Japan: Immigration Policy Guide for Businesses, Investors and Entrepreneurs

In Japan, immigration policy is cautiously evolving. Here’s what businesses, investors and entrepreneurs need to know to operate in the world’s fifth-largest economy. 

23 June 2025 | By Alex Schulte

Japan is changing to attract more skilled workers. The pace of change is slow, but the picture is undeniable. 

Over the past decade, increased immigration has led to its population of foreign residents more than doubling. And yet, Japan still grapples with the same hard demographic truths that are common in developed countries: too few births, too many retirees, and not enough workers to power the world’s fifth-largest economy.

Immigration, once a political taboo, is now a necessity for the Japanese economy. But unlike its OECD peers, Japan hasn’t thrown open its doors. It has simply tinkered with the gateway. 

This guide breaks down how Japan’s immigration policy looks in 2025, what’s new, what still doesn’t work, and what it all means for foreign businesses, investors, and entrepreneurs.

A Quiet Revolution: Japan’s Shift on Immigration

After World War II, Japan was famously insular. Under the Immigration Control Act of 1954, anyone without Japanese blood was classed as an “alien.” Only ethnic Koreans and Taiwanese were allowed in. Immigration from outside East Asia was virtually non-existent.

But the numbers told a different story. By the early 1990s, birth rates had plummeted, the labour pool was shrinking, and the workforce was ageing fast. In 2024 alone, 720,988 people were born but 1,618,684 million died. Nearly a third of Japan’s population is now over 65, highlighting the shrinking working age population.

Faced with these pressures, Japan didn’t liberalise in a big bang. It adapted its policies to accommodate migrant workers, slowly and strategically.

Instead of mass immigration, Japan built a selective, multi-tiered system, targeting students, specialists, and entrepreneurs. Three major tools emerged: the Highly Skilled Professional (HSP) visa in 2012, and the closely linked Business Manager Visa and the Startup Visa. All were designed to attract foreign talent and investment, but on Japan’s terms.

The Startup Visa, in particular, was a turning point. It standardised fragmented local initiatives and turned a bureaucratic mess into a national programme. The aim? Boost Japan’s underwhelming startup creation rate, which lags behind other OECD countries. 

Japan Immigration Policy in 2025: What You Need to Know

Japan’s system today is still selective, still cautious, but more open than many realise.

It’s a paradox: Japan is one of the least immigrant-friendly OECD countries in terms of numbers, yet it has no quotas, no labour market test, and relatively low salary thresholds. It’s a demand-driven system. If a business wants to hire a foreign worker, it just needs a job offer and a contract.

What’s changing in 2025?

• Job mobility is improving. It’s now easier for foreign workers to switch employers.
• Permanent residency pathways have been streamlined, particularly for investors and HSP visa holders.
• Compliance enforcement is tightening. Immigration authorities are taking a hard line on enforcement, with higher penalties and stricter monitoring.

At the same time, Japan is doubling down on priority sectors: AI, biotech, medtech, and other high-growth industries. The message is clear: Japan wants innovation. But it wants it under control.

Visas for Businesses, Investors, and Entrepreneurs

There are three main routes into Japan for foreign business professionals:

• Startup Visa
• Business Manager Visa
• Highly Skilled Professional (HSP) Visa

Each suits a different stage of business maturity, from initial ideas to fully operational companies. Understanding their nuances is key.

The Startup Visa

Japan’s Startup Visa (外国人起業活動促進事業) is designed to help new founders get a foothold. Consider it a test-drive for the Business Manager Visa. It offers up to two years of temporary residency, issued in six-month chunks. It’s generous by Japan’s standards but there’s a fair bit of bureaucracy to navigate.

What’s required:

• A detailed business plan covering everything from market research to financials.
• Your venture should ideally align with one of Japan’s priority sectors (think robotics, biotech, or AI).
• Proof of self-sufficiency: enough funds to support yourself while launching.
• Endorsement from a participating local government.
• Monthly check-ins with officials.

Family support: This varies by municipality, with some offering more comprehensive support than others.

Why it matters: This visa gives you breathing space before you apply for the more demanding Business Manager Visa. 

The Business Manager Visa

The Business Manager Visa (経営・管理ビザ) is for those serious about operating in Japan. It’s the country’s core work visa for entrepreneurs, and it offers multi-year residency if you meet the criteria.

Two entry points: Start your own company or acquire one that already exists.

