2026-07-11

Which Subsidies Can Chinese-Owned Cleaning & Housekeeping Companies in Japan Apply For?

Chinese business owners running cleaning and housekeeping operations in Japan worry every year about the costs of hiring staff, purchasing equipment, and skills training. In fact, the Japanese national government and local governments have prepared generous subsidy programs to support the growth of small and medium-sized enterprises, especially in living-service industries such as cleaning and housekeeping. This article explains in detail the main subsidies that the cleaning and housekeeping industry can apply for, as well as...

Overview of the Subsidy System for the Cleaning & Housekeeping Industry

Japan's subsidy system operates on three levels: national subsidies, prefectural subsidies, and municipal (city/ward/town/village) subsidies. Cleaning and housekeeping companies can apply for subsidies at several levels at the same time.

National subsidies are generally open to companies in all prefectures, offer larger amounts, and are more competitive. Prefectural subsidies often carry regional restrictions—if you operate in a major city such as Tokyo, Osaka, or Nagoya, they are easier to obtain. Municipal subsidies, while smaller per grant, have the lowest application difficulty and the highest approval rates, yet many Chinese business owners overlook this level entirely.

According to the latest data from the SME Agency, the total funds available for cleaning-industry subsidies in 2024 exceeded JPY 5 billion, but the actual application rate was only around 35%. This means a large amount of funding goes underused.

Major National-Level Subsidy Programs

Sustainability Subsidy for Small Businesses

This is the most popular subsidy program among cleaning and housekeeping companies. Led by the SME Agency, this subsidy aims to support small businesses in recovering their operations after being affected by COVID-19.

Subsidy amount: Up to JPY 2 million (up to JPY 3 million in certain special cases)

Application requirements:

The company has been established for at least one year
Monthly business revenue in a given month from January 2021 onward has fallen by 50% or more compared with the same month in 2019 or 2020
The number of regularly employed staff is five or fewer (including the owner)

For Chinese-owned cleaning companies, these conditions are friendly. Many small housekeeping companies have only 3–5 employees, so they fully meet the requirements. The subsidy can be used for employee wages, rent, utilities, cleaning supplies, and epidemic-prevention equipment, among other things.

Application process:

Consult the Society of Commerce and Industry (Shokokai) or the Chamber of Commerce and Industry (Shoko Kaigisho) in your area
Prepare financial statements for the past three years
Provide proof of monthly business revenue for the same month in the previous fiscal year and the year before
Employment contracts or wage payment records
Submit the application documents to the SME Agency branch in your jurisdiction

Chinese business owners should note that Japanese-language financial statements must be provided when applying. If your existing books are in Chinese, be sure to have a Japanese accountant translate and stamp them.

Business Restructuring Subsidy

This is Japan's largest corporate subsidy program, with a budget reaching JPY 450 billion in 2024. If a cleaning or housekeeping business can demonstrate that it is undertaking "business restructuring" (such as introducing new cleaning technology, opening up new service areas, or achieving digital transformation), it can receive a subsidy.

Subsidy amount: JPY 1 million–150 million (depending on company size and project content)

Example projects applicable to the cleaning industry:

Introducing an AI monitoring system for quality control
Developing professional exterior-wall washing services, expanding from general cleaning to industrial cleaning
Building an online booking system to digitally transform operations
Training employees to obtain special cleaning qualifications (such as air-conditioner cleaning certification)

For small housekeeping companies, subsidy amounts are usually in the range of JPY 3 million–8 million. Many Chinese business owners have successfully secured subsidies of around JPY 5 million by purchasing high-pressure washing machines and introducing cleaning management software.

Key point: You need to prepare a detailed business plan that compares your management situation before and after the reform. The quality of this plan directly affects the approval rate, so we recommend enlisting a professional consultant.

Employment Adjustment Grant and Human Resource Development Grant

If your cleaning company plans to expand and hire more employees, these two grants are important.

Human Resource Development Grant: When you newly hire employees and provide on-the-job training, you can receive a grant of JPY 100,000–150,000 per person (participation in designated training courses is required). If you hire three employees and have them attend cleaning-skills training, you can receive JPY 300,000–450,000.

Application difficulty: Relatively low; you need to work with the Public Employment Security Office (Hello Work) in your area.

Prefectural and Municipal Subsidies

Tokyo Metropolitan Cleaning Industry Subsidy Programs

To address the labor shortage in the cleaning industry, the Tokyo Metropolitan Government has set up several subsidy programs.

Tokyo Metropolitan SME Financing Program: Provides low-interest loans along with interest subsidies. Loans are available up to JPY 20 million, and the interest subsidy can cover up to 50%.

Tokyo Metropolitan Monozukuri & Distribution Productivity Innovation Project: Although the name does not mention the cleaning industry, in practice cleaning and housekeeping are classified under "productivity reform in living-service industries," and you can apply for subsidies to fund:

Modernization and upgrading of cleaning equipment
Employee education and training
Digitalization of management systems

The subsidy rate is usually 50%–2/3 of project costs.

