A Subsidy Guide for Chinese-Owned Staffing and Job-Placement Companies in Japan

The Basics of Japan's Staffing Subsidies

What is a staffing subsidy?

The staffing subsidy is an important support policy introduced by the Japanese government to promote the development of the human-resources services industry. Under the rules of the Ministry of Health, Labour and Welfare (厚生労働省), eligible staffing companies can apply for a variety of subsidy programs. A single subsidy is usually between JPY 500,000 and JPY 5 million, and some programs even exceed JPY 10 million.

These subsidies are mainly used for:

• Staff training and skills development: Japanese-language and skills training for dispatched workers, with subsidy rates reaching 70%–80%
• Improvement of employment-support facilities: Upgrading the office environment, equipping professional consultation facilities, etc., with subsidy rates of about 30%–50%
• New project development and expansion: Opening up staffing business in emerging market segments, with the subsidy covering 50% of initial costs
• Building an international recruitment system: Constructing recruitment and management systems for overseas talent (including Chinese nationals)

The difference between subsidies and financing

Many Chinese business owners easily confuse subsidies with financing. The key difference is this: a subsidy does not need to be repaid, whereas financing must be repaid with interest on schedule. Take a staffing company as an example: applying for a JPY 2 million training subsidy only requires submitting a report and having the results accepted—no installment repayment is needed. This is why subsidies are hailed as "free money."

The Core Requirements for a Job-Placement Grant Application

Legal and licensing requirements

To engage in staffing or job-placement business in Japan, you first need to obtain a government license. There are two categories:

Staffing license (派遣事業の許可)

• Issued by the Minister of Health, Labour and Welfare or the governor of each prefecture
• The applicant company must have registered capital of no less than JPY 20 million (JPY 10 million for specified staffing)
• The license is valid for 3 years and must be renewed upon expiry

Job-placement license (職業紹介事業の許可)

• Requirements are relatively flexible; registered capital can be as low as JPY 5 million
• The license is likewise valid for 3 years
• A professional employment counselor (就業相談員) must be appointed

For Chinese business owners in Japan, obtaining these licenses is a precondition for applying for a subsidy. Statistics show that there are about 8,000 staffing companies in Japan, of which roughly 15%–20% are Chinese-owned or Chinese-capital businesses.

Financial condition and company size requirements

When applying for a staffing subsidy, a company must meet the following conditions:

| Condition | Specific requirement | |------|--------| | Financial condition | No major losses in the past 3 years; tax filings in good standing | | Number of employees | At least 5 (including dispatched and full-time employees) | | Business premises | A professional business address; virtual addresses are not allowed | | Social insurance | 100% coverage, no arrears | | Legal record | No major labor-law violations in the past 3 years |

Many startup Chinese-owned staffing companies are mistakenly thought to be ineligible because they are small. In fact, as long as the above basic conditions are met, even a small company with an annual turnover of just JPY 50 million can apply for the relevant subsidies.

A Detailed Look at Common Staffing Subsidy Programs

Human Resource Development Training Grant (人材育成訓練助成金)

This is one of the easiest subsidy programs to apply for and the one that delivers the most direct benefit.

Eligibility:

• The company provides vocational training (Japanese language, skills, safety training, etc.) for its dispatched workers
• The training institution is a recognized professional educational institution
• The training period is no less than 10 hours

Subsidy amount:

• Small and medium enterprises: up to 80% of training costs
• Large enterprises: up to 60%
• The annual subsidy cap per employee is usually JPY 500,000

Example: A Chinese-owned staffing company provided 3 months of Japanese-language and industrial-safety training to 100 dispatched workers, at a total cost of JPY 3 million. After applying for this subsidy, the actual out-of-pocket cost was only JPY 600,000—a saving of JPY 2.4 million.

Employment Maintenance Grant (雇用維持助成金)

This program is especially useful during economic downturns.

Applicable situations:

• Dispatched workers face the risk of unemployment due to reduced orders
• The company must invest additional costs to keep dispatched workers on
• During the COVID-19 pandemic, this subsidy was a lifeline for many companies

Subsidy standard:

• Subsidizes part of the wages the company pays to dispatched workers (usually 2/3)
• The monthly subsidy per person is about JPY 8,330 to JPY 15,000
• The application period can extend up to 1.5 to 2 years

Example: During the 2020 pandemic, a Chinese-owned staffing company with 500 dispatched workers applied for this subsidy. It received about JPY 6 million per month, greatly easing the pressure of paying wages.

