Can a Startup Sponsor a Work Visa for Foreign Employees?
Can a Startup Sponsor a Work Visa for Foreign Employees?
Yes.if the company can submit a credible business plan and prove business stability and a valid reason for hiring foreign staff.
Categories for Work Visa Sponsorship
Japan’s Immigration Bureau assigns companies into one of four categories based on their reliability. These categories impact the documentation requirements and intensity of review. Category 1 is the most trusted (e.g., listed companies or government agencies), and Category 4 includes newly established startups.
Category 4 companies are subject to the most scrutiny. They must prove they are not shell companies and are capable of sustainably employing foreign professionals.
• Can the company offer stable, ongoing employment to foreign staff?
• Is the company a genuine business or just a shell created to obtain a visa?
Explaining Business Stability Through a Business Plan
Category 4 companies, particularly those founded by a sole representative, must submit a written business plan. Immigration officials expect to see a, the stability and continuity of the business, b, a valid reason to hire the foreign national, and c, alignment between the employee’s role and the visa category.
All submissions must be in writing—there are no opportunities to verbally explain your case to immigration officials.
What Your Business Plan Should Include
Your business plan should clearly outline the market size, background of key management, founding story, business model overview, supplier/customer details, projected sales, capital/funding sources, and most importantly, why hiring this foreign national is logical and necessary. Emphasize the areas that match your specific business and the foreign hire’s background.
Immigration will particularly focus on two questions: Can your company sustainably employ foreign staff? Is this company just a paper entity created to help someone obtain a visa? These concerns stem from past fraud cases where companies were registered solely to facilitate visas.
The amount of capital required depends on your actual operational needs. Estimate based on staffing, regulatory requirements, taxes, and projected costs.
A robust business plan helps establish both the legitimacy of the business and the rationale for hiring a foreign employee. The stronger and clearer your plan, the more favorable your chances of approval.
Other Legal Requirements for Employing Foreign Nationals
Beyond the business plan, your case must meet the substantive requirements for a work visa category such as Engineer/Specialist in Humanities/International Services or Highly Skilled Professional. This includes:
- Relevant education or work experience
- Job duties that match the visa category
- Sufficient volume of work in that role
- Appropriate salary comparable to Japanese peers
If the individual is being transferred from an overseas affiliate, the Intra-Company Transferee visa may also apply, and structuring via secondment could be appropriate.
Academic credentials, resumes, contracts, and internal documentation must support your case. Immigration may also verify your company’s existence and operations through your website. We strongly recommend creating one if it does not already exist.
(Recommended reading) Engineer/Humanities/International Visa Explained
(YouTube Video) Can Startups Hire Foreigners and Obtain Work Visas?
About the Author
Masakazu Murai
Former investment banker at Mitsubishi UFJ Morgan Stanley. Provided M&A and capital raising advice to corporations, while also serving as a union leader promoting workplace diversity. Specializes in immigration and financial consulting for foreign entrepreneurs.
Certified Immigration Lawyer for Japan Immigration Bureau Filings
CFP® Certified Financial Planner
Member of the Securities Analysts Association of Japan
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