Last Updated: April 27, 2026
Reading Time: About 20 min
Category: Visa & Legal
Introduction
“I want to launch a business in Japan, but my current visa doesn’t allow me to run one.” That’s the wall many of us hit when we start thinking about entrepreneurship while living in Japan on an Engineer/Specialist in Humanities/International Services (Gijinkoku), Dependent (Kazoku Taizai), or Student visa.
The bridge over that wall is the Startup Visa (officially the Foreign Entrepreneur Activity Promotion Program). It’s a “Designated Activities” (Tokutei Katsudo) status of residence that gives you up to two years to prepare the foundations the Business Manager Visa requires. The system was unified nationwide in January 2025, and the October 2025 Business Manager Visa reform raised the bar at the transition stage. This guide walks international residents through switching from Engineer, Student, or Dependent status into the Startup Visa, and on to the Business Manager Visa.
TL;DR
- January 2025: the system was unified under the Ministry of Economy, Trade and Industry (METI). Maximum stay extended to two years
- International residents already in Japan can apply via the Status of Residence Change Application from Engineer, Student, Dependent, etc.
- The Business Manager Visa’s new requirements (¥30M capital, one full-time employee, JLPT N2) are the de-facto end goal
- Two-stage review: confirmation letter from a recognized organization → Immigration Services Agency. Total 3–6 months
- Per JETRO, 716+ applicants received the visa by May 2024, and 359+ successfully transitioned to the Business Manager Visa
Disclaimer: This article is based on information published as of April 2026 by METI, the Immigration Services Agency of Japan, and various local governments. It is for informational purposes only and does not constitute legal advice. For your specific application, consult the relevant local government desk or a licensed immigration specialist (gyoseishoshi).
What Is the Startup Visa? A Preparation Period for the Business Manager Visa
Running a business in Japan as a non-Japanese national normally requires the Business Manager Visa. But that visa sits at the “goal line”: you can only apply once you’ve already incorporated, secured capital, leased a dedicated office, and hired employees. For those of us still in the preparation phase, the gap between requirements and reality is huge.
The Startup Visa is built to bridge that gap. A municipality or private VC/accelerator authorized by METI reviews your business plan and issues a confirmation letter, which qualifies you for a “Designated Activities” status of residence valid for up to two years (Reference: METI, “Foreign Entrepreneur Activity Promotion Program”).
The Startup Visa isn’t a “visa to run a company” — it’s a “visa to prepare to run a company.” The end goal of the program is to meet the Business Manager Visa requirements during the period and switch over.
Three Benefits for International Residents Already in Japan
- Switch from your current visa: from Student, Engineer (Gijinkoku), Dependent (Kazoku Taizai), or Spouse status, you can apply via Status of Residence Change.
- Up to two-year grace period on the “office space” and “capital” hurdles of the Business Manager Visa
- Hands-on support from your municipality or private VC: coworking access, mentors, subsidy matching, depending on the recognized organization
For background on the broader Designated Activities framework, see our Designated Activities Job Hunting Visa Guide.
2025 System Changes You Need to Know Before Applying
Two major shifts hit in 2025. They’re the foundation for deciding when and how to move.
Change 1: Nationwide Unification in January 2025
Before 2025, two parallel programs existed.
| Old program | Status of residence | Period | Coverage |
|---|---|---|---|
| National Strategic Special Zone scheme | Business Manager (special exception) | 6 months | 13 municipalities including Tokyo, Kanagawa, Kyoto |
| METI scheme | Designated Activities No. 44 | Up to 1 year | 18 municipalities including Fukuoka, Osaka, Aichi |
These were merged into a single METI-administered program starting January 2025. Three things changed:
- Any municipality or private operator authorized by METI can run the program anywhere in Japan
- The maximum stay was extended to two years (doubled from the old one-year maximum)
- The status of residence is now uniformly Designated Activities No. 44
Confirmation letters under the old “Special Zone scheme” stopped being issued in December 2025. Cities like Tokyo and Kyoto that previously ran on that scheme have since obtained fresh METI authorization and migrated to the new program (References: METI Notice effective January 1, 2025; Cabinet Office, “Nationwide Rollout of the Special Zone Startup Visa”). For new applicants, only the METI program matters now.
