Top Subsidies for Startups in Japan: Essential Funding Opportunities (2025 Guide)

Japan is quickly growing its startup scene and aiming for big achievements.

The country has set a goal to create 100,000 new businesses and 100 unicorn-class companies worth over a billion dollars by 2027.

For anyone looking to start a business in Japan, knowing about available financial support can give you an important advantage.

This guide will break down what these startup subsidies are, how they work, the main programs you can apply for, and tips on how to successfully apply—whether you’re a local entrepreneur or someone from abroad wanting to start a business in Japan.

Subsidies for Startups in Japan

If you're a business owner in Japan and considering financial support for your startup, there are several options available to you.

Here is a quick overview of the most widely used and high-impact subsidies:

Program Name	Funding	Coverage	Agency
SME Sustainability Subsidy	Up to 2 million yen	Equipment, digital tools, marketing	SME Agency
Tokyo Startup Subsidy	Up to 3 million yen	Equipment, hiring, marketing	Tokyo Metropolitan Government
Go-Tech R&D Program	Up to 100 million yen	Manufacturing tech innovation	METI
J-Startup	Non-financial + funding channels	Mentoring, exhibitions, investor access	METI / JETRO

What are Subsidies?

Subsidies are financial aid that helps new businesses pay for early costs without needing to repay the money.

The government offers these funds to startups that meet certain goals.

Eligible parties include domestic startups in Japan, foreign‑invested companies, and entrepreneurs establishing operations in Japan.

The key government agencies responsible for providing subsidies in Japan include the Ministry of Economy, Trade and Industry (METI), the Japan External Trade Organization (JETRO), and the New Energy and Industrial Technology Development Organization (NEDO).

Government-Backed Startup Support: The Seven Core Categories

Japan provides 7 types of public aid for startups: subsidies, loans, equity, mentoring, IP, global expansion, and matching.

These initiatives are designed to address different stages or strategic needs in the startup journey.

#	Category	What it Covers	Typical Programs
1	Government subsidies	Equipment, marketing, digitalization	Go-tech, NEP, DTSU (NEDO)
2	Government Loans	Debt financing at favorable rates	Startup Support Loans, A-Step
3	Equity Investment	Shares in exchange for capital	JBIC Equity Investment
4	Consulting, Mentorship & Facilities	Free Advice, incubators, seminars	NEDO Plus One, Startup Support Program (SME Support Japan), Yorozu Support Center (SME Support Japan)
5	Intellectual Property Support	IP strategy, consultations	INPIT IP Desk, Startup IP Support
6	Overseas Expansion	Market research, exhibitions	Global Acceleration Hub, JICA programs
7	Matching & Networking	Partnerships, exhibitions	J-GoodTech, accelerator programs and networks

1. Grants and Subsidies (補助金・助成金, hojo kin/josei kin)

Grants and subsidies are provided to startups that meet specific policy objectives. Ministries and government agencies review submitted business plans and determine which applicants will receive assistance.

There are two primary payment structures:

• Advance/Interim Payments (概算払, gai san barai): Funds are paid during the project period as expenses are deemed necessary.

• Post-Project Reimbursement (精算払, seisan barai): Expenses are reimbursed only after the project concludes and final inspections are completed.

Examples of Government Grant Programs:

• Go-Tech R&D Support Program (METI / SME Agency)

• NEP: Talent Discovery & Entrepreneur Development in Deep Tech (NEDO)

• DTSU: Deep Tech Startup Support Program (NEDO)

2. Government-Backed Loans (融資, yuushi)

Loans are a form of debt financing.

Startups borrow funds under favorable terms, typically with low interest rates or flexible repayment schedules. Unlike equity financing, lenders do not become involved in management.

However, repayment is required based on the loan’s specific conditions.

Examples of Government Loan Programs:

• Startup Support Loans (Japan Finance Corporation)

• New Business Creation Loans (Japan Finance Corporation)

• A-STEP Implementation Support (Loan-Based) (JST)

3. Equity Investment (出資, shu-shi)

Equity financing involves issuing shares in exchange for capital. Startups are not obligated to repay investors, but investors gain ownership rights and influence in company management.

While most investments come from private venture capitalists firms or corporations, government-affiliated institutions also provide equity funding in specific scenarios.

Examples of Government Equity Programs:

• JBIC Equity Investment for Startups Expanding Overseas

4. Consulting, Mentorship & Facilities

Subsidies don’t always mean cold cash.

Government agencies operate consultation desks that offer free advice on relevant grants, business planning, and operational challenges. The scope varies by agency, so confirming details in advance is recommended.

Mentorship may include:

• Seminars on startup fundamentals for entrepreneurs

• Hands-on guidance from seasoned entrepreneurs or industry experts

• Coaching assistance bundled with grant schemes

• Accelerator programs to streamline application processes.

