Message to Foreign Entrepreneurs: Rethink the Startup Visa and Starting a Business in Japan—Especially Kyoto’s High-Risk Pitfalls

STOP and READ: The Japanese Startup Visa is an Extremely High-Risk Trap That Could Ruin Your Plans.

 Audio commentary (English)

  Audio commentary (Japanese)

To all ambitious foreign entrepreneurs eyeing Japan—and particularly those enchanted by Kyoto’s traditional beauty—as your launchpad, we strongly advise you to abandon the Startup Visa strategy right now. It’s far more perilous than it appears and could lead to devastating consequences, including visa denial, forced deportation, wasted investments, and a shattered business dream.

The “Startup Visa” (Designated Activities) provides only a fleeting two-year grace period, but it has become an unreliable and highly unstable path to long-term operations in Japan. While support from regions like Kyoto Prefecture—offering up to 2 years for fields such as manufacturing and AI, along with consultation services like JETRO—may seem appealing, the reality is harsh. With regulations tightened since October 2025, transitioning to the essential “Business Manager Visa” (Keiei-Kanri Visa) is now fraught with insurmountable hurdles for most applicants.

The Harsh Reality: Overwhelming Risks and Near-Impossible Requirements Within 2 Years

Pursuing the Startup Visa today exposes you to immense risks: failure to meet the escalated standards could result in legal troubles, reputational damage, and the collapse of your venture. Here’s what you’re up against—requirements that are not just strict, but deliberately designed to weed out all but the most prepared:

• 💰 Massive Capital Barrier: You must raise and register ¥30,000,000 (30 million JPY) in capital—a staggering amount that few startups can secure under time pressure.
• 👥 Compulsory Hiring Hurdle: You must employ at least one full-time worker (Japanese national, Permanent Resident, etc.), adding immediate financial strain and operational complexity.
• 🎓 Stringent Managerial Proof: You need to demonstrate 3+ years of proven management experience or possess a Master’s degree in a directly relevant field—criteria that disqualify many aspiring entrepreneurs.

These aren’t minor checkboxes; they’re formidable obstacles that could trap you in Japan with no viable exit. The Startup Visa is meant only for the preparation phase and does not guarantee a smooth transition—failure means it’s a high-stakes gamble ending in visa expiration.

Kyoto-Specific Pitfalls: Adding Layers of Environmental and Social Risks

If you’re drawn to Kyoto’s romantic allure, think again. Overtourism is severe, with a surge in tourists leading to a proliferation of minpaku (short-term rentals) and accelerating the destruction of historic landscapes. In areas like Gion, private roads have been closed due to tourists’ manner violations, fueling rising dissatisfaction among local residents. Reports of population decline due to gentrification further compound the issues, making businesses reliant on tourism especially vulnerable to instability and backlash.

Starting a business in Kyoto may sound idyllic, but don’t underestimate these barriers: environmental degradation, community unrest, and the same visa hurdles amplified by regional challenges. Thorough preliminary research is essential, but even that may not mitigate the overall dangers.

Our Urgent Warning: Strongly Discourage Applying for the Startup Visa—It’s Not Worth the Risk

We cannot emphasize this enough: Do NOT apply for the Startup Visa under any circumstances unless you are absolutely certain of success. The two-year clock starts ticking the moment you arrive, and the odds of fulfilling these draconian requirements are alarmingly low, often resulting in heartbreak and financial loss—especially in high-risk areas like Kyoto.

Only consider it as a last resort—and even then, think twice—if you can irrefutably guarantee:

1. You have already locked in ¥30,000,000 in committed funding or a foolproof plan to obtain it within months, without fail.
2. Your business is primed to hire and pay a full-time employee from the outset, with no delays or budget shortfalls.
3. You personally exceed the rigorous managerial experience or education thresholds, backed by ironclad evidence.

For the vast majority, the Startup Visa isn’t a stepping stone—it’s a dead-end pitfall that could derail your entire entrepreneurial journey, particularly amid Kyoto’s unique challenges.

The Only Secure Alternative: Steer Clear and Build a Rock-Solid Foundation First

Instead of gambling on this visa, channel your energy into fully satisfying the ¥30 million capital, employee, and qualification requirements upfront. Develop a bulletproof business plan, secure funding, assemble your team, and conduct in-depth research on local risks—like those in Kyoto—before even thinking about visa applications. This cautious approach is the sole reliable route to the Business Manager Visa in today’s unforgiving environment.

Prioritize safety and long-term viability over hasty entry. The risks of the Startup Visa, combined with regional pitfalls like Kyoto’s, are simply too great—your future in Japan, and beyond, hangs in the balance. Choose wisely: don’t apply.