Incentives of Nagoya City

This program is intended to support business entities interested in leasing office space in the Nagoya City Central Business District (CBD) or establishing/expanding factories and/or research facilities etc. in the CBD. The available subsidies cover a portion of lease costs, and/or investment expenditures in the establishment/expansion of factories and other such facilities.

Subsidies to promote industrial siting within the City of Nagoya by foreign-affiliated entities
Application Essentials (PDF)

Eligible Entities	Foreign-affiliated entities establishing a place of business in Nagoya for the first time (i.e. do not have a place of business in Nagoya already).
Target Industries	n/a
Conditions	n/a
Target Expenses	Research costs Costs of translation and interpretation Licensing and registration costs Recruitment costs Other expenses
Subsidy Amount	50% of target expenses
Maximum Subsidy Amount	¥1,500,000 (NB if the entity already has a place of business, elsewhere in Japan:¥1,000,000 max. and interpretation & translation costs are excluded)

Subsidies to promote business establishment in the CBD

Eligible Entities	Entities entering Nagoya for the first time (i.e. do not have a place of business in Nagoya already) and leasing office space and establishing a new place of business within the Nagoya CBD (i.e. Nagoya Station area, Fushimi, Sakae).
Target Industries	All six target industries
Conditions	Total floor area of the office/facility must be at least 100m2 ; and/or, at least ten full-time employees
Target Expenses	Building lease costs
Subsidy Amount	Equivalent of three months’ worth of building lease costs
Maximum Subsidy Amount	¥3,000,000 (or,¥6,000,000 in cases where total floor area is at least 1,000m2 and/or there are at least 100 full- time employees)

Subsidies to promote industrial siting within the City of Nagoya by targeted industries

Eligible Entities	Entities establishing or expanding factories/ research facilities etc. in districts designated for industrial use, within Nagoya. ( Large entities are only eligible if they are establishing such facilities in industrial districts or exclusive industrial areas)
Target Industries	Six target industries (Only manufacturing industries for SMEs)
Conditions	For SMEs: Investment of at least ¥50,000,000 and acquisition of buildings and machinery. For large entities: Investment of at least ¥1,000,000,000 and acquisition of buildings and machinery and at least five new full-time employees
Target Expenses	Construction costs for factories, research facilities, etc. and acquisition costs for machinery
Subsidy Amount	6% of target expenses (to be paid in installments over a 3-year period)
Maximum Subsidy Amount	Total of ¥1,000,000,000 per company

* Targeted Industries (6):
(1) Manufacturing Technology
(2) Environment & Energy
(3) Medical, Health & Welfare
(4) Information and Communications
(5) Fashion & Design
(6) Business Support Services

Important Notes (3):

Contact details:

Incentives of Aichi Prefecture

Subsidies to Promote Foreign-affiliated Companies' Business Operations in Aichi Prefecture Application Procedures (PDF)

With aims to further vitalize the local industries and economy, the Aichi Prefectural Government subsidizes a portion of the establishment costs and rent for foreign-affiliated companies which plan to set up their first office in Aichi Prefecture (excluding Nagoya City).

Content of the Subsidies

Subsidies to Support Business Start-up
Eligible Companies	Foreign-affiliated companies (*3) which intend to establish their first business facilities (*1) in Aichi (excluding Nagoya City)
Applicable Expenses (*4)	Feasibility study and other research Interpreting and translating (excluding for a secondary business facility establishment in Japan) Registration and acquisition of licenses Personnel recruitment Other expenses deemed appropriate by the Governor of Aichi Prefecture
Applicable Business Areas	No restrictions
Conditions	No restrictions
Amount (Ratio)	50% of applicable expenses
Maximum Amount	1.5 million yen (1 million yen for the establishment of a secondary business facility in Japan) (*6)
Subsidies for Rent
Eligible Companies	Foreign-affiliated companies (*3) which intend to rent offices (*2) in Aichi (excluding Nagoya City) for the first time
Subsidies	One year's rent for one office (*5)
Applicable Business Areas	6 fields listed below : Health and longevity Environment and energy Improvement of quality of life Biotechnology Nanotechnology Information technology
Conditions	Floor space of the office to be rented must be at least 100 m2 in size, or there must be at least 10 full-time employees.
Amount (Ratio)	50% of the rent
Maximum Amount	3 million yen

*1) Business facilities refer to sales and administrative offices, production bases, R & D facilities, and other facilities necessary for business operations. Businesses directly targeting individual consumers, such as restaurants, coffee shops and retail stores, are excluded.
"6 target fields" refers to the following industrial fields.