Key requirements:

• Dedicated office space: Coworking desks or home offices don’t cut it. Immigration may inspect.
• Business plan: Thorough, realistic, and investor-ready.
• Capital investment: At least ¥5 million (~USD 30,000–45,000), with evidence of where the funds came from.
• Hiring: No capital? Then you’ll need two full-time employees (Japanese citizens or permanent residents).
• Experience: If capital is tight, three years of proven management experience can help.

Visa length: Typically starts at one year. Can be extended to five, based on your track record.

Family eligibility: Spouses and children can join you.

The Highly Skilled Professional (HSP) Visa

The HSP visa is Japan’s premium option for top talent, offering fast-track permanent residency and broader family support.

Points system: You’ll need 70 points or more, with scores based on:

• Academic credentials (extra for elite universities)
• Career history
• Salary (starting from ¥3 million, with fast-track options above ¥40 million)
• Japanese language proficiency

J-Find graduates: If you graduated from a globally ranked university in the last five years and have ¥200,000 to support yourself, you can stay for up to two years to job hunt or launch a company. Spouses and children can join.

Visa duration: Up to five years, with the option for permanent residency after three.

Family support: Expansive, including spouse, children, parents, and even domestic staff.

Business Visitors: Keep It Brief

For short trips like negotiations, meetings, and conferences, the Temporary Visitor Visa is the right fit.

• Valid for up to 90 days
• Not suitable for paid work
• Can’t be converted into a long-term visa

You’ll need proof of financial means and a return ticket.

2025 Visa Fee Updates: More Yen, Please

From 2025, Japan’s immigration fees are going up. Here’s how the new costs break down:

Japan’s Retention Problem

Japan excels at attracting global talent, but struggles to retain them. Despite the generous visa options, friction remains for foreign residents, particularly with the red tape involved. As venture partner at Antler, Jordan Fisher, called it, it’s “Death by a thousand cuts.” 

Common pain points:

• Startup Visa churn: Six-month renewals make life unstable. Since 2018, fewer than 1,000 people have used the visa.
• Proof of success: Business Manager Visa holders must demonstrate progress within two years, which is unrealistic for many new startups.
• Housing discrimination: Foreign nationals, especially those on temporary visas, often struggle to rent or buy. 
• Banking barriers: Many banks won’t open accounts without long-term residency.
• Office space red tape: Securing an address usually requires a Japanese guarantor.

2025 Policy Trends: What’s on the Horizon

Japan’s immigration policy is walking a fine line – welcoming innovation while doubling down on oversight. Here’s what’s changing or under review:

1. Higher capital requirements: The current ¥5 million minimum is under scrutiny. By comparison, South Korea requires six times that. Some think it’s being abused by bad actors. Expect possible revisions.
2. Stricter enforcement on compliance: From June 2027, long-term residents who haven’t paid taxes or social security could lose their visas. Announced in January 2025, the crackdown is already changing behaviour.
3. Improved banking access: Japan’s Financial Services Agency has urged banks to relax residency rules, so Startup Visa holders can finally open accounts, even without six months on the ground.
4. Electronic travel authorisation (eTA): Expected by 2028, the new eTA system will simplify entry for short-term visitors.

The Certificate of Eligibility (CoE)

Before you get your visa, you’ll need a CoE. It’s valid for three months and issued by Japan’s Immigration Services Agency.

What to do:

1. Incorporate your company.
2. Submit your CoE application.

Processing time: Usually 1–3 months.

Documents required:

• Passport photo
• Application form
• Return envelope (registered mail)
• Proof of office lease
• Proof of capital (e.g. bankbook)
• Articles of Incorporation
• Shareholder registry
• Business plan and contracts
• Personal CV and work history
• Tax and financial records
• Passport copy
• Accommodation details

Once approved, bring your CoE to the nearest Japanese embassy or consulate to apply for your visa.

Setting Up a Business in Japan

If you’re heading down the Business Manager Visa route, you’ll need to incorporate first. Here’s a simplified guide:

Choose a structure:

• Kabushiki Kaisha (KK): Similar to a joint-stock company, often seen as more reputable.
• Godo Kaisha (GK): Japan’s version of an LLC. Flexible, with less red tape.
• Representative Office: No income-generating activity allowed.

Reserve a company name with the Legal Affairs Bureau. 

Prepare documentation: Articles of Incorporation, bank certification of capital deposit, registered seal, office lease. 

Register your company: Submit paperwork to the Legal Affairs Bureau (takes about two weeks). 

Final steps: Open a bank account, register for taxes, and enrol in social insurance schemes.

