Japan's Startup Visa Goes Nationwide: A Major Boost for International Founders

Starting January 2025, Japan is taking a significant step to attract international entrepreneurs by expanding its startup visa program nationwide. This change marks a crucial shift in Japan's approach to fostering a more vibrant and diverse startup ecosystem.

What's Changing?

The new system allows international entrepreneurs to stay in Japan for up to two years while preparing to launch their businesses. Previously, this opportunity was limited to specific strategic zones and municipalities, but now founders can choose to establish their startups anywhere in Japan.

This is particularly exciting for Tokyo's startup scene, as it opens up possibilities for collaboration between international founders based in Tokyo and potential partners or markets in other regions of Japan.

Key Benefits for Founders

The traditional requirements for starting a business in Japan as a foreign national include securing an office space and either investing 5 million yen (approximately $35,000) or hiring two full-time employees. Under the new visa program, entrepreneurs get up to two years to meet these requirements while developing their business plans.

This grace period is especially valuable for:

• International students in Japan looking to transition into entrepreneurship
• Foreign professionals wanting to test the Japanese market
• Early-stage founders who prefer to invest their initial capital in product development rather than administrative requirements

Focus on Deep Tech

The government is particularly interested in attracting startups in deep tech fields such as AI and medical technology. To support this initiative, a "Global Startup Campus" is planned to open in Tokyo after 2028, aimed at fostering collaboration between Japanese startups and international universities.

Practical Improvements

One of the traditional pain points for international founders - opening a bank account - is also being addressed. The Financial Services Agency has requested banks to allow startup visa holders to open accounts without the usual six-month residence requirement.

Growing Numbers

The statistics show promising growth in international entrepreneurship in Japan. In 2023, about 6,300 business management visas were issued - a two to three-fold increase compared to the previous five years. The total number of foreign residents involved in business management has reached approximately 37,500.

Source: 日経新聞