14 September 2024 · Country Matchups · Global
Japan vs. Taiwan: Which Startup Visa Treats Founders Better?
Asia’s talent magnet is switching on. Tokyo, Osaka, Taipei and Kaohsiung each want your cap-table, your code and—yes—your eventual IPO tax revenues. The region’s startup-visa arms race has become so tight that I now jokingly rank immigration officers on their sales pitch.
In this deep dive I’ll benchmark Japan and Taiwan across four founder-critical factors:
- Visa duration & renewals
- Local funding options
- Cost of incorporation
- Cultural support for founders
I’m writing this as a venture mentor who splits the month between Shibuya’s caffeine temples and Taipei’s night-market “boardrooms.” Expect numbers, anecdotes, and the occasional hard-earned lesson I usually reserve for portfolio CEOs.
1. Visa Duration and Renewals
Japan: Two Pathways, Two Clocks
Japan offers a 6-month “Startup Visa” administered by local governments (Tokyo, Fukuoka, Kobe, etc.) plus the more formal Business Manager Visa (1–5 years).
Key parameters:
| Item | Startup Visa | Business Manager Visa |
|---|---|---|
| Initial validity | 6 months (rarely 1 yr) | 1 or 3 yrs (occasionally 5) |
| Renewal hurdle | Prove incorporation & ¥5 m capital (≈ USD 33k) or 2 full-time hires | Revenue, tax & payroll compliance |
| Max renewals | Usually one | Unlimited |
My founders often underestimate how fast six months flies in Tokyo—the land where invoicing etiquette alone can eat three meetings. Book legal counsel in week one, open a bank account in week two, and line up a gyōsei shoshi (immigration lawyer) by week three. Doable, but sprint-mode.
“Treat Japan’s 6-month clock like a Y Combinator batch—show traction fast or you’ll be pivoting back at Narita.”
Taiwan: Entrepreneur Visa — Slow and Steady
Taiwan counters with a 1-year Entrepreneur Visa, extendable twice for a total of 3 years before you must graduate into an ARC (Alien Resident Certificate) tied to your company.
Qualifying metrics:
• Capital injection of NT$2 m (~ USD 63k) or
• Government subsidy/VC funding of NT$2 m or
• Revenues of NT$3 m (~ USD 95k) in the preceding year.
Renewal is points-based (sales, R&D spend, headcount). In practice, startups that raise even a modest seed round breeze through.
Verdict on Duration
Taiwan wins on breathing room. If you’re perfecting AI models or regulated hardware, the extra runway matters. Japan rewards executors who can incorporate, hire and wire capital at Shinkansen speed.
2. Local Funding Options
Who’s Cutting Cheques in Japan?
-
Government Grants
• JETRO’s Subsidy for Foreign Startups: up to ¥50 m for PoCs.
• NEDO: deep-tech grants touching ¥70 m. -
Corporate Venture Capital (CVC)
Mitsubishi, Toyota and SoftBank Vision Fund offshoots all run scouting arms. Ticket sizes from ¥500 m–¥2 b (Series A+). -
Seed Funds & Accelerators
Samurai Incubate, Coral Capital, 500 Global Japan enjoy cap-table latitude; ¥5–¥40 m seeds are routine.
Numbers look juicy, but note the “lock-step” syndrome: diligence drags, and board consensus culture can stretch term-sheet to closing by 4–6 months.
Taiwan’s Money Landscape
-
Government Sweeteners
• TTA Soft-Landing grant: NT$1 m non-dilutive.
• Taiwan Small Business Innovation Research (SBIR): up to NT$12 m. -
VC & Family Offices
AppWorks, Darwin, Hive Ventures write NT$7–30 m seed cheques quickly—median signing to disbursement < 45 days. -
Southbound Capital
Singaporean and Hong Kong funds treat Taipei as a cost-efficient tech hub; cross-border rounds close in USD, bypassing NT$ exposure.
Pull-quote: “Taiwan’s cheque sizes are smaller, but money lands in your bank account before the boba ice melts.”