Immigration Compliance in Japan

If you’re sponsoring foreign talent or setting up shop in Japan, prepare for paperwork. Lots of it. 

Sponsorship Obligations

Here’s what’s required of employers:

• Certificate of Eligibility (CoE): This is step one. You’ll need to submit business registration documents, financial statements, and employment contracts.
• Work eligibility checks: Employers must verify all workers’ legal status using passports and residence cards. This includes Japanese nationals. “I didn’t know” won’t protect you.
• Proof of financial capacity: Authorities can reject visa applications if they doubt your ability to fund the role.

Mandatory Reporting

Since 2007, employers have had to notify the Japanese government of all foreign hires and terminations.

• Hiring reports: Due by the 10th of the month after onboarding.
• Resignation reports: Due within 10 days of departure.
• Job changes: Must be reported within 14 days.

All reports go through the Hello Work (ハローワーク) system, the nerve centre of labour market oversight.

Financial Penalties

Japan is ramping up enforcement. Here’s what’s at stake in 2025:

• Hiring undocumented workers → up to 5 years in prison or ¥5 million in fines
• Failing to report changes → ¥200,000–¥300,000 fines
• Overstaying visas → up to 3 years’ imprisonment or ¥3 million fine

Even unintentional violations carry weight. Employers are liable even if they didn’t realise the worker’s status was invalid.

Compliance Checklist

✅ Is a change in visa status actually needed?

Not every job change means you need a new visa, but some definitely do. If your work fundamentally shifts (say, from English teacher to artist), your current status of residence no longer fits. You’ll need to apply for a change before you switch roles.

✅ Timing is everything.

Apply to renew a visa three months before it expires. Don’t wait. And don’t rush to renew just after changing jobs. Immigration officials may flag a “no work record” and that can stall or sink your application.

✅ Running out of time? Don’t panic.

Once you’ve submitted your renewal, your visa is automatically extended by two months during processing. No need to fret if the old one technically lapses.

✅ Bring in the experts.

Immigration law in Japan is a moving target. Rules change, and many decisions are left to the discretion of individual immigration officers. Work with legal advisors who know the system, ideally ones who’ve built strong ties with the Immigration Bureau.

Permanent Residency in Japan: Faster Paths in 2025

The standard wait for permanent resident status is 10 years. But you can cut that down:

• Investment route: Large-scale investors (typically ¥100 million or more) may qualify after just 3 years.
• Highly Skilled Professional visa:
  • 70+ points → Permanent residency in 3 years
  • 80+ points → Just 1 year

Common Immigration Pitfalls for Foreign Businesses

Even seasoned professionals can stumble. Watch out for these:

• Undercapitalisation: Applications with less than ¥5 million in startup capital often get flagged.
• Wrong visa category: Working on the wrong visa is a fast track to rejection. You’ll need a Business Manager visa instead.
• No employment record: Changed jobs? Wait a few months before renewing your visa, or immigration may see a “suspicious gap.”

Business Regulation in Japan

Compliance doesn’t stop with immigration. Foreign founders also face:

• Overregulation: Japan has over 10,000 business regulations. That’s eight times the number in Western nations. Expect bureaucracy at every step.
• Labour law complexity: No “at-will” termination. Overtime must be tracked and paid. Disputes can get messy and expensive.
• Immigration liability: Even accidental oversights on visa status can land you in legal trouble.

Tax Challenges: What Global Mobility Teams Must Watch

Japan’s tax system is strict and increasingly aggressive in enforcement.

• Permanent Establishment (PE) risk: If your branch does more than just “represent,” you could owe corporate tax in Japan.
• Deferred Tax Asset rules: Strict limits on deductible losses often trip up foreign firms during audits.
• Transfer pricing enforcement: Cross-border deals between related entities face intense scrutiny. Documentation is critical.

Penalties include:

• 15%+ fines on underreported taxes
• Up to 10 years in prison
• 100% fines on evaded amounts

Beyond the Rules: Japan’s Cultural and Commercial Landscape

You can follow every rule and still struggle. Why? Because Japanese society places strict cultural demands on foreign nationals.

• Language: Business is conducted overwhelmingly in Japanese. Interpreters or bilingual staff are essential.
• Relationship-driven business: Decisions take time. Trust is everything. Expect slower deal cycles and long-term courtship.
• Etiquette matters: Punctuality, formality, and deference are the linchpins of Japanese culture. Small missteps can carry outsized consequences.
• Distribution is complex: Japan’s supply chains are multilayered and relationship-dependent.
• Hiring is competitive: The best bilingual talent is scarce. Be ready to offer long-term career development and job security.

