Japan’s Startup Visa Just Changed Dramatically — What Every Entrepreneur Must Know in 2026

I’ve been living in Japan for years now, building companies, supporting founders, and working inside the startup ecosystem — and I currently hold Permanent Residency here. As someone who regularly guides founders, investors, and global teams entering Japan, I need to stay ahead of every policy shift that affects how people build businesses in this country. And in late 2025, one of the most important changes in recent years quietly went into effect.

In October 2025, Japan increased the capital requirement for the Business Manager Visa from ¥5 million to ¥30 million, creating a major “waterfall effect” on the Startup Visa — the entry pathway many foreign founders rely on. Because the Startup Visa is meant to transition into the Business Manager Visa after 1–2 years, reviewers are now rejecting applications that don’t show a realistic plan for reaching the required ¥30M. Most founders still don’t realize how significant this shift is.

🔗 Official Invest Tokyo Startup Visa Page:https://www.investtokyo.metro.tokyo.lg.jp/en/oursupports/bdc-tokyo/startupvisa.html

If you’re planning to build a company in Japan — or support someone who is — it’s critical to understand what changed, why it changed, and what options foreign founders still have. This guide breaks it all down clearly, without the bureaucracy or confusion.

1. The Big Change: Japan’s Business Manager Visa Just Became Much Harder

Until recently, the Business Manager Visa required:

• 5 million yen in capital

• No strict language requirement

• No strict hiring requirement

In October 2025, the requirements increased dramatically:

• 30 million yen in capital

• At least one Japanese employee

• Stronger expectation of Japanese language capability inside the company

• Much stricter evaluation of business plans and viability

This matters because the Business Manager Visa is the mandatory next step after completing the Startup Visa period. It is the “end goal.”

And now the end goal is much higher.

2. Why This Change Directly Affects the Startup Visa

Many founders misunderstand the purpose of the Startup Visa.

It isn’t a standalone visa. It isn’t a free pass to test ideas in Japan.

Its entire purpose is to help you transition into the Business Manager Visa.

Previously, transitioning required 5 million yen — challenging, but achievable for many founders within 1–2 years.

Now, applicants must show a believable path to 30 million yen in the same timeframe.

This means Startup Visa reviewers now ask:

• Can this founder realistically raise 30M yen?

• Is the business model credible?

• Can they hire a Japanese employee?

• Do they have local support or understanding?

• Is there a clear execution plan?

If you cannot show a realistic path to 30 million yen, your Startup Visa will likely be rejected.

This is the reality foreign founders must now face.

3. What You Need for the Startup Visa in 2026

Official documents differ slightly by prefecture, but the core requirements are the same across Japan.

A. Founders must meet ONE of these criteria:

1. A bachelor’s degree or higher (ideally relevant to your business), or

2. At least one year of management experience in a related field

You don’t need both — but you must have one.

B. You must also show:

• A credible plan to reach 30 million yen in capital

• A plan to employ at least one Japanese national or PR holder

• A clear business model that matches Japanese market realities

• A timeline, financial roadmap, and execution plan

• That you understand the ecosystem of the city where you apply

And one more truth:

You or your company must have Japanese-language capability.

Japan will not approve a founder who plans to operate entirely in English, with no local support.

This is not about discrimination — it’s about operational practicality. Customers, banks, suppliers, landlords, and authorities operate in Japanese.

Reviewers want to see that your company can function in Japan.

4. The Japanese-Language and Hiring Reality

The system now expects:

• A Japanese employee or

• A PR holder who can operate in Japanese or

• A founding team member with strong Japanese proficiency

If not, your plan will be considered unrealistic.

Some founders may even need to hire multiple people to meet the language and operational requirements.

This is one of the biggest hidden barriers for Startup Visa applicants.

5. The Geographical Reality: Prefectures Want You Locally

Technically, the Startup Visa allows global applicants.

In practice:

• Tokyo wants you to operate in Tokyo

• Fukuoka wants you to operate in Fukuoka

• Kyoto, Nagoya, Kobe, Osaka — same expectation

Even though the national government says you can apply from abroad, local ecosystems only support founders who actually build businesses in their cities.

This matters when designing your business plan, office location, and local network.

6. So… Is the Startup Visa Still a Good Entry Path?

It depends.

If you have:

• A clear plan

• Industry experience

• An early team

• Some capital or investors

• A pathway to 30M yen

• Local advisors or partners

• A Japanese co-founder or employee

Then yes — the Startup Visa can still work.

But for most first-time founders without connections, capital, or Japanese capability, the Startup Visa is no longer the easiest option.

Which brings us to the smarter alternatives.

7. Better Alternatives for Foreign Founders Entering Japan in 2026

Option 1: Find a Japanese Co-Founder

This dramatically increases your chances of approval.They bring:

• Language fluency

• Local trust

• Institutional familiarity

• Business practicality

Japan rewards teams that combine global ambition with local capability.

Option 2: Come as a Student, Then Transition

This “visa hack” gives you time to:

• Learn Japanese

• Build your network

• Understand the market

• Develop traction

• Work toward PR

Many long-term entrepreneurs take this path.

Option 3: Work in Japan First

Start on:

• A professional visa

• An engineering visa

• A specialist visa

Then build your path to PR, and launch a startup from a stable position.

8. A Smarter Approach: Validate Before You Move

A more practical path forward is to validate your idea before entering Japan, and programs like Founder Institute Japan can help. FI Japan gives foreign founders a structured way to test their ideas, build early traction, understand the local ecosystem, and start forming relationships with mentors, founders, and professionals who are active in Japan. Many participants also meet potential collaborators or even future co-founders through the community — something that can significantly strengthen a Startup Visa application later. While FI Japan doesn’t handle visas or legal processes directly, it connects you with the right people and prepares you far better than arriving in Japan unprepared.

In the last three years, Founder Institute Japan has run 4 cohorts, hosted 100+ events, attracted 5,000+ attendees, engaged 250+ mentors, and created 60 startup portfolios under Erdinç Ekinci 🙋‍♂️ and my leaderships. We’ve just kicked off our 5th cohort with 32 founders from 12 countries, helping founders become VC-backable global startups. 👉 https://fi.co | https://fi.co/japan

9. Final Thoughts: Japan Is Still Open — But No Longer Easy

Japan remains one of the most exciting markets in the world:

• Stable

• Safe

• Massive economy

• Global trust

• High purchasing power

• Deep tech and manufacturing heritage

• And a growing appetite for innovation

But the 2026 Startup Visa environment rewards founders who are:

• Prepared

• Validated

• Connected

• Realistic

• And locally embedded

If you want to build in Japan, start now. Do the homework. Build credibility before you land.And enter the ecosystem with a foundation, not a dream.

Japan isn’t closed — it’s just asking founders to arrive ready.