Startup Visa: New 2025 Changes (Coming Soon)

Since we started documenting our journey to Japan online, we have received lots and lots of questions from y’all about immigration, real estate, akiyas, traditional Japanese house renovation, operating a business in Japan, and honeybees. But the most-requested topic (by far) has been the Startup visa process!

The Startup visa allows foreign people to move to Japan and obtain residency by opening and managing their own business. From the METI website: “The Foreign Entrepreneurship Promotion Program (also known as the “Startup Visa”) is a system aimed at strengthening the international competitiveness of Japanese industries and forming a base for international economic activity in Japan.”

Last year, in 2024, Japan made a soft announcement that they would be making changes to the Startup visa, in order to improve and consolidate the program. Their efforts would be specifically designed to increase the number of foreign applicants and successful businesses created with the program, by making the program easier to navigate and easing some requirements. Although the announcement left many details unclear, it was very exciting news!

Well folks, the time is here. The 2025 Startup visa changes have been made. But… let’s not get ahead of ourselves, because there’s one important piece of information: It will still take time for the new changes to be implemented before applications can be submitted.

At this point, the important questions we should be asking ourselves are:

What do we actually know?

What is still uncertain?

You may have seen any number of articles or videos reporting that the new Startup visa is immediately available for foreigners who plan to start a business anywhere in Japan. Well, that’s only partially true. It’s a bit frustrating because sharing half-truths only serves to get people’s hopes up preemptively. Let’s explore this topic based on information available directly from official Japanese websites.

I always state at the beginning of these blogs and videos: We are not experts in Japanese immigration! We are just two people who received the 6-month Startup visa from Imabari city, incorporated our business into a ‘kabushiki gaisha’, completed the Startup visa requirements within the timeframe, and have successfully received two 1-year extensions for the Business Manager visa. We only have our experience to draw from, along with public information that is readily available online for everyone to read, plus some insight from our immigration lawyer. Please consider the information we share with that in mind. If you have detailed questions about your own immigration process, we always suggest that your first step should be contacting an immigration lawyer, to discuss your unique situation.

If you prefer to listen to your content, we can read through the blog together with our YouTube video ⌄

First, a very brief overview of the Startup visa history: It began in 2015 when Japan’s Cabinet Office implemented the Program to Promote Startups by Foreign Nationals. Then in 2018, Japan’s Ministry of Economy, Trade and Industry (METI) introduced the Foreign Entrepreneurship Promotion Program.

It’s important to note that both of these foreign business incubation programs were only available in certain areas. That means it was not available everywhere in Japan. Until this year, these two different programs were concurrently offered in different parts of Japan, and worked to serve (almost) the same purpose. This explains why it was sometimes difficult to find a complete list of all Startup visa locations, because there were two separate programs. It was widely acceptable to refer to both of these programs as the general name: Startup visa.

As of January 1, 2025, the Startup visa is:

• Extended to a two-year period
• Expanded nationwide

But when will you actually be able to submit your applications? That’s yet to be determined!

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Japan’s Immigration Services Agency has a Startup visa page. The first two links on this page direct you to the two websites we will be discussing in further detail below (METI and National Strategic Special Zones). I wanted to include this website because immigration is the main governing body over foreign residents.

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Japan’s Ministry of Economy, Trade and Industry (METI) has a Startup visa page. This seems to be the organization overseeing the merging of the two programs and the implementation of the new nationwide program. I highly recommend taking the time to read all of their PDF documents (in Japanese). You can download the PDF and translate them to your preferred language fairly easily. There are 10 “Notices and Forms” available to download on that page, as well as a link to the Immigration Services Agency page Clarification of Residence Status Standards for Foreign Managers.

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National Strategic Special Zones has a page explaining the Nationwide Rollout of National Strategic Special Zone Visa. This graphic helps visualize the timeframe expansion from 6 months to 2 years. Again, roughly translated:

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CLICK TO EXPAND: I want to share one document from the National Strategic Special Zones website. It’s a long document, so in order to avoid putting you all to sleep, I’ve only highlighted the details I think are particularly relevant. It’s a memo, roughly translated from their PDF (in Japanese). I’ll do my best to explain why these couple of highlighted passages stand out to me.