New Business Development Grant (新規事業開拓助成金)

This is aimed at staffing companies opening up new markets or new fields.

What the subsidy covers:

• 30%–50% of the initial investment cost of the new business
• Including market research, equipment purchase, staff recruitment, etc.
• A single project subsidy is usually between JPY 1 million and JPY 5 million

Example: A Chinese-owned staffing company planned to enter the medical-care staffing business and needed to invest JPY 2 million in staff nursing-qualification training, office renovation, and market expansion. After applying for this subsidy, the government provided JPY 1 million, leaving the company to pay only JPY 1 million out of pocket.

The Application Process and Key Points for Job-Placement Grants

Preparation before applying

Step 1: Confirm your business qualifications

Contact your local Prefectural Labour Bureau (都道府県労働局) to confirm:

• Whether you have already obtained a job-placement license
• Whether the license is still valid
• Whether there are any violation records

Step 2: Organize the company's finances

Consult a tax accountant or accounting firm and prepare:

• Financial statements and tax returns for the past 3 years
• Social insurance payment certificate (保険関係成立届)
• Bank account statements (showing dispatched-worker wage payments)

Step 3: Determine the subsidy program

There is a wide variety of subsidies in Japan. Based on your company's actual needs, you can consult:

• The Ministry of Health, Labour and Welfare website: www.mhlw.go.jp
• The subsidy information pages of each Prefectural Labour Bureau
• Information published by the Japan Staffing Services Association (日本人材派遣協会)

The five major steps of the formal application

Step 1: Prepare the application documents (preparation period: 1–2 weeks)

The required documents include:

• Subsidy application form (補助金交付申請書)
• Company registration certificate and a copy of the license
• Labor insurance and social insurance certificates
• A list of dispatched workers for the past 3 months
• A project plan (including objectives, budget, and timeline)

A common mistake among Chinese business owners is insufficient document preparation. We recommend allowing ample time and having a professional Gyoseishoshi (行政書士) review the quality of the documents.

Step 2: Submit to the governing authority (submission period: 1–3 weeks)

Depending on your company's location, submit to:

• The Vocational Training Section of the Prefectural Labour Bureau (都道府県労働局職業訓練課)
• Or delegate to a recognized staffing-company association

When submitting, you need to:

• Prepare one original and one copy each
• Attach all supporting documents
• Obtain a receipt of acceptance (受理証明)

Step 3: Review and on-site investigation (review period: 2–4 weeks)

The government department will review the following:

• Whether the company's financial condition meets the requirements
• Whether the project plan is feasible
• The compliance of the dispatched workers
• The actual state of the business premises and facilities

Many companies are asked to supplement materials at this stage. Common supplementary requests include:

• A more detailed project budget breakdown
• Copies of the contracts between dispatched workers and the company
• Qualification certificates of the training institution

Step 4: Obtain the subsidy grant decision letter (decision period: 1–2 weeks)

After passing the review, the government will formally issue the "Subsidy Grant Decision Notice" (補助金交付決定通知書). This document is crucial and states:

• The total subsidy amount (for example: JPY 2 million)
• The subsidy rate (for example: 70%)
• The subsidy period (for example: April 2024 – March 2025)
• The method and schedule of receipt

Step 5: Implement the project and pay the costs (implementation period: 3–12 months)

During project implementation, you need to:

• Proceed according to plan (no arbitrary changes)
• Keep all expenditure evidence (invoices, receipts, contracts)
• Report progress to the government department regularly
• Submit a final results report upon completion

Subsidies are usually disbursed in 3–4 installments:

• After the grant decision: receive 20%–30% as startup funding
• Mid-project: receive 30%–40%
• After project completion: receive the remaining portion (a completion certificate is required)

Total time required: From application to finally receiving the subsidy, the whole process takes about 4–6 months.

Special Advantages and Cautions for Chinese Business Owners

Unique advantages you can leverage

1. Bonus points for the international-talent development subsidy

The Japanese government encourages companies to cultivate international talent. If a staffing company's business involves:

• Japanese-language and cultural-adaptation training for Chinese dispatched workers
• Building a China–Japan cultural exchange platform
• Providing career planning for Chinese nationals coming to Japan

these projects receive priority review when applying for the "International Talent Development Grant" (国際人材培養事業助成金). The subsidy rate can even be as high as 80%.