Physical support is also available through incubation facilities, which offer free or low-cost office space for entrepreneurs and early-stage startups.

Examples of Government Mentoring & Support Services:

• Plus One Consultation Desk (NEDO)

• Startup Support Program (SME Support Japan)

• Yorozu Support Center (SME Support Japan)

Examples of Incubation Facilities:

• Incubation Facilities (SME)

• K-NIC (NEDO / Kawasaki City / Kawasaki Industrial Promotion Foundation)

5. Intellectual Property (IP) Support (知財支援, chizai shien)

IP support helps startups strengthen their intellectual property strategy.

Services include free consultations with IP specialists, industry–academia collaboration support, and hands-on guidance during the earliest phase of company growth.

These programs are operated mainly by INPIT (National Center for Industrial Property Information and Training).

Examples of IP Support:

• IP Comprehensive Support Desk (INPIT), Startup IP Support Services (INPIT)

This support is particularly valuable for deep-tech, hardware, and RD-focused startups.

6. Overseas Expansion Support (海外展開支援, kaigai tenkai shien)

For startups aiming to scale internationally, the government provides support for:

• Market research and local demand analysis

• Local regulatory and market intelligence

• Introductions to overseas companies and investors

• Access to international accelerator programs

Most programs target Japan-based startups looking to expand abroad.

Examples of Overseas Expansion Programs:

• Global Acceleration Hub (JETRO)

• SME & SDGs Business Support (JICA)

7. Matching & Networking

Government matching programs typically focus on creating platforms where:

• Startups can connect with corporations

• Startups can collaborate with researchers

• Innovators can find commercialization partners

Some grant programs also include matching support, such as subsidies for exhibition participation or introductions to corporate partners during acceleration phases.

This type of support helps founders build traction and validate their business models.

Major National Programs for Startups

Japan’s national-level programs provide R&D funding, support for global business expansion, mentorship, and scaling pathways.

J‑Startup Program (METI)

J-Startup is a flagship initiative by METI (in cooperation with JETRO and NEDO) to bolster startups with global ambition. Selected companies receive mentorship, support for overseas exhibitions, regulatory assistance, and access to investor networks. If your business shows high growth potential and international orientation, this is a premiere option.

NEDO / JST / SBIR‑type R&D Grants

For tech‐centric ventures, Japan offers R&D funding through agencies like NEDO and JST in a “phase” structure (feasibility → development → demonstration). If you’re building prototypes or advanced tech, these grants are highly relevant.

SME / Small Business Sustainability Subsidy

SME targets younger or smaller companies, offering support (up to about ¥2 million) for foundational costs like equipment, digitalization, or marketing. A good fit for early‐stage ventures.

Sector‑Specific National Programs

National initiatives also focus on strategic sectors such as fintech, biotech, semiconductors, and sustainability.

Japan has also committed to large‑scale public funding for AI and semiconductors by 2030—which means startups in those sectors may access premium support.

Local Government Subsidies

Tokyo, Osaka, Fukuoka, and regional cities offer localized subsidy programs with lower competition and faster processing.

Tokyo Metropolitan Government Subsidies

If you’re based in (or plan to establish in) Tokyo, the Tokyo Metropolitan Government offers subsidies for equipment and personnel costs. Be aware: competition is steep, with success rates in recent rounds around 13‑21%. Pre-consulting sessions may be required weeks before applying.

Osaka/Kansai Region

The Kansai region (including Osaka) has its own schemes, often with a manufacturing or deep-tech focus, which may have lower competition and quicker timelines. Consider this if you’re open to regional presence.

Fukuoka & Other Regional Cities

Cities like Fukuoka or Hamamatsu are attracting startups with favorable local incentives: subsidies linked to startup‑local firm collaboration, region‑specific clusters, or special “venture client” models. These programs may offer smaller amounts but can be faster and more flexible.

National vs Local: Advantages & Limitations

• National programs offer larger amounts and broader coverage—but also stricter criteria and more competition.

• Regional/local programs are often more accessible, faster, and allow for more niche support. However, amounts may be lower and terms more focused.

Your best strategy: assess both and apply where you meet strong alignment.

How to Choose the Right Subsidy for Your Startup

Startup Stage	Typical Funding Amount	Key Subsidy Focus	Recommended Programs
Pre‑Seed / Formation	¥0.5M–¥3M	Establishment costs: website, software, marketing, minor equipment	SME Sustainability Subsidy, Tokyo Startup Subsidy
Early Growth	¥3M–¥70M	R&D, hiring, export promotion, hybrid support (grant + mentorship)	NEDO STS, Go-Tech R&D, J-Startup
Scaling / Expansion	¥30M–¥100M+	Large-scale national programs, demonstration grants, sector-specific funding (AI, semiconductors, sustainability)	NEDO phase grants, METI sector-specific programs
Foreign Founders	Varies	Legal registration, visa compliance, local operations	Tokyo/Fukuoka/Osaka regional programs, METI/JETRO grants

Pre-Seed/Formation Stage

Look for plans that support establishment costs: website, software, marketing, and minor equipment. Lower amounts (e.g., 2 million yen) but high leverage.

