How to Enter Japan as a Startup: Invaluable Support Programs
As a small business or startup, entering new markets can represent a simultaneously daunting and exciting opportunity. In line with this thought, it’s critical to start out with the right plans and approach, and this is something that our experts at GlobalDeal can help with. Today, we’re looking at some of the key points you need to know about entering Japan as a startup business. Hopefully, this will allow you to find the optimal strategy for your own business’s expansion into Japan.
Startup Support Programs in Japan
Entering new overseas markets can be overwhelming for businesses - and even more so for startups. Fortunately, there are plenty of support programs that facilitate the expansion challenge of startups. From financial to strategic help, these programs can be a real game changer for your startup
In this article, we explore some of the key points overseas startups should know about support programs in Japan. We introduce various startup support programs that might facilitate your entry into this promising market.
J-Startup Program
Hosted by the Ministry of Economy, Trade, and Industry, the J-Startup Program is a specialist program primarily intended for Japanese startup businesses. But access can also be allowed for overseas startups. This is a competitive process, typically assessing around 10,000 startups - so, bear in mind that it’s not necessarily the easiest support to get. Nevertheless, the program helps connect startup businesses with some of the leading industry support. These include large corporations and even government organizations; as such, it’s perhaps no surprise that it is so competitive among businesses looking for help and guidance.
The program looks for startups with the greatest growth potential and originality, so if you have a business concept that you think is new, innovative, and potentially transformational for Japanese society, applying for the J-Startup Program could be well worthwhile.
Startup Visa Program
Understandably, moving your business’s operations into a new country can be an overwhelming task. Fortunately, the Ministry of Economy, Trade, and Industry has further solutions in place to support this: The Startup Visa Program offers a means for startup business owners to move to Japan temporarily while setting up their new office.
The Startup Visa Program allows the business owner to live in Japan for up to one year while planning for the launch of their new business office. This visa comes with support from local municipalities. For a Startup Visa application, you will need to prepare a concrete business plan, documents such as a resume and a passport copy, as well as proof of sufficient funds (this may be a bank statement or investment letter). Nevertheless, no capital investment is required. In order to apply, you will need to directly contact one of the 14 designated municipalities. The process includes an interview and takes about a month.
This visa offers great opportunities for startups and entrepreneurs who want to start their business in Japan, but with all the involved preparations, applying for it can feel daunting. We recommend you to get support from local specialized agencies who can help you navigate this process. Feel free to reach out to us at GlobalDeal as well, since we might be able to help you!
JETRO’s Support for Startups
Another support program that’s well worth considering as a startup looking to enter the Japanese market is JETRO’s Support for Startups. JETRO, or the Japan External Trade Organization, is a longstanding program aiming to help businesses and startups enter the Japanese market. This particular organization is unique in that it helps over 700 startups with global scaling - and, while it’s primarily focused on Japanese businesses looking to expand abroad, it can potentially also help international businesses enter the Japanese market.
Annually, JETRO provides around 3,000 hours of mentoring, working alongside numerous businesses to help promote expansion and successful business ventures. In addition, their website also offers a wealth of useful and informative articles, so there is plenty of excellent information to be found through JETRO - even if you don’t directly take part in their startup support program.
Some of the main ways that JETRO can help include market entry advice and administrative procedural support. In addition, their platform also offers an excellent opportunity for international startups through its JETRO-IBSC (Invest Japan Business Support Center) partnership, the program also offers a temporary office space while getting a foothold for your brand in the Japanese market - ideal if you’ve not yet found the ideal office space.
Deep-Tech Startups Support Program
If your business is a “Deep-Tech startup,” you could potentially benefit from the Deep-Tech Startups Support Program (DTSU) in Japan, which is a unique support system intended to help aspiring startups with valuable research or scientific innovations enter the market. The program is run by the Japan Science and Technology Agency, which itself operates under the Ministry of Education, Culture, Sports, Science, and Technology.
The Deep-Tech Startups Support Program has worked with numerous different startup businesses across a wide range of niches, from agriculture to medicine and cell therapy. The exact funding and support does vary based on the startup itself, although there is a significant focus on healthcare, with 43% of business areas falling into this field. A further 13% fall into materials development and information and communication fields, with 11% in the energy and infrastructure fields and 9% in food and agriculture. Finally, aerospace innovations represent 7% of businesses, and mobility represents a further 4%.
