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“Zero-Cost” Two-Year Stay: Japan Relaxes Requirements for Foreign Entrepreneur Visas

To attract more overseas talent to start businesses in Japan, a revised startup preparation visa policy will be fully implemented starting January 1, 2025. Under the new policy, the permitted stay for foreign entrepreneurs will be extended to up to two years, even without capital investment or a leased office space. In other words, foreign investors will be able to obtain a business management visa in Japan for up to two years based solely on an approved business plan, without needing to secure office premises or invest any initial funds.

Maximum Stay of Two Years for Startup Visas

Under the current system, foreign nationals seeking a “Business/Management” visa to operate a business in Japan must typically meet two key requirements:Having a physical office space;Hiring at least two full-time employees or investing at least 5 million yen.

The new regulations will completely remove these constraints. As long as a business plan is approved, applicants can stay in Japan for up to two years, even if they do not yet meet the requirements for office space or capital investment. According to Japan’s Immigration Services Agency, around 6,300 business management visas were issued in 2023—2 to 3 times more than in the previous five years.

Nationwide Implementation and Relaxed Requirements for Capital and Office Space

Starting January 2025, Japan will expand the applicability of the startup visa to the entire country, allowing entrepreneurs to choose any region for their venture—be it Tokyo, Osaka, or more rural areas. The visa grants foreign entrepreneurs a grace period of up to two years to meet the eligibility criteria for permanent residency or long-term business visas.

This move aims to cultivate startups in high-tech and emerging industries while also promoting regional revitalization. Japan’s Ministry of Justice and Ministry of Economy, Trade and Industry will revise related regulations, with the changes taking effect on January 1, 2025.

In the early stages of a business, applicants will no longer be required to secure office space or capital upfront,

 enabling entrepreneurs to focus more on product development, market research, and other core activities. This significantly lowers the initial threshold for starting a business in Japan. Entrepreneurs are only expected to gradually meet the requirements of the business management visa over time.

Expanded Eligibility and Regional Focus to Attract Diverse Talent

The new visa isn’t just limited to first-time entrants. Foreign nationals already residing in Japan—such as international students or current work visa holders—can also apply, provided they have entrepreneurial ambitions. This expansion taps into a broader pool of potential entrepreneurs.

Local governments may set specific criteria based on their own industrial strategies and development goals. For instance, Fukuoka City prioritizes innovation-driven industries such as knowledge creation, healthcare and welfare, environmental energy, and logistics and trade. Entrepreneurs are encouraged to align their business projects with the regional industry focus to gain stronger local support and development opportunities.

For entrepreneurs with limited funds or those still in the early stages of business planning, this startup preparation visa offers a valuable buffer period, allowing them to gain a foothold and grow steadily within the Japanese market.

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