Overview of the Subsidy System in Aichi Prefecture and Nagoya City
The Difference Between Subsidies and Grants
In Japan, subsidies (補助金) and grants (助成金) are both forms of government financial support, but there are important differences. Subsidies (補助金) are usually provided by the prefectural government, are aimed at enterprises across the prefecture, and tend to be relatively competitive. Grants (助成金) are more often provided at the city level or by specific departments, and have different approval standards. Both types of funding are quite abundant in the Nagoya area.
In 2023, the Aichi prefectural government provided over JPY 15 billion in various subsidies to enterprises, of which Nagoya City accounted for about 35%. This means that if your company is located in Nagoya, the opportunity to receive a subsidy is considerable.
Main Subsidy Categories in Aichi Prefecture
The corporate subsidies in Aichi Prefecture fall mainly into the following categories:
- Innovation and R&D subsidies: supporting product development and technological innovation
- Management foundation strengthening subsidies: aimed at SMEs' management improvement and digital transformation
- Job creation subsidies: for enterprises that create new jobs
- Environmental and sustainability subsidies: green industries, carbon-reduction technology
- International business subsidies: projects related to export and international cooperation
Major Nagoya Subsidy Programs Chinese Businesses in Japan Can Apply For
1. Nagoya City SME Management Innovation Subsidy
This is the most common subsidy in the Nagoya area, and also the easiest for small and medium-sized Chinese enterprises to apply for.
Subsidy amount: up to JPY 2 million, with a subsidy rate of up to 2/3 Eligibility conditions:
- Have a place of business within Nagoya City
- 50 or fewer employees (manufacturing) or 100 or fewer (service industry)
- Not have received the same type of subsidy in the 3 years before applying
Scope of eligible projects: management reform, new product development, marketing innovation, process improvement, and similar projects all qualify. One Chinese food import-export business owner in Japan applied on the theme of "establishing an online sales channel + supply-chain digitalization" and successfully received a JPY 1.8 million subsidy.
Application process:
- Prepare a company overview and a business plan
- Submit the application to the Nagoya City Economic Affairs Bureau (applications are usually accepted from April to May each year)
- Review period of about 2–3 months
- Begin implementing the project after approval (it must be completed within the stipulated period)
2. Aichi Prefecture Monozukuri (Manufacturing) Subsidy
If your company is involved in manufacturing or product processing, this subsidy is well worth your attention.
Subsidy amount: ranging from JPY 500,000 to JPY 10 million, depending on the project scale Main areas of support:
- Production process improvement
- Labor-saving equipment investment
- New product prototyping
- Building a quality-management system
A Chinese plastic-products factory in Nagoya applied for this subsidy and received JPY 6 million to introduce an automated production line, ultimately achieving its goals of a 20% reduction in staff and a 40% increase in production capacity.
Application difficulty: relatively high; a detailed technical proposal and cost analysis are required
3. Aichi Prefecture Telework Promotion Subsidy
After the pandemic, Aichi Prefecture continues to support the development of companies' remote-work infrastructure.
Subsidy amount: up to JPY 1.5 million Eligible items:
- IT system adoption costs
- Remote-meeting equipment procurement
- Cybersecurity system construction
- Employee training costs
This subsidy is especially advantageous for Chinese enterprises, as many of them have frequent remote-collaboration needs with their headquarters in China. The subsidy rate is usually 2/3.
4. Nagoya City Women Entrepreneur Support Subsidy
If the business owner or a principal manager is a woman, you can apply for this subsidy.
Subsidy amount: up to JPY 3 million Eligibility conditions:
- A woman is the business owner or a director
- The company was established no more than 5 years ago
- Operating within Nagoya City
The subsidy can be used for office space rental, machinery and equipment, marketing and promotion, and more.
Specific Steps for Applying for an Aichi Grant
Preparing the Application Materials
Before formally applying, you need to prepare the following core materials:
Required documents:
- Corporate registration certificate: obtainable from the Legal Affairs Bureau; note that foreign-capital enterprises need to provide a Japanese-language version
- Financial statements for the past 3 years: including the settlement of accounts and the income statement. If the company has been in operation for less than 3 years, provide all financial data since its establishment
- Business plan: this is the key to a successful application. The plan should include the project background, goal setting (expressed with specific figures), implementation steps, expected effects, and a fund-utilization plan. It is usually 5–10 pages long
- Company overview: a brief introduction to the company's basic information, main business, employee count, annual revenue, etc.
