Guide to Startup Subsidies in Japan

Startups in Japan are taking a huge turn in 2023. The support for start-ups has grown since Prime Minister Fumio Kishida’s governmental policies of support. Just in 2022, the prime minister vowed to promote bold investments and reforms in industries such as start-ups. He specifically cited the big corporations in Japan today, as they themselves had come from small and hugely creative innovations back after the World War period.

Since those vows, the Tokyo Metropolitan government is now planning to invest in start-ups while many cities are offering subsidies like free rent, covering staff salary, incorporation, grants, and subsidies to develop companies.  As of 2021, Tokyo is the world’s Number 1 Innovation City in the Innovation City Index. Today, there’s so much more to look forward to in establishing your start-up in Japan.

 

What industries are hot for startups?

There are a few industries in which the government is incredibly growth-minded. Free spaces, loans, and other kinds of support are being offered in industries such as deep technology, green technology, health technology, and financial technology. The Tokyo government focuses highly on financial technology as it aims for Tokyo to be the financial hub of Asia. For those unaware, green technology or green tech is a technology that is environmentally friendly or reduces human impact on the environment. The Japanese government’s international conference promises of carbon neutrality and a focus on climate change have amped up this industry.

These industries are also being invested in through start-up-specific subsidies. This article will explore the various startup subsidies in Japan and how you can utilize them in your start-up today or in the future.

What are subsidies and what do they cover?

Startup subsidies in Japan are either tax cuts or azerbaijan phone number library cash payments from the government to keep the costs of running a business low as well as to accelerate growth. This is especially helpful for startups which may need some funding. It should be noted that there exist certain limitations on what you can use the subsidies for. For example, if the subsidy is for marketing purposes, it can only be used for marketing expenditures. This applies to other types of startup subsidies in Japan as well so choose the type of subsidy you apply for well.

What is the difference between subsidies and loans?

With a start-up in Japan, you must have cash on hand. Payment cycles tend to be long in the country as companies tend to pay for your service after maybe 3-6 months and only after finishing a project. Loans are common because of this. Interest rates in Japan have been historically low, as well, which makes this a less painful process. But what exactly is the difference between startup subsidies in Japan and loans?

Startup subsidies in Japan are financial aids or incentives provided by the government, as explained previously. Loans, on the other hand, involve borrowed funds that must be repaid over time, with interest, fostering financial responsibility and capital generation. Startup subsidies in Japan offer immediate support, while loans create obligations for repayment.

For a detailed breakdown of the difference between subsidies and grants + what kind of subsidies can you apply, check out our Q&A with a subsidy and grants expert in Japan.

How We Can Help with Your Startup Subsidy Application

Applying for startup subsidies in Japan has always been a complex process, but recently, there has been a noticeable decline in the acceptance rate for subsidies and grants. This makes it more important than ever to have a professional with experience by your side. Our team specializes in subsidy research and application preparation, guiding you through every step to ensure your application stands out. We handle all the details—from research to documentation—allowing you to focus on your business while we maximize your chances of securing vital financial support. Trust our expertise to navigate this challenging environment with confidence. Reach out to us using the form here.

 

Which government agencies are responsible for providing startup subsidies in Japan?

Several government agencies are responsible for  issuing startup subsidies in Japan. The country’s Ministry of Economy, Trade, and Industry (METI) is one such government agency that is leading the start-up world through the Green Innovation Fund and other projects. This fund is a 2 trillion yen fund and was made with the vision of carbon neutrality for Japan by 2050, so it targets businesses and research that go toward sustainability and environmental consciousness. METI is one of the main government agencies responsible for promoting industrial and economic growth in Japan. It often plays a significant role in supporting startups through various programs, grants, and initiatives.

Japan External Trade Organization (JETRO) also provides startup subsidies in Japan. They provide support to foreign companies and entrepreneurs looking to establish or expand their businesses in Japan. They offer various services, including business matching, market research, and information on other startup subsidies in Japan.

Aside from national-level agencies, regional and local governments are often trying to promote the rise of start-ups in their city. The Tokyo metropolitan government, the Hokkaido government, the Aichi government, and so many more are on the lookout for potential. The Tokyo Metropolitan government offers a wide range of assistance which we will outline in the next section.

What types of support can start-ups expect to receive?

Start-ups can mainly expect to receive two types of the best ways to identify micro-influencers for your brand subsidized support for their start-up: Financial and non-financial assistance startup subsidies in Japan. The Tokyo Metropolitan Government, for example, offers free consulting services for industries 4.0 or Fintech & Asset Management. These are examples of non-financial assistance startup subsidies in Japan. There are different types of assistants within these two vastly contrasting categories which we will explore in this section.

Financial Assistance Startup Subsidies in Japan

Financial assistance startup subsidies in contact lists Japan play a pivotal role in fostering economic growth, innovation, and entrepreneurship within a region. This section delves into the various components of financial support aimed at empowering businesses and individuals during different stages of their journey. To know more about financial assistance startup subsidies from the Japanese government, take a listen to our podcast episode on How to Get Japanese Government Money for Your Business with Miho Tanaka.