2. Market differentiation from a language advantage

Chinese-owned staffing companies mainly serve:

• Positions in manufacturing that require Chinese-language communication
• Companies involved in China–Japan trade
• Service industries in areas where Chinese communities are concentrated

This specialization makes it easier to demonstrate genuine market demand when applying for a new-business development subsidy.

Common pitfalls you must avoid

Pitfall 1: Illegal workers and gray-area dispatch

• Risk: If dispatched workers are illegally employed or their social insurance is unpaid, the subsidy application will be rejected outright and you may even face a fine
• Countermeasure: Ensure 100% of dispatched workers hold a valid residence status and work permit, and that social insurance is paid on time and in full

Pitfall 2: Misreporting project costs

• Risk: If the reported training costs do not match reality, the subsidy will be clawed back and the company's reputation damaged
• Countermeasure: All costs must be backed by formal invoices and contracts, and the amounts must match reality

Pitfall 3: Unapproved project changes

• Risk: If you change the project content mid-implementation or the budget allocation changes by more than 20%, re-approval is required and the subsidy may be canceled
• Countermeasure: Confirm the details repeatedly before launching the project, and always report to the government department in advance if adjustments are needed

Pitfall 4: Failing to properly document results

• Risk: If you cannot provide proof of training results, dispatched-worker headcount statistics, and other documents, the project may be deemed incomplete
• Countermeasure: Keep records throughout (participant lists, training sign-in sheets, transcripts, etc.), and prepare acceptance documents in advance before the project ends

Frequently Asked Questions (FAQ)

Q1: Our company obtained its staffing license less than a year ago—can we apply for a subsidy?

A: Yes, you can apply, but with some limitations. Most subsidy programs require a company to have operated for at least 6 months, and some require a full year. For newly licensed staffing companies, we recommend prioritizing the "Human Resource Development Training Grant," as this program is the most newcomer-friendly. Specifically, as long as your company has obtained a formal license, has stable dispatched workers (at least 5), and is in good financial standing, you can apply. We recommend first consulting your local Labour Bureau to learn the specific requirements for new companies. To support startups, many local governments lower the application threshold for new companies.

Q2: If my subsidy application is rejected, can I reapply for the same program?

A: Yes, you can reapply, but you need to wait a certain period. If your application is rejected, the government department will usually explain the reasons, including incomplete documents, the project not meeting the conditions, or a non-qualifying financial condition. We recommend doing the following: (1) have a professional Gyoseishoshi analyze the reasons for rejection; (2) improve your application and project plan based on the feedback; (3) if the reason is your financial condition, you may need to wait six months before reapplying; (4) you can apply for other types of subsidies at the same time rather than staying fixated on one program. Note that different subsidy programs have different application cycles—some have a fixed annual review (such as in April), while others accept applications year-round (such as the Human Resource Development Training Grant).

Q3: If a dispatched worker leaves or takes a pay cut, will an already-approved subsidy be clawed back?

A: It depends on the specific circumstances and contract terms. Generally speaking: (1) if a dispatched worker leaves during the project implementation period, this will not directly trigger a clawback, since dispatch work is inherently fluid; (2) but if the company deliberately lays off staff to reduce the number of dispatched workers and thereby misreports project results, this is deemed fraud, and the subsidy must be repaid in full along with a fine; (3) in the case of a pay cut, as long as the total number of dispatched workers and their compliance remain unchanged, it usually does not affect the subsidy. The recommended practice is to keep complete data on dispatched workers (including resignation certificates and handover records) and report to the government department regularly, so that even if there are personnel changes, they can be recognized as normal business activity.

Q4: If I apply for several subsidy programs at once, will there be a conflict or will they fail?

A: You can apply for several subsidy programs at once, but you need to observe the "no double subsidy" principle. The specific rules are: (1) the same expenditure cannot be reimbursed from more than one subsidy source—for example, employee training costs cannot be claimed under both the "Human Resource Development Training Grant" and the "New Business Development Grant"; (2) but different expenditure items can be claimed under different subsidies—for example, using the "Human Resource Development Training Grant" to pay for Japanese-language training and the "New Business Development Grant" to pay for office equipment; (3) split the costs and plan the budget, clearly stating at application which specific expenditure item corresponds to each subsidy. We recommend consulting a Gyoseishoshi, who will help the company develop a comprehensive subsidy strategy that maximizes the total subsidy.

Q5: During the subsidy application, must I hire a professional consultant or Gyoseishoshi?