Early‑Growth Stage

Now you may apply for grants covering R&D, hiring, and export promotion. Look for hybrid support (grant + mentorship).

Scaling Stage

Your business in Japan may qualify for large‑scale national programs, demonstration grants, or sector‑specific mega‑funding (AI, semiconductors). Eligibility criteria are strict: revenue, export track record, and job creation.

Matching Sectors and initiatives

Your business model must match the subsidy’s key target (innovation, exports, region revitalization, job creation) — otherwise the fit will look weak.

Stacking Multiple Supports

It’s common to combine national and regional subsidies or receive both financial and non‑financial support. But check for overlaps or prohibitions: some plans forbid funding the same expense twice.

What are the Main Criteria for Receiving Subsidies in Japan?

Recipients must meet specific criteria to obtain startup subsidies in Japan. Criteria vary based on numerous factors, such as the company’s origin, alignment with government policies, and the nature of the business.

Typical conditions include:

• Startup established within a specific period (e.g., under 3‑5 years)

• Registered business in Japan (or regional headquarters)

• Focus on targeted business areas (innovation, exports, etc.)

• Business size (often defined by employee count or capital)

Eligibility Rules for Foreign Entrepreneurs and Foreign Start-Ups in Japan

Foreign entrepreneurs and foreign-owned startups can access Japan’s startup subsidies.

However, eligibility requirements are stricter than for domestic companies.

Early preparation and local guidance are essential to navigate eligibility requirements and maximize funding opportunities.

1. Company Registration Requirements

To qualify for most government-backed startup subsidies, foreign entrepreneurs must first establish a legal presence in Japan.

This can take the form of:

• Kabushiki Kaisha (KK) – a stock company similar to a corporation

• Godo Kaisha (GK) – a limited liability company, similar to an LLC

The business must be officially registered with the Legal Affairs Bureau and have a Japanese business address. Or you can use MailMate for a virtual office address and Japanese phone number.

Some programs may also require a minimum capital injection, typically 5 million yen or more, depending on the subsidy.

See the national guidance from Ministry of Economy, Trade and Industry (METI).

2. Ownership and Shareholding Rules

Many subsidies are available only to companies that are at least partially domiciled in Japan. Key points include:

• Companies must have Japanese registration, but foreign ownership is allowed.

• Some regional programs may require at least one Japanese shareholder or representative director, particularly for local government subsidies.

• Equity-based support programs may consider foreign ownership after evaluating the management structure and control.

For programs aimed at foreign‑affiliated corporations, the eligibility may include criteria such as “foreign investors must hold more than 1/3 of the shares of the Japanese corporation, and the largest foreign investor holds 10% or more.”

See “Subsidy for Projects to Stimulate Direct Investment in Japan,” from JETRO.

3. Residency and Visa Considerations

The founder or key executives must have permanent residency, a valid Business Manager Visa or similar startup visa.

• Startup visas for entrepreneurs are available in several regions, including Tokyo, Fukuoka, Osaka, and Kawasaki, and can accelerate eligibility for subsidies.

• Visa documentation must be up to date and submitted along with the subsidy application.

4. Local Staffing and Local Presence

Some subsidies require the startup to employ staff locally or maintain an operational office in Japan.

• Evidence of payroll, employment contracts, or office leases may be required to prove local economic activity.

• Subsidies tied to job creation or regional revitalization often prioritize companies creating local employment opportunities.

5. Documentation Requirements for Foreign Applicants

Bilingual documentation is highly recommended, even if English applications are accepted.

Required documents often include

• Business plan aligned with subsidy requirements

• Financial forecasts and accounting statements

• Detailed budget breakdown for subsidized expenses

• Proof of business registration and capital

• Local endorsement letters from certified Japanese consultants or accelerators

Best Practices for Foreign Founders in Japan

If you don’t want to be disqualified in the application process, preparation is key.

• Partner with a certified local consultant or startup support organization to ensure compliance.

• Secure a startup visa or business manager visa before applying for subsidies.

• Prepare all documentation in both Japanese and English, highlighting strategic alignment with government goals (innovation, export promotion, local employment, etc.).

• Consider regional plans that may be more flexible for foreign founders than national ones.

Step-by-Step Process: How to Apply for a Subsidy in Japan and Receive Funding

In Japan, the application process for subsidies follows a predictable workflow, especially for reimbursement-based financial assistance.

Step 1: Identify the Right Subsidy Program

Research national, regional, and sector-specific subsidies that align with your startup stage, industry, and goals.

