Foreign Company Support, Subsidies & Grants

Foreign Company Support, Subsidies & Grants.

“Take All The Help You Can Get”

The Japanese government, at various levels and jurisdictions, offers grants, subsidies and tax incentives to support SMEs and companies of all sizes. These subsidies require many documents to be submitted and have a reputation for being complicated. Beyond the application procedure, companies are required to submit various reports over time: strict adherence, and of course accuracy and honesty are essential to avoid legal consequences.

It is routine for VERSE to help clients secure such financial aid. Which can be a significant boost financially for companies.  During the pandemic, the range and availability of such aid has increased dramatically.

Here is a sampling of such programs, some of which are available to foreign companies exclusively.

National Government Incentive Programs.

The Japanese government has INVEST JAPAN offices in relevant ministries and agencies as contact points for foreign business people seeking information or help in setting up business in Japan. To promote Foreign Direct Investment (FDI) in Japan, the Japanese government established Invest Japan Business Support Centers (IBSCs) within Japan External Trade Organization (JETRO) as enters for support and information on investment. In addition, relevant ministries and agencies operate single contact points called “Invest Japan Offices”, which can assist you in or direct you to the division (within a given ministry/agency) in charge of a particular procedure.

Local Government Incentive Programs.

Exclusively for foreign companies to entice them to establish a business presence. There are also support programs for which both Japanese and foreign companies are eligible.

  • Special Economic Districts (“Tokku) Incentive Programs. The system allows governments in those districts to diverge from national laws and regulations and offer additional incentives to promote certain policy goals such as increased direct foreign investment.
  • Local Business Tax incentives for strengthening local business facilities
  • Tax Deduction System based on the Regional Future Investment Promotion Act
  • Incentives based on Industrial Competitiveness Enhancement Act
  • Environment and energy funds and support
  • Tax incentives for Research and Development (R&D Tax Credit System)
  • Incentives based on the Act on Special Measures for Productivity Improvement
  • Tax incentive for wage improvement
  • Incentives for Highly Skilled Foreign Professionals from foreign countries
  • Incentive measures for foreign nationals concerning startups
  • Subsidies for new business establishment and employment creation in areas recovering from the tsunami and nuclear disaster