Articles:Japan Immigration Topics

[Blog]Startup visa and "Business Manager”

2024-10-26

According to a press release from Hyogo Prefecture (October 18, 2024, 10:00 a.m.), they accept and support foreign entrepreneurs with the 「Startup Visa」for the first time. There are multiple systems related to residence status for foreigners who want to start a business in Japan, so I would like to summarize them in this article.

Requirements for the residence status "Business Manager"

The status of residence "Business Manager" is a status of residence for executive managers or administrative managers of companies, etc.. In the "executive" category, it is expected to be the owner who has invested, and in the "administrative" category, it is expected to be chief executives in the large sized corporate or factory managers, etc. In principle, all of the following requirements must be met in order for "Business Manager" to be recognized.

• 1.Have an appropriate office available
• 2.There are two or more full-time foreigners who are Japanese or foreigners working under status-based residence status (spouse of Japanese, etc.), or the capital is 5 million yen or more.
• 3.If in the "Administrative" category, 3 years or more of work experience are required and the person must receive compensation equal to that of a Japanese person.
• 4.Business continuity and stability
• 5.Appropriate permissions have been obtained depending on the business.

As a category of "executive",the above requirements must be met by adding a business plan, etc., when a company has just been established or it is about to start the business.

System for foreign entrepreneurs

The predecessor of this status of residence, "Investment/Management," was only allowed for those who actually invested 5 million yen, but now investment requirements are no longer required. In addition to this, there is a national policy that expects foreigners to invest in Japan and develop demand. From this perspective, various measures have emerged in recent years to further ease requirements, and they have become somewhat more complex. I would like to explain the three main systems in an easy-to-understand manner.

Setting the period of stay for 4 months

In the past, foreigners who wanted to establish a company in Japan would enter the country with a "Temporary Visitor" status of residence, register as an alien, and then register the company's establishment using their place of residence.
However, when the Alien Registration Act was abolished in 2012 and a residence management system was introduced, residence cards were not issued and there was no basis for residence unless you were a medium- to long-term resident (staying for 3 months or more). It would result that foreigners would no longer be able to register the establishment of a company by themselves due to their status of residence. Therefore, as a countermeasure to this situation, a new period of stay for 4 months has been added to the "Business Manager" status of residence.
In other words, it is now possible to apply for a Certificate of Eligibility for Residence Status for the "Business Manager" (4 months) status of residence even without a certificate of registered information for the new company.

Startup Visa

There is a so-called "startup visa" as a national project to encourage foreigners to start businesses. The two are slightly different, with one led by the Cabinet Office and the other led by the Ministry of Economy, Trade and Industry.

National Strategic Special Zone Foreign Operation Activities Promotion Project (led by the Cabinet Office)

If foreigners submit a business plan to the local government in the National Strategic Special Zone, and a "Certificate of Confirmation" is issued after the local government's examination, this certificate can be attached when applying for a Certificate of Eligibility for the residence status "Business Manager:6month", instead of a certificate of registration.The press release from Hyogo Prefecture at the beginning refers to this system.

Foreign Entrepreneurial Activities Promotion Project (led by the Ministry of Economy, Trade and Industry)

If foreigners submit a business start-up preparation activity plan to a local government that has been certified by the Ministry of Economy, Trade and Industry, and once a "Certificate of Confirmation" is issued after being examined by the local government, this certificate can be attached when applying for a Certificate of Eligibility for the residence status "Designated Activities:6month", instead of a certificate of registration.

Notes on each system in the "Executive" category

As shown below, in either system, unless the requirements 1,2,4,5 at the beginning are met at some point, "Business Manager" activities cannot be continued.

-Setting the period of stay for 4 months

The period of stay cannot be extended unless the establishment of a new company is completed and requirements 1,2,4,5 are met within four months of entering Japan.

-National Strategic Special Zone Foreign Operation Activities Promotion Project (led by the Cabinet Office)

Extension of the period of stay will not be permitted unless the establishment of the new company is completed and requirements 2,4 and 5 are met within 6 months after entering the country.

-Foreign Entrepreneurial Activities Promotion Project (led by the Ministry of Economy, Trade and Industry)

Unless the establishment of a new company is completed within one year after entering Japan and requirements 1,2,4,5 are met, changing the status of residence from "Designated Activities" to "Business Manager" will not be permitted.

Summary

What must be kept in mind is that the above merely indicates that the path to start-up preparation activities is open, and that the continuity and stability of the business, which is the essence of the "Business Manager" requirements, will be strictly examined. It has become easier to just enter the country, but in terms of whether you can continue to stay with the status of residence of "Business Manager" for more than one year, it is no different from the normal "Business Manager" status.