How can international students start a business in Japan? Overview of the Specified Activities No. 44 system and key points regarding the status of residence that can be utilized 【EN-sup-107】

What is Designated Activities Visa No. 44?

Overview of Specified Activities Visa No. 44

First of all, “designated activities” are activities that the Minister of Justice designates as “special” for each individual foreigner.
Since people’s activities are diverse, there are activities that are not categorized as activities that serve as the criteria for visa decisions, or activities that do not fit into categories.
The visa given to foreigners who wish to engage in such activities is a “designated activities” visa.
As of 2024, it is believed that there will be around 50 types of designated activities permitted.

One of these, the “Designated Activities No. 44” visa, is described on the Immigration Services Agency website as “for international students who have graduated from a Japanese university or other institution and are engaged in entrepreneurial activities.” It may be easier to understand if you read “Japanese” as “Japanese.”
https://www.moj.go.jp/isa/applications/status/designatedactivities.html

The official name of the “Specified Activities No. 44” visa is the status of residence “Specified Activities (Specified Foreign Entrepreneur)” and it is a part of the Japanese government’s growth strategy, aiming to promote the acceptance of foreign entrepreneurs and achieve innovation and economic growth at the same time.
This visa allows you to prepare to start a business, and is different from the “Business Manager” visa, which actually manages the business.
After concentrating on starting a business with the “Specified Activities No. 44” visa, you will change to a “Business Manager” visa and carry out management activities. The
“Business Manager” visa is also commonly known as the “CEO Visa” or “Manager Visa”, and the common names may make it easier to imagine.

Doryman Co., Ltd. Contact Information

Eligible for Specified Activities Visa No. 44

There are two types of people eligible for the Specified Activities Visa No. 44:
[Pattern 1]
Those who graduate from a university in Japan and wish to start a business.
Period of stay: Maximum 6 months after graduation

[Pattern 2]
Those who wish to graduate from a university or other institution that is actively accepting excellent international students in Japan and engage in entrepreneurial activities (From November 2020 onwards)
Period of stay: Maximum 2 years

Requirements for approval of specific activities visa No. 44

[Pattern 1]

You can check the details on the above website: https://www.moj.go.jp/isa/applications/status/designatedactivities13_1.html , but the requirements for [Pattern 1] are generally as follows:

● Requirements for eligible applicants
・Those who have graduated from a four-year university or graduate school in Japan on a student visa (junior college applicants are not eligible)
・Those who have been preparing to start a business since their enrollment, who have good grades and conduct, and who are recommended by their university
・Those who have prepared a solid business plan, who are expected to establish a company within six months of graduation, and who are expected to apply for a change to a “business manager” visa
・Those who have secured an office or store, have adequate capital, can employ employees, and have the prospect of having a company that can be operated continuously
・Those who have the ability to pay all expenses (living expenses, etc.) during their stay (support from family etc. is also acceptable)

● Requirements related to business scale
・Having at least 5 million yen in start-up capital
・Having two or more full-time employees by entering into employment contracts, etc.

● Requirements for procuring a property
・The property has already been purchased, a rental contract has been signed, etc., and is secured.
Or
・The property has been decided to be provided by the local government, the procedure for purchasing the property is underway (a deposit has been paid), etc., and there is a definite prospect of securing the property

● Requirements for entrepreneurial support
You must receive at least one of the following support from your university:
Support for creating a business plan Support for
entrepreneurial education, such as attending educational seminars on entrepreneurship, participating in networking events with companies, and participating in symposiums related to entrepreneurship Support for
securing money and space, such as introductions to grants and assistance with applying for them, introductions to investors and venture capitalists, and support for moving into facilities for entrepreneurs (incubation facilities)

● Requirements for residence management
・Foreign entrepreneurs must report to the university on the status of their entrepreneurial activities every month, and the university must check the progress of their entrepreneurial activities every month.
・In the event that they are unable to start their business within six months, they must have a means of returning home, such as an air ticket and return expenses.

In the case of [Pattern 2]

You can check the details on the above website, but the requirements for [Pattern 2] are roughly as follows. [
Pattern 2] can be further divided into [Case 1] and [Case 2].

[Case 1]
A case where you want to use the Specified Activities No. 44 system immediately after graduation
・You are a graduate of a school that has been selected as a member of the “Program to Promote Employment of International Students” or a “Super Global University” (university, graduate school, junior college, or technical college).
・You have been engaged in entrepreneurial activities while you were a student, and you want to continue your entrepreneurial activities in Japan immediately after graduation using the Specified Activities No. 44 system.
・The above universities, etc. will recommend and support the entrepreneurial activities of foreign entrepreneurs.
・The foreign entrepreneur will report the status of their entrepreneurial activities to the university, etc.
・If it becomes difficult to continue their entrepreneurial activities, the university, etc. will provide guidance and support for returning to Japan.

Link to check eligible schools International
Student Employment Promotion Programhttps
://www.mext.go.jp/a_menu/koutou/ryugaku/1394574.htm

Top Global University Projecthttps
://www.mext.go.jp/a_menu/koutou/kaikaku/sekaitenkai/1360288.htm

[Case 2]
After graduation, you used a different system (below (1) or (2)) but it was not enough to start a business, so you want to switch to the Specified Activities No. 44 system and continue preparing to start a business.
・You have graduated or completed a Japanese university, etc. (university, graduate school, junior college, technical college, or specialized course (specialist) at a vocational school).
・You stayed in Japan using the Foreign Entrepreneurship Promotion Program (1) or the National Strategic Special Zone Foreign Entrepreneurship Promotion Program (2), but were unable to start a business during that period, but would like to continue your entrepreneurial activities in Japan.
・The relevant local government entities for the above programs (1) and (2) have explained the reasonable reasons why they were unable to start a business and have evaluated that there is a high possibility that they will be able to start a business from now on.
・Universities, etc. and relevant local governments recommend and support the entrepreneurial activities of foreign entrepreneurs.
・Foreign entrepreneurs report the status of their entrepreneurial activities to universities, etc. and relevant local governments.

