What Documents Do You Need for a Subsidy Application? An Essential Checklist for Chinese-Owned Businesses in Japan

1. Why Is Document Preparation So Critical?

Competition for subsidies in Japan is fierce. Take the Sustainability Subsidy for Small Businesses (小規模事業者持続化補助金) as an example: the adoption rate for FY2024 was only around 50%. Your documents are the sole means by which reviewers get to know your company—without strong documents, you have no chance to demonstrate your company's competitiveness.

According to data from Japan's Small and Medium Enterprise Agency, 80% of rejected applications stem from documents that were incomplete or failed to meet requirements. For Chinese-owned businesses in Japan, the difficulty of document preparation is even greater because you must bridge the language barrier and gaps in understanding Japanese business culture. This is exactly why a complete subsidy checklist for Chinese businesses in Japan is so essential.

2. Basic Corporate Registration and Identity Documents

Identity Documents You Must Prepare

First, you need to prepare your company's corporate registration documents:

1. Certificate of Registered Matters (登記簿謄本 / 抄本)

• This is the document that proves your company's identity in Japan
• You obtain it from the Legal Affairs Bureau (or apply online); it is typically valid for 3 months
• The cost is roughly 600–1,500 JPY
• We recommend preparing 2–3 copies, as you'll need one for each subsidy submission

2. Copy of the Corporate Representative's My Number Card (マイナンバーカード)

• A copy (both sides) of the representative's My Number Card
• If the applicant is a Chinese national, you must also submit a copy of the passport or residence card
• This is a key document for confirming the applicant's identity and tax information

3. Bank Account Certification

• The company's Japanese bank passbook or a certification letter issued by the bank
• Used for the final disbursement of the subsidy
• We recommend submitting the most recent 3 months of bank statements to demonstrate account activity

A Real-World Case

When a food-trading company (a Chinese-owned business established in 2022) applied for the Employment Adjustment Subsidy, it had failed to update its Certificate of Registered Matters, and the version submitted still listed a former representative who had already left the company—causing it to fail the initial review. It only passed after resubmitting an updated version, wasting two weeks.

3. Financial and Accounting Documents Checklist

This is the section reviewers scrutinize most, accounting for 30–40% of the scoring weight.

Required Financial Documents

1. Settlement Reports and Tax Returns

• The finalized tax returns (所得税申告書) for the past 3 fiscal years
• The corporate tax returns (法人税申告書) for the past 3 fiscal years (if you are an incorporated company)
• The most recent settlement report (決算報告書)
• These documents can be obtained from the tax office or from your accountant; you may file a "certificate issuance request" (証明書交付請求)

2. Trial Balance (Monthly Reports)

• Trial balances (簡易貸借対照表) for the most recent 3–6 months
• Monthly business status reports for the application year
• Many Chinese business owners overlook this, but it reflects your company's most current operating condition
• We recommend generating these with accounting software (such as freee or MF Cloud) to ensure a standardized format

3. Balance Sheet and Profit & Loss Statement

• The balance sheet as of the end of the fiscal year prior to the application year
• The most current balance sheet for the current year
• Some subsidies (such as the Business Innovation Subsidy) require 5 years of historical comparison data

4. Budget and Funding Plan

• A detailed budget for the equipment purchases, personnel costs, and so on covered by the subsidized project
• You must attach quotations (見積書) from at least 3 suppliers
• Budget variance may not exceed 5% of the actual purchase price
• For companies purchasing machinery and equipment, prepare equipment specification sheets and price confirmations

Recommendations for Digital Handling

To avoid financial documents expiring or going missing, we recommend building the following filing system:

• Keep copies of all tax filing documents in the cloud
• Organize the required documents immediately at the end of each fiscal year
• Maintain a good communication relationship with your Japanese accountant (税理士) and set up a regular document-delivery mechanism

4. Business Plan and Strategy Documents

Core Planning Documents

1. Business Plan (事業計画書) This is the most important document in a subsidy application, typically carrying 20–30% of the weight.

The content must include:

• Business Overview (200–300 characters): a clear statement of your business model and market positioning
• Current-State Analysis: let the numbers do the talking. For example: "The company currently has 15 employees and annual revenue of 80 million JPY, but labor costs account for 38%."
• Problem Identification: point to specific issues, such as "the lack of a digital order-management system drives up labor costs"
• Improvement Plan: propose concrete solutions, accompanied by projected outcome figures
• Implementation Steps: lay out a specific 6–12 month execution plan, including a timeline
• Expected Outcomes: use quantifiable target figures (revenue growth rate, cost-savings rate, number of new hires, etc.)

