Start-ups can mainly expect to receive two types of 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 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.
Seed Funding and Early-Stage Support
Seed funding and early-stage support are critical pillars of financial assistance. Startups and entrepreneurs often require initial capital to transform their innovative ideas into viable businesses. Startup subsidies in Japan within this category provide the essential monetary injection needed to cover preliminary costs such as product development, market research, and operational expenses. The following are seed funding from various parts of Japan that are subsidized by local governments.
- Hokkaido’s government offers up to 50% (maximum amount of 2.5 Million JPY) subsidies to cover initial costs with a maximum amount of 300,000 JPY. By offering seed funding, the region aims to catalyze the emergence of promising ventures and contribute to job creation.
- Nagoya City’s government offers startup support for companies within 5 years of starting with a headquarters in Nagoya. The subsidy limit is a maximum of 1 Million JPY at ⅓ rate.
Research and Development (R&D) Funding and Innovation Grants
Research and development are key drivers of technological advancement and economic progress. R&D funding and innovation grants are tailored to support companies engaged in cutting-edge research, product development, and technology-driven initiatives. These startup subsidies in Japan foster collaboration between academia and industry, resulting in the creation of novel products, services, and solutions that elevate the region’s competitiveness on a global scale.
For hardware start-up companies, making an MVP often needs grants to allow time to gain funding from venture capitalists or angel investors. Grants for research and development are crucial for these types of companies.
Prizes
Recognizing and rewarding innovation is a cornerstone of the financial assistance framework. Initiatives are available like the Financial Innovation Prizes which celebrates groundbreaking ideas and solutions that have the potential to reshape industries and address pressing challenges. By offering such prizes, the region not only acknowledges exceptional achievements but also encourages a culture of continuous innovation.
Free Rent
To alleviate one of the initial financial burdens faced by startups and businesses, the provision of free or subsidized workspace is a valuable component of financial assistance. By offering free rent or shared office spaces, the region facilitates a conducive environment for collaboration, idea exchange, and growth. This initiative aims to reduce overhead costs, enabling entrepreneurs to allocate resources more effectively during their crucial early stages. The following cities are a few examples of those that provide rent support.
- Fukuoka City Global Startup Center offers this as a subsidy, which you can learn more about in this podcast episode on Japanese Startup Cities with Akiko Nakagawa from Fukuoka GSC. Essentially, 5 spots are given out every April-June for both residential and office space subsidies.
- Kobe City’s government offers free rent for start-ups such as free office space before the establishment of the start-up’s own office (maximum of 3 months). After the start-up establishes its own office, Kobe City also offers subsidies up to ½ of the space’s rent with a maximum of 1500/m2/month for downtown Kobe office spaces. Subsidy rates for spaces outside downtown Kobe go for 750/m2/month.
- Nagoya City’s government offers subsidized rent for start-ups looking to establish a base office within Nagoya City. The subsidy is called the Subsidy for Promotion of Start-up Accumulation, which has a subsidy rate of ½ for 12 months with a maximum amount of 700,000 JPY.
- Hokkaido’s government offers 3 months of free housing rent for entrepreneurs planning to open up a business in Sapporo with further plans of incorporation
Employee Salary Support
Recognizing the significance of a skilled workforce, algeria phone number library employee salary support initiatives are designed to attract and retain talent within the region. These startup subsidies in Japan may offer incentives such as wage reimbursements or matching contributions to encourage businesses to invest in human capital. The region’s commitment to enhancing its workforce promotes industry expertise and innovation, contributing to sustainable economic development. Here we list a few examples of subsidized employee salary support.
- Kobe City Government offers employee salary support subsidies for businesses with offices in downtown Kobe for 300,000 JPY per newly employed full-time worker (maximum 3 million JPY for the whole business) who has a registered address listed under Hyogo Prefecture. The businesses must, however, have 11 or more full-time workers.
- Nagoya City’s government offers startup support for companies within 5 years of starting with a headquarters in Nagoya. This seed funding includes labor expenses of up to 350,000 JPY per month per worker over the subsidized period.
Tax Reduction
Tax reduction measures are a strategic approach to stimulate economic activity and incentivize investment. By offering tax breaks to eligible businesses and individuals, the region aims to promote entrepreneurship, job creation, and overall economic growth. These reductions can encompass various taxes, such as corporate income tax, property tax, and sales tax, providing a financial boost to entities that contribute to the region’s economic vitality. These different categories are important to distinguish amongst when applying for tax reductions.
- Kobe City Government offers reductions on corporate enterprise taxes. These reductions will allow the start-up to pay only ⅓ of the full corporate enterprise tax given that.
- Fukuoka City’s government has a considerable reduction in national taxes. Up to at least 8% reductions for industries such as the Internet of Things, International, Medicine, Agriculture, and Advanced IT.
Loans
Loans from the government are a significant financial assistance subsidy that helps promote and foster economic growth at reasonable interest rates for the borrowers. Repayment periods also tend to stretch out and are considerably flexible. Here we list a few examples of flexible government loans.
Non-Financial Assistance Startup Subsidies in Japan
In addition to financial assistance, the region is committed to promoting non-financial support that nurtures and guides businesses toward success. This section delves into the diverse range of non-financial startup subsidies in Japan aimed at fostering growth. Knowledge enhancement, and long-term sustainability.
Start-up Incubation and Acceleration Programs
Business incubation and acceleration programs stand as pillars of support for startups and emerging enterprises. These programs offer a structured environment where entrepreneurs can access mentorship, resources, and networking opportunities. Through collaboration with established industry experts and successful entrepreneurs, participants gain invaluable insights, guidance, and feedback. Accelerators also offer possible investment after the program.
You can apply to notable accelerator programs in our article on the Top 10 Start-up accelerators in Japan and spread to incubators in our article on Top 10 Start-up Incubators in Japan. Other programs like the Japans Venture Academy (JVA) fellowship also encourage startup-minded individuals to create their own products. Fukuoka City’s government also invites businesses to their facilities by giving priority access to incubator facilities for entrepreneurs who open their businesses in Fukuoka.
Mentoring and Consulting Services
Mentoring and consulting services form a beverage brand has done an amazing crucial part of the region’s non-financial assistance strategy. Established professionals and seasoned mentors offer their expertise to guide startups and businesses through challenges. Strategic decision-making, and growth opportunities. And government representatives.
For businesses seeking to grow their revenue, effective mentorship plays a vital role in achieving growth and financial stability. At Scaling Your Company, we provide expert guidance to help you develop and implement marketing strategies that drive customer acquisition and revenue growth we have helped over 50 businesses with their revenue expansion in Japan. Book a free 45-minute consultation with us to explore how we can mentor and support your business’s marketing and financial success.
Training and Skill Development Support
Continuous learning and skill development b2c phone list are fundamental for businesses to remain competitive in a rapidly evolving landscape. By investing in human capital, the government ensures that businesses have the capabilities to innovate, adapt, and thrive in an ever-changing marketplace.