Check objectives, funding amounts, eligibility criteria, and deadlines. Use official government portals like METI, JETRO, NEDO, and local prefectural websites.

Step 2: Pre-Consultation (if Required)

Many subsidy programs, especially regional ones like Tokyo Metropolitan Government or Fukuoka programs, require pre-application consultation.

Schedule sessions with the relevant government office, certified support organization, or local accelerator. This ensures you understand all requirements and maximizes approval chances.

Step 3: Prepare Legal and Administrative Documents

Ensure your business is legally registered in Japan (Kabushiki Kaisha or Godo Kaisha) with a local address.

For foreign business owners, obtain the appropriate visa (Business Manager or Startup Visa).

Collect corporate registration documents, shareholder information, bank account verification, and office lease, if applicable.

Step 4: Create a Detailed Business Plan

Draft a comprehensive business plan that clearly outlines:

• Your business model and revenue plan

• Innovation and growth objectives

• Strategic alignment with the subsidy program’s goals (e.g., job creation, exports, regional revitalization, digitalization)

  • Include measurable targets and a timeline of expected outcomes to demonstrate credibility.

Step 5: Prepare a Budget and Cost Breakdown

Create a detailed budget list specifying how the subsidy will be used for your business in Japan, including:

• Equipment purchases

• R&D costs

• Marketing and promotional activities

• Personnel expenses

  • Attach vendor quotes or service estimates where applicable. Note which costs are eligible and ensure there’s no overlap with other subsidies.

Step 6: Submit the Application

Submit your application via an official portal or designated office. Double-check that all required forms, supporting documents, and certifications are included.

Some programs may require online registration or prior reservation. Ensure bilingual documentation if required.

Step 7: Follow Up and Respond to Requests

After submission, the agency may request supplemental information, additional documents, or updates on project plans and business activities.

Respond promptly and accurately.

This stage may involve interviews, presentations, or evaluation meetings with government staff or review committees.

Step 8: Wait for Evaluation and Approval

Applications are assessed based on eligibility, strategic alignment, feasibility, and potential impact. The review period varies (typically 4–12 weeks), depending on the type of subsidy and region. Monitor official communications and notifications carefully.

Step 9: Receive Funds and Begin Implementation

Once approved, financial support may be disbursed as:

• Advance/Interim Payments: Funds provided during the project as expenses arise.

• Post-Project Reimbursement: Expenses reimbursed after project completion and verification.

Begin implementing your project plan as outlined in the application.

Step 10: Reporting and Compliance

Track expenses meticulously and maintain documentation. Submit periodic business reports, proof of results (jobs created, revenue increase, exports), and receipts to comply with subsidy requirements. Failure to comply can trigger repayment obligations or affect future subsidy eligibility.

Step 11: Leverage Subsidy for Growth and Networking

Use the subsidy to accelerate business milestones, establish credibility, and pursue additional funding or networking opportunities. Consider combining national and regional subsidies or pairing financial support with mentorship programs to maximize impact.

How to Stay Up To Date on Subsidies in Japan (2025 & Beyond)

Subsidies for businesses in Japan are constantly being updated, with new opportunities added every year.

Here’s how you can stay updated on subsidies for 2025 and beyond.

• Regularly monitor official portals: METI’s startup page, local government subsidy portals, NEDO grant listings.

• Subscribe to newsletters from startup‐support organizations, regional innovation hubs, and subsidy portals.

• Attend webinars or events: new subsidy calls are often announced there first.

• Track major industry strategy shifts. For example, Japan’s public commitments to AI, semiconductor manufacturing, and green transformation signal where subsidy focus is moving.

• Use local networks: coworking hubs, startup associations, JETRO offices — they often have early information about upcoming rounds.

Final Thoughts

Japan offers a rich and structured startup ecosystem, combining national and local programs, financial and non-financial support, and tailored opportunities for foreign founders and entrepreneurs. By understanding the landscape, preparing thorough documentation, and strategically selecting subsidies, founders can:

• Accelerate business growth with grants, R&D funding, and mentorship

• Access global expansion support and industry-specific programs

• Maximize approval chances by aligning with government policy goals, including innovation, export promotion, and local job creation

• Combine multiple programs—national and regional—to optimize funding and resources

FAQs

Can foreign-owned startups apply for subsidies?

Yes. As long as the company is registered in Japan and meets eligibility criteria.

Are subsidies paid upfront or after?

Most are reimbursement-based, paid only after documents and receipts are submitted.

Which startup subsidy is easiest to apply for?

The SME Sustainability Subsidy is widely considered the most accessible.

Do I need to submit documents in Japanese?

Usually yes. Even if English versions are accepted, reviewers prefer Japanese.

What types of subsidies are available in Tokyo?

Tokyo Metropolitan Government offers various subsidies for startups. Among them, the Tokyo Startup Subsidy is the most well-known option for startups less than five years old.