Writing Tips:

• Avoid overly optimistic projections. Japanese reviewers place more trust in conservative but solid targets
• If you plan to increase annual revenue by 20%, you must provide market research data or confirmed customer orders
• For Chinese-owned businesses, be sure to explain the competitive advantages of your international operations

2. Explanation of the Likelihood of Success for the Subsidized Project (補助事業に関する成功の可能性についての説明)

This is the section that answers "why can you succeed," and it should include:

• Your company's past success stories (1–2 of them)
• The relevant experience and credentials of team members
• Market research data supporting your projections
• Your differentiated advantages compared with competitors

3. Explanations for Specific Themes Such as Digital or Green Transformation

If the subsidy you're applying for has a specific theme (such as the DX Support Subsidy or the Decarbonization Subsidy), you'll need to write a dedicated explanatory document:

• A description of the current state of your existing IT systems
• How the proposed system will solve current problems
• An implementation timeline and an employee training plan

A Real Case

A Chinese-owned company in Tokyo that wholesales building materials applied for the IT Investment Subsidy. Its first-draft business plan overemphasized "50% sales growth after introducing an ERP system," and reviewers rejected it as unrealistic. After revision, it was reframed as "by integrating an ERP system and an online platform, we expect to shorten order-processing time from 3 days to 1 day and improve staff efficiency by 20%," and it ultimately secured a 20 million JPY subsidy.

5. HR, Organizational, and Compliance Documents

Labor-Related Documents

1. Employee Roster

• A list of all employees as of the application date, including:
  • Name, age, nationality, residence status
  • Hire date, position, monthly salary
  • Whether the employee is a full-time or dispatched worker
  • Proof of enrollment in social insurance (health insurance, employees' pension)

2. Sample Employment Contracts

• Submit copies of 1–2 sample employee contracts
• Confirm they include the following: base salary, work location, working hours, and termination clauses
• For companies with many Chinese employees, we recommend preparing versions in Chinese, English, and Japanese

3. Pay Statements and Social Insurance Certificates

• Payroll records for the most recent 3 months
• Certificates of enrollment in employment insurance, health insurance, and employees' pension
• These demonstrate that your company operates in compliance

An Important Reminder

Japanese subsidy reviews impose strict requirements on labor compliance. Applications are rejected outright if any of the following are found:

• Failure to pay into social insurance
• Overtime work performed without overtime pay
• Foreign employees whose residence status does not match their job duties

For this reason, be sure to conduct an internal compliance check before submitting a subsidy application.

6. Other Commonly Required Supplementary Documents

Additional Preparations Depending on Your Business Type

1. Licenses and Qualification Certificates

• For a restaurant business, submit a food-hygiene license
• For medical or beauty services, submit the relevant qualification certificates
• For import/export trading companies, submit the import/export business registration certificate

2. Property Title or Lease Agreement

• If the application involves expanding a factory or office, submit the property title or the lease contract
• The lease contract should include the lease term, monthly rent, deposit, and other details

3. Environmental and Safety Compliance Certificates

• Some subsidies require companies to submit ISO certifications or environmental certificates
• Especially when applying for green/decarbonization subsidies, you'll need to submit current carbon-emissions data or environmental certifications

4. Intellectual Property Documentation (if applicable)

• Patent certificates, trademark registration certificates, software copyright certificates
• These can raise your score for corporate innovation

Submission Tips

Most subsidies now support online submission (via platforms such as GビズID and jGrants). We recommend:

• Scanning all documents into PDF format at a resolution of no less than 200 DPI
• Using a consistent file-naming convention (for example: 2024_決算報告書.pdf)
• Preparing a My Number Card reader for electronic counter-signature (デジタル署名)
• Logging into the system to test one week in advance to avoid technical problems near the deadline

7. Frequently Asked Questions (FAQ)

Q1: I'm a sole proprietor without corporate registration records. How can I apply for a subsidy?

A: Sole proprietors can apply for many subsidies too, but you'll need to prepare a different set of supporting documents. First, you'll need to submit your notification of business commencement and its acknowledgment of receipt (個人事業の開業届と開業届受理通知書), along with your finalized tax returns (確定申告書) for the past 3 years. There are subsidies designed specifically for sole proprietors—the Sustainability Subsidy for Small Businesses (小規模事業者持続化補助金), for instance, is aimed specifically at sole proprietors and small businesses. You'll also need to submit a copy of your My Number Card (個人番号カード) and bank account certification. We recommend consulting your local Society of Commerce and Industry (商工会/商工会議所); they are generally more familiar with subsidy applications for sole proprietors and can help you with an initial review of your application documents.

Q2: My company was founded just over a year ago and doesn't have 3 years of settlement data. Does this affect my application?

A: This is a challenge many startups and newly founded Chinese-owned businesses face. The good news is that there are still plenty of subsidies you can apply for. For companies less than 3 years old, the Japanese government has set up subsidies specifically for new ventures, such as the New Business Startup Support Subsidy (新規開業支援補助金) and the Startup Support Subsidy (創業支援補助金). For these subsidies, you don't need to provide 3 years of historical data—instead, you submit all of your settlement reports or trial balances since founding. The emphasis should be on the business plan (事業計画書), detailing your market opportunity, competitive advantages, and growth potential. We recommend working with a Japanese accountant (税理士) to ensure the early financial data you submit is in a standardized format. If you've already been operating for over a year, prepare at minimum one full fiscal year's settlement documents.

Q3: Which documents in the application must be in Japanese? Are English or Chinese acceptable?

