Top 9 Government Support Programs For Foreign Companies in Japan

Japan is one of the world’s most stable and advanced economic zones, offering a robust technological infrastructure, well-established regulatory systems, and a mature consumer market, making it an attractive destination for many foreign companies. In recent years, the Japanese government has taken a proactive approach to attracting foreign investment, implementing a wide range of support programs and incentive measures. From establishing a legal entity and securing office space to legal and tax advisory services, hiring skilled professionals, and navigating deregulation, Japan offers a comprehensive support framework to meet diverse business needs.

In this article, we introduce 9 carefully selected and reliable support programs offered by Japanese government-affiliated and public institutions to help foreign companies enter the Japanese market. For each program, we provide detailed explanations, including eligibility, types of support, estimated costs, real-life examples, and helpful links. Our goal is to offer a valuable starting point for companies considering entry into the Japanese market.

Ranking of Top Government Support Programs 

1. Act for Promotion of Japan as an Asian Business Center
2. JETRO ”Invest Japan Business Support Center (IBSC)”
3. Regional Support Program for Foreign Direct Investment in Japan (METI & JETRO)
4. Tokyo Metropolitan Government “Business Development Center Tokyo”
5. Financial Start-Up Support Program (Financial Services Agency)
6. Points-Based System for Highly Skilled Foreign Professionals & Startup Visa
7. Regulatory Sandbox and Grey Zone Clarification System (METI and Others)
8. Greater Nagoya Initiative (GNI)
9. EU-Japan Centre Support Programs

1. Act for Promotion of Japan as an Asian Business Center

Source: METI Homepage

Overview

The official name of this program is “Measures to Promote the Establishment of Headquarters Functions under the Industrial Competitiveness Enhancement Act.” This initiative was introduced in 2012 to encourage foreign companies to establish regional headquarters or R&D centers in Japan. It is part of the Japanese government's broader strategy to position Japan as a central hub for global business operations.

Support Provided

- Tax incentives for capital investment and personnel costs (e.g., immediate depreciation or tax credits).

- Accelerated visa procedures for highly skilled foreign professionals.

- Regulatory exemptions and other easing measures, provided the business is certified under specific categories.

Eligible Companies

- Foreign companies establishing a regional headquarters or R&D facility in Japan for the first time.

- Companies already operating in Japan that are upgrading or expanding their functional capabilities.

Best Use Cases

- Companies aiming to set up a headquarters in the Asia-Pacific region, with Japan as the base.

- Tech firms seeking to conduct advanced research and development within Japan.

Cost Overview

- The support consists primarily of tax incentives and streamlined administrative procedures; direct subsidies are not included.

- Applications require a certain level of investment and submission of a business plan.

2. JETRO “Invest Japan Business Support Center (IBSC)”

Source: JETRO Homepage

Overview

JETRO’s Invest Japan Business Support Center (IBSC) is a comprehensive support hub for foreign companies considering entry into the Japanese market. Located in six major cities—Tokyo, Yokohama, Nagoya, Osaka, Kobe, and Fukuoka—the IBSC offers free consultations with experts and temporary office space to help companies smoothly launch their operations in Japan.

Support Provided

- Up to 50 days of free office space.

- Free individual consultations with experts in legal affairs, labor, and taxation.

- Support for connecting with local governments and financial institutions.

Eligible Companies

- Foreign companies planning to establish a legal entity in Japan.

- Open to a wide range of companies, from startups and SMEs to large corporations. 

Best Use Cases

- Companies exploring market entry and seeking to assess Japan’s business environment quickly.

- Companies with concerns about Japan’s legal system or taxation.

Cost Overview

- Consultations and facility use are generally free of charge.

- Legal registration and administrative fees for setting up an entity are not included.

3. Regional Support Program for Foreign Direct Investment in Japan (METI & JETRO)

Source: JETRO Homepage

Overview

This support program is jointly operated by Japan’s Ministry of Economy, Trade and Industry (METI) and JETRO to promote the revitalization of regional economies and encourage foreign companies to invest outside major urban areas. The program emphasizes matching companies with local governments to align specific business needs with regional strengths, supporting sustainable business development.

Support Provided

- Support in selecting potential locations through coordination with local governments.

- Opportunities to collaborate with local companies and universities.

- Guidance on public subsidy programs and local government incentives.

Eligible Companies

- Foreign companies seeking to establish operations in the regional areas of Japan.

- Companies interested in regionally rooted industries such as manufacturing, biotech, and agriculture.

Best Use Cases

- Companies aiming to benefit from the cost advantages of regional cities.

- Companies planning new business development in collaboration with Japan’s regional resources.

Cost Overview

- Coordination and support by JETRO are generally free of charge.

- Availability and details of subsidies or local government incentives vary by project.

4. Tokyo Metropolitan Government “Business Development Center Tokyo”

Source: Invest Tokyo Homepage

Overview

This is a support desk operated by the Tokyo Metropolitan Government that offers one-stop assistance for administrative procedures and business establishment for foreign companies. Multilingual support is available in English, Chinese, and more, helping overseas startups expand into Tokyo.

Support Provided

- Assistance with business registration, taxation, and labor procedures for foreign companies.

- Support for opening bank accounts and obtaining residency status.

- Provision of daily life information and assistance with startup visas for foreign entrepreneurs.

Eligible Companies

- Foreign companies looking to establish a base in Tokyo.

- Small and startup businesses entering the Japanese market for the first time.

Best Use Cases

- Companies aiming to make Tokyo their base of operations in Asia.

- Foreign businesses concerned about the complexity of administrative procedures. 