Osaka Prefecture and the Kansai Region

Osaka Prefecture has a dedicated labor-securing subsidy for the cleaning and housekeeping industry. In particular, for companies employing foreign workers, it offers:

Employment training subsidy: JPY 80,000–120,000 per employee
Labor management system development subsidy: up to JPY 500,000
Japanese-language education subsidy: JPY 50,000 per employee per year (for up to 3 years)

This is especially advantageous for Chinese-owned cleaning companies, since many employees need Japanese-language training.

Small Municipal-Level Subsidies

This is a "gold mine" that many Chinese business owners overlook. Each municipality generally offers subsidies such as the following:

Setagaya Ward example (Setagaya Ward, Tokyo):

SME Management Innovation Subsidy: up to JPY 2 million, for management reform projects
Cleaning Business Management Stabilization Subsidy: up to JPY 1 million, specifically to support mechanization investment in the cleaning industry during labor shortages
Employee Regularization Subsidy: JPY 500,000 for hiring full-time employees (this program existed in the past)

Application focus: Each municipality typically has small subsidy quotas of around JPY 500,000–2 million per year, but the number of applicant companies is far smaller than the competition for large subsidies. Chinese business owners often miss these opportunities because of difficulty obtaining information.

How to obtain information:

Visit the Society of Commerce and Industry or Chamber of Commerce and Industry in your area directly (we recommend bringing a Japanese employee along)
Access the official website of each local government and check the "business support" or "subsidy" sections
Contact the trade or industry association you belong to

Key Steps and Points of Caution in Subsidy Applications

Advance Preparation Stage

Step 1: Confirm your company's eligibility

The company must be formally registered in Japan (yugen kaisha, kabushiki kaisha, or sole proprietor)
Check for any delinquent taxes (this is checked when applying for a subsidy)
Confirm there is no record of legal violations in the past three years (cleaning-industry safety incidents, etc.)

Step 2: Organize financial materials The most common problem in the cleaning and housekeeping industry is disorganized accounting. Many Chinese business owners may have a habit of "off-the-books operation," but you must provide proper Japanese-language financial statements when applying for a subsidy.

Application Submission Stage

Common application channels:

Through the Society of Commerce and Industry: The most convenient way. It provides free application guidance and has a relatively high success rate
Through certified management-innovation support organizations: including financial institutions and Zeirishi, offering more professional guidance
Submitting directly to the SME Agency: through the online system (jGrants) or by mail; you must keep track of deadlines yourself

Document submission checklist:

[ ] Application form (the official form, which must be in Japanese)
[ ] Business plan (5–10 pages is best)
[ ] Financial report or a copy of the tax return
[ ] Proof of enrollment in employment insurance
[ ] Copy of bank passbook (six months before applying)
[ ] Registration certificate of the corporation or individual
[ ] Certificate of residence of the representative and the beneficial owner
[ ] Written pledge

Submission deadline: Subsidies usually have an application window, and you cannot apply once it passes. We recommend starting preparations 2–3 months in advance.

Post-Application Tracking and Subsidy Disbursement

After a subsidy is approved, you still need to carry out the business plan as agreed and report progress regularly.

Reporting requirements:

Monthly reports: submit the content implemented and proof of expenditure for each month
Interim report: when the project is 50% complete, submit an effectiveness evaluation
Final report: after the project is complete, submit all supporting documents and a results report

Method of disbursement: Most subsidies use a "pay first, subsidize later" model. You need to:

First pay the costs of purchasing equipment, paying wages, and so on out of your own pocket
Collect all invoices and supporting documents for the expenditures
Submit a reimbursement claim to the subsidy-administering department
The subsidy is deposited within 15–30 days of applying

A special reminder for Chinese business owners: be sure to keep all original invoices and receipts. Japan's tax authorities scrutinize document authenticity very strictly.

Frequently Asked Questions (FAQ)

Q1: My cleaning company has been operating for only 8 months—can I apply for a subsidy?

A: The subsidies you can apply for are limited. Most national subsidies require a company to have been established for at least one year, but municipal subsidies may not have such strict requirements. If your company was established just 8 months ago, you should start preparing immediately and aim to submit in the first application window after reaching one year. In addition, some subsidies specifically for startups (such as startup subsidies) may not have the one-year restriction. We recommend consulting the Society of Commerce and Industry in your area directly; they can check whether there are any support programs specifically for startups. In the meantime, you can gather your various supporting documents and financial statements to be ready to apply once you reach one year.

Q2: My company has five employees, two of whom work off the books (without employment insurance)—can I apply for a subsidy?

A: No. This is a fatal issue. All subsidy applications require labor compliance, including enrolling all employees in employment insurance, social insurance, and so on. If off-the-books workers or improperly formalized employment is discovered, not only will the application be rejected, but you may also face fines. I strongly recommend immediately formalizing the employment relationship for these two employees and enrolling them in employment insurance retroactively. This takes about 1–2 weeks and can be done through the Public Employment Security Office (Hello Work) in your area. Only after the process is complete and the employment insurance has been in effect for three months can you apply for the subsidy. Although this increases short-term costs, in the long run, formalizing employment is crucial to the company's development.

Q3: My cleaning company isn't profitable, and I'd have to front the project funds myself. I'm worried I won't be able to complete the project on schedule after receiving the subsidy—would it be clawed back?

