International graduates from Japanese higher education institutions who plan to start a business in Japan can remain in the country for up to two years under a dedicated Designated Activities visa. This official support framework allows eligible former students to prepare their enterprise under university or local government supervision before transitioning to a Business Manager visa. Here is what foreign graduates need to know in 2026 about eligibility rules, university obligations, and municipal requirements.
What is the Designated Activities startup visa for foreign graduates in Japan?
In July 2020, Japan's Cabinet approved measures under the "Overcoming Population Decline and Vitalizing Local Economy in Japan" policy framework to facilitate entrepreneurial efforts by foreign graduates. Under these regulations, qualified foreign students who graduated from recognized Japanese educational institutions can receive a "Designated Activities" (特定活動) status of residence for up to two years to complete their startup preparations. Once the company establishment process is finished, the individual must apply to change their status of residence to "Business Manager" (経営・管理). Detailed rules and submission forms are maintained by the Immigration Services Agency of Japan.
Who can apply directly upon graduating from a Japanese university?
Foreign students who wish to transition into entrepreneurial activities immediately following graduation must meet six specific criteria:
- Eligible Institution: The applicant must have graduated or completed studies at a university, graduate school, junior college, or technical college selected for or participating in the "Student Employment Promotion Program" or the "Top Global University Project."
- Prior Preparation: The student must have engaged in entrepreneurial activities while still enrolled at their educational institution.
- University Recommendation: The graduating university must formally recommend the student's startup plan.
- University Support: The university must provide ongoing assistance to support the graduate's entrepreneurial work.
- Progress Reporting: The graduate must report their business status and progress regularly to the university.
- Return Pledge: The university must submit a written pledge (Reference Form 1) agreeing to provide departure guidance and assistance if continuing the business activity becomes unfeasible.
How can graduates transition from local municipal startup programs?
Foreign graduates who previously participated in regional startup initiatives—such as the Foreign Entrepreneurial Activity Promotion Program or the National Strategic Special Zone Foreign Startup Activity Promotion Program—can also transition into this two-year framework:
- Educational Background: The applicant must have graduated or completed studies at a Japanese university, graduate school, junior college, technical college, or specialized course at a vocational school (conferring a Specialist title).
- Previous Residence Status: The candidate must have resided in Japan under an official municipal startup promotion program continuously after graduating.
- Continued Entrepreneurial Intent: If the candidate did not complete their business startup within the program's original timeframe, they must intend to continue pursuing their startup in Japan.
- Municipal Evaluation: The local public entity must submit an evaluation (Reference Form 2) providing a rational explanation for why the business was not launched within the initial period and confirming a high probability of future success.
- Support and Recommendation: The local public entity or the original university must recommend and support the graduate's activities, submitting a written pledge (Reference Form 3). The total stay combined across the initial municipal program and this follow-up measure cannot exceed two years.
What happens when the business launches or for accompanying family members?
When the startup preparations are successfully finished within the maximum two-year window, the founder must file an application to change their status of residence to "Business Manager" (経営・管理).
If the foreign graduate has family members residing with them:
- Dependent Residence Status: Spouses and children who wish to remain in Japan while the primary applicant carries out startup activities under Designated Activities must apply to change their status of residence to "Designated Activities" as well.
- Required Documentation: The submission materials required for accompanying family members correspond to those used when applying for a "Dependent" (家族滞在) residence status extension.
Finding a place to stay
When transitioning your residence status to focus on startup activities across Japan, securing flexible accommodation is an essential step before settling your business operations. Moving between university graduation, municipal evaluations, and administrative filings requires stable temporary housing while you handle official paperwork. OHAYO Stay offers furnished monthly apartments and rooms in Tokyo. Booking is online with a passport or ID and a credit card, with no guarantor, no key money, and no agency fee. In addition, the monthly price includes electricity, gas, water and Wi-Fi, making it easier to manage expenses during your initial startup transition.
FAQ
How long can foreign graduates stay in Japan under this startup visa?
Eligible foreign graduates can stay for a maximum total of two years under the Designated Activities status to complete their startup preparations before changing to a Business Manager visa.
Which universities qualify for the direct post-graduation startup pathway?
Direct transition applies to graduates from universities, graduate schools, junior colleges, or technical colleges participating in the Student Employment Promotion Program or the Top Global University Project.
What visa status do dependent family members receive during this period?
Accompanying spouses and children must apply to change their status of residence to Designated Activities, using documentation similar to a Dependent extension application.
Sources
- 出入国在留管理庁「本邦の大学等を卒業した留学生による起業活動に係る措置について | 出入国在留管理庁」(checked 2026-10-28)
This article was created by OHAYO Stay based on the sources above (edited, reorganized and translated). It is not an official publication.
Rules and dates can change. Always confirm with the official source before you apply.