Incentives

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Japanese Incentives Outline

Because there is a clear connection between vitalizing an area and creating new jobs that bring in new technology and revolutionary management techniques, the Japanese government has plans to actively intake foreign companies to expand into Japan. The government and local municipalities are offering to foreign companies individually such benefits such as rent-free office space, subsidies, and tax benefits. By taking advantage of these offers, you can reduce the enormous initial cost necessary to expand into Japan.

There are two types of subsidies available: local subsidies and grant money for hiring workers. Local subsidies are large scale grants awarded when a company in certain industries or a company expanding in certain locations that the government has decided, invests in faculties, or builds new buildings or factories. The other subsidy available is meant to be used for expenses related to training or educating new workers hired in Japan.

As long as you fulfill certain conditions you can receive subsidy money, and unlike financing there is no obligation to pay it back. Plus there is an added benefit that by making good use of subsidy money you can increase the trust the government and financial institutions have in your business. This can work considerably in your favor in future business activities.

However, each subsidy has different requirements, so it is necessary to have expert knowledge of how they work. To make use of them, complicated research is needed and it’s common to be asked to submit with your application a business plan and the correct forms. Plus, after the money is awarded and used, you are required to create performance reports that detail how the money was spent. One way to look at it is that, although you don’t need to pay back the money, some work and expert knowledge is necessary.

Government Policy

The government’s 2010 New Growth Strategy has been announced:

  • 5% reduction of corporate taxes
  • a 20% deduction in reported income reported for taxes for business approved as in the government’s “National Strategy Comprehensive Special Zone” to strengthen its position in Asia.
  • Assistance for business locations that add high value to the area

Examples of incentives available from local governments in the Kansai area

Subsidies

  • Assistance for emerging industries expanding to Japan (up to 15 billion yen)
  • Assistance to promote investment in factories or research facilities (up to 50 million yen)
  • Assistance for hiring new and local staff (300,000 yen per person, up to 300 million yen total)

Low interest rate financing

  • Financing at low interest rates for companies who develop in certain locations (up to 2.5 billion yen over a period within 15 years)

Special tax treatment

  • A reduction by 50% of tax incurred when acquiring real-estate (up to 200 million yen, for up to 3 years)

Rent assistance

  • Free temporary office space (can be used for up to 6 months)
  • Assistance funds that cover one third expenses for renting a building for 2 years (limited to emerging industries, up to 60,000,000 yen)

Note: The details of these programs are reconsidered every year. For those interested please contact us for consultation.

Services

1. Information Services

 We provide information on subsidies the national government and local governments have in place as well as other incentives available.

2. Planning Services

 We determine beforehand whether there are any programs available that your company can use, then create different proposal plans on the usability of those programs to fit your individual company.

3. Application Support Services

 We take care of the application process: from creating the documents needed to use the programs to finishing the process. We also offer complete services for procedures afterward such as accounting and creating and submitting necessary reports.

       

Fees

1. Information Service

We offer free information about establishing a company and tax procedures in Japan.

2. Planning Services

Starting from 52,500 (estimates are given on a case-by-case basis)

3. Application Support Services

Fees are estimated on a case-by-case basis.

Note: discounted package services are available

FAQ