Subsidy for Foreign Companies Establishing a Business Entity in Sapporo

This subsidy is available to foreign companies establishing a business entity in Sapporo for the first time.

It covers a portion of the costs incurred during the preparation and initial setup phase.

The subsidy is available to companies operating in priority growth sectors designated by Sapporo City, including food-related industries, IT and creative industries, health, welfare and medical industries, GX (Green Transformation) industries, as well as financial services and semiconductor-related industries that support these sectors.*(Please contact STEP for details on eligibility.)

Eligible companies are required to possess innovative technologies or services.

The subsidy applies to companies planning to establish a new business base in Sapporo that meet all of the following requirements:

• At the time of application, the company has not established any business base within Japan.
• A representative or employee of the foreign company has obtained, or plans to obtain, an appropriate status of residence to establish and operate a company in Japan (excluding cases where there is a Japan-based collaborator involved in establishing the company, such as a Japanese representative director).
• Within six months of establishment, at least one regular employee or company director resides in Sapporo as a registered resident.
• The company intends to continue business operations in Sapporo for a minimum of two years.
• Final eligibility for the subsidy is determined by Sapporo City following prior consultation.

The subsidy covers up to one-half (50%) of eligible expenses, with a maximum subsidy amount of JPY 2.5 million.

The application process consists of the following steps:

1. Preliminary consultation
   Companies must first consult with Sapporo Transnational Expansion and Partnership (STEP) to discuss their business plan and eligibility.
   
2. Eligibility application (before contracting)
   Before entering into any contracts that incur costs related to business establishment, such as office lease agreements or professional service contracts, companies must apply for designation as an eligible subsidy recipient.
   
3. Preparation and establishment
   After designation, companies proceed with preparations for establishing their business base, including office setup and company registration
   
4. Subsidy application
   After establishing the business base, companies submit expense documentation. The subsidy is paid after review and approval.

You must first fill out an Eligibility Application and be accepted as an eligible company before you make your Subsidy Application. All applications can be submitted online and in English. For more information, please contact Sapporo Transnational Expansion & Partnership (STEP).

The designation application must be submitted before signing any contracts that incur costs related to business base preparation, such as usage fees or lease agreements.

The designation review process takes approximately three weeks.

Required documents may include:

• Subsidy Eligibility Application Form
• Business Outline
• Certified copy of corporate registration
• Financial documents from the past two years
• Materials confirming the applicant’s business plan (including hiring plans) for the current fiscal year of application and the following two fiscal years
• Materials confirming the secured office space for which the subsidy is claimed
• Materials confirming the content, number of sessions, and duration of consultations with a specialist
• Pledge and Consent Form

Companies that receive the subsidy are required to comply with the following conditions.

These requirements are intended to ensure long-term and sustainable business activities in Sapporo.

You can:

• Spend the subsidy on the following eligible expenses:
  • Temporary office costs: Short-term office or coworking space rent, non-refundable fees during the preparation phase
  • Initial office setup costs: Non-refundable fees such as key money or membership fees for the registered office
  • Professional service fees: Legal, tax, labor, and immigration-related consultation and document preparation by qualified professionals
• Additional costs associated with being an overseas company can be reduced.

You cannot:

• Consult regarding this subsidy after entering into contracts, etc. that fall under the eligible expenses.
• Reimburse travel expenses related to international or domestic airfare.
• Reimburse expenses without a receipt or proof of purchase
• Apply for this subsidy if your company is already registered as a corporation in Japan