Audio Commentary (English)
🚀 Will the Startup Visa (Designated Activities) Screening Get Tougher?
Q. If the “Business Manager” visa requirements become stricter, how will that change the focus of the Startup Visa screening?
A. Since the final goal—the “Business Manager” visa—is becoming much more stringent, the focus of the screening and the bar for passing the Startup Visa (Status of Residence: Designated Activities) will practically rise significantly. The need to prove the “Feasibility” of your business plan will be extremely important.
Q. Specifically, what must applicants aim to achieve during the Startup Visa period?
A. Instead of the current standard (JPY 5 million capital or 2 employees), applicants must now demonstrate a high degree of certainty that they can meet the new, stricter criteria (JPY 30 million capital and 1 employee, etc.) within two years.
Q. What are the key requirements for the new “Business Manager” visa?
A. The new draft criteria, expected to be enforced around October 2025, drastically tighten the requirements:
- Capital: Principle of JPY 30 million or more.
- Employment: 1 or more full-time employee is mandatory.
- Applicant Qualifications: 3 or more years of management experience or a Master’s degree in a relevant field will be added as a requirement. (This shifts from the old standard of JPY 5 million or 2 employees to requiring both JPY 30 million capital and 1 employee, plus the manager qualification.)
Q. Do I need to show proof of the new JPY 30 million capital when applying for the Startup Visa?
A. You only need to prove funds for living expenses and initial preparatory activities. However, your submitted Business Plan must concretely detail how you will raise and secure the JPY 30 million within two years, providing strong evidence for the certainty of that realization.
✅ New Key Focus Points for the Startup Visa Application
| Business Plan “Quality” is Crucial | Your plan must go beyond a simple idea. You must present concrete steps (funding sources, targets, revenue model), backed by objective data, to clear the JPY 30 million capital and employment requirements within two years. |
| The “Certainty” of High Capital | Beyond living expenses, the feasibility of your strategy to secure the high capital of JPY 30 million—who, when, and how you will secure it (e.g., status of investor negotiations)—will be rigorously assessed. |
| The Manager’s “Persuasiveness” | You must strongly articulate your specialized expertise and capacity for realization through your plan and resume to meet or substitute for the new management experience/academic degree requirement. |
Essential Milestones for the Startup Visa (2 Years)
The Startup Visa period is critical for demonstrating the feasibility and economic stability of the business, with the ultimate goal of transitioning to the more stringent “Business Manager” visa.
| Timeframe | Key Milestones to Achieve (Business Aspect) | Key Milestones to Achieve (Visa Requirements) |
| First 6 Months | Market Launch & Initial Customer Acquisition | Establishment of Business Base (Completion of office lease agreement). |
| Launch of the Minimum Viable Product (MVP) or service. | Selection of accounting/tax advisors, completion of bank account opening, and company registration procedures. | |
| Recording of the first sales/revenue. | Reporting the start of business activities (Notification to the Immigration Bureau). | |
| 6–12 Months | Establishment of the Revenue Model | Gathering evidence to show a high degree of certainty that the business is on track (e.g., customer lists, signed contracts). |
| Stabilization/Growth of sales, or clear path to profitability. | Initiate early negotiations with investors (Preparation for the ¥30 million fundraising goal). | |
| Achievement of Key Performance Indicators (KPIs) outlined in the Business Plan. | Mid-term progress report (Submission of business progress to the local government). | |
| 12–18 Months | Confirmation of Funding and Business Expansion | Obtaining a Letter of Intent (LOI) or commitment for the ¥30 million or more funding. |
| Preparation for hiring a full-time employee (Development of a hiring plan). | Review and analysis of one year of business performance with the administrative scrivener. | |
| If targeting Permanent Residency, establishing a revenue structure that meets the applicant’s personal annual income criteria. | — | |
| 18–24 Months | Final Achievement of Stabilization Requirements | Hiring of at least one full-time employee (Signing of the employment contract). |
| Deposit of the capital of ¥30 million or more. | Final confirmation that the office space is appropriate for the business scale. | |
| Completion of the business year-end closing and tax payments. | Submission of the application for change of status to the “Business Manager” visa. |
Essential Practical Tips for a Successful Application
- Proof of “Feasibility” for ¥30 Million Capital While ¥30 million isn’t required at the initial Startup Visa application, you must concretely prove the certainty of raising the funds within two years in your Business Plan. Objective evidence such as letters of intent from investors, records of bank loan consultations, and existing funding sources are crucial.
- Employee Hiring Strategy The stricter “Business Manager” requirement mandates at least one employee. Don’t rush to hire right before the visa deadline; it’s essential to plan the hiring from Year 1 and prove the business’s profitability is sufficient to support an employee.
- Thorough Documentation and Record-Keeping Every business activity conducted during the two-year Startup Visa period (marketing, contracts, sales, expenses, hiring efforts, etc.) must be meticulously recorded. This documentation serves as vital evidence to prove the “substance and continuity of the business” during the subsequent “Business Manager” visa application review.