Japan recently announced significant updates to its immigration policies, including changes in visa application fees and the extension of the startup visa duration under the designated activities category. These changes, effective from April 1, 2025, aim to position Japan as a global hub for innovation and entrepreneurship. The revised rules reflect the government’s proactive approach to attracting global talent, fostering a thriving startup ecosystem, and addressing its labor market challenges.
Revised Visa Application Fees
One of the key changes involves increased visa application fees, applicable to both physical and online filings. The updated costs reflect an effort to streamline administrative processes while accommodating technological advancements. Here are the revised fees:
Change of Status/Extension of Period of Stay
- Physical filing: ¥6,000 (approximately Rs 3,300), up from ¥4,000 (Rs 2,200).
- Online filing: ¥5,500 (approximately Rs 3,024), previously ¥4,000 (Rs 2,200).
Permanent Residency
- Revised to ¥10,000 (approximately Rs 5,500) from ¥8,000 (Rs 3,400) for both filing methods.
Multiple Re-Entry Permit
- Increased to ¥7,000 (Rs 3,850) for physical filing and ¥6,500 (Rs 3,574) online, compared to the earlier ¥6,000 (Rs 3,300).
Certificate of Authorised Employment (CAE)
- Updated to ¥2,000 (Rs 1,100) for physical filing and ¥1,600 (Rs 880) for online filing, up from ¥1,200 (Rs 660).
These annual adjustments, implemented on April 1, aim to balance administrative costs with efficient visa processing. Fee waivers remain in place for certain nationalities, and multiple-entry visas continue to be limited to countries with reciprocal agreements.
Extension of the Startup Visa Duration
Perhaps the most transformative aspect of the reforms is the extension of the startup visa’s duration. Previously limited to six months, with a single renewal permitted, the total allowed period has now been doubled to two years. This change provides foreign entrepreneurs with more time to establish their ventures and navigate Japan’s business landscape.
Nationwide Availability
Starting in January 2025, the program will be expanded nationwide, removing regional restrictions that previously confined the visa to cities like Tokyo and Fukuoka. Entrepreneurs can now establish businesses across Japan, creating opportunities for innovation in less urbanized areas.
Key Features of the Startup Visa
- Duration: Entrepreneurs can now stay for two years, compared to the previous six-month limit.
- Requirements: Applicants must submit a detailed business plan and secure endorsement from a participating municipality. Immediate investment in office space or capital is not mandatory, reducing initial financial burdens.
- Pathway to Business Manager Visa: The startup visa serves as a stepping stone to the Business Manager Visa, which requires meeting criteria such as investing ¥5 million (approximately Rs 32.8 lakh) or hiring two full-time employees.
These revisions align with Japan’s broader objective of fostering a startup-friendly environment and positioning itself as a hub for advanced industries.
Opportunities for Entrepreneurs
The revamped startup visa eliminates traditional barriers to entry, creating a more welcoming ecosystem for global entrepreneurs. Key benefits include:
Reduced Initial Costs
Entrepreneurs can allocate resources toward business growth instead of upfront costs such as securing office space or immediate investments. This flexibility is particularly advantageous for startups in their early stages.
Simplified Banking Access
New guidelines from Japan’s Financial Services Agency allow entrepreneurs to open bank accounts with less than six months of residency, addressing a significant challenge for foreign businesses in Japan.
Focus on High-Tech Industries
The government’s emphasis on deep tech industries—such as artificial intelligence, biotechnology, and healthcare—creates opportunities for startups to collaborate with academic institutions and tap into Japan’s innovation-driven policies. Initiatives like the Global Startup Campus, set to launch in Tokyo after 2028, aim to strengthen these collaborations.
Challenges in Attracting Indian Talent
While the reforms are designed to attract global talent, India’s representation in Japan remains low. As of April 2024, the Ministry of Justice reported 46,262 Indian nationals living in Japan, primarily employed in IT and creative industries in urban centers like Tokyo. Despite this, several factors deter Indians from pursuing opportunities in Japan:
- Language Barriers: Limited proficiency in Japanese remains a significant challenge for Indian workers and students.
- Comparatively Low Salaries: Japan’s wages for skilled workers often lag behind those in other preferred destinations like the United States or Europe.
- Limited Use of Technical Intern Programs: In 2023, only 434 Indian nationals participated as technical interns, compared to over 170,000 Vietnamese and 40,000 Indonesians.
Specified Skilled Worker Program
The Specified Skilled Worker (SSW) program, introduced to address labor shortages, has seen minimal participation from Indians. In 2023, only 120 Indians held SSW visas, a stark contrast to participation rates from other Southeast Asian countries. Addressing these disparities requires targeted efforts to make Japan a more appealing destination for Indian professionals.
The Role of the Indian Community
India’s ambassador to Japan, Sibi George, has expressed optimism about increasing Indian participation in Japan’s workforce. At a 2023 event at the Indian Embassy, he highlighted opportunities for collaboration, particularly in IT and technology sectors.
To bridge the gap, initiatives like language training, competitive salaries, and targeted outreach programs can play a pivotal role in attracting Indian talent. Additionally, leveraging existing partnerships between Indian and Japanese businesses could open new avenues for collaboration.
Japan’s Vision for a Global Workforce
Japan’s aging population and declining birthrate have created an urgent need for skilled foreign workers. The latest immigration reforms are part of a broader strategy to attract talent, drive innovation, and address labor market challenges. Key initiatives include:
- Startup Visa Expansion: Creating a pathway for global entrepreneurs to establish and grow businesses in Japan.
- Focus on Advanced Industries: Encouraging innovation in AI, biotechnology, and other high-tech fields.
- Global Collaboration: Launching programs like the Global Startup Campus to foster partnerships between startups and academia.
These measures reflect Japan’s commitment to becoming a global hub for innovation and entrepreneurship.
Conclusion
Japan’s revised immigration policies mark a significant step toward attracting global talent and fostering innovation. The increased visa application fees, extended startup visa duration, and nationwide availability of the program create a more welcoming environment for entrepreneurs. By addressing traditional barriers, such as initial investment requirements and banking access, Japan has positioned itself as a competitive destination for startups.
However, challenges remain, particularly in attracting talent from countries like India. Addressing language barriers, improving salary competitiveness, and promoting the Specified Skilled Worker program will be crucial to achieving these goals. With its focus on advanced industries and global collaboration, Japan is poised to become a leading destination for innovation and entrepreneurship in the coming years.