A: It is not mandatory, but strongly recommended. A company can apply on its own, but there are the following risks: (1) inadequate document preparation leading to rejection; (2) not knowing the latest changes in subsidy policy, missing application opportunities or misunderstanding terms; (3) problems arising in the reporting and acceptance stages during project implementation, affecting receipt of the subsidy. The cost of hiring a professional consultant is usually 5%–10% of the total subsidy (for example, for a JPY 2 million subsidy, the consultant fee is about JPY 100,000–200,000), but they can help the company: raise the application success rate from 40%–50% to 80%–90%, save 2–3 months of application time, and avoid clawbacks caused by mistakes. For smaller startup staffing companies, we recommend consulting a professional at least once to obtain tailored advice before deciding whether to delegate the entire process.

Case Study Analysis

Case 1: A Chinese-owned staffing company's talent-development project

Company background: A Chinese-owned staffing company with an annual turnover of JPY 80 million, 200 dispatched workers, primarily engaged in manufacturing staffing.

Problem: The Japanese-language levels of the dispatched workers varied widely, leading to low corporate efficiency and increasing customer complaints.

Solution:

• Organized the 200 dispatched workers into batches for a 3-month intensive Japanese-language training program
• Total cost: JPY 4 million (JPY 20,000 per person)
• Applied for the "Human Resource Development Training Grant" and received JPY 2.8 million (70%)
• The company's actual out-of-pocket cost: JPY 1.2 million

Results:

• Employees' Japanese-language levels rose by 2 grades (on average)
• Customer satisfaction rose from 65% to 85%
• The dispatched-worker retention rate rose from 60% to 80%
• Annual turnover grew to JPY 120 million

Takeaway: A subsidy is not just cost savings—it is an accelerator for company growth.

Case 2: Applying a subsidy to new-business expansion

Company background: A Chinese-owned staffing company that primarily did factory staffing and planned to enter the nursing-care (介護) field.

Investment plan:

• Staff nursing-care qualification training: JPY 1.5 million
• Renovation of office and consultation rooms: JPY 2 million
• Market research and marketing: JPY 1 million
• Total: JPY 4.5 million

Subsidy application: Applied for the "New Business Development Grant" and received JPY 2.25 million (50%)

Implementation results:

• The first batch of 30 dispatched workers completed their nursing-care qualification training
• Signed long-term dispatch agreements with 3 elderly-care institutions
• The new business division's first-year turnover was JPY 6 million
• Investment payback period: 1.5 years

Takeaway: Subsidies are well suited to opening up new markets and can significantly reduce the risk cost of innovation.

Latest Policy Trends in 2024

In 2024, the Japanese government continued to strengthen its support for the human-resources services industry:

1. Higher subsidy amounts: The subsidy rate for some programs was raised from 70% to 80% (especially for small and medium enterprises)

2. New international-talent subsidy: A new subsidy program established specifically to cultivate international dispatch talent, with a focus on:

   • Multilingual training (Chinese, Vietnamese, Indonesian, etc.)
   • Cultural-adaptation training
   • International vocational qualification certification

3. Digital-transformation subsidy: Encouraging staffing companies to use AI and big-data technology to optimize dispatch matching, with subsidies of up to 50%

4. Women's advancement subsidy: Extra points for training and promotion programs aimed at female dispatched workers

Chinese business owners should keep a close eye on these new policies and adjust their strategies in a timely manner.

Summary and Recommendations

For Chinese-owned staffing and job-placement companies in Japan, subsidies are a resource not to be ignored. Through scientific planning and professional execution, a company can obtain government financial support while upgrading its own human resources and business.

Core recommendations:

1. Act early: Subsidy programs have application cycles and caps—do not wait until you urgently need funds to apply

2. Professional guidance: Hire a consultant who understands Japanese labor law and subsidy policy to raise your success rate

3. Financial compliance: Get your taxes and social insurance in order—this is the foundation of every subsidy application

4. Keep records: Keep all records of project implementation throughout, to prepare for acceptance

5. Apply continuously: Subsidies usually have new programs every year—do not miss the opportunity

A staffing subsidy is not a one-time benefit but a long-term strategic resource. By continuously planning subsidy applications in line with your company's development stage and market changes, you can help your Chinese-owned staffing company grow steadily in Japan.

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Need professional help? If you are considering applying for a staffing subsidy or a job-placement grant, please contact us for a free initial consultation. Our team of professional consultants has years of experience in the staffing industry and in subsidy applications, and we can develop a personalized subsidy plan tailored to your company's specific situation. Book a consultation now to learn the maximum subsidy amount your company could receive!