Change 2: October 2025 Business Manager Visa Reform Raised the Bar
The October 2025 reform added five new requirements to the Business Manager Visa.
- Capital of ¥30 million or more (or an equivalent invested amount)
- At least one full-time employee (must be Japanese, or hold a status with no work restriction such as Permanent Resident or Spouse)
- JLPT N2-equivalent Japanese ability (either the applicant or the full-time employee qualifies)
- 3+ years of management experience, or a master’s degree or higher
- Expert review of the business plan (Small and Medium Enterprise (SME) consultant, certified public accountant, or licensed tax accountant)
For the full Business Manager Visa picture, see our Business Manager Visa Guide.
What This Means If You’re Applying Now
The “extended to two years” upside comes with a heavier homework list. Drift through the period and you’ll hit the wall on capital or Japanese ability when you try to switch.
Before the reform, “incorporate the company and you can switch.” After the reform, you need ¥30M capital, a full-time employee, and JLPT N2 all simultaneously. Funding plans and hiring plans are clearly more loaded than they used to be.
How to Choose Your Application Window: Industry, Cost of Living, Language Support
The Startup Visa isn’t a direct deal between you and METI. You apply to a municipality or private operator authorized by METI to act as an application desk, and we’ll call these collectively “recognized organizations” throughout this guide.
National coverage doesn’t mean “any desk gives the same result.” Recognized organizations differ in industries they specialize in, support they offer, and Japanese language expectations. Pick along three axes.
Major Recognized Organizations (As of April 2026)
The table below lists the main authorized organizations. For the latest list, check METI’s Foreign Entrepreneur Activity Promotion Program page.
| Region | Recognized organizations (examples) | Industry strengths |
|---|---|---|
| Hokkaido & Tohoku | Hokkaido, Sendai City | IT, tourism, agriculture & fisheries |
| Kanto | Ibaraki, Yokohama, Shibuya Ward, Niigata, Tokyo | Tech, global expansion |
| Chubu & Tokai | Hamamatsu, Aichi, Gifu, Mie | Manufacturing, monozukuri |
| Kinki | Kyoto, Osaka, Hyogo, Kobe | Biotech, healthcare |
| Kyushu | Fukuoka, Oita | Global startups, IT |
| Private (VCs & accelerators) | METI-authorized investment firms and startup support companies | Sectors aligned with each firm’s investment thesis |
There are two main routes:
- Municipal route: submit your business plan to a prefecture, city, or ward desk
- Private route: submit to a METI-authorized venture capital (VC) firm or accelerator (a startup support company)
Since October 2023, private firms can also issue confirmation letters, so you can choose whichever route suits your business plan (Reference: JETRO, “Japan’s Startup Visa: Where Does It Stand After 9 Years,” 2024).
Axis 1: Does Your Industry Match the Organization’s Focus?
Each recognized organization has a “we want to back this kind of startup” character. Common alignments:
- IT and tech → Shibuya Ward, Fukuoka, Kyoto, Yokohama, Tokyo
- Manufacturing → Hamamatsu, Aichi, Kobe, Gifu
- Biotech and healthcare → Kobe, Kyoto, Osaka
- Tourism and regional revitalization → Hokkaido, Niigata, Oita, Ibaraki
- Startups aligned with a VC thesis → private route
When your business and the recognized organization are on the same wavelength, you’ll find that the confirmation letter is more likely to land and you get downstream wins like subsidies, mentor introductions, and connections to potential clients.
Tokyo, for example, limits eligible industries to eight categories (financial services, IT, environmental energy, healthcare and welfare, arts and culture, food/agriculture/fisheries, wholesale and retail, plus other governor-approved sectors) (Reference: Invest Tokyo, “Startup Visa”). Cross-check the list against your business before you apply.
Axis 2: Cost of Living While You’re on the Visa
You generally can’t take an income-earning part-time job during the Startup Visa period (apart from what’s allowed under a Permission to Engage in Activity Other Than That Permitted (shikaku-gai katsudo kyoka)). So plan to cover living expenses from savings. Bringing family means budgeting for them too.
| Region | Living cost level | International environment & family fit |
|---|---|---|
| Tokyo / Shibuya | High | Strong international schools and clinics, but rents are high |
| Fukuoka / Kobe / Hamamatsu | Manageable | International communities, family-friendly environment |
| Osaka / Kyoto | Moderate | International community, cultural hub |
Specific rents and prices swing widely depending on the property and timing, so check the latest real estate sites for the ward or city you’re targeting.