Notification No. 922, Local Government Affairs Bureau Notification

No. 192, Immigration Agency

December 27, 2024

To: All Prefectures and Municipalities

To: All Departments in Charge of Designated National Strategic Special Zones From: Director-General, Regional Revitalization Promotion Bureau, Cabinet Office

From: Director, Policy Planning Division, Immigration Bureau, Ministry of Justice Regarding the National Rollout of the Foreign Entrepreneur Promotion Project in Designated National Strategic Special Zones

The Foreign Entrepreneur Promotion Project in Designated National Strategic Special Zones (hereinafter referred to as the “Special Zone Project”) aims to facilitate the entry of foreign entrepreneurs into Japan by confirming the appropriateness and feasibility of their business plans within Designated National Strategic Special Zones, as defined by the National Strategic Special Zones Act of 2012 (Act No. 107 of 2012). These zones are designated by local governments (hereinafter referred to as “Special Zone Municipalities”). By conducting such confirmations, the Special Zone Project enables the entry of foreign entrepreneurs who meet the landing screening criteria for entrepreneurs and promotes entrepreneurial activities by foreign nationals within these Special Zone Municipalities.

In the “Regulatory Reform Implementation Plan” (Cabinet Decision of June 21, 2024), it was decided to:

1. Consolidate the Special Zone Project with the Foreign Entrepreneur Promotion Project, leading to its national rollout.
2. Simplify procedures by eliminating the need to use multiple systems.
3. Extend the grace period for meeting requirements to a maximum of two years for all regions, not limited to Designated National Strategic Special Zones, specifically for fulfilling the requirements related to “securing a business office” and “business scale.”

Based on these decisions, the “Notification Regarding the Activities Specified in the Lower Column of Table 1-5 of Appendix 1-5 Pursuant to Article 7, Paragraph 1, Item 2 of the Immigration Control and Refugee Recognition Act” (Ministry of Justice Notification No. 131 of 1990) and the “Notification Regarding the Foreign Entrepreneur Promotion Project” (Ministry of Economy, Trade and Industry Notification No. 256 of 2018, hereinafter referred to as the “METI Notification”) have been amended. The national rollout of the Special Zone Project will be implemented from January 1, 2025 (hereinafter referred to as the “Effective Date”).

1. Utilization of the Amended Foreign Entrepreneur Promotion Project

Note: For the utilization of the Foreign Entrepreneur Promotion Project based on the amended METI Notification (hereinafter referred to as the “METI Project”), please refer to the following website of the Ministry of Economy, Trade and Industry: (https://www.meti.go.jp/policy/newbusiness/startupvisa/index.html)

2. Utilization Deadline for the Special Zone Project

For Special Zone Municipalities that have included the Special Zone Project in their Regional Plans as stipulated in Article 8, Paragraph 1 of the National Strategic Special Zones Act as of the Effective Date, the utilization deadline for the Special Zone Project shall be handled as follows to ensure a smooth transition to the METI Project:

(i) Issuance of Certificates of Entrepreneurial Activities: Special Zone Municipalities may continue to issue Certificates of Entrepreneurial Activities to foreign nationals engaged in entrepreneurial activities under the Special Zone Project until the end of 2025.

(ii) Application for Certificate of Eligibility for Residence: Foreign nationals who have received a Certificate of Entrepreneurial Activities pursuant to (i) above may apply for a Certificate of Eligibility for Residence to the Regional Immigration Bureau until the end of fiscal year 2025.

• Note: The validity period of the Certificate of Entrepreneurial Activities is currently set at three months from the date of issuance. This validity period will remain unchanged after the national rollout.

(iii) Application for Renewal of Residence Permit: Applications for renewal of residence permits to the Regional Immigration Bureau under the Special Zone Project, specifically for the “Relaxation of Business Premises Securing Requirements for Foreign Entrepreneurial Human Resources” (hereinafter referred to as the “Co-working Space Exception”), may be submitted until the end of fiscal year 2025.

• Note: Since the grace period for fulfilling the business premises securing requirements will be extended to a maximum of two years under the METI Project from the Effective Date, applications for renewal of residence permits under the Co-working Space Exception will no longer be necessary.

(iv) Application for Change of Residence Status: Applications for change of residence status to the Regional Immigration Bureau under the Special Zone Project, specifically for the “Exception for Foreign Students to Engage in Entrepreneurial Activities without Returning to Their Home Countries,” which allows foreign students to switch their residence status from “Student” to “Management” by utilizing the exception for Foreign Entrepreneurial Human Resources, may be submitted until the end of fiscal year 2025.

