Report
The Rise of Startup Visas in Japan

Over 28 countries, including Japan, have begun implementing “Startup Visas” to cultivate entrepreneurship and local ecosystems powered by global innovators. The system grants visas to foreign entrepreneurs, aiming to boost national industrial competitiveness by attracting top talent.

A 2022 U.S. Policy Foundation study revealed that immigrants founded 55% of U.S.-based unicorns (privately held companies valued at over $1 billion and less than 10 years old). Moreover, immigrants held 80% of key positions in these companies. ¹ Even Jensen Huang, founder and CEO of Nvidia, immigrated to the U.S. as a child.²

Recognizing this trend, the Japanese government's 2022 "Startup Development Five-Year Plan"(424KB) set an ambitious goal: creating 100 unicorn companies. The Startup Visa policy is crucial to achieving this by attracting global talent.

Japan has introduced two main Startup Visa policies:

As of May 2024, more than 716 individuals have been granted residence status through the 'Startup Visa' program. Of these, at least 359 have successfully transitioned to or renewed their 'Business Manager' status, indicating they have successfully launched their businesses in Japan. The initiative now involves 26 local governments across Japan and is expanding. In October 2023, the program broadened to include private sector entities like venture capital firms and startup accelerators in the visa issuance review process.

For foreign entrepreneurs, the first challenge after obtaining a Startup Visa is establishing a living and business foundation in Japan. Despite limited English information, some local governments are effectively utilizing the system by providing dedicated support staff. These support organizations play a vital role in connecting entrepreneurs with business stakeholders, professional experts, banks, and real estate agents. This network helps newcomers integrate into the local business ecosystem.

Victor Gram Thomsen, a visa holder in Hokkaido, shared, "I feel at home in Hokkaido, and I'm thrilled to witness the growing ecosystem." This sentiment underscores how the Startup Visa program, backed by strong support organizations, is becoming a gateway to Japan's startup ecosystem.
However, challenges remain. Some entrepreneurs struggled with misinformation due to limited English resources. There's a clear need for comprehensive, reliable information about each local government's activities and support services.
Please see the current available support from the links below.

While Japan's “Startup Visa” has shown significant promise, it has also faced some challenges. Recent policy changes demonstrate the government's commitment to continually improving the system.

These improvements demonstrate Japan's commitment to creating a more conducive environment for foreign entrepreneurs. They acknowledge the unique growth patterns of startups, particularly those in innovative sectors that may prioritize rapid expansion over immediate profitability.

Nine years since its inception, Japan's Startup Visa program has successfully attracted foreign talent to many regions. However, to truly strengthen Japan's global competitiveness through innovation, broader involvement of ecosystem players is crucial.

Diversity is key to innovation, as numerous studies have shown. Building diverse teams that include foreign entrepreneurs could be the fastest route to creating globally competitive businesses. The future evolution of Japan's Startup Visa system will be a space to watch closely.