Understanding the Designated Activities Visa via the Program to Promote Business Startup Activities by Foreign Nationals

For those who think about the Designated Activities visa as follows

Among those reading this article, some will be thinking along the lines of the above. This article is written to be useful to such people.

In particular, regarding the Designated Activities visa that makes use of the Program to Promote Business Startup Activities by Foreign Nationals, not much information can be found online, and government websites aren’t necessarily easy to understand.

There are similar systems as well, and there are various municipal programs, so it’s fair to say it’s easy to get confused. On top of that, the terminology used is difficult, long, and hard to follow. While you’re at it, you end up not knowing what’s what, and not even knowing whether there’s any advantage in it for you. It wouldn’t be surprising if you found yourself in that situation.

Furthermore, even if you do manage to get accurate information and understand it, there’s still the risk of failing over some small detail.
So, by reading this article, let’s get an accurate understanding of the Designated Activities visa that makes use of the Program to Promote Business Startup Activities by Foreign Nationals.

Once you read this article, you’ll be able to understand it smoothly. We’ll simplify the information as much as possible and break down the difficult terms. By the time you finish reading, your thoughts on what you should do going forward should be in order.

What you can learn about the Designated Activities visa from this article

In this article, you can learn the following points.

The essence of the Designated Activities visa

Even lining up the terms like this, it’s hard to see what the system is for and what kind of system it is. So, to give the essence first, this is a project that grants a certain visa in order to attract foreign entrepreneurs to Japan.

It’s a small thing, but it’s the name. “P r o g r a m t o P r o m o t e B u s i n e s s S t a r t u p A c t i v i t i e s b y F o r e i g n N a t i o n a l s”! It’s very long and hard to follow. However, if you break the words down one by one, it’s actually nothing much. To make it easier to understand from here on, let’s break it down briefly.

First, “Foreign Nationals.” Roughly speaking, this means it’s a project aimed at foreign nationals. Next, “Business Startup.” This isn’t difficult at all. It means newly starting a business.

Looking further, after the startup part comes “Activities.” Various preparations are needed in order to start a business — for example, renting an office, holding meetings with the parties involved, and so on. You can read it as expressing those activities as “activities.” That leaves “Promote… Program,” which is easy to grasp if you think of it as promotion. Stringing all of the above together, it comes to: “Promotion concerning activities aimed at starting a business. The target is foreign nationals.”

The purpose of the Program to Promote Business Startup Activities by Foreign Nationals

Why was such a project created? It’s because, by promoting startup preparation by foreign nationals aiming to start businesses in certain areas, the aim is to attract foreign entrepreneurs to Japan and, as a result, to strengthen the international competitiveness of Japanese industry and to form a hub for international economic activity.

Among those of you reading this article, we imagine there are people interested in starting a business in Japan. For those of you in that position, this Program to Promote Business Startup Activities by Foreign Nationals is something that will support you.

The advantages of the Designated Activities visa that makes use of the Program to Promote Business Startup Activities by Foreign Nationals

What many people wonder about is the advantages of the Designated Activities visa that makes use of the Program to Promote Business Startup Activities by Foreign Nationals. The name is somehow long and you don’t really get it, but is there an advantage in it for you or not? It’s very natural to want to check that point first. So below, we explain the advantages of this system.

(1) The hurdles of the Business Manager visa (the “Business Manager” residence status)

This may seem abrupt, but have you heard the term “Business Manager visa”? It’s the visa needed in order to run a business in Japan and the like. To obtain that Business Manager visa, there are hurdles like the following.

Clearing these requirements is by no means easy. However, if you’re going to start a business in Japan, then unless there’s another appropriate residence status, this Business Manager visa becomes necessary.

(2) A residence status for preparing to start a business

That being so, some people will think it would go more smoothly if they could handle the tasks needed to start the business while living in Japan. What makes that possible is this visa relating to the Program to Promote Business Startup Activities by Foreign Nationals. In short, the Designated Activities visa that makes use of the Program to Promote Business Startup Activities by Foreign Nationals is a special exception to the Business Manager visa, as covered in the essence of the Designated Activities visa above.

With it, entry and residence for up to two years is permitted.
The advantage is that by being granted the “Designated Activities” residence status, you can carry out various startup preparation activities.
Furthermore, as described later, if you have a “certificate confirming the business startup preparation activity plan” from a local government — one of the components within this system — it works in your favor for the certification of the “Business Manager” visa.

It’s not that having this certificate means you’ll definitely get the Business Manager visa, but the fact that it can raise your chances of obtaining the Business Manager visa even a little is also an advantage.

(3) The difference from an ordinary visa

What’s the difference between ordinary certification of a residence status and the case where you make use of the Program to Promote Business Startup Activities by Foreign Nationals?
Ordinary certification of a residence status is carried out by the Immigration Services Agency. In the case of the Program to Promote Business Startup Activities by Foreign Nationals, on the other hand, you need to receive confirmation not only from the Immigration Services Agency but also from a certain local government. We describe the system in detail later.

Who the Designated Activities visa under the Program to Promote Business Startup Activities by Foreign Nationals suits and doesn’t suit

(1) It isn’t a cure-all

Based on the above, let’s make clear who the Designated Activities visa under the Program to Promote Business Startup Activities by Foreign Nationals suits and who it doesn’t. In fact, the Designated Activities visa under the Program to Promote Business Startup Activities by Foreign Nationals is not suited to each and every foreign entrepreneur. That being so, what becomes of concern is whether this Designated Activities visa under the Program to Promote Business Startup Activities by Foreign Nationals is desirable for you or not. We sort that point out below.