The future of Japan’s immigration policy

Japanese immigration policy is slow-moving and stable, but the Japanese government’s propensity to tinker with it can be advantageous.

If you know where to look, that is.

Centuro Global’s AI-powered Travel Compliance Assistant will tell you everything you need to know about moving to Japan as an entrepreneur, in real time. Simply input your information, and our AI-driven tool tells you what you need to know. based on all the latest regulatory changes that other sources won’t tell you. 

Frequently Asked Questions (FAQs)

What is Japan’s current immigration policy toward foreign workers?

Japan has gradually relaxed its strict immigration policy in response to labour shortages, especially by expanding the Specified Skilled Worker visa to more sectors and rolling out new programs for skilled foreign professionals

Who are foreign trainees, and how do they differ from skilled workers?

Foreign trainees enter under the Technical Intern Training Program (since 1993). Historically criticised for labour abuses, this program is being overhauled: technical intern trainees can now upgrade to a skilled worker visa for up to five years and may obtain permanent residency

What is the Specified Skilled Worker visa category?

Introduced in 2019, this visa targets medium-skilled workers in 12 sectors. As of 2024, it has been expanded to 16 industries, including automotive, forestry, and rail. It allows longer stays, job mobility, and eventual permanent residency.

How is Japan attracting entrepreneurs and global talent?

• The Startup Visa (Designated Activities) program, previously regional, is now nationwide with an initial stay of 6 months, extendable to 2 years as of April 1, 2025
• New visa tracks like J-Skip (Highly Skilled Professionals) and J-Find (Future Creation Individual) are aimed at graduates from top universities and elite professionals, offering job-seeking status and paths to residency

What are the visa fees and processing changes in 2025?

As of April 1, 2025, Japan raised key immigration application fees:

• Status change/extension: ¥4,000 → ¥6,000 (physical), ¥5,500 (online)
• Permanent residency: ¥8,000 → ¥10,000
• Multiple re‑entry permit: ¥6,000 → ¥7,000 (physical)/¥6,500 (online)
• Certificate of authorized employment: ¥1,200 → ¥2,000 (physical)/¥1,600 (online)

Can startup visa holders easily open bank accounts?

No, but this is changing. Banks have been instructed to relax requirements for Startup Visa holders, even with less than six months of residency

What do Japan’s “highly skilled professional” programs entail?

• J-Skip: For elite professionals (e.g., salary > ¥20M/year).
• J-Find: For graduates from top-100 global universities, offering up to two years to find employment or start a business

How does one qualify for permanent residency (PR)?

Qualifying routes include:

• Long-term skilled employment (Specified Skilled Worker, J-Skip/J-Find)
• 10 years of continuous residency (including teaching or proprietorship)
• Permanent residency applications cost ¥10,000 as of April 2025 .

What’s the situation regarding refugee/asylum policy in Japan?

Japan has a highly restrictive refugee recognition system. In 2023, out of 13,823 asylum seekers, only 303 were granted refugee status. A new law in June 2024 tightened deportation after second asylum denials.

Are unskilled workers allowed?

Generally limited to trainees and underserved sectors. The focus is on specific skills. For unskilled labour, pathways are few and often tied to the technical intern program .

What about immigration control, detention, and deportation?

Japan’s Immigration Control and Refugee Recognition Act oversees entry, detention, and deportation. Unauthorised foreigners can face detention or deportation, and a pre-departure screening system is being deployed at airlines to flag inadmissible entrants.

How does Japanese society view immigration?

Despite labour needs, ethnonationalism influences restrictive policies. Public perception is cautious, with reforms focused on temporary labour rather than long-term integration

How does Japan compare with other Asian countries, such as South Korea?

Japan competes for foreign talent with South Korea and others. It trails in diversity and inclusivity but is working toward better protections and rights for foreign workers

How is the Technical Intern Training Program changing?

Reforms include:

• Replacing the program with a skill-upgrading track allowing visa upgrade.
• Job mobility after 1–2 years and language test requirement.

What Japanese visa categories currently exist?

Major types include:

• Visitor visa
• Working visas: Specified Skilled Worker, Highly Skilled Professional, Business Manager
• Startup (Designated Activities)
• Technical Intern
• Family/spouse visas
• Student visas
• Future frameworks like J-Find and J-Skip.