Japan startup subsidy up to ¥2m opening soon: Key funding opportunity for small businesses
The Japanese government has announced the 'Small Business Sustainability Subsidy (Startup Category),' providing up to ¥2m. Eligibility: Businesses within 3 years. This initiative offers crucial funding for startups to foster innovation and growth.
Preparing your application: a detailed process requiring 5+ weeks
This grant prioritises businesses within their first three years of operation. With the 'Invoice Special Provision', an extra ¥500k can be added to the maximum, totalling up to ¥2.5m. It's crucial to note that preparation takes time. Allow a minimum of 5-6 weeks to meet the application requirements. Important: This subsidy is expected to be competitive. Prepare your application thoroughly and promptly.
While only an overview has been released by the government so far, and some details remain unclear, I will discuss what I can learn from the current outline.
What is the 'Small Business Sustainability Subsidy (Startup Category)'?
This subsidy supports small business owners who are working on developing new markets for their products or services, such as:
- Developing new products
- Creating promotional materials
- Participating in trade shows
Key details
- Subsidy Amount: Up to ¥2 million (with a potential increase of ¥500k for businesses that qualify for the invoice special provision).
- The 'Invoice Special Provision' adds ¥500k to the subsidy limit for businesses that:
- Were tax-exempt from September 30, 2021, to September 30, 2023.
- Or, were established on or after October 1, 2023, and have registered as qualified invoice issuers.
- The 'Invoice Special Provision' adds ¥500k to the subsidy limit for businesses that:
- Subsidy Rate: 2/3 of eligible costs
- Application Period: May 1, 2025, to June 13, 2025. Application Period: May 1, 2025, to June 13, 2025. Important: Allow 5-6 weeks for preparation to ensure eligibility. More details below.
Eligible Expenses
The subsidy covers a range of expenses directly related to business development, including:
- Machinery and equipment.
- Advertising and promotional costs.
- Website development and maintenance, including SEO. The upper limit for this expense is one-fourth (1/4) of the subsidy application amount, capped at ¥500k.
- Participation in exhibitions and trade shows.
- Travel expenses.
- New product development.
- Rental fees.
- Contracting and outsourcing costs.
These eligible expenses are designed to support various aspects of business development, providing essential funding for growth initiatives.
Who is eligible?
To be eligible for this subsidy, you must:
- Be a small business owner in Japan
- Have started your business within the past three years
- Have received support from a 'certified local government program', which can be time-consuming
Obtaining local programme support: A time-sensitive requirement
Understanding this process is essential, as it directly impacts your application timeline.
This is a system in Japan where municipalities create support plans for startups in cooperation with local businesses. These plans often include 'Specified Startup Support Programmes' that provide entrepreneurs with knowledge and assistance in areas like management, finance, and marketing. Receiving this support can qualify startups for benefits like tax reductions and preferential loan conditions.
This 'Small Business Sustainability Subsidy (Startup Category)' necessitates support from a certified local government programme. This involves roughly four consulting sessions, limited to one per week, thus requiring at least one month. Consecutive sessions are not permitted. Additionally, obtaining the support certificate can take approximately one week, depending on the municipality. Consequently, applicants should allocate a minimum of 5-6 weeks for this preparation.
Even so, compared to other Tokyo Startup Subsidy programs that require ten consulting sessions, this process is relatively straightforward. Furthermore, as mentioned earlier, completing these sessions can grant you benefits such as registration license tax reductions for pre-startups, or preferential treatment when applying for Japan Finance Corporation (JFC) loans.
Yumiko Horie
How can we help?
At Posse Nippon, the operating company of Small Business Japan, we offer bilingual support to assist you with your application. We understand that navigating the application process for subsidies can be challenging, especially for those who are not fluent in Japanese. We're here to ensure language doesn't exist between you and this funding opportunity.
Our assistance includes:
- Application Document Preparation and Creation (Japanese): We will help you prepare and create the necessary application documents in Japanese, while communicating with you in English.
- Application Preparation Support: We'll assist with all necessary preparations, including guidance on account setup and coordination for participation in a certified local government program.
- Interpretation Services: We provide interpretation services (as needed) during your participation in the aforementioned programme.
Due to the time-sensitive nature of the preparation required, we are only able to assist those who apply by April 20th. While this subsidy offers significant benefits, please carefully consider the time commitment and potential drawbacks. We recommend evaluating whether this subsidy aligns with your business needs.
Contact us at small-business-japan[at]posse-nippon.com or schedule a meeting to ask questions and further inquiries.
Even if you don't qualify for this subsidy, we can help you find other funding opportunities. Fill out this form for English subsidy information by Posse Nippon, the operator of Small Business Japan.
Yumiko Horie
