Note: This subsidy program has been closed for a new application in Feb 2021. This page will be deleted in due course.
This is subsidy administered by Japan’s Ministry of Economy, Trade and Industry (METI) to help businesses sustain through COVID-19 (Corona virus) hardship. The subsidy is summarized in this page. Should you be interested in support by Anshin Services, please contact by email.
- What is METI Subsidy to Sustain Business?
- Qualifications – Who can apply?
- Subsidy Payment – How much to be paid?
- No restriction in use of subsidy – What can it be used for?
- Procedures – How to apply?
- Timing – When to apply? When to be paid?
- Support by Anshin Services
What is METI Subsidy to Sustain Business?
This is subsidy administered by Ministry of Economy, Trade and Industry (METI) to help businesses sustain through the downturn due to COVID-19. A Small-Medium Enterprise (SME) or an one-person business owner can apply in case it has any single month in 2020 when sales is declined by 50% or more against the same month last year.
Subsidy amount is up to JPY 2M for a SME or up to JPY 1M for an one-person business. A company with less than JPY 1B capital (or with 2,000 workers or less in case no capital) is an eligible as the SME of this subsidy. This subsidy is for businesses in all of the industries, except the ones in entertainment industry, public sector, or being a political, religious organization. To be eligible, it is also required to have sales in 2019 or before and to aim to maintain its business operations going forwards.
Qualifications – Who can apply?
A SME or an one-person business owner can apply if it meets the following qualifications.
- Sales is declined by 50% or more in any single month in 2020 against the same month last year due to COVID-19.
- It had sales in 2019 or before and it aims to maintain business operations going forwards.
- It is either a Small-Medium Enterprise (SME) or an one-person business owner.
- None of the following exclusion list is applicable:
- In public sector
- In entertainment industry
- Being a political organization
- Being a religious organization
- Being judged as an inappropriate recipient by Commissioner, Small and Medium Enterprise Agency in light of objectives of this subsidy
Small-Medium Enterprise (SME): Definition for this Sustain Subsidy
The Small-Medium Enterprise (SME) for this METI subsidy is different from the SME as defined in Small-Medium Enterprise Basic Act and covers wider range of companies as follows. Note that there is no difference in capital amount nor number of regular workers among industry sectors for the SME definition of this METI subsidy.
- Amount of Capital or Investment is less than JPY 1 billion
- In case no such capital is associated, number of regular workers is 2,000 or less
Subsidy Payment – How much to be paid?
Subsidy amount is whichever smaller of the two below:
- Sales decline (S) from last year as calculated by the following formula
- Upper limit: JPY 2 million for a SME or JPY 1 million for an one-person business
Formula of the Sales decline (S) is as follows:
- Sales decline (S) = Sales amount of last year – ( Sales of a month 50% or more declined against the same month last year x 12 )
- See below for definition of “last year”, “sales” and “a month 50% or more declined against the same month last year”. The last term is called as “target month” in METI’s documents.
- Rounding down: The calculated S is further rounded down to the nearest JPY 100,000 below.
Definitions of Terminologies
Definitions of the terminologies are as follows.
“Month 50% or more declined against the same month last year” (Target Month)
”Month 50% or more declined against the same month last year” here means any single month of applicant’s choice within calendar year 2020 when sales is declined by 50% or more against sales in the same month last year. This month is called as “Target Month” (Tai-Sho-Getsu) in METI’s documents.
”Last year” here means the following, which is defined differently between SME and one-person business owner:
- SME: The previous fiscal year of the fiscal year where the target month resides.
- E.g. the fiscal year ending in March 2019 if March 2020 is chosen as a target month for SME with a fiscal year of April through March
- One-person business: Calendar year 2019
“Sales” (Operating Revenue)
- Sales here means revenue from business operations (Operating Revenue).
- As of May 2020, other types of revenue, e.g. real-estate revenue, salaries and others, are NOT counted in the “sales” for this subsidy calculation. (See Q8 of METI Q&A, in Japanese). It is however speculated that this exclusion may be reviewed and revised later. Please consult METI sites for the latest information.
No restriction in use of subsidy – What can it be used for?
”There is no restriction in use of subsidy, as long as it is used for a SME or an one-person business owner to sustain business operations.” (See Q9 of METI Q&A, in Japanese)
Procedures – How to apply?
Application procedures are outlined below. Application has to be filed by an applicant: proxy application is not accepted.
- Determine if you are qualified for application
- Prepare application documents: the following are required.
- Final Tax Return Form of the last year
- Sales ledger showing sales amount of the target month
- Photo copy of bank account book
- Personal identification document (only for one-person business owner)
- Submit application via on-line website
- Over-the-counter application is also accepted upon reservation
- Subsidy government office to review application, make judgement and pay subsidy by bank transfer along with notification by post
Timing – When to apply? When to be paid?
- Application: accepted when submitted on between May 1st, 2020 and January 15th, 2021.
- Payment lead-time: “Typically in two weeks after an application is received” (Q13 of METI Q&A)
Support by Anshin Services
Anshin Services offer support for the following fees. Should you be interested, please contact by mail.
- Consultation (only): JPY 50,000
- Support on application online (only): JPY 50,000
- Consultation and Support on application online (both): JPY 80,000
- Fees have to be paid up-front. They are a flat fee, regardless of subsidy amount, which are non-refundable even if an application is rejected by the subsidy government office.
- Prices are all excluding consumption tax of 10%: the tax is separately added on top.
- Anshin Services does NOT offer support in delayed submission of last year’s tax return form.
- METI Subsidy Program for Sustaining Businesses (Japanese)
- METI Subsidy Program for Sustaining Businesses (English – Limited version)
- MEIT Online application site (Japanese)