Applications for the DTSU are open until 2027, so it’s a good timing for your company to join this program. For your application, you will first need to identify what phase your company is in. The DTSU provides startups with different support phases depending on the company’s stage. You can only apply for one phase, that is most appropriate for your startup. Depending on your startup’s field, the documents needed for the application may differ. You should reach out to the department in charge via the email provided on their site for your specific requirements.
Social Economic Zones
One of the major limitations for businesses looking to enter Japan - especially as a startup with limited funding and experience - is complicated regulations. However, in an effort to encourage new businesses and foster international collaboration, Japan has set up various Social Economic Zones across the country. These have policies such as deregulation, subsidies and tax incentives that make it easier for businesses to establish operations.
It’s worth considering that Social Economic Zones are generally based on the type of investment each region is looking for and the optimal features of the area. For example, in Tokyo, there is a strong focus on international businesses and innovation, while in Okinawa, there is a stronger focus on international tourism, such as restaurants in farmland.
If you want to take advantage of the benefits SEZs offer, the first step is to identify suitable zones for your business (based on their focus industry and location). The SEZs often provide direct support for foreign businesses to help with incorporation. In addition, you can reach out to local authorities such as local governments or chambers of commerce, which will be able to give you guidance.
SME Support Japan
Operated by the Organization for Small and Medium Enterprises and Regional Innovation, Japan, as part of the Ministry of Economy, Trade, and Industry, the SME Support Japan project aims to help empower small and medium enterprises to expand and grow their operations. The project is also available for foreign startups, making it a valuable option to consider in circumstances where international brands are hoping to enter the Japanese market.
The SME Support Japan program provides a wide range of different support options, including assistance with business expansion and entering the Japanese market, hiring support, information on market conditions, connecting with local partners and brands, and so on. In line with this thought, they offer a valuable place to start for businesses needing help when establishing their brand locally in Japan.
Local Initiatives
Apart from the wide range of different national projects and opportunities that you could potentially obtain support from, there are also local initiatives available that may help. Just a few examples of these include the following:
Tokyo One-Stop Business Establishment Center: Focusing on foreign companies in particular, the Tokyo One-Stop Business Establishment Center offers highly valuable resources for international startups looking to enter the Japanese market in Tokyo.
Fukuoka City Initiative: Developing a startup ecosystem within Fukuoka City, the Fukuoka City Initiative aims to support the establishment of new small businesses and startups in the region.
Local Chambers of Commerce: Numerous Local Chambers of Commerce are able to provide guidance and support for small businesses looking to enter their local areas.
University R&D and Acceleration Programs: In many cases, universities are frequently looking to support and invest in new startup businesses. In line with this thought, if your business has an innovative idea and concept, researching the different university R&D and acceleration programs may be valuable.
Private Support: Direct, dedicated help and guidance can be obtained from private businesses specializing in international expansion into Japan. Teams such as ours here at GlobalDeal, for example, are able to support your firm’s expansion goals into the Japanese markets, providing help for all aspects of your new company venture.
If you have a specific Japanese region in mind that you would like to expand into, considering the aforementioned local opportunities or researching the options available in your chosen area may help ensure you’re getting the ideal support. However, don’t disregard national opportunities and support from other businesses to ensure you’re getting the right support.
Final Thoughts
Without a doubt, the opportunities available for businesses in Japan are numerous, and there are countless different ways you could potentially harness these. In this article, we’ve outlined some of the main support systems available when entering Japan as a startup today. However, we recognize that this can still feel like a daunting process. What’s more, the documentation and business plans required to enter Japan as a startup are numerous, and wrapping your head around them can be challenging.
Fortunately, this doesn’t have to be the case. At GlobalDeal, we specialize in helping businesses find their ideal opportunities, and our expertise in Japanese market entry allows us to support brands with this process. If you’d like to find out more about how our teams can support you at every stage of your Japanese market entry, from helping with strategy development to localizing your online presence and more, we’ll be here to help.
Contact us for your free consultation with a member of our friendly team today. We are happy to discuss how we can help you.