*2) Offices refer to sales and administrative offices, and other facilities necessary for business operations, excluding production bases, R & D facilities, as well as businesses directly targeting individual consumers, such as restaurants, coffee shops and retail stores.

*3) Foreign-affiliated company refers to a corporate entity having more than 1/3 of its issued shares or more than 1/3 of its capital owned by non-Japanese financiers, as provided for in Article 26 of the Foreign Exchange and Foreign Trade Law. Companies that may be able to satisfy these conditions only after establishing a Japanese corporation are excluded.

*4) Applicable expenses (1, 2, 3, 5) refer to costs incurred in Japan from 1 year prior to the establishment of the business facility until the opening date of the business facility, excluding consumption taxes, local consumption taxes, and official fees. However, the period for personnel recruitment (4) is extended from 1 year prior to the establishment of the business facility until 1 month after the opening of the business facility (consumption taxes are not included).

*5) One year's rent for one office refers to the amount of paid rents for a one-year period starting on the opening date of the office. If the one-year period starts in the middle of a fiscal year, only the period from the opening date of the office through the last day of March of that fiscal year will be counted.

*6) Secondary business facility establishment refers to the establishment of a new business facility in Aichi Prefecture by a foreign-affiliated company that already has one or more business facilities in Japan.

• The details of the subsidies mentioned above are based upon the Aichi Prefecture Foreign-affiliated Company Establishment Promotion Subsidies Guidelines.

Subsidies for Cutting-Edge Industries
A subsidy of up to one billion yen will be provided for building a new facility that meets the following requirements, including a plant for manufacturing products or conducting research using advanced and cutting-edge technologies (including development of an electronic computer program for manufacturing).

Requirements for a subsidy

Period	until March 31, 2014
Eligible recipients	Cutting-edge facilities (small and mid-size companies)	Cities, towns and villages that adopt a subsidy program to promote cutting-edge technologies
	Large-scale cutting-edge facilities	Companies (direct support)
	Research institutions
Applicable fields	health and longevity, environment and energy, aerospace, cutting-edge materials, nanotechnology, biotechnology, information technology, and those high cutting-edge technology fields approved by governor
Requirements	Cutting-edge facilities (small and mid-size companies)	Expenses required for acquiring fixed property (excluding land): 200 million yen or more Number of newly employed employees: 5 or more
	Large-scale cutting-edge facilities	Expenses required for acquiring fixed property (excluding land): 5 billion yen or more Number of newly employed employees: 20 or more
	Research institutions (small and mid-size companies)	Expenses required for acquiring fixed property (excluding land): 200 million yen or more
	Research institutions (large-size companies)	Expenses required for acquiring fixed property (excluding land): 500 million yen or more
Expenses to be subsidized	Expenses required for acquiring fixed property (excluding land)
Subsidy rates	Cutting-edge facilities (small and mid-size companies)	The equivalent amount of 10% expenses (5% of expenses if you install new facilities in existing factories) to be subsidized, not exceeding 1/2 of the subsidy amount to be given by a city/town/village (1/4 the subsidy amount to be given by a city/town/village if you install new facilities in existing factories)
	Large-scale cutting-edge facilities	up to 10% of appropriate expenses, 5% of appropriate expenses if you install new facilities in existing factories
	Research institutions	up to 20% of appropriate expenses, 10% of appropriate expenses if you install new facilities in existing research institutions
Maximum amount and methods of providing	Cutting-edge facilities (small and mid-size companies)	500 million yen, combined with a subsidy provided by a city/town/village (up to 1 billion yen in total)
	Large-scale cutting-edge facilities	1 billion yen, direct to the companies
	Research institutions

Industrial Facilities Tax Abatement Program

Real estate acquisition taxes imposed on a company for its purchased (or rented) land and newly built facilities for business purposes shall be abated so as to help the company reduce the necessary initial investment.