Materials that earn bonus points:
- ISO certification, industry-qualification certificates
- Cooperation agreements with large enterprises
- Certificates of honor related to social contribution or environmental protection
- Product award certificates
Reminders on Key Details
Language issues: all application documents need a Japanese-language version. A common mistake among Chinese business owners is submitting documents that mix Chinese and English, which results in outright rejection. We recommend hiring a professional Japanese translator; the cost is usually JPY 30,000–50,000, far below the benefit gained from the subsidy.
Account preparation: both the applicant and the company need to have a Japanese bank account. The subsidy will be transferred directly to the designated account; cash or other methods are not accepted.
Time planning: from application to approval usually takes 3–6 months. A common mistake among Chinese business owners in Japan is leaving things until the last minute; we recommend starting to prepare the materials 2–3 months in advance.
Common Difficulties and Solutions for Chinese Businesses in Japan When Applying
Language and Cultural Comprehension Barriers
Although many Chinese business owners can communicate in Japanese, when writing a formal business plan they tend to encounter problems such as inappropriate expression and unclear logic. Japanese government departments require rigorous document formatting, and any irregularity can affect the score.
Solution: hire a Japanese consultant (コンサルタント) with subsidy application experience. The cost is usually JPY 100,000–200,000, but the success rate will improve significantly.
Financial Transparency Issues
Some Chinese enterprises have a habit of keeping "off-book accounts." Japanese tax authorities and subsidy review departments may request to review the company's complete books. Irregular financial records will directly lead to the application being rejected or reported.
Solution: immediately organize and standardize your financial accounts. If you find that problems existed in the past, consult a zeirishi and correct them legally. Never conceal anything.
Proving the Feasibility of the Project
Japanese subsidy applications place great importance on "genuine feasibility." The applicant needs to clearly demonstrate: why they want to do this project, whether they have sufficient technical capability or partners, and how the expected returns are evaluated.
Solution: prepare a detailed technical proposal, supplier quotations, recommendation letters from partner enterprises, and so on. The more specific these materials, the better.
Frequently Asked Questions (FAQ)
Q1: I am a Chinese national on a work visa, running a sole proprietorship in Nagoya. Can I apply for a Nagoya subsidy?
A: Yes. The applicant for a subsidy is a corporate entity or a sole proprietor, and this has no direct relationship to the applicant's nationality or visa type. As long as you have established a legal corporate entity in Japan (a kabushiki kaisha or godo kaisha) or registered as a sole proprietor (filed a business-opening notification), you meet the basic application conditions. But note: (1) the company must have an actual place of business in Japan and a Japanese bank account; (2) if your status is not stable enough (for example, a short-term business-trip visa), you may be asked about the company's long-term business plan during the review; (3) we recommend completing full tax registration and social insurance procedures to demonstrate the company's legitimacy and stability. The subsidy department will verify your company information through data from the tax and social insurance authorities, so everything needs to be transparent and compliant.
Q2: My company was established only 1 year ago. Can I apply for an Aichi grant?
A: Most subsidies have no strict requirement on how long the company has been established, but certain specific programs may require the company to have operated for 1–2 years. This is because some subsidies require reviewing prior-year financial statements to assess the company's stability. If your company was established only 1 year ago, you can focus on the following subsidies: (1) the "Start-Up Support Subsidy" designed for new enterprises, which usually covers companies established no more than 3–5 years ago; (2) the women entrepreneur subsidy (if applicable); (3) subsidies for new entrants in specific industries. On the other hand, you can only provide 1 year of financial data, which may put you at a relative disadvantage in the review. We recommend also preparing a detailed 3-year business plan to demonstrate the company's growth potential and sustainability.
Q3: I have already received a subsidy through another channel. Can I still apply for a Nagoya subsidy?
A: This depends on the specific program's rules. Some subsidies explicitly state in their eligibility conditions "not having received the same or a similar subsidy in the past 3 years," which is to avoid duplicate subsidies. But different types of subsidies usually do not conflict. For example, you might apply for both the management innovation subsidy and the manufacturing subsidy, as long as the purposes and content of the two projects do not overlap. We recommend carefully reading the subsidy's "guidelines" (要綱) before applying, or consulting the Nagoya City Economic Affairs Bureau. If you are unsure, ask the relevant department in advance—this can avoid having your application rejected. Additionally, national-level subsidies (such as those from the SME Agency) and prefectural/municipal subsidies can usually run in parallel, but the calculation involving amount ceilings and reimbursement rates requires guidance from a professional advisor.
