Introduction
For foreign nationals aiming to start a business in Japan, obtaining a residence status is the first hurdle. The Specific Activity Visa, commonly known as the “Startup Visa,” is a groundbreaking system that allows for a preparatory period before opening a business. This article focuses on the minimum capital requirements and the feasibility of pre-opening applications, providing practical advice from an administrative scrivener’s perspective.
Basic Requirements for Specific Activity Visas (Foreign Entrepreneurs)
Special Measures for Capital Requirements
Typically, the “Management/Operations” visa requires an investment of at least 5 million yen. However, the Specific Activity Visa waives the capital requirement. This special measure reduces financial burdens during the startup preparation phase.
Comparison Points: Specific Activity Visa vs. Management/Operations Visa
| Criteria | Specific Activity Visa | Management/Operations Visa |
|---|---|---|
| Minimum Capital | Not required | At least 5 million yen |
| Office Requirement | Not necessary | Mandatory |
| Employee Requirement | No requirement | At least 2 employees |
| Residence Period | Up to 2 years | 5 years, 3 years, or 1 year |
Key Points for Alternative Requirements
In place of the capital requirement, one of the following must be fulfilled:
- Certification of Business Plan by a Designated Municipality
- Participation in a Startup Support Program
- Investment Record from a Seed Accelerator
Specific Procedures for Pre-Opening Applications
Three-Stage Screening Process
- Municipal Screening: Submit a business plan to one of the 14 designated municipalities (e.g., Fukuoka City, Osaka City).
- Ministry of Economy, Trade and Industry Certification: Evaluate the suitability of the management support plan.
- Immigration Bureau Screening: Determine the eligibility for the Specific Activity residence status.
List of Required Documents
- Business Preparation Activity Plan (in Japanese or English)
- Confirmation Certificate Issued by the Municipality
- Funding Plan
- Past Business Performance Records (optional)
- Passport
Note: As of the 2023 legal revision, online applications are possible (requiring an electronic certificate).
Frequently Asked Questions
Q. Can I start a business with zero capital?
→ It is possible during the Specific Activity period, but proof of funds exceeding 5 million yen is required when changing to a Management/Operations visa. A staged funding plan is crucial.
Q. Is family accompaniment possible?
→ Only spouses and minor children can apply for a “Family Stay” visa, but an income certificate is required.
Q. How long does the screening process take?
→ Municipal screening: 2-4 weeks, Immigration Bureau screening: 1-3 months. Simultaneous applications to multiple municipalities are not allowed.
Conclusion
The Specific Activity Visa is the only system that allows starting business preparations with zero capital. However, municipal certification and a detailed business plan are key to success. With the legal revision in 2024 extending the residence period to up to two years, more practical preparations are now possible.
Advice from an Administrative Scrivener:
- Maximize the Use of Designated Municipality Support Programs
- Ensure Progress Reports Every Six Months
- Plan Funding Early with Visa Changes in Mind
Details of the system are updated regularly on the Ministry of Economy, Trade and Industry’s dedicated Startup Visa page. Be sure to check for the latest information.
