Key Takeaways

Japan's immigration rules for business visas have tightened, making advance planning crucial for foreign entrepreneurs in 2026.

• ¥30 million investment required: The minimum capital requirement for a Business Manager visa surged six-fold from ¥5M to ¥30M in late 2025, ensuring visa applicants have substantial financial commitment.

• Startup Visa extended: Japan's Startup Visa now offers up to 2 years of residency for preparation, doubling the time entrepreneurs can set up a business before meeting full requirements.

• Typical costs & support: Expect upfront costs for company registration, office rent, and hiring (at least one full-time employee is now mandatory). Government-backed startup programs in Tokyo and other regions provide mentorship and help navigate local procedures at low or no cost.

• Critical new requirements: Business Manager visa applicants must demonstrate 3+ years of management experience or a relevant Master's degree, and have a business plan vetted by a certified expert – significantly raising the bar to ensure only serious entrepreneurs qualify.

• 2026 trend: Japan is simultaneously cracking down on visa abuses and courting genuine startups. Stricter rules (affecting even renewals) aim to boost quality investments, while the nationwide Startup Visa program invites more foreign entrepreneurs under its five-year plan for 100 new unicorns.

Why Business Visas Matter in Japan for 2026

Japan has introduced sweeping changes to its business visa policies that take full effect in 2025–2026, reshaping the landscape for foreign entrepreneurs and remote workers. In October 2025, the government dramatically tightened the Business Manager visa criteria – raising the required investment from ¥5 million to ¥30 million and adding new conditions on hiring, experience, and business plan scrutiny. This marks a shift from earlier years: for example, in 2024 a modest capital requirement and a solo venture could suffice, whereas in 2026 Japan expects well-capitalized startups that create local jobs. The change was driven by concerns over abuse of the old rules and a political push to ensure entrants truly contribute to the economy.

At the same time, 2025 also saw the expansion of Japan's Startup Visa program nationwide. This program, part of a pro-innovation agenda, allows foreign founders to reside in Japan for up to 2 years without immediately meeting the heavy investment or hiring thresholds. It's a response to global competition for talent and the rise of remote work – Japan recognizes that attracting entrepreneurs and digital nomads can spur innovation and local growth. In contrast to the past (when startup visas were limited to select cities like Tokyo or Fukuoka), now nearly any region can host foreign entrepreneurs under this scheme. For 2026, this dual approach means the bar is higher to ultimately settle as a business owner, but the runway to get started is more accessible. Understanding these new rules and opportunities is vital now: whether you're a tech startup founder or a remote professional dreaming of Japan, you need to navigate the stricter requirements and leverage the support systems to succeed.

Japan's Startup Visa: A 2-Year Launchpad for Starting a Business in Japan

What it is

The Startup Visa (a form of "Designated Activities" status) is a special program that lets foreign entrepreneurs live in Japan while preparing to launch a business. Under a startup visa, you can reside in Japan for up to 1–2 years to work on your company setup. Crucially, you do not need to have an office, ¥30M capital requirement, or employees in place beforehand – those requirements are deferred during the startup period. The visa is typically granted for an initial 6 or 12 months (depending on the city's policy, e.g. Tokyo often issues 6-month or 1-year terms) and can be extended up to a total of 2 years based on progress.

Why it's important

This program is a lifesaver for entrepreneurs who can't instantly meet the hefty Business Manager visa criteria. It gives you time inside Japan to incorporate your company, secure funding, rent an office, and build traction without the pressure of fulfilling all conditions upfront. For example, instead of scrambling to raise ¥30M or hire staff from abroad, you can come on a startup visa, network locally, perhaps find investors or co-founders, and gradually satisfy the requirements. In 2025 the government unified and expanded the startup visa nationwide – no longer restricted to a few "special zones," any region with an approved program can host you. This means you can choose a location in Japan that best fits your industry or lifestyle (Tokyo for its investor network, or a regional city for lower costs and dedicated local support).

Key requirements

To obtain a startup visa, you generally need a solid business plan and local sponsorship. The process usually works as follows:

• Choose a host city – Select a municipality or prefecture that offers the Startup Visa program. As of 2025, dozens of local governments across Japan are certified to sponsor foreign entrepreneurs. Tokyo, for instance, runs the "Business Development Center Tokyo" which screens applicants, but even smaller cities now participate, broadening your options.

• Submit an "Entrepreneur Preparation Plan" – You'll write a business plan detailing your venture, market strategy, financial projections, and how you'll meet the visa requirements eventually (office, capital requirement, etc.). Many cities accept this in English, though having it in Japanese can help. The plan is reviewed by the local authorities with input from business experts, who must judge it feasible. If it meets the criteria (including aligning with any focus industries the city prioritizes), you receive a plan approval certificate.

• Apply to Immigration – Using the local government's certificate, you apply to the immigration bureau for a Startup Visa (officially a "Designated Activities (Foreign Entrepreneur)" status). If approved, you'll either get a Certificate of Eligibility (to obtain a visa abroad) or change your status if you're already in Japan.