Axis 3: Language Support
Document submission is essentially in Japanese. Some municipalities (including Fukuoka, Tokyo, Yokohama, and Kobe) provide English-language consultation desks and interview support. Ask the desk in advance: “Can I consult in English?”
Stuck choosing? Take a half-day off and visit the municipal desk in person. You’ll learn things the website never publishes, like coworking space crowding, mentor specialties, and how strong the English support actually is.
Eligibility Requirements
Detailed conditions vary slightly by recognized organization, but every desk asks for the same baseline.
Common Requirements
- Genuine intent to start a new business in Japan
- Ability to submit a business plan
- A realistic prospect of meeting the Business Manager Visa requirements within the visa period (max two years)
- Demonstrated capability to actually run the business through your education and work history
- No connection to anti-social organizations (such as boryokudan / organized crime groups)
Common Status-Change Routes
If you’re already in Japan, you’ll usually move via Status of Residence Change Application from your current visa. The patterns most likely to be approved:
| Current visa | Things to watch when switching |
|---|---|
| *Engineer/Specialist in Humanities/International Services (Gijinkoku)* | Decide your resignation timing. Resident tax, income tax, and social insurance must be paid up |
| Student | Works either after graduation or during studies (for entrepreneurship preparation). Japanese language school enrollees are sometimes ineligible |
| *Dependent (Kazoku Taizai)* | Need consent from the family member sponsoring you, plus a clear plan for living expenses |
| Spouse Visa (Japanese / Permanent Resident) | This visa already permits running a business, so switching is rarely necessary |
| Designated Activities (J-Find, post-graduation job hunting, etc.) | Switchable when narrowed down to entrepreneurship preparation |
Recently, more people are switching from post-graduation job hunting on Designated Activities into the Startup Visa. For the upstream framework, also see our Designated Activities Job Hunting Visa Guide.
If your business plan is misaligned with the recognized organization’s industry focus, no confirmation letter will be issued. Submitting a biotech research plan to IT-focused Shibuya Ward, or an entertainment IT plan to manufacturing-focused Kobe, won’t go through. Check industry alignment first.
The Application Process: A Two-Stage Review
The Startup Visa process splits into two stages: the recognized organization’s review → the Immigration Services Agency’s review. If you’re already in Japan, the second stage uses Status of Residence Change Application as the default route.
Step 1: Submit Your Business Plan to the Recognized Organization
You’ll submit an Entrepreneurship Preparation Activity Plan (the program’s plan template) to your chosen recognized organization. Common documents:
- Entrepreneurship Preparation Activity Plan (each organization has its own format)
- Business plan (covering ~5 years of revenue/cost projections)
- Resume / employment certificate
- Copies of passport and Residence Card (Zairyu Card)
- Education certificates
- If you have past entrepreneurship or management experience, supporting evidence
- Funding plan (breakdown of personal funds, bank loans, outside investment)
- A 6-month minimum housing plan
- Personal funds proof (bank balance certificate, etc.)
The review judges your plan on feasibility, novelty, and contribution to the region. Some municipalities (like Fukuoka) include an interview with an SME consultant (a national-licensed advisor for small and medium enterprises). Results typically come 1–2 months after submission. Submit early so you have time to fix issues if documents are returned.
Step 2: Apply for Status Change at the Immigration Services Agency
Once you receive the confirmation letter (called either Entrepreneurship Preparation Activity Confirmation Letter or Founding Activity Confirmation Letter), you submit a Status of Residence Change Application at the Immigration Services Agency. The letter is typically valid for 6 months from issue, so move quickly.
Documents for Immigration
- Application for Change of Status of Residence (immigration form)
- Photo (4cm × 3cm)
- Confirmation letter from the recognized organization
- Residence Card and passport
- Resume, business plan
- Reason for application letter (explaining why you need the Startup Visa)
- Proof of paid resident tax, income tax, and social insurance (from previous employment, etc.)
