Differences between “METI’s Startup Visa” and “NSSZ Startup Visa”
In the previous post, we decided to refer to “Foreign Entrepreneur Startup Promotion Program” established by the Ministry of Economy, Trade and Industry of Japan” just as “METI’s Startup Visa” and “National Strategic Special Zone Foreign Entrepreneur Startup Promotion Program” established by Cabinet Office as “NSSZ Startup Visa”.
For details on the frameworks, application process, and benefits available under each “Startup Visa” program, please read the previous post ‘Easy Introduction to “Startup Visa” – Part 1’.
In this post, I will explain the main differences between these two “Startup Visa” programs.
(1) Differences by which “Startup Visa” program that local governments participate in
For instance, Tokyo only participates in “NSSZ Startup Visa” but not in “METI’s Startup Visa” whereas Shibuya District in Tokyo participates in “METI’s Startup Visa”. Kyoto Prefecture, Hyogo Prefecture, Fukuoka City and some others participate in both programs.
(2) Differences in the grace period for startup preparation
“METI’s Startup Visa” provides foreign entrepreneurs with 1 year of the grace period while “NSSZ Startup Visa” provides 6 months.
(3) Special provision of “METI’s Startup Visa”
If, after using “METI’s Startup Visa,” a foreign entrepreneur cannot start up his/her business in time of the given 1 year, he/she can still continue the startup preparation by changing to “NSSZ Startup Visa” to extend the grace period. However, the reverse is not possible.
(4) Number of permits for each “Startup Visa” program (total as of the end of March 2023)
“METI’s Startup Visa” counts 86 permits while “NSSZ Startup Visa” counts 386 permits. Of the latter’s 386, Tokyo for 236, Fukuoka City for 82, and Aichi Prefecture for 43. Apparently, the majority of permits for “NSSZ Startup Visa” consists of these three local governments.
This significant difference in the number of permits between “METI’s Startup Visa” and “NSSZ Startup Visa” seems to depend more on which “Startup Visa” program Tokyo participates in rather than difficulties to fulfill criteria for permit.
(5) Types of startup businesses supported vary by local governments
Most local governments list up specific types of businesses eligible for support by their “Startup Visa” program. Certainly, not all types of businesses are welcomed. Most local governments welcome startups that contribute to scientific/technological development and regional revitalization, such as IT, life sciences, tourism.
On the other hand, Sendai City includes disaster prevention-related businesses among its support list. And Hamamatsu City supports startup for the next-generation transportation equipment. In cases like these examples, specific interests of local governments can be expressed as their expectation to foreign entrepreneurs.
It may be natural to consider starting your business in a prefecture or city where you have once lived or attended university. However, it is also important to think about where your business will be most welcomed and can expect a local government’s support.
(6) Documents to submit to local governments (shown main ones only)
For “METI’s Startup Visa”
- Startup Preparation Activity Plan Confirmation Application (or New Business Implementation Plan Confirmation Application
- Startup Preparation Activity Plan (or New Business Implementation Plan)
- Resume, etc.
For “NSSZ Startup Visa”
- Application (and Consent) for Confirmation of Business Startup Activities
- Plan for Business Startup Activities Form
- Resume, etc.
*English names of some forms are varied by local governments
In addition to the above, for both types of startup visas, it is important to prepare supplementary explanatory documents related to the feasibility and future prospects of your business, including strategies to get the business on track and methods for fundraising, etc.
This office offers services for making or assisting your making these documents at reasonable fees. I can of course make applications for immigration, such as Certificate of Eligibility and Change of Status of Residence.
You are always welcome to use the online free consultations service. Please feel free to contact me.
◎ In the next post, I will explain further about the Status of Residence “Business Manager” that foreign entrepreneurs are going to obtain through utilizing “Startup Visa” programs.
Go to the next post >> Easy Introduction to “Startup Visa” Part 3
Go to the previous post >> Easy Introduction to “Startup Visa” Part 1