Introduction of Japanese Visa Challenges for Foreign Entrepreneurs

        Tokyo has a population of 14 million people and being the capital of Japan, it has a GMP or gross metropolitan product rate at ¥93.1 trillion (Waley, 2007). Japan owning this rate has an incredible potential of attracting foreign entrepreneurs wanting to discover new horizons in the international metropolis. But due to the strict immigration policies, governmental regulations, language barriers, and complex bureaucratic procedures, majority of foreign organizations and entrepreneurs have found it very difficult to start a new business or open a branch in Japan in spite of the growing interest. For every foreign entrepreneur wanting to establish new business in Japan, there are two types of laws which have to be considered. The first one is the law of company and the other one is the law of immigration (Froese, 2013).

Following are three major issues:

Capital of Japanese Visa Challenges for Foreign Entrepreneurs

There are actually 2 issues regarding capital. One is about the source and the other one is about business scale.

Business scale of Japanese Visa Challenges for Foreign Entrepreneurs:

An organization can be launched with just a single yen as a capital, however, 5,000,000 yen have to be prepared by a person for obtaining a visa. After all, law of immigration demands a scale of business more than 5,000,000 yen (Athukorala, 2006). The simplest approach for proving the scale of business is to establish a company because the capital is normally registered on the record of company. For instance, a person wishes to prove approximately 5,000,000 with a book of bank, he or she has to explain that this amount is capital. However, the process is not only complex but also difficult. It might or might not be capital and it might be the money for a house’s down payment or for a trip (Billore, 2011).

A reliable solution for this problem is to apply for the visa for Investment and Management after the establishment of organization.

The source of Japanese Visa Challenges for Foreign Entrepreneurs:

It is important for capital to be utilized as capital. That is why, it mustn’t be presented as money. Thus, one must explain the source of all this money. If a person saves the money all by himself then he explain it through his book because the source is obvious in this case. However, if money is borrowed from another person, then a contract has to be made and repayment has to be planned at the very least (Rahman & Lian, 2011).

Address in Japan of Japanese Visa Challenges for Foreign Entrepreneurs

If an entrepreneur doesn’t have an address in Japan, his bank account cannot be opened and it is also tough to rent a specific location for the office. Without a visa, business cannot be set-up in Japan. If the entrepreneur seems to have a residence status, it becomes easier to start a business and establish an organization. After the establishment of the organization, Investment and Management as a status can be adopted. If an entrepreneur doesn’t have an address then the process will vary according to the case (Solinger, 1999).

1- If a foreign entrepreneur has a bank account, a company can be established using it.
2- In case that the entrepreneur has an account at the branch of Japanese Bank in his country, that account can also be used. The account in which capital is deposited has to be a bank which is prescribed in the Article 2 (1) of the Japanese Banking Act. This condition is satisfied with the Japanese bank’s foreign branch (Tabuchi, 2011).
3- In case an entrepreneur doesn’t have an address or an account, a partner is required in Japan. This partner will be the one to establish the company instead of the entrepreneur. Moving on, the entrepreneur becomes the president before he applies for the visa (Yamada, 2010).

Another solution is the use of Tokyo Program which can provide you with a visa of 6 months without even having an address in the country. In addition, a partner is also not required.

3.  Location of the head office of Japanese Visa Challenges for Foreign Entrepreneurs

When an entrepreneur sets up an organization, he can set the head office of his company anywhere but the immigration law requires him to separate his living are from the working room. In case he puts head office directly at his home, the room which is used as office has to be exclusive. Additionally, the permit for using it has to be written on the contract of estate lease. An independent room is needed in case rental office is being used. Therefore, virtual offices are not prevalent (Friman, 2001).

Tokyo Program of Japanese Visa Challenges for Foreign Entrepreneurs

As a solution to all of the above mentioned strict regulations, Tokyo has initiated a new system for all foreign entrepreneurs which allows them to establish a company easily. Normally, an entrepreneur has to get the residence status of Investment and Business Manager and 5 million yen have to be invested for using two employees who have to be the citizens of Japan. With the use of new system, Japan can be visited by an entrepreneur on a short stay visa and permit can be submitted to the TMD or Tokyo Metropolitan District. It will analyze whether the plan for business is realistic or not. If it is recognized as realistic then the entrepreneur can obtain the Investment and Business Manager Status for exact six months. Then, a person can establish a company while preparing everything that he requires for starting the company with this status. If conditions are satisfied then this duration will be prolonged.

        This program for increasing the number of Foreign Entrepreneurs investing in Japan was launched official in 2016 on the 29^th of January. The requirement is that foreign investors have to meet all the conditions which are passed on the TMG. According to the conditions, six months as an initial period will be given and it will depend largely on the business plan. Therefore, a solution is to obtain visa through this program and deliver a realistic plan of business which can satisfy the officials at TMG. With a realistic plan and fulfillment of all conditions, the period will be prolonged and this scenario will remain the same until a requirement of TMG is not fulfilled (Mackie, 1998).

 References of Japanese Visa Challenges for Foreign Entrepreneurs

Athukorala, P.‐c. (2006). International labour migration in East Asia: Trends, patterns and policy issues. Asian‐Pacific Economic Literature, 20(1), 18-39.

Billore, S. (2011). Female immigrant entrepreneurship: Exploring international entrepreneurship through the status of Indian women entrepreneurs in Japan. International Journal of Gender and Entrepreneurship, 3(1), 38-55.

Friman, H. R. (2001). Informal economies, immigrant entrepreneurship and drug crime in Japan. Journal of Ethnic and Migration Studies, 27(2), 313-333.

Froese, F. J. (2013). Work values of the next generation of business leaders in Shanghai, Tokyo, and Seoul. Asia Pacific Journal of Management, 30(1), 297-315.

Mackie, V. (1998). Dialogue, distance and difference: feminism in contemporary Japan. Women's Studies International Forum, 21(6), 599-615.

Rahman, M. M., & Lian, K. F. (2011). The development of migrant entrepreneurship in Japan: Case of Bangladeshis. Journal of International Migration and Integration, 12(3), 253-274.

Solinger, D. J. (1999). Citizenship issues in China's internal migration: comparisons with Germany and Japan. Political Science Quarterly, 114(3), 455-478.

Tabuchi, H. (2011). Japan keeps a high wall for foreign labor. New York Times, 2.

Waley, P. (2007). Tokyo-as-world-city: Reassessing the role of capital and the state in urban restructuring. Urban Studies, 44(8), 1465-1490.

Yamada, M. (2010). The current issues on foreign workers in Japan. Japan Labour Review, 7(3), 5-18.