The review takes 1–3 months. If you’re applying from abroad, you’ll instead file a Certificate of Eligibility (Zairyu Shikaku Nintei Shomeisho) application; once issued, you’ll get the visa stamp at a Japanese embassy or consulate in your home country before entering Japan (Reference: Immigration Services Agency of Japan, “Startup-Related Measures”).
Plan for 3–6 months total across “recognized organization review → confirmation letter → immigration review.” Time your resignation and any move backwards from this.
The 24-Month Roadmap to Transition to the Business Manager Visa
Two years sounds long, but after the October 2025 reform it’s just barely enough to meet every Business Manager Visa requirement. A typical “what to do when” model in three stages:
Stage 1: Months 0–9, Incorporation Through First Revenue
- Pick the company structure (joint-stock company kabushiki gaisha or LLC godo gaisha are common) and have a judicial scrivener (shiho shoshi, the specialist for company registration) handle incorporation
- Deposit capital into the corporate account (target the ¥30M line of the Business Manager Visa)
- Open a corporate bank account
- Lease a dedicated office (coworking is rejected at the Business Manager Visa stage)
- Hire at least one full-time employee (Japanese, or holding a status with no work restriction such as Permanent Resident or Spouse Visa)
- Sign the employment contract, run monthly payroll, and complete corporate tax, social insurance, and labor insurance filings
- Start sales activities, develop initial clients, and book your first revenue
Stage 2: Months 9–18, Japanese Skills and Expert Sign-Off
- Take JLPT N2 (or confirm that the employee you hired meets N2)
- Build up at least six months of continuous revenue records
- Get expert sign-off on your business plan from one of the SME consultant, certified public accountant, or licensed tax accountant (“this plan is sound”)
Stage 3: Months 18–24, Switch to the Business Manager Visa
- File the Status of Residence Change Application (Startup Visa → Business Manager) at immigration
- Review takes 1–3 months, so file at least 3 months before your visa expires
If you can’t meet all the Business Manager Visa requirements before your visa expires, extension options are limited. Without enough preparation, you may end up switching to “Designated Activities (Departure Preparation, 30 days)” to wind down, or pivoting to a different status such as Spouse or Engineer visa.
Switching to the Business Manager Visa: Three Common Stumbling Blocks
The whole point of the Startup Visa is to switch to the Business Manager Visa before your two years run out. After the October 2025 reform, three stumbling blocks come up most often.
Stumbling Block 1: Hiring Too Late
If you haven’t hired a full-time employee during the Startup Visa period, immigration will doubt the company is real when you apply to switch. Sign the employment contract and start payroll at least three months before the switch application.
Stumbling Block 2: Coworking Doesn’t Count Anymore
Coworking and temporary offices are fine during the Startup Visa period, but the Business Manager Visa requires a dedicated company office. After the reform, a home-as-office setup is also generally rejected. Property search, contract, deposit and key money, and the lease term itself add up, so start hunting 3–6 months before the switch.
Stumbling Block 3: Zero Revenue Is a Hard Sell
“We have a business plan, but six months in we still have zero revenue” struggles at the switch review. During the Startup Visa period, prioritize continuous revenue, even if small. Monthly invoices and deposit records become solid evidence that the company is actually trading.
When You Can’t Make It in Time
- Apply for a Startup Visa extension: only when the recognized organization keeps backing you, the Designated Activities status may be extended
- Pivot to a different visa: Engineer (Gijinkoku), Specified Skilled Worker (Tokutei Ginou), Spouse (if eligible), etc.
- Reset from your home country: rebuild capital and the business plan abroad, then reapply
Common Pitfalls
The Startup Visa is helpful, but a few traps catch people off guard.
Pitfall 1: Quarterly Activity Reports Continue After Approval
Some municipalities (like Fukuoka) require quarterly activity reports even after the confirmation letter is issued. Reports cover progress, revenue, and hiring. Skipping them hurts you at renewal time.
Pitfall 2: Time Lost Between Confirmation Letter and Immigration Filing
If too much time passes between getting the confirmation letter and filing at immigration, your current visa may expire in the gap. As soon as you receive the letter, file the change application if you already hold a status of residence.
