Obtaining and Renewing a Highly Skilled Professional Visa in Japan for Newly Established Startups: Practical Strategies Without Financial Statements

This article is written by a Japanese local.

“Can an international professional obtain or renew Japan’s ‘Highly Skilled Professional (HSP)’ visa at a newly established startup that has not yet completed its first financial year?”

When Japanese startups in fields like AI, deep tech, or global expansion onboard top-tier global talent, executive candidates, or co-founders, this question frequently creates substantial anxiety.

To state the conclusion directly: Even for newly established startups without financial records, obtaining or renewing a Highly Skilled Professional visa is entirely achievable, provided you logically demonstrate the company’s operational stability, business continuity, and financial capacity to pay the promised salary.

This article provides a comprehensive practical guide detailing the key checkpoints examined by Japanese immigration for companies lacking financial statements, along with legal strategies to eliminate visa rejection risks.

1. The 3 Major Rejection Risks in HSP Visa Screening for New Startups

When the Immigration Services Agency of Japan evaluates HSP visa applications, unlike listed corporations or major enterprises (Category 1 & 2), newly founded startups (Category 4) face exceptionally rigorous scrutiny. Immigration officers particularly scrutinize the following three risks:

Risk 1: Complete Absence of Recent Financial Statements (Balance Sheets & P&L Statements)

Standard visa change or renewal applications require submitting the previous fiscal year’s tax returns and financial statements. However, because first-year startups lack these documents, simply submitting an application with “missing documents” leads directly to visa rejection due to an inability to verify business continuity.

Risk 2: Doubts Over Salary Payment Capacity Amid Zero Revenue or Initial Losses

HSP applicants typically claim points based on high prospective annual remuneration (JPY 7M to 10M+). However, when a pre-revenue startup in its R&D phase offers a high compensation package, immigration officers strongly suspect that the salary figure is artificial or a “show money” setup solely designed to secure the visa.

Risk 3: Suspicions Regarding Office Requirements and Lack of Specialized Workload

Startups operating out of virtual offices, unreserved hot-desking spaces, or lacking physical office space face heightened skepticism. Furthermore, immigration examiners often question whether the applicant will actually perform advanced specialized tasks rather than administrative odd jobs typical of early-stage operations.

2. The 3 Legal Strategies for Startups Without Financial Statements to Pass Screening

To overcome these risks and secure an HSP visa with a newly established startup, implement the following concrete evidentiary strategies:

Strategy 1: Proving Financial Solvency via VC Investment Records and 1 to 3-Year Cash Flow Projections

In lieu of financial statements, submit official Investment Agreements from Venture Capital (VC) firms or angel investors, along with an updated Corporate Registration Certificate (Tokibo) reflecting the increased capital. Additionally, attach a detailed 1 to 3-year Monthly Cash Flow Projection proving that raised capital sufficiently covers payroll and operational expenses.

Strategy 2: Submitting a Concrete and Realistic Business Plan

Draft a granular business plan that goes beyond vision statements. It must outline the product development roadmap, monetization model, customer acquisition strategy, and a detailed breakdown of the applicant’s specialized duties (e.g., CTO, Lead AI Engineer, Head of Global Expansion) to establish business feasibility and continuity.

Strategy 3: Leveraging Innovation Sponsor Bonus Points (+10 to +20 Points)

Many startups receive government grants designated by the Ministry of Justice (e.g., NEDO, JST), participate in National Strategic Special Zone initiatives, or hold certifications from the Small and Medium Enterprise Agency. Qualifying under these frameworks grants 10 to 20 bonus points as an innovative corporate sponsor, simultaneously verifying company credibility and elevating the applicant’s score.

3. Required Document Package for Newly Established Startups

To thoroughly address startup-specific screening risks and achieve first-time visa approval, assemble the following evidentiary package:

• 1. Copy of Employment Contract / Notice of Working Conditions: Clearly stating position, annual remuneration (base pay + fixed allowances), and specialized job responsibilities.
• 2. Corporate Registration Certificate (Historical Matters Certificate): Proving paid-in capital and corporate structure.
• 3. Investment Agreements & Corporate Bank Statement Certificates: Providing objective evidence of raised capital and payroll capacity.
• 4. 1 to 3-Year Monthly Cash Flow Projections & Detailed Business Plan: Establishing revenue models and operational continuity.
• 5. Office Lease Agreement & Physical Office Photos: Proving the existence of physical business premises (virtual offices are strictly invalid).
• 6. Innovation Bonus Evidentiary Proof (if applicable): Official grant approval notices or innovation business certifications.

4. Frequently Asked Practical Questions and Edge Cases (Q&A)

Below are expert answers to common practical questions regarding HSP visas at early-stage startups.

Q1. If a startup records a loss in its first fiscal year, will the HSP visa renewal be rejected?

A. Recording an initial loss does not cause immediate visa rejection. Japanese immigration understands the startup “J-curve” (temporary initial losses due to upfront investments). The critical factors are proving that the contractually agreed salary was fully paid (via tax certificates) and demonstrating that remaining capital or follow-on funding ensures ongoing payroll solvency.

Q2. Can unexercised Stock Options or RSUs at a startup be counted toward annual salary points?

A. Unexercised stock options generally cannot be included in salary point calculations. Because HSP salary points evaluate guaranteed remuneration to be paid over the upcoming 12 months, stock options with unconfirmed exercise prices or fluctuating valuations are excluded. Points must be established using guaranteed base pay or fixed executive compensation.

5. Conclusion: Maximizing Company Credibility Through Capital and Planning

Even for newly founded startups lacking financial history, securing or renewing a Highly Skilled Professional visa is fully achievable by presenting solid evidence of raised capital, cash flow solvency, and detailed business planning. Do not be discouraged by the absence of financial statements; build an objective, compelling case tailored to early-stage corporate realities.

If you require expert guidance on HSP visa applications for startups, capital proof strategies, or points calculation, consulting with a legal specialist in Japanese immigration practice is highly recommended.