The Japanese government is moving forward with plans to grant angel investors residency for up to five years. The new residency status is expected to be available as early as April 2024 in thirteen areas.
Conditions for residency include the submission of an investment plan, the investor's past performance, and the amount of assets held — with the specific investment threshold to be determined at a later date. The program is accompanied by a strict monitoring regime to prevent money laundering and other crimes.
Residence holders are expected to engage in corporate advisory and startup support activities, particularly in Shibuya City, Tokyo, where a proposal to establish a residence program for angel investors has already been submitted. The government plans to expand this initiative to strategic special zones throughout Japan.
In Japan, loss-making companies in the early stages of their startups are struggling to raise capital, while support from venture capital funding is limited compared to other startup ecosystems like in the USA.
This initiative comes as one part of Prime Minister Fumio Kishida’s vision to make Japan a global center for asset management, aiming to channel household savings into equity investments. The government has also announced plans to establish special financial zones and relax residency rules for foreign entrepreneurs.