A: Under Japan's subsidy administration rules, all official application documents submitted to government agencies must be in Japanese. This includes all plans, financial statements, contracts, and so on. There are no exceptions, even for foreign-invested companies. That said, you may attach a foreign-language version in the following cases: (1) if your business involves international trade, you may attach English-language market analysis data; (2) internal management documents (such as employee handbooks and company rules) that were originally in Chinese or English may be attached as originals, but you must submit a Japanese translation. We strongly recommend hiring a professional Japanese translator or business consultant to translate your documents, especially critical documents like the business plan (事業計画書), where a literal translation often muddles the logic. A professional Japanese translation typically costs 2,000–5,000 JPY per page, but this investment will substantially improve your approval rate.

Q4: After my application is rejected, can I revise the documents and reapply?

A: Yes, but you need to be mindful of timing and method. If the same subsidy program has multiple application windows within the same year (say, spring and autumn), you can submit an improved application in the next round. But if there is only one round that year (which is most often the case), a rejection means you cannot reapply that year. However, you have the right to request a "notice of reasons for non-adoption" (不採択理由書) from the subsidy administration office; this is usually issued within 2–4 weeks of the rejection notice. Reading the reasons for rejection carefully is extremely important—in most cases the problem lies in an unpersuasive business plan (事業計画書), contradictory financial data, or incomplete documents. Revise your documents based on this feedback and wait for next year's application window or that of another subsidy program. We recommend keeping all your original application documents and the rejection notice as a reference for improvement.

Q5: For a business founded by a foreign national (non-Japanese citizen), are there special requirements regarding documents?

A: Yes. As a Chinese business owner in Japan, you need to pay special attention to the following: (1) submit a copy of your residence card (ビザ) to ensure your residence status meets the requirements for operating a business. If you hold a Business Manager visa (経営・管理ビザ), make sure the business activities you report are consistent with the visa conditions; (2) submit a copy of your Chinese passport and, where applicable, your record from the register of foreign resident registration; (3) if you employ other foreign workers, each one must submit documents confirming their residence status, ensuring their visa type permits the work they perform; (4) some subsidies impose additional requirements on foreign corporate representatives, such as providing proof of a Japanese address (an apartment lease agreement or work address). It's worth noting that having a spouse with Japanese citizenship or holding permanent residence in Japan can offer a slight advantage during review. Additionally, we recommend preparing a document that briefly outlines your company's international competitive advantages, explaining how a foreign business background contributes to Japan's economic development (for example, through trade with China or cultural exchange)—this helps reviewers understand the value of your company.

8. Timeline for Document Preparation

To avoid last-minute scrambling, we recommend starting preparation 3 months in advance:

| Timing | Task | |---------|------| | 3 months before application | Collect all basic corporate registration and identity documents | | 8–10 weeks before application | Contact your accountant to obtain complete financial statements and trial balances | | 6 weeks before application | Write the first draft of your business plan (事業計画書) and invite a professional to review it | | 4 weeks before application | Collect supplier quotations, employee contracts, licenses, and other supplementary documents | | 2 weeks before application | Do a final proofread of all documents and a Japanese-language check | | 1 week before application | Scan all documents into PDF and run an online-system test | | 3–5 days before application | Conduct one more comprehensive review before final submission to ensure nothing is missing |

9. Common Pitfalls in Document Preparation

1. Over-embellishing the business plan (事業計画書): Japanese reviewers value rigorous logic and data support; false claims will lead to outright rejection

2. Ignoring the consistency of financial data: The numbers across different forms must correspond and match; any contradiction raises suspicion

3. Omitting compliance certificates: Compliance documents such as social insurance and employment contracts are indispensable—not one may be missing

4. Submitting expired documents: The Certificate of Registered Matters, tax returns, and the like have validity periods; be sure to update them in time

5. Poor-quality Japanese translation: Clumsy Japanese seriously undermines your professional image and approval rate

10. Closing Thoughts and Professional Advice

Preparing subsidy application documents may seem complex, but as long as you work systematically through a checklist, you can significantly raise your approval rate. For Chinese-owned businesses in Japan, the biggest challenge is often not insufficient funding or an inadequate business, but the gap in understanding Japanese administrative procedures and documentation requirements.

Key Recommendations:

1. Establish a working relationship with a Japanese accountant (税理士) early on—they can help you keep your financial records in order
2. Make full use of the free consultation services at your local Society of Commerce and Industry (商工会/商工会議所); they know local subsidies best
3. Invest ample time and resources in your business plan (事業計画書)—it is the decisive factor
4. Keep digital backups of all documents so you can revise and resubmit quickly

If you still have questions about preparing specific subsidy application documents, or if you'd like a consultation tailored to your company's situation, we welcome you to contact our professional team. We provide free initial consultations for Chinese-owned businesses in Japan, helping you quickly determine whether you meet the eligibility requirements and develop the subsidy application strategy best suited to your company.

Get Your Free Consultation Now: Book a one-on-one consultation through our official website or WeChat official account, and a senior subsidy consultant will craft a personalized application plan for your company.