The Immigration Services Agency plans to allow foreign entrepreneurs to stay in Japan for two years, even without setting up a business or making an investment.
In a newly planned move, the agency intends to give foreign nationals a preparatory period for starting a business if they possess certified business plans and meet other prerequisites, even without a physical business location or capital funds, VisaGuide.World reports.
The current regulations demand that foreigners establish a business location, employ at least two full-time workers, or invest five million yen ($33,000) to qualify for a business management residency.
Easing the location requirement could enable international students to initiate businesses while still attending university.
According to local media, certain Asian countries adopt a more lenient approach than Japan in welcoming foreign entrepreneurs. Thus, in South Korea, visa applicants are only obligated to meet some requirements but can choose from various options, such as patent ownership and educational background.
Meanwhile, Thailand offers a visa, an option that allows individuals with at least 600,000 baht ($16,600) in personal funds to stay for up to two years and bring their family members along.
Moreover, the Japanese government aims to amend residency regulations for foreign business owners as early as the upcoming fiscal year, commencing in April 2023. Two separate programs designed to promote entrepreneurship will be consolidated.
One of these programs, initiated in 2015, focuses on simplifying the process for foreigners to launch businesses in 13 designated special zones and has approved more than 380 individuals as of April. However, most of these individuals are located in major cities like Tokyo and Fukuoka, while smaller towns have encountered challenges in attracting foreign talent.
Data provided by the Immigration Services Agency revealed that as of the end of June of this year, the number of foreign nationals residing in Japan under a residence status that permits them to participate in business management reached about 35,000. Such data also show that his figure represents an increase of around 7,800 individuals compared to the year-end total in 2019.
Based on a report from the Organisation for Economic Co-operation and Development, Japan is ranked 21st out of 24 countries in terms of attractiveness as a destination for potential startup founders. This ranking is based on various factors, including the presence of multinational companies, tax policies, and the ease of acquiring nationality.
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