活動計画確認申請書).

·      Business startup preparation plan (起業準備活動計画書). This plan should include the industry of business, the content of business, business location, the schedule until the start of the business, funds necessary, and fundraising plans.

·      A progress schedule of new business (工程表).

·      A document that proves your residential address in Japan during the one-year span of your Startup VISA.

·      A document that proves the availability of the finances required for your one-year stay. 

·      Your resume. 

·      Other documents designated by your Municipal government.

 

b. Get approval from the Municipal government. 

After submitting all the documents above, if the municipal government approves your application, you will be issued a “Certificate for Entrepreneurial Preparation Activity Confirmation.” Only those whose assessments show a prospect of achieving all requirements needed to obtain a Business Manager VISA within a year are approved. 

 

c. Apply for a Designated Activities VISA (Activity: Foreign Entrepreneur). 

Apply to the Immigration Bureau with the certification provided by the municipal government to attain the residential status of Designated Activities. 

 

d. Initial six months of preparation.

During this period, you are expected to meet the eligibility requirements in line 5 while getting support from the Municipal government.

 

Eligibility, line 5

Achieve (a) and any of the other conditions mentioned below within six months of entering Japan or after obtaining the Startup VISA.

a.    An office space for running the business in Japan

b.    More than 5 million JPY (¥5,000,000) capital

c.     Two full-time workers living in Japan

d.    Conditions equivalent to (b) or (c)

 

You are also expected to report the progress of your new business to the municipal government at least once a month within this period.

 

e. Extend your VISA.

You need to get approval from the municipal government to extend your VISA for another six months. You should submit the following documents to your municipal government for the extension.

·      Entrepreneurship preparation activity confirmation application (起業準備活動計画確認申請書).

·      A progress schedule of new business (工程表).

·      A document that proves the address at which the six-months business activities will take place.

·      A document that proves the availability of the finances required for the six months stay.

·      Other documents designated by each Municipal government.

 

f. Another six months of business activities with support.

Within this period, you need to meet all the requirements necessary to obtain a Business Manager VISA and switch your VISA status before your Designated Activities VISA expires. 

 

3. The Startup VISA in Kobe City


 

To begin your Startup VISA procedure with the City of Kobe, please follow the eligibility and application guidelines below. If you seek approval from a different municipal government, please confirm their specific application requirements, which may differ from City of Kobe requirements.

 

Applicable Industries

You can apply for the Startup VISA in the following industries:

 

1.    Businesses that have introduced and used new technologies in the IT, health, medical/welfare, environmental, and logistics fields.

2.    Businesses that produce high added value and innovation in existing products and services regardless of industrial field.

3.    Other projects deemed necessary by the mayor of Kobe.

 

Businesses need at least a prototype or beta version to be eligible for the Startup VISA.

 

Necessary Documents for the Application

·      Entrepreneurship preparation activity confirmation application (Form 1)

·      Business startup preparation plan (Form 1-2)

·      Applicant resume (in English format)

·      A copy of the applicant's passport

·      Documents that clarify the residence of the applicant for one year after this application (a copy of the lease agreement, a copy of the lease application, etc.)

·      Documents that clarify the applicant's stay expenses for one year after this application (a copy of the applicant’s bankbook, etc.)

·      Applicant's certificate of enrollment, certificate of employment, etc. (documents certifying the contents of “Education etc.” in the Entrepreneurship Preparation Activity Plan (Form 1-2)


You may be asked to submit other documents.

 

Submit these documents to the Kobe City Office. Once you are granted a Certificate of Confirmation of Business Startup Activity, apply for your Startup VISA by submitting the same documents AND your Certificate to the local Immigration Office within three months. Kobe City will also support you through the Startup VISA application process.

 

*The necessary steps in (e) and (f) will be explained in future articles in this series.

 

Application and Consultation Desk

Kobe City Hall

New Industry Division of New Industry Department, Medical and New Industry Headquarters

23F, 6-5-1, Kano-Cho, Chuo-Ku, Kobe-City, Hyogo-Prefecture, Japan. 

Tel: +81 78-322-0241

Email: new_industry@office.city.kobe.lg.jp

 

After Obtaining a Kobe City Startup VISA

 

Progress status confirmation 

An interview will be held by Kobe City Office at least once a month to confirm the progress of your business plan. You will be asked to submit necessary documents such as a copy of your lease agreement or a copy of your bank book.

 

Assistance from Kobe City

Kobe City provides various support for foreign entrepreneurs:

·      500 Kobe Accelerator: the world’s top-level entrepreneur development program.

·      Expert consultation opportunities for entrepreneurs

·      Housing information

·      Business subsidies

 

Information

 

Stay tuned for further articles in “How to Start a Business in Japan,” our series on foreign entrepreneurship!

 

Previous Articles:

·      How to Start a Business in Japan: An Overview

 

Coming Soon:

·      Preparing to Live in Japan

·      Business Manager VISA Details

·      Incorporating in Japan

·      Banking in Japan

·      And more!

Newsletter Sign Up
Chen Xin

About Chen Xin

Chen Xin is a writer for Sugee Kansai, eftax Co., Ltd. We thank her for contributing to our series "How to Start a Business in Japan."