Once you're on a startup visa in Japan, make the most of the support available. Local governments and organizations provide resources such as bilingual business concierges, free mentoring, networking events, and sometimes subsidies. Tokyo, for example, has a one-stop startup support center and even assigns advisors to guide foreign founders through incorporation, tax registration, and opening bank accounts. Take advantage of these services – they can introduce you to lawyers, banks, and potential partners. Also note the sectors of interest: many cities prioritize innovative industries (Tokyo explicitly welcomes finance, IT, environment/energy, healthcare, arts, food-tech, etc. under its startup visa). Aligning your business with local economic goals can improve your odds and support.

Real-world example

Imagine you're an entrepreneur from Europe with a plan to develop a fintech platform in Japan. Under old rules, you would have needed to invest ¥5M and rent an office before moving – a tall order. In 2026, you instead apply for a Startup Visa through Tokyo. The Tokyo government approves your fintech business plan and grants you a 1-year startup visa. You move to Japan, use co-working spaces initially, and spend the next months incorporating a KK (stock company), opening a business bank account, and pitching Japanese investors. By month 9, you raise enough funding to meet the ¥30 million yen capital requirement and hire a local customer support rep. You're now ready to transition to the full Business Manager visa to continue operating long-term.

Business Manager Visa: Managing a Business Long-Term in Japan

What it is

The Business Manager visa (経営・管理ビザ) is the standard work residence status for running a business in Japan as a founder or executive. This is the visa you'll ultimately need to stay in Japan beyond the startup period and actually operate your company indefinitely. It's typically granted in 1-year increments initially (sometimes 2 or more years for well-established cases), and it's renewable as long as you meet the conditions. Holding a Business Manager visa allows you to hire staff, generate revenue, and generally do all business activities needed to manage your enterprise in Japan legally.

2026 Requirements for Starting a Business in Japan

Japan now enforces much stricter criteria to obtain (or renew) a Business Manager visa than in the past. All of the following must be satisfied:

• Capital investment of at least ¥30,000,000 – You need to show that your company has ¥30M+ in paid-in capital or equivalent invested assets.

• At least one full-time local employee – You must hire at least one full-time staff in Japan from the start.

• Business office in Japan – You must secure a physical, dedicated office or shop space for your business.

• Management experience or relevant degree – Visa applicants must prove at least 3 years of management experience or a master's degree.

• Expert-reviewed business plan – A certified professional must review and verify your business plan.

• Robust documentation – You must present evidence for funding, hiring, office lease, credentials, and compliance.

Practical tip

Don't let the high ¥30M figure scare you off completely – it doesn't all have to be your cash.

Remote workers angle

Japan offers a separate Digital Nomad Visa introduced in 2024, but it is short-term and non-renewable.

Renewals and risks

These stricter requirements also apply when renewing your Business Manager visa after October 2025.

Best Practices for a Smooth Visa Journey

Underestimating the timeline

Setting up a company, raising ¥30M, and hiring staff can take 6–12 months or more.

Insufficient funding plan

Assuming ¥30M is arbitrary can lead to visa denial.

Not hiring or counting on the wrong staff

Only Japanese nationals or long-term residents count.

Poor documentation & compliance

Incomplete paperwork can delay or derail applications.

Language and cultural barriers

Lack of preparation can weaken your case.

Summary of Risks & Mitigations

Risk/Mistake	Impact if Unaddressed	How to Avoid/Mitigate
Rushing the setup	Visa denial or startup visa expiration before qualifying for Business Manager	Start early; use the full startup visa duration for preparation
Under-funding	Application rejected; or renewal refused	Line up funding sources in advance
No local hires	Visa not granted; lack of local insight	Hire at least one eligible local employee
Documentation errors	Delays or rejection	Provide thorough proof for every requirement
Ignoring renewals	Visa lapse	Continue building capital and team

Checklist: Steps to Secure Your Business Visa in Japan

• Evaluate Your Eligibility and Goals
• Choose a Location and Program
• Craft a Business Plan
• Secure Local Endorsement
• Apply for the Startup Visa
• Establish Your Business in Japan
• Meet the Visa Requirements During Startup Period
• Get Professional Verifications
• Apply for the Business Manager Visa
• Receive Visa Approval and Continue Operations
• Prepare for Renewal

FAQ: Common Questions on Business Visas in Japan

Q: Does Japan have a visa for digital nomads or remote workers?
A: Yes – Japan offers a Digital Nomad Visa, but it is limited to 6 months and non-renewable.

Q: How much money do I need to invest for a Business Manager visa in 2026?
A: At least ¥30 million in paid-in capital.

Q: Do I really have to hire a full-time Japanese employee?
A: Yes, at least one eligible local employee is mandatory.

Q: What happens after my Startup Visa?
A: You must transition to the Business Manager visa before expiration.

Q: I already have a Business Manager visa under the old rules – will I lose it?
A: You must meet new requirements at renewal.

Q: Is it easier to launch my business in Tokyo or a smaller city?
A: Tokyo offers stronger networks; smaller cities offer lower costs and incentives.

Q: Can my family join me if I get one of these visas?
A: Yes, dependents can join under a family visa.

Conclusion

The business visa landscape in Japan for 2026 presents both challenges and opportunities. While the bar for a long-term Business Manager visa is now significantly higher, the expanded Startup Visa program provides a vital bridge for entrepreneurs to build up to those requirements. By carefully leveraging the startup period, tapping into local support, and adhering to the new rules, foreign entrepreneurs and remote professionals can successfully establish themselves in Japan – gaining access to a dynamic market and a rich cultural experience as the ultimate reward for their preparation and perseverance.