Pitfall 3: Language Barriers, Bank Accounts, and Property Choices
JETRO’s 2024 analysis notes that 716+ international residents have received Startup Visas, with at least 359 successfully transitioning to the Business Manager Visa. About half make it. The most common roadblocks for those who don’t: “bank account opening is hard, and overseas remittance is cumbersome,” “English-language information is limited,” and “property choices are restricted” (Reference: JETRO, “Japan’s Startup Visa: Where Does It Stand After 9 Years,” 2024).
Corporate bank account delays in particular cause people to miss early deal opportunities. It’s easy to keep using a personal account at first since it sort of works, but separating roles between a main account and a payroll account from the start saves trouble.
The Startup Visa pairs the right to prepare for entrepreneurship with the responsibility of actually launching. Talk it through with family and any investors, and bring a realistic funding plan with you.
FAQ
Q1: Can I switch from an Engineer (Gijinkoku) visa?
A: Yes. Get the confirmation letter from a recognized organization first, then file the Status of Residence Change Application at immigration. Sort out your resignation timing and confirm that resident tax, income tax, and social insurance are paid up before applying.
Q2: Can I switch right after graduating from a Student visa?
A: Yes. Get the confirmation letter before graduation and file the change application immediately after graduating. Treating entrepreneurship as an extension of part-time work during your studies is not allowed, since it goes beyond the Permission to Engage in Activity Other Than That Permitted.
Q3: Will switching from a Dependent (Kazoku Taizai) visa affect the family member sponsoring me?
A: Once you switch, the Startup Visa is an independent status of residence, so your sponsor’s status isn’t directly affected. But income is limited during the preparation period, so set aside living expenses ahead of time.
Q4: Can I take a part-time job during the Startup Visa?
A: In principle, only entrepreneurship preparation activities. To take part-time work for living expenses, you’ll need a separate *Permission to Engage in Activity Other Than That Permitted (shikaku-gai katsudo kyoka)*, and what’s allowed is fairly narrow. Plan to cover living expenses from your own savings.
Q5: If my business doesn’t take off, do I have to leave Japan immediately?
A: No. As your visa expiration approaches, you can switch to “Designated Activities (Departure Preparation, 30 days)” to wind down, or apply to change to another status of residence such as Engineer or Spouse.
Q6: How is going through a private VC different from going through a municipality?
A: The VC route weighs whether your business aligns with what the firm wants to invest in, and proceeds alongside pitches. The municipal route weighs your contribution to the region, and offers more public support like subsidies and coworking access. Choose based on your business stage and how you plan to raise capital.
Q7: Can I keep the company I incorporated even if I don’t switch visas?
A: The company itself can continue to exist, but you can no longer act as its representative in Japan if you lose your status of residence. Switching to the Business Manager Visa or another status by the deadline is essential.
Summary: Your Startup Visa Checklist
The Startup Visa is, for international entrepreneurs in Japan, a limited but valuable preparation runway that ends when you transition to the Business Manager Visa. The 2025 unification and the Business Manager Visa reform raised both convenience and difficulty at the same time. Run through this checklist before you start.
- ✅ Is your industry aligned with the recognized organization’s focus?
- ✅ Have you chosen between the municipal route and the VC route based on your business stage?
- ✅ Did you also compare candidates on cost of living and international community?
- ✅ Can you file the immigration change application within 6 months of receiving the confirmation letter?
- ✅ Have you reverse-engineered the 24-month timeline?
- ✅ Do you have a concrete plan for ¥30M capital, one full-time employee, and JLPT N2 ahead of the Business Manager Visa transition?
- ✅ Are you building your professional network early (immigration specialist, tax accountant, SME consultant)?
- ✅ Do you have a plan B status of residence ready in case things don’t go as planned?
For the new Business Manager Visa requirements and the path on to permanent residency, also see our Business Manager Visa Guide and Business Manager Visa Renewal Guide. Reading them together helps you map out a 3- to 5-year strategy.
Starting a business in Japan is far from easy. But used as a runway, the Startup Visa lets you build the next shape of your career from where you already live. The anxiety the night you resign and the rush of seeing your name on the corporate registry are probably both bigger than you’d guess. Take that first step through this program.
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