Subsidy vs. grant in Japan:
the differences in one table
'Hojokin' and 'joseikin' are often used interchangeably, but they differ in ministry, review method and timing. Choosing the wrong track usually wastes six months of preparation.
In Japan, 'hojokin' (subsidies) are mostly issued by METI/SME Agency and local governments through competitive, round-based reviews — eligibility does not guarantee adoption (e.g., Labor-Saving, AI Adoption, Sustainability). 'Joseikin' (grants) are mostly issued by MHLW for employment matters, paid when requirements are met, accepted year-round (e.g., Career-Up, HR Development). Neither is repaid if compliant; both pay after the fact; the same cost cannot be claimed twice. Equipment and systems → subsidies; hiring and training → grants; the two tracks can run in parallel.
Eight key differences
| Item | Subsidy (hojokin) | Grant (joseikin) |
|---|---|---|
| Ministry | METI / SME Agency, prefectures & cities | MHLW (labor bureaus, Hello Work) |
| Purpose | Investment, digitalization, startup, marketing, energy | Hiring, regularization, training, workplace |
| Review | Competitive scoring within budget | Requirement check |
| Window | Rounds with deadlines | Year-round; plan filed before implementation |
| Amount | ¥100k–¥80M | ¥100k–several million per person/site |
| Eligible costs | Broad | Narrow: wages and training costs |
| Payment | After final report | After payment application |
| Who may represent | Gyoseishoshi (documents) | Sharoshi (exclusive) |
Which track for your need
| Goal | Track | Program | Note |
|---|---|---|---|
| Automation equipment | Subsidy | Labor-Saving Investment Subsidy | ¥7.5M–¥80M; 1/2 (2/3 small) |
| Accounting/POS/AI systems | Subsidy | Digitalization & AI Adoption 2026 | Up to ¥4.5M; via IT vendor |
| Website, ads, renovation | Subsidy | Small Business Sustainability | ¥500k, 2/3 |
| Tokyo AC / lighting | Subsidy (Tokyo) | Zero-Emission energy-saving | Up to 3/4; lottery |
| Regularize part-timers | Grant | Career-Up Grant | ¥200k–¥800k per person |
| Staff training | Grant | HR Development Grant | 45–75% + hourly wage support |
Can they stack?
- Different costs can go to different programs.
- The same cost can be claimed only once.
- Timelines differ: grants need a plan before implementation; subsidies allow contracts only after the grant decision.
Versus policy loans and tax incentives
| Subsidy/grant | Policy loan (JFC) | Tax incentive | |
|---|---|---|---|
| Repay? | No (if compliant) | Yes, with interest | No cash; reduces tax |
| Timing | 6–12 months after | 1–2 months | At tax filing |
| Use | Strictly the approved project | Flexible | Designated assets |
| Review | Competitive / requirement | Creditworthiness | Requirements |
Often combined: a loan bridges the equipment cost, the subsidy repays part of it, and the asset qualifies for immediate depreciation or tax credit.
Six terms to know
| Term | Meaning | Misconception |
|---|---|---|
| 採択 (adoption) | Passed review | Not yet money |
| 交付決定 (grant decision) | Formal approval; contracts may start | Costs before this are ineligible |
| 実績報告 (final report) | Post-project report | Non-compliance cuts payment |
| 支給決定 (payment decision) | Grant approved for payment | Grant-side equivalent |
| 不採択 (rejection) | Failed competitive review | Can reapply |
| 返還 (repayment) | Return on violation | Not routine repayment |
FAQ
QAre both non-repayable?
Yes if compliant. False claims, unimplemented plans or disposing of subsidized assets during the restriction period trigger repayment.
QWhich is easier?
Grants are requirement-based, so more certain; subsidy adoption rates vary roughly 30–70% by program and round. But they target different needs.
QCan sole proprietors use both?
Subsidies yes; grants require employment-insured staff.
QIs a Tokyo '助成金' a grant or subsidy?
Local governments call their subsidies 'joseikin', but most are competitive or lottery-based subsidies in nature.
QNational subsidy plus Tokyo grant together?
Yes for different costs; the same cost cannot be claimed twice.
QWho can legally represent me?
Subsidy documents: Gyoseishoshi; grant representation: Sharoshi exclusively.
QHow long until payment?
Subsidies 6–12 months; grants 3–6 months after implementation.
QWhich first?
Lock subsidy deadlines first; prepare grant plans in parallel.
※ Amounts, subsidy rates and application windows follow each authority's latest guidelines; outcomes depend on review. This page is not a guarantee of approval.