Details of the program

Applicable areas		Areas where the governor considers that industrial promotion is necessary A piece of land of 3 ha or larger proposed by the head of a city/ town/ village Number of designated areas: 60 (as of the end of September 2005)
Applicable period		Period from the day when an area is designated by the governor to March 31, 2007
Applicable property	Buildings	Buildings newly built for business purposes (the governor will designate the applicable types of business) on land that is purchased or rented during an applicable period Including those that are built after the applicable period but on land that was acquired during the past three years
	Land	Land that is acquired during the applicable period and on which an applicable building is built within three years of acquisition of the land
Requirements		Must meet all of the following criteria: Amount of capital investment: 100 million yen or more Acquisition expenses of a building and depreciable property (excluding land) Number of full-time employees: Five or more
Abated amount		Small and medium-size companies: amount equivalent to 3/4 of the amount of the real estate acquisition tax Others (Large companies): amount equivalent to 1/2 of the amount of the real estate acquisition tax

Fund Loan Program for Actively Inviting Companies

Loan eligibility	Small and mid-sized companies engaging in manufacturing, printing (excluding newspapers and publishing companies), software development and information processing, which are to build their plants on one of the designated industrial sites in the prefecture. The designated industrial sites are: those listed on the survey report on industrial sites according to Article 3 of the Factory Location Law semi-industrial, industrial and exclusive industrial areas according to Article 9 of the City Planning Law industrial sites developed by the Aichi Public Enterprise Bureau or cities/ towns/ villages (including some of unions of local public associations, public corporations, local public corporations, etc.) those actively inviting companies according to Article 2 of the Industrial Relocation Promotion Law vacant lots where plants were situated, and other lots that have been designated by the governor as industrial sites
Maximum amount	One billion yen
Objectives	To be used for equipment expenses required for setting up new plants and other facilities (only limited to land purchase and construction)
Periods and interest rates	Facilities up to 7 years: 1.9% annually Subject to change up to 10 years: 2.0% annually
Notes	An approval application form must be submitted to the New Industry Promotion Division, Aichi Prefectural Government to secure designation as an industrial site.

Long-Term Installment Payment System for Real Estate Subdivisions (applicable to industrial sites owned by the Aichi Public Enterprise Bureau)

Category	Long-term payment system
Period	Up to 10 years (up to ten times including the initial payment)
Amount of initial payment	10% or more of the contracted amount (to be paid within 15 days from the day after the contract is concluded)
Payment method	Payment must be made in equal annual installments of the amount remaining after deducting the initial payment from the contracted amount (payment date: the response deadline date of the contract)
Interest on installment payments	The 10 year bond yield will be applied (at a fixed rate) (For reference)   As of August 2005: 1.4%
Applicable areas	All areas (inland and seaside industrial sites and surrounding areas of Central Japan International Airport)
Notes	Ownership will be changed upon the initial payment The first mortgage payment will be decided based on the remaining amount of the contracted amount after deducting the initial payment and the total interest amount Premature redemption possible

Land Lease System

Uses		For industrial/distribution/commercial use
Lease type		Enterprise lease
Lease land system		Fixed-period leaseholds of buildings exclusively for business purposes The lease period will be 10-20 years and all the buildings on site must be removed when the land is returned upon expiry of the contract. Renewal of the contract will not be permitted.
Lease period		10-20 years
Annual rent		Land price × 3% + tax and public dues   Note: Tax and public dues are the amount equivalent to fixed property taxes.
Revision of the rent		Rent is subject to change every three years according to changes in social and economic circumstances.
Payment method		One twelfth of the annual rent excluding tax and public dues must be paid by the end of the month as the rent for the following month. Annual tax and public dues must be paid by the end of May every year.
One-time payment	Deposit	Monthly rent × rent for 12-24 months
	Key money	N/A
	Payment method	Within 15 days from conclusion of contract
Supplementary provisions		The leased land may be sold at the market price (appraisal price) upon request of the lessee during the lease period or upon completion of the lease period.
Applicable areas currently planned		Parts of the inland and seaside industrial sites Surrounding areas of Central Japan International Airport (areas to be developed as cutting-edge industrial sites)

• In addition, there are a variety of incentives such as tax incentives in depopulated areas (as per prefectural ordinance), and subsidy and loan programs provided by the national government and other institutions, as well as incentives offered by local municipalities.

For inquiries contact: