Japan's Startup Visas Go from "Privileged" to "Strictly Selective

February 17, 2026

The nature of Japan's program to promote entrepreneurial activities by foreign nationals has undergone a major transformation since its last revision in October 2025. The old perception of the program as a "grace period to prepare for starting a business" is no longer valid. Investors should be aware that the Japanese government has, through this notice, begun to require, in effect, "quality control of management" and "business certainty" at an extremely high level.

1. financial and employment "commitments" are the starting point

The most symbolic change in investment decisions is the specific numerical requirement thrust upon the start-up preparation period (within one year of landing or change) as an exit strategy.

Capital raising of 30 million yen or more: After the completion of the preparation period, the total amount of assets to be used for the business must be expected to be at least 30 million yen (including capital and total investments).
Obligation to employ full-time staffThe business must be of a size that requires full-time employees residing in Japan in addition to the business owner.
Securing an entity baseThe plan must be approved by the Ministry of Land, Infrastructure, Transport and Tourism.

These are not effort targets, but "requirements" for certification, implying that the scheme to receive the investment is built in from the beginning.

2. stricter management "eligibility"

The new notice also sets clear hurdles for the background of individual entrepreneurs.

Work experience or advanced degree required: Applicants must have "at least one year of business or management experience" or hold a "doctoral, master's, or professional degree in a field related to business, management, or technology.

This has made it virtually impossible for young, inexperienced entrepreneurs to enter the market with vague motives such as "trying it out in Japan first. For investors, being able to obtain this visa itself functions as a certain level of "proof of management literacy.

3. thorough governance through "monthly interviews

Of particular note is the strengthening of the monitoring system by the foreign entrepreneurship promotion enforcement organization.

Mandatory monthly reporting and interviewsThe implementing organization must interview the entrepreneur in person at least once a month to check on his or her activities and living conditions.
Direct reporting to authoritiesThe results are reported monthly to the Minister of Economy, Trade and Industry and the regional immigration bureaus.
Security for return home in the event of non-renewal.If it is determined that it is difficult to continue business, measures will be taken to ensure the immediate return of the foreigner to his/her home country.

Investor Perspective

This stricter screening means that the government is pre-screening the "seriousness" and "business sustainability" of foreign entrepreneurs as investment targets. On the other hand, entrepreneurs are under considerable time and financial pressure to clear all these hurdles within a limited period of two years, and to move to the "management and administration" status under the Immigration Control Act.

Investors are expected to carefully scrutinize whether the potential entrepreneurs are capable of carrying out the "appropriate and reliable plan" as stipulated in this announcement and whether they are working closely with the implementing organizations.

TOC

Core of the Entrepreneurial Activity Process Chart: Path to transition to "Management and Administration" within one year.

The process chart is after landing or change of status of residence,As a general rule, within 1 yearThe roadmap must be specific to fulfill the requirements for a regular "Management and Administration" visa to .

1. timeline for securing locations

Securing a place of business is not a "prospective" process, but a definitive process.

Property Selection to Contract SigningSpecific plans for when, in what area, and how the office will be set up.
Secure entity within 1 year: A schedule must be established to prove that the applicant has a physical place of business in Japan within one year of landing.

2. execution plan for capital and financing

This is the section that should be watched most closely by investors.

Scheme to reach 30 million yen: Within one year, business assets, including capital and total investments, are30 million yen or moreSpecific timing and procurement method to be used.
Distinction between proprietary funds and external funds: The source of funds and the timing of their procurement will be described in detail as the project progresses.

3. recruitment and organization building

It requires a scale that cannot be completed by a single manager.

Employment of full-time staffWhen to hire a full-time Japanese resident employee (excluding certain status holders) other than the manager.
Assignment of officersIf you are seeking to incorporate, you will need to organize the names, addresses, and work patterns of the prospective directors and officers.

4. phase management of monetization and business progress

Steps to start a business1 year is divided into phases such as "initial research," "incorporation," "licensing," "start of operations," etc., and each milestone is defined.
Consistency of subject areasThe activities must be planned in accordance with the purpose of the public notice and in areas that contribute to strengthening Japan's industrial competitiveness.

Operational note: Further tightening at renewal (6 months)

If a renewal is required after the initial year has passed (renewal application), an even tighter schedule must be managed.

Achieved within 6 months of renewal: At the time of application for renewal, the subsequentWithin 6 monthsThe project must prove that it is expected to achieve "a scale of 30 million yen or more" and "secure a business location" in a more accurate process chart.
2-year grace limit: The duration of start-up preparation activities is combined with the duration of other start-up activities.Not to exceed two yearsTherefore, the process chart must be structured to strictly adhere to these deadlines.

Advice to Investors The implementing organization shall, in accordance with this process chartOne interview per monthand progress checks. . If an activity is found to deviate from the process chart, it will be promptly reported to the authorities (Form No. 7), so the process chart must be a very "realistic implementation plan" rather than an "ideal" one! The following is a list of the most common problems with the

Process chart review and monitoring checklist by implementing organizations

The implementing organization will strictly examine whether the activities of the specified foreign entrepreneurs meet the objective of "strengthening international competitiveness" and whether they are certain to "start business within one year.

1. financial sustainability and transparency (Notification No. 5-6)

Certainty of procurement: Is there a specific funding route that will enable the company to secure assets (capital and total investment) of 30 million yen or more within one year?
Endorsement of the cost of stayIs there an objective document (such as a certificate of bank balance) attached that can cover the cost of the stay for one year, apart from the project funds?
Progress at renewalIf you are applying for renewal, do you have a plan to reach the 30 million yen scale within the remaining 6 months?

2. business substance and securing a base (Notification No. 5-4, 6)

Specificity of locationsIs the proposed location of the office clear, and does it have the substance to enable "staff engaged in the management or administration of the business" to operate, rather than being a mere virtual office?
Determination of residence: Is housing secured for the first year after landing or after the change (stability of the living base)?

3. eligibility of the system and organization (Notification No. 5-6)

Management Background: Can the applicant's resume confirm at least one year of management/administrative experience or an advanced degree in a related field (master's, doctoral, etc.)?
Eligibility of Directors and Officers: If a corporation is to be established, are the names and addresses of prospective directors and officers, as well as their work patterns, clear?
Employment ProspectsDo you plan to hire full-time non-managerial staff (Japanese or foreign nationals with appropriate status of residence) within one year?

4. ongoing governance (Notice 8)

Cooperation for monthly interviews: Is there a schedule of interviews at least once a month to discuss progress and life circumstances woven into the program?
Acceptance of corrective instructionsIs there a system in place to take necessary corrective measures in the event that activities are not carried out in accordance with the plan as a result of confirmation by the implementing organization?

Risk of "forced termination" that investors should be aware of

The implementing organization shall submit the following to the Minister of Economy, Trade and Industry and the regional immigration bureaus in the following casesObligation to report promptlyowed to the company.

Deviation from plan: When it is found that the activities are not in line with the schedule (Form No. 7).
uncontinuable: When it becomes impossible to continue the activity due to deterioration of cash flow, etc. (Form No. 8).
ensuring one's return to one's country of originDoes the plan include measures to ensure return home in the event that it becomes difficult to continue the activity?

Practical advice Investors must strictly control the achievement of milestones in the process chart to ensure that the target entrepreneurs are not reported on Form No. 7 (Improper Implementation) by the implementing organization.

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