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  5. New System for Encouraging Foreign Entrepreneurs to Smoothly Start Business

New System for Encouraging Foreign Entrepreneurs to Smoothly Start Business

Promulgation and enforcement of the Public Notice Related to Projects for Encouraging Foreign Entrepreneurs to Start Business (Public Notice of the Ministry of Economy, Trade and Industry No. 256 of 2018)

December 28, 2018

In collaboration with the Ministry of Justice (MOJ), the Ministry of Economy, Trade and Industry (METI) has started a new system for encouraging foreign entrepreneurs to smoothly start businesses. Under this system, municipalities that proactively intend to support foreign entrepreneurs will formulate an action plan called “Plan for Managing and Supporting Business Startup Activities by Foreign Entrepreneurs” and METI will approve the plan. Foreign entrepreneurs which will be covered by the approved plan will be eligible to enter and stay in Japan for the purpose of preparation activities for starting business for up to one year.

1. Background to and purpose of the system

The Future Investment Strategy 2018 approved by the Cabinet on June 15, 2018, stipulates that, aiming to further expand the acceptance of foreign entrepreneurs in Japan, Japan should take measures in terms of the immigration control system, including permitting such entrepreneurs who intend to prepare for starting business in Japan to stay in Japan for up to one year and that Japan should start measures for supporting such entrepreneurs in their business startup activities, including implementation of measures for managing and supporting such business startup activities, including ascertaining the current situations of such activities and establishment of counseling systems.

Against this backdrop, in collaboration with the MOJ, METI has started a new system for encouraging foreign entrepreneurs to smoothly start businesses, in order to enhance the international competitiveness of Japanese industries and establish international bases of economic activities in Japan.

2. Outline of the system

Under the new system, municipalities that intend to conduct new projects called “Projects for Encouraging Foreign Entrepreneurs to Start Business,” including initiatives for managing and supporting business startup activities of foreign entrepreneurs, are required to formulate an action plan for their projects called “Plan for Managing and Supporting Business Startup Activities by Foreign Entrepreneurs” and to receive approval of the plan from the METI Minister.

Foreign entrepreneurs who will be covered by the approved plan will be eligible to enter and stay in Japan for the purpose of preparation activities for starting business for up to one year. If they wish to continue to stay and operate business in Japan after the predetermined period, they are required to obtain a new status of residence under the category of “business manager” as before.

This public notice stipulates requirements and procedures involving the approval of such municipalities.

3. Public Notice Related to Projects for Encouraging Foreign Entrepreneurs to Start Business

Division in Charge

Startup and New Business Promotion Office, Economic and Industrial Policy Bureau