• Note: Under the METI Project from the Effective Date, applications for change of residence status will be possible from other residence statuses, including “Student.”

3. Points to Note Regarding Residence Procedures When Transitioning from the Special Zone Project to the METI Project

(1) Special Zone Municipalities Utilizing the METI Project on the Effective Date

• (i) Foreign nationals residing under the Special Zone Project on the Effective Date who wish to continue utilizing the METI Project within the same Special Zone Municipality after their current period of residence expires shall receive a “Confirmation Certificate of Business Preparation Activity Plan” from the relevant Special Zone Municipality and apply for a change of residence status to “Specified Activities (Notification No. 44)” granted under the METI Project to the Regional Immigration Bureau that has jurisdiction over the Special Zone Municipality. This will allow them to stay for a maximum of two years, including the period of residence under the Special Zone Project.
• (ii) Regarding the special exception of “allowing foreign nationals residing under the METI project to continue utilizing the Special Zone Project (extension of the business preparation period),” since the revised METI project allows for a maximum stay of two years, there is no need to apply for a change of residence status under this special exception. Therefore, from the effective date onwards, the METI project will be the primary framework for supporting foreign entrepreneurs.

(2) In the case of Special Zone Municipalities not utilizing the METI Project as of the Effective Date

• (i) As mentioned in (1) above, given that the deadline for issuing certificates of business activity to foreign nationals whose business activities are supported by the special zone project will be the end of December 2024, if the relevant Special Zone Municipality continues to support the business activities of foreign nationals by utilizing a project that allows for the relaxation of entry requirements, it is necessary to obtain certification of a foreign entrepreneur activity management support plan from the Minister of Economy, Trade and Industry by the end of December 2024, based on the METI notification.
• (ii) After obtaining the certification mentioned in (i), foreign nationals residing under the Special Zone Project who wish to continue utilizing the METI project after the expiration of their period of stay may, upon receiving a confirmation certificate of a business preparation activity plan from the relevant Special Zone Municipality, apply to the Regional Immigration Bureau for a change of residence status to “Specified Activities (Notification No. 44)” granted under the METI project, allowing them to stay for a maximum of two years in total, including the period they stayed under the Special Zone Project.

(3) In the case of foreign nationals residing under the Special Zone Project who have spouses or other dependents: When a foreign national who has been residing under the Special Zone Project transfers to the METI project, it will be necessary to change their residence status, and in such cases, it will also be necessary for their spouse or other dependents to change their residence status upon the expiration of their current period of stay. For example, if a spouse or other dependent of a foreign national residing under the special zone project has a “dependent” residence status and wishes to continue residing in Japan after the expiration of their period of stay, they can change their residence status to “Specified Activities (Notification No. 45)” as a dependent of a foreign national residing under the METI project.

4. In cases where the regional plan does not include the Special Zone Project and support for foreign entrepreneurs is being considered in the future: If a Special Zone municipality whose regional plan does not include the Special Zone project is considering supporting the business activities of foreign nationals in the future, it should utilize the METI project as described in (1) above.

What information can we gather from this document? The nationwide rollout of the Foreign Entrepreneur Promotion Project (Startup visa) under the oversight of METI began on January 1, 2025. But the former National Strategic Special Zones can continue operation until the end of 2025. It’s not certain, but that seems to imply there may be a fairly lengthy transition period while the two separate programs merge under one umbrella.

Is there any other information that can corroborate that? While briefly discussing the changes with Nick of JapanRemotely, he shared a link to an announcement from Kaga city. This municipality has already been participating in the National Strategic Special Zone program offering Startup visas for some time. The new announcement is encouraging applicants to continue to apply (immediately) for their National Strategic Special Zone program, with the new updates, including the two year timeframe. These updates seem to align with the National Strategic Special Zone memo above, which outlines that locations previously participating in the Special Zones project can remain in operation with the new guidelines until the end of 2025.

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Here’s some more information to consider, and more questions that need to be answered:

We do not yet know if all of the current National Strategic Special Zones will continue operation until the end of 2025, or if they will slowly be absorbed by the new METI program over the course of 2025.

We do not yet know if the acceptable business plans (technology, agriculture, etc.) will be reduced to limited fields.

We do not yet know if different areas of Japan will have the freedom to customize their preferred business plans based on their unique regional needs.

We do not yet know when Startup visa applications in new locations will start being accepted.

When I asked our immigration lawyer about the implementation of the new Startup visa changes, he told me he has a new client wanting to apply for the new nationwide program. He directly contacted the client’s municipality, which is the large capital city of that prefecture, but was told they “had not introduced the new program yet” and would not be accepting applications for a few months. In his words, “since the program has just been implemented from the beginning of this month, there does not seem to be the updated details for many municipalities…The majority of prefectures are not ready.” Which is totally understandable!

The new Startup visa is not just automatically available nationwide as of January 1, 2025. Here’s another reasonable speculation: Full functionality and implementation of the new national Startup visa (in cities and prefectures that it was not previously offered) will most likely take some time.

How much time it will take is unclear.

Consider for a moment how much work needs to happen for each location to prepare for the operation of a brand new (for them) program. It will probably involve the creation of a whole new department, or at least the expansion of a current department, plus hiring and training of staff.

For example, in our experience, our very first meeting with Imabari city to start the application process actually took place while we were in Mexico, via a Zoom call with 14 city employees from various departments…!!! That’s a lot of employee time and energy, but also a lot of support and encouragement, which helped us to believe our dream was possible.

We do not yet know the structure of the Startup visa program.

Will the applications be overseen on the prefectural level, or will each individual municipality throughout Japan (big cities, small cities, towns, and villages) each participate in the new nationwide program? To put that question in perspective, there are 47 prefectures in Japan, so will there be 47 prefectural departments overseeing the new nationwide rollout, or will hundreds of municipalities each oversee their own applicants? How this is handled could make a big difference in the life of the Startup applicant: if it’s on a prefectural level, the capital city of each prefecture could potentially be a few hours away from an applicant’s location, or if it’s on a municipality level, an applicant’s support system could be as close as their own nearby City Hall?

For example, in our experience, we met with Imabari city many times, before, during, and at the conclusion of our Startup visa timeframe. This included a few rounds of revisions for our application prior to it being accepted, and, required progress reports every 2 months during the course of the 6 month visa. Most of these meetings took place in City Hall with 2 to 4 employees. Those meetings took place over the duration of about 10 months (from pre-application before the six months started to successfully receiving our post-Startup Business Manager visa extension). It was really convenient that City Hall was only about a 30 minute drive (or 1 hour bus ride) from our island.

In conclusion, the new 2025 Startup visa changes seem to be pretty awesome!

Increasing six months to a two year timeframe would have made our process so, so, so much less stressful. Two years is also a better time scale to measure a new business’ potential for success. Plus, offering the program nationwide is really opening up possibilities, not only for the foreign applicants, for countless municipalities throughout Japan that need new businesses to replace the older businesses as time moves on. Bravo Japan, those are great changes!

This is my takeaway: While the new 2025 Startup visa changes are officially in effect, it may take a few weeks, a few months, or even a whole year, for all aspects of the system to be fully operational and readily accessible to foreign entrepreneurs. We also still have a lot of details that need to be answered, which will hopefully be released soon.

In the meantime, this gives you time to prepare! You can use this time to meet with your immigration lawyer. If you don’t have an immigration lawyer yet, we highly recommend ours! You can also use this time to fine-tune your business plan, assemble your team of business professionals to assist your growing business, finalize your absolutely perfect desired location, start your real estate hunt, all of those little details that need to be worked out in advance.

These are exciting times!

If you’re interested in discussing, please consider joining us on our livestream this weekend. We will have a live chat this coming Sunday, January 26th, from 8-10am Japan time. If you can’t make the livestream, the chat box is already open, so you’re welcome to leave your questions in advance, then watch the replay later. Maybe there will be some more official announcements between now and then. Maybe not. But, that will be a fun opportunity for us to come together and discuss as a group. We’ll be joined by Steve with Real Rural Japan in the comments, weighing in with his experience in Japan, and formerly working in immigration.

Are you waiting for the new Startup visa changes to be implemented before making your big move to Japan? Are you just curious and like to dream about living or running a business in Japan? Just like to chat? Everyone’s welcome. See you in the livestream, or, see you in the next video!

Thanks for reading,
Dani & Evan Benton