Funding Verdict
Japan wins on absolute cheque size and deep-tech subsidies; Taiwan excels in speed and founder-friendly terms (2x liquidation preference is rare, thank goodness).
3. Cost of Incorporation
Japan: KK or GK—Pick Your Wallet Size
• Kabushiki Kaisha (KK): ¥150k government stamp tax + ¥91k registration fee + ~¥150k legal scrivener. Total ≈ ¥400k (USD 2.6k).
• Godo Kaisha (GK): Lower prestige but cheaper; no stamp tax if e-filing; roughly ¥200k total.
Ongoing burn:
• Corporate tax 23.2% (+ 1–3% inhabitant)
• Mandatory social insurance: employer share ≈ 15% of salary.
Taiwan: Company Limited by Shares
• Name reservation + registration fees ≈ NT$21k (USD 670).
• Lawyer + CPA bundle: NT$60–80k.
Corporate income tax: 20%; no dividend tax if profits retained. Social charges: 6% National Health Insurance + 9% labor insurance.
My spreadsheet says a Taipei subsidiary costs ~40% of a Tokyo KK, both at 5-staff scale.
4. Cultural Support for Founders
Language & Paperwork
• Japan: Even in 2024, bank forms cling to fax machines. Expect 50-page koseki-tohon translations. English-servicing banks exist (SMBC Prestia, SBI), but charge premium fees.
• Taiwan: English-first staff at government One-Stop Service Center; online filings in bilingual UI. Landlords still prefer Chinese lease contracts, so keep a local friend on speed-dial.
Risk Appetite & Community
Japan’s corporate world pays lip-service to innovation yet still frowns on failure. Founders keep pivots quiet; post-mortem blogs are rare.
Taiwan’s younger talent pool grew up watching HTC’s roller-coaster and TSMC’s dominance—the “fail fast” ethos sticks.
Both ecosystems boast coworking chains (WeWork Shibuya, CLBC Taipei), but I give Taiwan the edge for density of English meetups and cross-border founder dinners.
Work-Life (Food!) Quotient
• Ramen and 24-hour konbini culture can turbocharge all-nighters in Tokyo.
• Taipei’s USD 1.50 scallion pancake keeps burn-rate low and morale high.
Call me biased, but nothing beats brainstorming over midnight beef-noodle soup.
Quick Global Perspective
If you’re juggling multiple passports or decentralized assets, read our primer on inheritance planning for crypto across borders. Europe on your radar? Spain’s new scheme is worth benchmarking—see the Start-up Act overview for a westward comparison.
Scoreboard Summary
| Factor | Japan | Taiwan |
|---|---|---|
| Visa length | 6 mo–1 yr (renew up to 5 yrs) | 1 yr (renew to 3 yrs) |
| Renewal ease | Medium | High |
| Average seed cheque | USD 400k | USD 250k |
| Incorporation cost | High | Low |
| Bureaucracy | Heavy | Moderate |
| English friendliness | Improving | Strong |
| Cultural risk tolerance | Moderate | High |
Mentor’s Decision Matrix
Choose Japan if you:
• Need deep-tech grants > USD 500k.
• Target enterprise customers (automotive, robotics) who sit within JR pass range.
• Thrive in structured, process-driven cultures.
Opt for Taiwan if you:
• Value lower burn and quick filings.
• Plan to iterate consumer products with Mandarin-speaking beta users.
• Want an English-friendly soft landing before tackling Mainland China or SEA.
Final Thoughts
Navigating visas is rarely about stamps and quotas—it’s about aligning ecosystem pace with your startup’s metabolic rate. Both Japan and Taiwan can mint the next unicorn; the trick is matching your sprint length to the runway they grant.
Curious how either pathway fits your personal equity, family plans or runway? BorderPilot’s algorithm crunches 200+ variables—taxes, schooling, even average Wi-Fi latency—to craft a move-ready blueprint.
Ready to see which flag makes sense on your cap-table? Start your free relocation plan today and build where your startup—not bureaucracy—sets the clock.