Startup Visa vs. Business Manager Visa: Which is Right for You?

For foreign entrepreneurs planning to start a business in Japan, choosing the right visa is the very first — and one of the most decisive — steps. Japan offers two main pathways for business founders: the Startup Visa and the Business Manager Visa.

While both aim to encourage foreign entrepreneurship, they differ significantly in purpose, requirements, and legal implications under Japan’s Immigration Control and Refugee Recognition Act (入管法). Understanding these distinctions will help you plan your market entry efficiently and avoid delays or rejections during the visa process.

What Is the Startup Visa?

The Startup Visa is a special program introduced by the Japanese government to help foreign entrepreneurs prepare for business establishment before fulfilling the full requirements of the Business Manager Visa.

Legally, holders of the Startup Visa are granted a “Designated Activities (特定活動)” status under Article 19-2 of the Immigration Control Act. The program allows a stay of up to one year, during which the entrepreneur can conduct preparatory activities such as:

• Drafting a business plan
• Registering a company
• Securing office space
• Opening a corporate bank account
• Hiring initial employees

Key Legal and Administrative Features

• Supervised by Local Governments: The Startup Visa is implemented through local municipalities (e.g., Tokyo, Fukuoka, Aichi, Sapporo), which are authorized by the national government.
• Approval Process: Applicants must submit a Business Startup Plan for review by the designated local authority.
• Immigration Bureau Review: Once the local authority issues a “Confirmation of Startup Plan”, it is submitted to the Immigration Bureau to obtain the “Designated Activities” status.
• Duration: Generally granted for six months to one year, not renewable beyond that period.
• Purpose: To transition into a Business Manager Visa once the startup is established and meets the statutory requirements.

Eligibility

• Foreign nationals intending to establish a business in Japan.
• Must submit a realistic plan that meets future Business Manager Visa requirements (e.g., capital investment, office setup, employment).

Advantages

• No initial capital or office requirement.
• Provides a legal stay period for business setup.
• Supported by local startup ecosystems and advisory programs.

Limitations

• Temporary and non-renewable.
• Limited activities permitted — cannot fully manage or operate a company until incorporation.
• Availability limited to specific municipalities.

What Is the Business Manager Visa?

The Business Manager Visa (経営・管理ビザ) is the principal visa category for foreign nationals who own, manage, or operate a business in Japan.
It is explicitly defined under Article 7, Paragraph 1, Item (ii) of the Immigration Control and Refugee Recognition Act, and further detailed in the Immigration Bureau’s “Standards for Landing Permission”.

Legal Requirements

To qualify, applicants must demonstrate the following under the Ministry of Justice Ordinance:

1. Capital Investment: At least JPY 5,000,000 in paid-in capital or equivalent business investment.
2. Office Requirement: The company must have a real, physical business office (virtual offices are typically rejected).
3. Active Management: The applicant must actually manage or operate the business on a continuous basis.
4. Business Substance: Proof of ongoing activities such as contracts, invoices, employee payroll, or client transactions.
5. Sustainability: A viable business plan indicating financial stability and growth prospects.

Key Anticipated Reforms (Mid-October 2025)

Although the official guidelines have not yet been published, immigration professionals anticipate significant reforms to the Business Manager Visa (経営・管理ビザ) beginning mid-October 2025. These changes aim to ensure that applicants possess stronger financial stability, management experience, and a genuine operational base in Japan.

1. Capital Investment

The minimum capital requirement is expected to increase substantially — from JPY 5 million to JPY 30 million (approximately USD 200,000).
Applicants will be required to clearly document the source and purpose of this investment, such as paid-in capital, bank statements, and business expense records.

2. Employment Obligation

In addition to the capital requirement, companies are expected to employ at least one full-time resident in Japan, either a Japanese national or a foreign resident with long-term status.

3. Management Experience or Academic Background

Applicants may need to demonstrate a minimum of three years of management experience, or alternatively hold a Master’s degree (or higher) in a relevant business field.

4. Third-Party Review of Business Plans

Before submitting the business plan to the Immigration Bureau, applicants may be required to obtain endorsement or certification from a qualified professional, such as a Certified Public Accountant (CPA) or a government-approved SME consultant.

These reforms, if implemented, will make the Business Manager Visa significantly more demanding than before, emphasizing credibility, professional oversight, and genuine business substance.

Who Qualifies

• Founders or executives of a Japanese company (KK or GK).
• Branch managers or regional heads of foreign corporations.
• Investors who actively participate in management.

Visa Duration

• Initially issued for 1 year, renewable to 3 or 5 years based on performance and compliance.

Advantages

• Enables full business operations and hiring.
• Renewable and convertible into permanent residence in the long term.
• Eligible for dependents and multiple-entry status.

Limitations

• Requires upfront capital and a functioning office.
• Intensive documentation and compliance obligations.
• Banks and immigration authorities may scrutinize new companies closely.

Key Differences Between the Two Visas

Transition from Startup Visa to Business Manager Visa

Most foreign entrepreneurs begin with a Startup Visa and transition to a Business Manager Visa once their business foundation is complete.
To make this transition smooth, the following steps are essential:

1. Incorporate a Company (KK or GK) before the Startup Visa expires.
2. Deposit at least JPY 5 million in company capital.
3. Secure a physical office address (lease agreement required).
4. Prepare corporate documents such as Articles of Incorporation, Certificate of Registration, and business contracts.
5. Apply for Status Change from “Designated Activities” to “Business Manager.”

Practical Tip:
Immigration officers closely review whether the actual business is “operating.” Submitting evidence such as bank statements, invoices, and employment contracts increases approval likelihood.

Which One Is Right for You?

In essence:

• The Startup Visa is for preparation.
• The Business Manager Visa is for operation.

Both can be part of a single, strategic pathway to launch and grow your business in Japan.

Conclusion

Japan’s visa system offers a progressive route for foreign entrepreneurs — from idea to execution. By understanding the legal distinctions under the Immigration Control Act and planning your transition carefully, you can avoid unnecessary rejections and build a compliant, sustainable business foundation.

At Tokyo Startup Law Firm, our International Business Desk supports clients through every step — from company incorporation and visa applications to post-establishment compliance and governance.

Contact Our International Business Desk for tailored guidance on choosing the right visa and establishing your business in Japan with confidence.

Related Links

• [What You Need to Know Before Applying for a Business Manager Visa in Japan]
• [Incorporating a Business in Japan: Legal and Strategic Guide for Foreign Companies]
• [Opening a Corporate Bank Account in Japan: What Foreign Companies Should Expect]
• [Do I Need a Physical Office to Register My Company in Japan?]