Japan Business Grants & Subsidies

Updated 22 October 2026 · compiled by Oak from official programme pages and the government’s jGrants portal

Japan’s national and local governments set aside hundreds of billions of yen a year for business subsidies: equipment, IT and AI, new business lines, hiring, exports and, for foreign companies, setting up in Japan at all. Almost none of it is explained in English. In JETRO’s latest survey of foreign-affiliated companies, a third wanted to use Japanese subsidies but only around 6% had done so; language and procedures were the main barriers.

This directory covers the programmes most relevant to foreign-owned companies and foreign founders, with what each one pays, who can apply and whether foreign ownership is a problem. It is kept current from official sources.

Before you apply: how Japanese grants work

Grants can be worth having, but they are not free money handed over at the start. Read these first.

Is the grant paid up front?

No. Japanese grants are almost always paid after the project is finished. You apply, wait for the decision, carry out the project and pay for everything yourself, then submit a completion report with invoices and proof of payment. The money arrives after the office has checked that report, typically 6 to 18 months after you applied. You need the full cost of the project in cash or financing first, and the grant covers only a share of it, often half to two-thirds.

Can I buy equipment now and claim it later?

Usually not. In most programmes, anything ordered, contracted or paid for before the official grant decision (交付決定) is not eligible. Buying too early is one of the most common ways applicants lose a grant entirely.

How hard is it to get approved?

Most business subsidies (補助金) are competitive: your business plan is scored against other applicants and only the stronger plans are adopted. Recent rounds of the main national programmes adopted roughly a quarter to two-thirds of applicants, depending on the programme. On top of that, eligibility rules on company size, ownership and tax compliance are applied strictly, and many programmes require binding commitments on wage increases and growth.

What do I have to do after receiving a grant?

Grants come with obligations that can last years: annual reports on results for up to five years, keeping receipts and records for five years and allowing inspections, not selling or repurposing subsidised equipment without approval, and meeting the wage and growth targets in your plan. Missing targets can mean repaying part of the grant; misuse means full repayment with penalty interest and public naming. Grants also count as taxable income for the company.

Can a consultant write the application for me?

Not entirely. The main METI programmes require the applicant to write its own business plan and file the application itself. Advisers may support, but proxy filing is prohibited, adviser fees must be disclosed, and since January 2026 the Gyoseishoshi Act makes clear that preparing grant documents for a fee, whatever the fee is called, is reserved to licensed gyoseishoshi (and other licensed professions within their own fields).

Can a foreign-owned company get a grant in Japan?

Yes, in most cases. A company incorporated in Japan (KK or GK) is treated like any other Japanese company, whatever its shareholders' nationality. The main exceptions: national SME programmes exclude companies that count as 'deemed large enterprises' (みなし大企業), for example where one large company, including a foreign parent, owns half or more of the shares. Branches of foreign companies usually cannot apply for national SME programmes, although some Tokyo programmes accept a Tokyo branch.

What is the difference between hojokin and joseikin?

Hojokin (補助金) are competitive subsidies, mostly from METI and local governments: you submit a business plan, it is scored, and only some applicants are adopted. Joseikin (助成金) are mainly employment and training grants from MHLW, paid to employers that meet every condition, again after the fact and only with complete records. Gyoseishoshi handle hojokin; joseikin are filed by sharoshi.

What do I need before I can apply?

For most national and many local programmes: a Japanese company or sole-proprietor registration, a GビズID Prime account (which requires a My Number card or a company seal certificate), recent financial statements, and a business plan written in Japanese. Allow a month or more to get these in place before a deadline.

Can a foreign-owned company apply?

• A Japanese company is a Japanese company. A KK or GK registered in Japan can apply for almost every programme, whoever owns it.
• Watch the large-parent rule. National SME programmes exclude “deemed large enterprises” (みなし大企業): one large company owning half or more of the shares, large companies together owning two-thirds or more, or large-company staff holding half or more of the board seats. A foreign parent counts if it is large by Japanese SME definitions.
• Branches are usually out. National SME programmes require a head office in Japan. Some Tokyo programmes accept a Tokyo branch.
• Get GビズID Prime early. Most applications are filed online with a GビズID Prime account, which needs a My Number card or a company seal certificate and can take a few weeks.
• Mind the visa side. Founders on a Business Manager visa need the company to meet the visa rules too. Since October 2025 these require ¥30 million in capital and at least one full-time employee. See our Business Manager visa page.

Programme directory

Amounts are the maximum per applicant in the main track; many programmes have several tracks with different limits. For programmes accepting applications right now, see open calls.