The Japan Startup Visa, and the Conversion Cliff at the End

What happens when the Startup Visa ends?

Up to two years on a Designated Activities status, granted on the recommendation of an approved municipality or one private organisation, with no fixed capital requirement. At the end you must convert to Business Manager, which since October 2025 means JPY 30,000,000 of capital, a full-time Japanese or permanent resident employee, and Japanese at roughly B2. The two years are a runway, not a route.

How the approval works

Each municipality sets its own conditions: a business plan, a funding runway, residency in the area, sometimes a minimum investment and a reporting schedule. Around twenty municipalities and a few private organisations operate the scheme. Approval in one city does not transfer to another, so the choice of city is part of the application rather than an afterthought.

The status is granted in six month or one year increments inside the two year window, renewed while the plan is on track. It replaces the Business Manager criteria during preparation, which is the whole point: you do not need the JPY 30,000,000 before you start, you need a credible plan to reach it.

The cliff

At the end of the window, the ordinary criteria apply in full. On the current numbers that means:

JPY 30,000,000 in capital or total investment
one full-time employee who is a Japanese national, a permanent resident or a long-term resident
three years of management experience or a relevant master’s degree
Japanese at roughly B2, held by you or by that employee
a real office, not a home address
a plan reviewed by a licensed consultant, accountant or tax accountant

A founder who raised JPY 10,000,000, hired nobody and worked from a rented desk cannot convert. The failure is not a formality: the status ends and there is no residence credit for the two years, because the preparation period is not a work status.

The dependant problem

Dependants are generally allowed only after conversion, and practice varies by municipality. A founder who brings a family on the assumption that the Startup Visa covers them can find that it does not, and that the spouse has no status to fall back on. Ask the municipality in writing before moving anyone.

Municipalities have become more selective

Since October 2025 a plan that cannot convert is a failure for the city as well as for the founder, because the city recommended it. Approvals have tightened accordingly, and some municipalities now ask for evidence of capital raising progress at each renewal rather than a narrative.

A confirmation issued before 16 October 2025 may still be assessed under the old criteria at conversion. A confirmation issued after that date will not.

Who should use it

A founder with a credible plan, real runway, and a specific answer to how they reach JPY 30,000,000 and a Japanese hire within two years. Someone who needs time to lease premises, recruit and raise, and who can afford the risk of leaving if the plan fails.

Who should not

Anyone who needs certainty, anyone who cannot describe the path to the capital threshold, and anyone whose plan depends on staying in Japan regardless of the business outcome. The status is a bet with a fixed deadline, and it is priced accordingly.

Watchpoints

Two years is the maximum, not a guarantee. Renewals inside the window depend on progress.
The preparation years do not count toward permanent residence. The clock starts on conversion.
The criteria at conversion are the 2025 Business Manager rules, including the Japanese hire and B2 cover.
Dependants usually arrive after conversion. Confirm with the municipality before relocating a family.
Approval does not transfer between cities. A move can mean a new application.
A pre-October 2025 confirmation is treated differently. Check the date on the document.

Sources

Ministry of Economy, Trade and Industry, Startup Visa programme, checked 2026-10-23
Immigration Services Agency, Designated Activities (Business Startup Preparation), checked 2026-10-23
Immigration Services Agency, Business Manager landing criteria, revised 16 October 2025, checked 2026-10-23