Activities permitted under the Specified Activities Visa No. 44

Start-up preparation activities

Drafting business plans, conducting market research, holding business talks and negotiations with business partners, activities aimed at securing a place of business, activities aimed at securing necessary funds, carrying out procedures for establishing a company, etc.

Management and operational activities after company establishment

Management activities as the representative director, management and operation of the business, business negotiations with clients, contract signing, employee recruitment and management, etc.

Application process and required documents for Specified Activities Visa No. 44

Application process

There are two types of applications:
Change: Official name is “Application for permission to change residence status” (when changing from another visa to a specific activity No. 44 visa)
Renewal: Official name is “Application for permission to extend period of stay” (when continuing to stay on a specific activity No. 44 visa)
*Due to the nature of the specific activity No. 44 visa, there is no application for a Certificate of Eligibility (approval) or application for permission to acquire residence status (acquisition).

Visa applications (changes and renewals) are generally conducted in the following order:
Preparation of required documents ➡ Submission of application documents ➡ Screening ➡ Issuance of visa

Required documents for application

Points to note before applying
: All certificates issued in Japan must be submitted within the last three months of their date of issue.
If the documents submitted are in a foreign language, a translation (in Japanese) must be attached.
In principle, submitted documents will not be returned, so if you would like the originals of documents that are difficult to obtain again returned, please request this at the time of application.
Additional documents may be requested during the application review process.

The documents to be submitted are generally as follows.
〇: [Pattern 1] If you wish to start a business after graduating from a Japanese university, etc.
▲: [Pattern 2] [Case 1] If you wish to use the Specified Activities No. 44 Visa system immediately after graduating from a
Japanese university, etc. □: [Pattern 2] [Case 2] If you wish to use the Specified Activities No. 44 Visa system after using the Foreign Entrepreneurship Promotion Program or the National Strategic Special Zone Foreign Entrepreneurship Promotion Program system

Please be sure to check the following websites for details on documents to be submitted and supplementary explanations.
[Pattern 1] https://www.moj.go.jp/isa/applications/status/designatedactivities13_1.html
[Pattern 2] https://www.moj.go.jp/isa/applications/status/designatedactvities13_2.html

Frequently asked questions about the Specified Activities Visa No. 44

Q: What happens if my business fails?

A: If your business fails (there are no entrepreneurial activities by foreign entrepreneurs, or it is difficult to continue your business), you will prepare to return to your home country with the cooperation of your university or other institution. You
may also consider quitting the business and getting a work visa such as a “Technical/Specialist in Humanities/International Services” visa.
There are other visas that allow you to stay in Japan depending on the situation, so please consult with an expert.

Q: Can I bring my family along?

A: In the case of [Pattern 2], you can bring your family along.
The scope of family members is limited to “spouse” or “children”.
Family members fall under the “Designated Activities No. 45 Visa”.
The application details are almost the same as for a family visa, but the Designated Activities Visa has slightly different characteristics from other visas due to the design of the system, so if the main visa is a designated activities visa, the family will also be managed as a designated activities visa.
By the way, the official name of the Designated Activities No. 45 Visa is the residence status “Designated Activities (Spouse of a Designated Foreign Entrepreneur, etc.)”.
In addition, if the business is successful and the main (foreign entrepreneur) visa changes from Designated Activities No. 44 to a Business Manager visa, the family will also need to change to a “Family Stay” visa.

Benefits for foreign entrepreneurs

・While working on a Specific Activity No. 44 visa, the strict requirements for starting a business that were previously required for a business manager visa (such as raising capital of 5 million yen or more and securing employment of two or more full-time employees) are relaxed, and you have the advantage of being able to concentrate on preparing to meet the requirements.
・Depending on the requirements, you will be given up to two years to prepare for starting your business, allowing you to take your time to launch your business.
・By receiving support from universities and other institutions, you will be able to obtain the knowledge, networks, and management know-how necessary to start a business in Japan.
・In addition to “studying and returning home,” you will be able to choose a new path: “studying and starting a business.”
・If you meet the requirements to stay in Japan with your spouse and children, you can challenge yourself to start a new business with the support of your family.

Benefits for Japan

・By having talented international students who have studied at Japanese universities and understand Japanese culture and business practices start their own businesses, new businesses and innovations will be born, which will lead to the revitalization of the Japanese economy.
・By utilizing the global perspectives and networks of foreign entrepreneurs to develop their businesses, it is expected that the international competitiveness of Japanese companies will increase.
・Startups that are rooted in the local community will also contribute to regional revitalization and job creation, leading to the development and internationalization of the local economy.
・By introducing new ideas and technologies from overseas into Japan, it will also promote the diversification of the business environment and industry, and the development of new markets.
・Startups by international students who have studied in Japan have the potential to develop businesses that serve as a bridge between Japan and their home countries while deeply understanding Japanese values, and have a value that is different from simply entering a company from overseas.
・The production of foreign entrepreneurs who not only “study and return home” but also “study and start a business” is expected to become the cornerstone for Japan to develop and utilize truly global human resources.

lastly

Doryman Co., Ltd. accepts free consultations regarding all foreign visas, including the Specified Activities Visa No. 44. Please contact us at any time.
We provide support services in a variety of fields. Please feel free to contact us.

This article is for general information purposes only and is not legal advice. While we strive to provide accurate information, we do not guarantee the content.