Hello, this is Tsukuda Administrative Scrivener Office.
In this chapter, we’ll explain the key differences between the Startup Visa (Designated Activities) and the 4‑Month Business Manager Visa, diving into their systems, application practices, and real‑world challenges faced by foreign entrepreneurs in Japan.
✅ Updated Chapter 6: Startup Visa vs. 4-Month Business Manager Visa
— Understanding Practical Differences and Recent Policy Shifts —
1. Different Starting Points
The Startup Visa is a special framework supported by local governments to provide a grace period for foreign entrepreneurs to prepare for launching a business in Japan.
In contrast, the 4-month Business Manager Visa is issued based on the premise that all preparations for company establishment are already complete.
| Item | Startup Visa (Designated Activities) |
4-Month Visa (Business Manager) |
|---|---|---|
| 🔖 Status of Residence | Designated Activities | Business Manager |
| 🏛 Governing Authority | METI + Local Government Recommendation | Immigration Bureau (MOJ) |
| 🧭 Purpose | Preparation for company setup | Short-term stay for launching business |
| ⏱ Duration | 6 months (renewable), max 2 years | 4 months (no extension) |
| 🏢 Entry Before Incorporation | ✔ Possible with recommendation | ✔ Possible depending on conditions |
| 💰 Capital Requirement (*May be tightened by regulation in late 2025) |
Deferred during preparation | Substantially required |
| 🏠 Office Requirement | Co-working accepted (varies by municipality) | Preferably formal lease contract |
| 🔁 Next Step | Apply for Business Manager status after preparation | Apply for 1-year visa after incorporation |
| 📑 Recommendation Required? | ✔ Yes (from local government) | ✖ Not required |
| 🌐 Nationwide Availability | ✔ Yes (nationwide rollout from 2025) | ✔ Yes |
| 🧩 Best Suited For | Those in early preparation | Those already fully prepared |
2. The Biggest Practical Barrier: Preparing Before Entering Japan
To apply for a 4-month Business Manager Visa, the following documents are generally required:
- Office lease contract (physical office) *Some exceptions exist
- Proof of capital remittance
- Concrete business plan with forecasts
- Draft documents for incorporation (articles of incorporation, seal certificate, etc.)
However, preparing these from abroad is extremely difficult. Many applicants face the dilemma:
“I can’t enter Japan without a visa, but I can’t complete preparations without being in Japan.”
Even if granted, the 4-month visa provides very limited time to complete all preparations and apply for a 1-year visa — a tight and stressful schedule.
For those without reliable partners in Japan, the Startup Visa offers a more realistic path.
📌 Case Study: A Taiwanese Designer Planning a Studio in Tokyo
A Taiwanese national (A-san) wanted to launch a design studio in Tokyo.
Initially, she considered the 4-month visa but couldn’t proceed because she didn’t have:
- a lease agreement (required for the application),
- a Japanese bank account, or
- a registered company.
Instead, we recommended the Startup Visa. With a local government recommendation, she entered Japan without a lease in place.
She followed these steps:
- Visited properties and signed a formal office lease
- Remitted her capital to Japan and completed company registration
- Opened a business bank account
She then successfully applied for a Business Manager Visa and launched her design business.
*This case is a hypothetical example based on typical support scenarios handled by our firm.
3. Workarounds & Their Risks in Real Life
| Method | Risks & Realities |
|---|---|
| Tentative lease with foreigner-friendly landlords | May be possible, but lease approval is uncertain |
| Lease under Japanese partner’s name | Legal/ethical risk. Requires strong trust |
| Legal representative negotiates lease | Technically possible, but professional liability and ethics must be considered |
4. Why the Startup Visa Is More Reasonable
The Startup Visa is designed to allow entry before securing an office.
This makes the following steps possible after arrival:
- Obtain municipality recommendation
- Acquire Certificate of Eligibility (CoE)
- Enter Japan
- Secure office, open bank account, register company
- Apply for Business Manager Visa
5. Our Policy: Recommend Startup Visa First
Our firm recommends starting with the Startup Visa in most cases:
- Allows on-site preparation after arrival
- Reduces documentation risk and misalignment
- Full support from Startup to Business Manager status
- Ethically and legally sound
For those with no local partners, the Startup Visa is often the only realistic choice.
⚠️ Upcoming Regulation Change (as of August 2025)
The Japanese government plans to revise the visa requirements.
The current standard of “5 million yen in capital or 2 employees” may be replaced by:
- 30 million yen in capital
- 1 full-time Japanese employee
This regulatory update is expected to be enacted within 2025.
Summary
Choosing the right visa depends on your preparation stage and local support status.
Our office provides professional, realistic guidance based on real-world scenarios.
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