Key Takeaways
- Plan Ahead: Start your business in your third year of college
- Meet the Basics: ¥5M capital or two hires + a real office.
- Get Help: Professionals make the paperwork painless.
- Go Local: Leverage city programs in Tokyo, Fukuoka, Sendai & more.
What if your student visa wasn’t just a temporary status, but the first step toward building your business in Japan? Transitioning from a student visa to a Business Manager Visa might seem overwhelming, but with the right strategy, it’s entirely possible. That involves switching from a student visa to a business manager visa in Japan.
Whether you’re fine-tuning an AI project in Tokyo or crafting the next significant fintech innovation in Fukuoka, this guide will help you navigate the legal framework, set up your business entity, and prove financial stability—all essential steps to securing your new visa. The journey from student to entrepreneur starts here. That in no time, you can switch from a student visa to a business manager visa in Japan
First Two Steps in the Transition
Step 1: Create a Comprehensive Business Plan
A robust business plan is the cornerstone of your visa transition. The Immigration Services Agency of Japan requires a detailed plan to evaluate your viability. This can help you transition from a Student Visa to a Business Manager Visa in the most effective way possible.
4 Key Components of a Business Plan
- Executive Summary: Summarize your business idea and goals.
- Market Analysis: Identify your target market and competitors.
- Financial Projections: Include revenue forecasts, expenses, and funding needs.
- Operational Strategy: Detail your business structure and timeline.
For a step-by-step breakdown, check out Business Plan for a Japanese Startup in 8 easy steps
JETRO provides free templates on its Global Connection website to help structure your plan. These templates are tailored to meet immigration requirements, ensuring your plan is professional and compliant. Check out Smart Start Japan’s Business Plan for a Japanese Startup for a step-by-step guide. Start drafting early to allow time for revisions, and consider consulting with a professional to refine your plan for municipal approval.
Step 2: Incorporate a Legal Entity
To qualify for a Business Manager Visa, you must establish a legal business entity in Japan. The two most common options for startups are the Godo Kaisha (GK) and Kabushiki Kaisha (KK). The GK is often the better choice for student entrepreneurs due to its cost-effectiveness, speed, and flexibility. However, if you’re considering the KK structure for its scalability and prestige, check out establishing and scaling a Kabushiki Kaisha in Japan to see if it aligns with your business goals.
Godo Kaisha (GK) vs. Kabushiki Kaisha (KK):
| Feature | Godo Kaisha (GK) | Kabushiki Kaisha (KK) |
| Setup Cost | Lower (approx. ¥60,000–¥100,000) | Higher (approx. ¥200,000–¥300,000) |
| Setup Time | Faster (1–2 weeks) | Slower (2–4 weeks) |
| Flexibility | Flexible structure, ideal for small startups | More rigid, suited for larger businesses |
| Credibility | Less formal, but sufficient for visa purposes | Higher credibility for investors and partners |
| Capital Requirement | No minimum capital (but ¥5M needed for a visa) | No minimum capital (but ¥5M needed for a visa) |
Why Choose a GK? For students, a GK is advantageous due to its lower costs and more straightforward setup process, allowing you to focus resources on business development.
What about KK? In Japan, select a compliant company name, define your business purpose, and have the Articles of Incorporation notarized. Deposit the required capital, register with the Legal Affairs Bureau, and secure necessary licenses. Explore this comprehensive guide on establishing a Kabushiki Kaisha in Japan.
Process: Setting up a legal business entity is a crucial step in transitioning to a Business Manager Visa in Japan. If you’re navigating the registration process, this video guide on company registration in Japan provides a step-by-step breakdown to simplify the process.
Five Strategic Tips for Student Entrepreneurs
1.Start Early
Begin planning your visa transition during your student years. The process can take 4–8 months, including business plan approval and incorporation. Utilize your time in Japan to research the market and refine your idea. Early preparation reduces stress and increases your chances of approval.
2. Use Student Years to Network and Plan
Leverage university resources and startup events in cities like Tokyo and Fukuoka to build your network and gain valuable insights. For example, Tokyo’s Startup Hub offers mentorship, networking events, incubators, and accelerators to support emerging entrepreneurs. If you’re curious about how incubators work and how they can help grow your business, a better understanding of incubators check out the Top 10 Start-up Incubators in Japan for a better understanding of incubators. This information makes your process of switching from a Student Visa to a Business Manager Visa a bit easier.
3.Get Legal/Professional Support
Navigating Japan’s immigration system requires precision and attention to detail. Smart Start Japan’s Visa Transition Checklist can help you stay organized and avoid errors.
4.Consider Startup Visa Alternatives
The Startup Visa allows students to stay in Japan for up to two years (starting January 2025) to prepare their business without meeting capital or office requirements upfront. Cities like Fukuoka, Sendai, and Kyoto offer tailored programs, such as Fukuoka’s Startup Café, which provides coworking spaces and visa support. Explore our City-by-City Startup Guide to find the best fit.