Cost Overview

- Services are generally free of charge (funded by the Tokyo Metropolitan Government).

- Actual costs for registration and similar procedures are separate. 

5. Financial Start-Up Support Program (Financial Services Agency)

Source: FSA Homepage

Overview

This is a subsidy program provided by Japan’s Financial Services Agency (FSA) to support foreign startups in the financial and asset management sectors entering the Japanese market. The initiative focuses particularly on FinTech and asset management companies, aiming to position Tokyo as a leading global financial hub.

Support Provided

- Partial subsidies for initial costs when establishing a new office in Japan (e.g., rent, professional fees).

- Up to 20 million yen or 70% of eligible expenses, whichever is lower.

- Ongoing follow-up support from experts.

Eligible Companies

- Foreign companies in finance, investment, insurance, or FinTech sectors.

- Legal entities planning to set up operations in Tokyo.

Best Use Cases

- Companies entering Japan’s financial market and seeking licenses or business expansion.

- Startups concerned about high initial setup costs.

Cost Overview

- Support amount varies based on screening (up to 20 million yen).

- A business plan and detailed cost breakdown are required for the application.

6. Points-Based System for Highly Skilled Foreign Professionals & Startup Visa

Source: ISA Homepage

Overview

This program is designed to attract highly skilled foreign professionals to Japan by offering fast-track and preferential visa procedures. For foreign nationals aiming to launch a business, more local governments are issuing startup visas, making it easier to establish a company in Japan.

Support Provided

- Residency status “Highly Skilled Professional (i)” or “(ii)” granted through a point-based system (generally 5 years, with relaxed permanent residency conditions).

- Startup visas issued for foreign entrepreneurs planning to launch a business (varies by municipality).

- Work permits for spouses and dependent status for parents are also available.

Eligible Individuals

- Foreign nationals with expertise in management, academia, or technical fields.

- Foreigners planning to start a business or establish a startup in Japan.

Best Use Cases

- Companies seeking to invite researchers, engineers, or executives from abroad.

- Early-stage support for foreign entrepreneurs setting up in Japan.

Cost Overview

- Application is free, but expert service fees may apply for document preparation.

- Startup visa requirements vary by local government.

7. Regulatory Sandbox and Grey Zone Clarification System (METI and Others)

Source: Cabinet Secretariat Homepage

Overview

This system allows innovative businesses to conduct proof-of-concept trials without being restricted by existing regulations. It provides a flexible regulatory environment for fields like AI, blockchain, FinTech, and biotechnology, supporting the launch of new businesses in Japan.

Support Provided

- Regulatory exemptions during the demonstration period (special measures).

- Clarification of legal interpretations or exemption from application (Grey Zone Elimination System).

- Support from expert panels and coordination with relevant government agencies.

Eligible Companies

- Foreign companies uncertain about Japan’s legal and regulatory systems.

- Startups aiming to test new services or business models in Japan.

Best Use Cases

- Development of cross-sector innovations such as healthcare × IT or finance × AI.

- Companies seeking to validate new business models before full-scale launch under Japanese regulations.

Cost Overview

- Review and support are free of charge, but demonstration costs must be self-funded.

8. Greater Nagoya Initiative (GNI)

Source: GNI Homepage

Overview

This is a regional initiative supported by Aichi, Gifu, Mie, and the City of Nagoya to assist foreign companies entering Japan. Leveraging the Chubu region’s strength as a manufacturing hub, it offers an attractive environment—especially for companies in the automotive, aerospace, and medical device sectors.

Support Provided

- Support for on-site visits and facility location selection.

- Business matching and negotiation support with local companies.

- English-language support desks and information on daily life for foreign residents.

Eligible Companies

- Foreign companies considering setting up a base in the Chubu region.

- Businesses involved in manufacturing, R&D, or logistics.

Best Use Cases

- Companies looking to leverage Chubu’s advanced manufacturing infrastructure.

- Foreign firms seeking locations outside Tokyo or Osaka.

Cost Overview

- Support is free of charge (coordinated by local governments and JETRO).

9. EU-Japan Centre Support Programs

Source: EU-Japan Center Homepage

Overview

This nonprofit organization was jointly established by the EU and the Japanese government. It primarily supports small and medium-sized enterprises (SMEs) from EU member states in entering the Japanese market and fostering technical and human exchange. For over 30 years, it has played a central role in strengthening economic ties between the two regions.

Support Provided

- Business seminars and practical training programs focused on the Japanese market.

- Vulcanus in Japan: Internship program placing European students in Japanese companies.

- B2B matching and support for exhibiting at trade fairs.

Eligible Companies / Organizations

- Companies based in EU member states.

- Businesses, universities, and research institutions aiming to enter or expand in Japan.

Best Use Cases

- Early-stage market research and networking for companies entering Japan from Europe.

- Finding partners for technology transfer or research collaboration.

Cost Overview

- Most programs are free or partially subsidized.

Conclusion 

Japan’s government, local municipalities, and related public institutions continue to expand and enhance support programs for foreign companies each year. These programs now cover a wide range of business phases—from initial research and entity setup to post-entry support such as business matching, talent acquisition, and regulatory easing.

The nine support programs introduced in this article each have unique strengths and target different types of businesses. Choosing the right one depends on your industry, entry goals, and stage of expansion. Starting with a consultation at a comprehensive support desk such as JETRO is a significant first step to identifying the most suitable program.

Entering the Japanese market is more than just expanding into a new territory—it can serve as a key turning point for business growth. We encourage you to make a strategic start by taking full advantage of these available support systems.