A: This concern is understandable. The subsidy system does require projects to be completed as agreed, but clawback does not happen in all cases. First, you should draw up a realistic, feasible plan when applying and avoid overpromising. Second, if you encounter difficulties during implementation (such as material shortages or employee resignations), you can apply to the subsidy-administering department for an extension or a change to the plan, as long as you provide sufficient reasons. The department will usually agree to reasonable changes. In the worst case, if the project truly cannot be completed, you may need to return the portion of the subsidy already disbursed, but no fines will be incurred. To avoid this situation, we recommend: drawing up a conservative plan (with margin to spare), communicating with the subsidy department regularly, and submitting progress reports promptly. A common lesson from successful companies is that it is better to underestimate project outcomes than to promise overly high targets.

Q4: If I apply for national, prefectural, and municipal subsidies at the same time, can I receive all of them?

A: Yes, but you need to meet certain conditions. Japan's subsidy system allows a single company to apply for multiple subsidies at different levels, but there are usually two restrictions: first, the same business content cannot be subsidized more than once (for example, you cannot use a national subsidy and a prefectural subsidy to each subsidize the purchase of the same machine); second, there is a cap on the total subsidy amount (usually no more than 80% of the total investment required for that business). The correct approach is to design a complete corporate reform plan and then apply to different levels of government to subsidize different portions of the business. For example, if you plan to invest JPY 500,000 to buy cleaning machines, JPY 300,000 for employee training, and JPY 200,000 to build an online system, you can apply for a national subsidy for the system, a prefectural subsidy for the machines, and a municipal subsidy for the training. In this way, you can obtain three subsidies. We recommend finding a professional consultant to help design your application plan and avoid problems caused by duplicate subsidies.

Q5: I'm a sole proprietor (self-employed)—can I apply for cleaning-industry subsidies?

A: Absolutely. Japan's subsidy system does not treat yugen kaisha, kabushiki kaisha, and sole proprietors differently. The advantage of applying as a sole proprietor is that the procedures are relatively simple (no corporate registration required, etc.); the disadvantage is that you need to provide your personal tax returns and bank account. Please note: first, you must have a proper business-opening registration as a sole proprietor (filed with the tax office); second, you must file taxes on time (preferably filing for at least three consecutive years); third, the subsidy cap for sole proprietors may be lower than for corporations (for example, some subsidies cap corporations at JPY 2 million and sole proprietors at JPY 1.5 million). If your cleaning business has growth potential, we recommend considering incorporating as a yugen kaisha, which opens up more subsidy programs with larger amounts. After conversion (once the company has been established for one year), you can apply for more advantageous subsidies as a corporation.

The Best Timing Plan for Subsidy Applications

Optimal application schedule:

March–April: Obtain information on that year's subsidies and select target programs

April–May: Prepare company materials and draw up the business plan

May–June: Consult the Society of Commerce and Industry and obtain guidance

June–July: Complete the application form and submit the application

August–October: Await review results and communicate with the review department

November–December: After approval, begin executing the project

January–June of the following year: Complete the project, collect supporting documents, and apply for subsidy disbursement

This schedule gives you ample preparation time and avoids the problems that come with rushed applications.

Common Mistakes Chinese Business Owners Make When Applying

Information asymmetry: Because of language and information-channel barriers, many Chinese business owners miss application deadlines or don't know there are subsidies for their industry
Disorganized accounting: Chinese-language books or too many cash transactions make it impossible to provide proper Japanese financial statements
Overly simple business plans: Submitting a plan of just a few sentences leaves the review committee unable to understand your real needs
Non-compliant employment relationships: Issues like off-the-books workers and unenrolled insurance cause applications to be rejected
Overpromising: The outcomes promised in the plan are overly optimistic, making implementation difficult
Ignoring small subsidies: Focusing only on large national subsidies and overlooking the "easy-to-get" municipal subsidies

The Necessity of Professional Support

Although applying for subsidies does not necessarily require a paid consultant, getting guidance from a professional can significantly improve your application's success rate. A professional consultant can:

Help you organize your company's financial situation and identify the most suitable subsidy programs
Draw up a persuasive business plan (the key to approval)
Guide you on how to standardize your company management
Track application progress and coordinate communication with the administering department
Assist you in completing project execution and reimbursement after approval

Although consulting fees are usually JPY 50,000–150,000, the subsidies obtained often more than cover this cost, and the value of the reforms your company achieves through the subsidy far exceeds the subsidy amount itself.

Conclusion

As an important part of Japan's living-service industry, the cleaning and housekeeping industry has earned attention and support at the government level. If Chinese business owners in Japan make good use of these subsidy programs, they can not only ease business pressures but also use the subsidy funds to upgrade and standardize their operations, thereby enhancing their market competitiveness.

The key is to proactively obtain information, plan ahead, standardize management, and apply professionally. If you have questions about a specific program, or need help assessing whether your company meets the application requirements, we welcome you to consult our professional advisory team for free. We have extensive experience in cleaning and housekeeping industry subsidy applications and can develop a customized subsidy application plan for you, helping you seize every opportunity for support.

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