Q4: My company has a branch in Aichi Prefecture, but the headquarters is in Tokyo. How will my subsidy application for the Nagoya branch be handled?
A: In principle, a subsidy application is based on the location of the actual place of business. Your subsidy application for the Nagoya branch will be handled by Nagoya City or Aichi Prefecture. But note: (1) the review department may request to review the finances of the entire corporate group to assess the necessity of the subsidy (some subsidies stipulate that if the parent company's financial condition is good, the branch may not qualify); (2) the subsidy must be used for improving the operations of the Nagoya branch and cannot be diverted to other uses; (3) if a cross-regional merger or restructuring is involved, be sure to consult the local department before applying. We recommend preparing independent financial statements and a business plan for the Nagoya branch, clearly explaining the branch's independence and the subsidy's use—this will make passing the review more likely.
Q5: I can't complete the application within the stipulated application period. Will there be another chance next year?
A: Most Nagoya subsidies are applied for on a regular annual basis, usually accepting applications in spring (April–May) or autumn (September–October). If you miss this year's application period, you can wait until next year. But note: (1) subsidy policies may be adjusted, and next year's subsidy programs or conditions may differ from this year's; (2) some one-off special subsidies (such as those for specific industries or specific years) may not be repeated; (3) we recommend starting to prepare next year's application materials immediately, especially refining the business plan and financial data. If your project is very urgent, you can also inquire whether other departments offer subsidies or institutional funding support (such as low-interest loans or financing guarantees). Some prefectures and cities also offer emergency subsidies, but they are usually more competitive. In general, the earlier you start preparing, the better.
Case Study Analysis
Case 1: A successful application by a Chinese manufacturing enterprise
Ms. Li runs a company in Nagoya that produces precision components, with annual revenue of about JPY 200 million and 30 employees. In 2023, she applied for the Aichi Prefecture Monozukuri Subsidy on the theme of "digital transformation of the production process" and received a subsidy of JPY 8 million.
Keys to success:
- Fully prepared a detailed technical proposal (including specific quotations from suppliers)
- Hired a subsidy advisor to help write the business plan
- Clearly presented the ROI: an investment of JPY 10 million, with an expected increase of JPY 5 million in annual revenue within 3 years
- Emphasized the project's contribution to environmental protection and sustainable development
Case 2: A turning point for a Chinese service-industry enterprise
Mr. Wang runs a consulting-services company in Nagoya and faced operating difficulties due to the pandemic. In 2022 he applied for the Nagoya City telework subsidy and the management innovation subsidy, receiving a total of JPY 2.5 million, which he used to build a remote-service platform and develop online clients. As a result, he not only weathered the crisis but also seized international-cooperation opportunities after the pandemic, and the company's revenue actually grew by 30%.
Self-Diagnosis Checklist Before Applying
Before deciding to apply for an Aichi grant or a Nagoya subsidy, please self-check the following points:
- ☐ The company has a legal, actual place of business in Aichi Prefecture (Nagoya City)
- ☐ The corporate entity or sole-proprietor registration is complete, and tax filings are normal
- ☐ The company's financial data for the past 3 years is complete and basically compliant
- ☐ There is a clear reform or innovation project plan
- ☐ The project can be completed within 12–18 months
- ☐ The necessity and expected effects of the project can be clearly explained
- ☐ The company's size and financial condition meet the application conditions
- ☐ A complete set of application materials in Japanese can be prepared
If 3 or more of the above items cannot be checked off, we recommend first putting your company in order and standardizing it before considering an application.
Conclusion and Recommendations
The subsidy systems offered by Aichi Prefecture and Nagoya City are an important channel of financial support for Chinese businesses in Japan. The key is to understand the application conditions, prepare in advance, and standardize the company's finances and operations. Our recommendations:
- Act now: subsidies have application deadlines and cannot be missed. We recommend starting to research this year's or next year's subsidy programs right away
- Seek professional help: hire an experienced Japanese consultant or subsidy application specialist; the cost is far below the benefit of obtaining the subsidy
- Stay compliant: any irregularity can lead to a failed application or even a report. It is better to spend a bit more to get in order and ensure compliance
- Plan for the long term: a single subsidy is just the beginning; through standardized management and innovative development, you can become a company that continuously receives support
If you have any questions about the application process, specific program conditions, or material preparation, we offer a free initial consultation service. Please feel free to contact us, and we will develop a personalized subsidy application plan for your company.