(2) Those for whom the Designated Activities visa under the Program to Promote Business Startup Activities by Foreign Nationals is not suited

Those who already meet the requirements to receive certification for the “Business Manager visa” have no need to go out of their way to take a detour. In that case, it is recommended to receive certification for the Business Manager visa directly at Immigration without using this system.

(3) Those who might consider the Designated Activities visa under the Program to Promote Business Startup Activities by Foreign Nationals

Unlike (2), the cases where it seems worth considering the Designated Activities visa under the Program to Promote Business Startup Activities by Foreign Nationals are where you’re thinking of starting a business in an area covered by the Program to Promote Business Startup Activities by Foreign Nationals, and there’s a prospect of completing that preparation within two years.

It’s fair to say this is an area where the judgment differs from person to person. You’ll want to take the information in this article into account and judge based on your own situation.

An overview of the Program to Promote Business Startup Activities by Foreign Nationals

Have you been able to get a rough grasp of the Program to Promote Business Startup Activities by Foreign Nationals and the “Designated Activities” residence status based on it? Well then, next, let’s finally take a look at the system itself. It’s somewhat complex, but we’ll explain the system starting from the broad picture and moving to the more concrete.

(1) The government bodies involved

Three government bodies

One reason the system of the Program to Promote Business Startup Activities by Foreign Nationals seems complex is that there are multiple government bodies involved. Specifically, the following three.

These three work together, each doing their part, and ultimately the visa is granted. So, concretely, which body does what? We explain that point below.

Which body does what

First, local governments create and implement management/support programs aimed at foreign entrepreneurs and select the foreign nationals.
Second, the Ministry of Economy, Trade and Industry certifies the programs created by the local governments above.
Third, the Immigration Services Agency examines the visa (the “Designated Activities” residence status) and decides whether to approve or deny it.

(2) The flow up to ultimately obtaining a Business Manager visa

The program is structured with the three government bodies above plus the foreign entrepreneur all interrelating with one another, and a flow toward the ultimate goal of obtaining a Business Manager visa is laid out. Let’s trace that flow below.

The visa period

With the Designated Activities visa based on the Program to Promote Business Startup Activities by Foreign Nationals, how long you can stay in Japan is something you’ll be curious about. On this point, it is up to two years. However, it’s not that you get a two-year visa all at once; renewal is necessary. We explain below how that is reflected in the program above.

The flow of the management and support program

Broadly, as for what kinds of activities the “Designated Activities” residence status — the visa relating to the Program to Promote Business Startup Activities by Foreign Nationals — makes possible, they are activities for starting a business carried out under the management and support of a local government. As for the period, it is up to two years.

Below, from the perspective of the foreign entrepreneur, we’ll trace the flow of when to do what and how, based on data from the Cabinet Office and the City of Yokohama.

The concrete flow of procedures

First, as the foreign entrepreneur, you submit a plan to the local government. That is, you’re planning to obtain a visa and do business in Japan going forward, and you set out what that involves. Incidentally, that plan is called a “business startup preparation activity plan.”

Second is the local government. The local government checks the business startup preparation activity plan it has received and issues a certificate (a certificate confirming the business startup preparation activity plan). Once it does, submit your visa application documents, including that certificate, to the regional Immigration Services Bureau. Then you should be able to obtain the visa (the “Designated Activities (1 year)” residence status) from Immigration. However, as stated above for those for whom the Designated Activities visa under the Program to Promote Business Startup Activities by Foreign Nationals is not suited, the period of stay is six months. During that time, the foreign entrepreneur carries out startup preparation activities for six months under the management and support of the local government.

Third is renewal. The flow of procedures is similar to the above. Before the one-year period above expires, you need to receive confirmation of a business startup preparation activity plan (for renewal). Here, the local government checks whether there’s a prospect of meeting the requirements for what’s known as the Business Manager visa within one year of renewing the visa. Through that, the local government issues a certificate (for renewal). And the foreign entrepreneur then renews the “Designated Activities” residence status via the Immigration Services Agency. However, this renewal does not grant a one-year visa; it becomes a six-month visa. Before that six-month period expires, one final renewal is necessary through the same flow.

How to write a business startup preparation activity plan smoothly

(1) You need to prepare a business startup preparation activity plan

Up to here, we’ve looked at the content of the management and support program for the Program to Promote Business Startup Activities by Foreign Nationals.
Those who’ve read this far probably have something on their mind. There’s something that anyone interested in the Designated Activities visa relating to the Program to Promote Business Startup Activities by Foreign Nationals wonders about. It’s the “business startup preparation activity plan” mentioned above.

Some of you will have noticed that it seems you have to prepare and submit something like a plan document. According to the City of Yokohama, where that plan is found not to be sufficient, the “certificate confirming the business startup preparation activity plan” cannot be issued. This is an issue that can affect whether or not you get the visa, so it can’t be ignored.

That being so, what naturally becomes the question is exactly what you should write. On this point, it goes smoothly if you think about it from the perspective of what points the local government checks. We describe this in detail below.

(2) Key points for writing a business startup preparation activity plan

When preparing a business startup preparation activity plan, it’s a good idea to write it with the following points in mind. Here we refer to the example of the City of Yokohama, but similar descriptions may also be on the website of the municipality where you plan to submit. So you’ll want to read through that information too.

Summary

Reading this article has probably put your thoughts in order. Below, we summarize the key points.