5. Stay Organized & Compliant. Japan’s immigration process is strict. Keep detailed records of all documents, including your business plan, financial statements, and lease agreements. SmartStart Japan’s services can relieve much of the headache. Visit SmartStart Japan for a free consultation. Regular check-ins with municipalities (e.g., monthly in Shibuya) ensure compliance. Use Smart Start Japan’s tools to track deadlines and requirements.
Eight Key Challenges & Solutions
1. Capital Requirement (Â¥5 Million)
Challenge: The Business Manager Visa requires a minimum capital investment of ¥5 million or hiring two full-time employees. Securing this funding can be difficult for students. This will make it harder to switch from a student visa to a Business Manager visa.
Solution: Explore angel investors, crowdfunding, or personal savings. Fukuoka’s Startup Visa program allows for coworking spaces during the initial setup, reducing costs. Consult financial advisors through JETRO’s local offices.
Resource: Here are great examples of investors who have invested in Japan. In 2024, the Japan Investor List for Foreign Founders
2. Securing a Real Office (No Virtual)
Challenge: Virtual offices are not accepted for visa purposes; a physical office is required. SmartStart Japan explains this in its article, “A Complete Guide to Rental Offices in Japan (2025 Update).”
Refer to the article “How to Get a Business Manager Visa in Japan” for visa requirements.
Risks: Failure to secure a compliant office can delay or derail your application.
Solution: Check our Office Location List for affordable spaces in Tokyo, Fukuoka, and Sendai. Cities like Kobe offer temporary office spaces for startups that can run a business
Resource: Contact TOSBEC for guidance on setting up your office. This article from SmartStart Japan will give a better understanding of TOSBEC for office setup guidance. 5 Japanese Cities to Consider Starting Your Incorporation Journey in
3. Legal Paperwork Complexity
Challenge: The visa process involves extensive documentation, including a Certificate of Eligibility (COE) and municipal approvals.
Risks: Incomplete or incorrect submissions may result in rejection. SmartStart Japan’s visa experts specialize in helping foreign entrepreneurs avoid these pitfalls by offering. By offering COE application support with document review, Municipality coordination for office and business approvals, and Step-by-step visa tracking tools like our Visa Transition Checklist .
4. Business Plan Depth
Challenge: Municipalities scrutinize business plans for feasibility and alignment with local priorities (e.g., fintech in Fukuoka, AI in Kyoto).
Risks: A weak plan can result in municipal rejection.
Solution: Use JETRO’s templates and align your plan with city-specific goals. Seek feedback from mentors at Tokyo’s Startup Hub or Sendai’s support center.
Resource: Visit the Business Plan for a Japanese Startup JETRO’s templates and align your plan with city-specific goals.
5.Timing and Submission Deadlines
Challenge: The COE process takes 6–8 months, and documents like the Certificate of Confirmation must be submitted within three months.
Risks: Missing deadlines can result in being forced to leave Japan.
Solution: Utilizing our SmartStart Japan service will help address the revenue issue.
6.Language/Cultural Barriers
Challenge: Limited Japanese proficiency and unfamiliarity with business culture can complicate the application process. Risks: Miscommunication can lead to errors or delays.
Solution: Partner with bilingual consultants or join programs like Fukuoka’s Startup Café for English-language support. Attend cultural workshops offered by JETRO.
Resource: An article published by Scaling Your Company provides an insightful breakdown of Japanese corporate culture.
7. Timing and Submission Deadlines
Challenge: The COE process takes 6–8 months, and documents like the Certificate of Confirmation must be submitted within three months as part of the process of switching from a Student Visa to a Business Manager Visa in Japan.
Risks: Missing deadlines can result in being forced to leave Japan.
Solution: Utilizing our SmartStart Japan service will help address the revenue issue.Â
8.Language/Cultural Barriers
Challenge: Limited Japanese proficiency and unfamiliarity with business culture can complicate the application process.
Risks: Miscommunication can lead to errors or delays.
Solution: Partner with bilingual consultants or join programs like Fukuoka’s Startup Café for English-language support. Attend cultural workshops offered by JETRO.
Resource: An article published by Scaling Your Company provides an insightful breakdown of Japanese corporate culture. That will make the whole process of switching from a Student Visa to a Business Manager visa in Japan a bit easier
Three big reasons why your Business Manager Visa is getting denied
- Insufficient Investment – You must invest at least 5 million yen or employ two full-time residents.
- Lack of Business Premises – A physical office in Japan is required; virtual offices are not accepted.
- Legal or Immigration Issues – Prior visa violations or criminal records can lead to rejection
Conclusion
Ready to launch your business in Japan?
Switching from a student visa to a Business Manager Visa can be tough, but with the proper prep, it’s absolutely doable. Start early, meet the key requirements, and don’t go it alone. Switching from a Student Visa to a Business Manager Visa in Japan has never been this easy.
