Interested in launching a R&D center for your startup, but not sure if you have the sufficient funds? Sapporo city in Hokkaido, Japan can provide support in the form of subsidies to cover initial office set-up and personnel costs for R&D-focused startups!
Eligible startups include both newly established startups or startups looking to expand their existing business facilities to Sapporo city.
Overview of Subsidy Groups:
Newly established startups:
- Can receive a maximum of 32 million JPY
- Must be the first time establishing an office branch in Sapporo
- Must have at least 5 full time employees
- Establishment costs subsidy
→ 1/2 of construction, equipment purchase, and recruitment costs - Personnel costs subsidy
→ 1 million JPY/full time employee/year up to 2 years
Established startups looking to expand their business:
- Can receive a maximum of 12 million JPY
- Must have increased the office space/established a new branch location in Sapporo
- Must have increased the number of permanent employees to at least 10 over the last 2 years
- Personnel costs subsidy
→ 500,000 JPY for every permanent employee recruited
Subsidy Requirements and Details:
This subsidy is for startups that research, develop, and produce products that use information and communication technology, digital technology, and biotechnology.
Examples of Eligible Businesses:
IT / Content Development:
- Software
- Information systems
- Embedded software
- Game software
- Web content
- Digital content
Biotechnology:
- Development of functional foods and cosmetics using agricultural and marine resources and microorganisms
- Development of biopharmaceuticals and medical materials
- Development of research reagents
- Contract testing for safety and pharmacology
- Gene and protein research, development, and analysis
Subsidy System Overview:
※ 1 Full-time employees must be exclusively engaged in the project covered by the subsidy and meet the following requirements:
- Reside in the Sapporo area (including Sapporo, Otaru, Iwamizawa, Ebetsu, Chitose, Eniwa, Kitahiroshima, Ishikari, Tobetsu-cho, Shinshinotsu-mura, Nanporo-cho, Naganuma-cho) and have registered as a resident.
- Must have an employment contract with no fixed employment term (with the exception of short-term workers).
- Must be covered by employment insurance, health insurance, and employee’s pension insurance by the employer.
※ 2 Designated Fields: includes the research, development and production of products utilizing…
- Artificial intelligence (AI)
- Robotics
- Automatic driving control
- Blockchain technology
- Biotechnology
※ 3 Industrial Parks:
- Sapporo Techno Park (including Sapporo Electronics Center)
- Sapporo High Tech Hill, Sapporo Art Village
- Higashi Ganrai District 2, etc
※ 4 Designated Facilities:
- Sapporo Electronics Center
- Sapporo Industrial Promotion Center, etc.
※ 5 Equipment Purchase Costs include…
- Purchasing information and telecommunication equipment
- Video and audio equipment
- Testing and research equipment (and accessories — including software)
- Transportation and installation costs associated with the purchases
Purchases should be paid after the month in which the date of subsidy application falls (excluding the amount equivalent to consumption tax)
※ 6 Recruitment Expenses include…
- Recruitment advertising expenses
- Advertisement production costs
- Recruitment service fees
- Venue rental expenses for company information sessions or interviews
- Participation fees
Purchases should be paid after the month in which the date of subsidy application falls. (excluding the amount equivalent to consumption tax)
※ 7 Equipment Transportation Costs: Transportation, loading and unloading, and installation costs for equipment directly used for the project that must be transported separately from other equipment and goods for reasons such as the need for special care in transportation etc, and paid after the month in which the date of subsidy application falls. (excluding amount equivalent to consumption tax)
Other Requirements:
- The Startup company, as well as the company that owns more than half of the issued shares, must have been operating for at least one year.
- The Startup must continue to operate in Sapporo for 6 years from the first year in which the subsidy is granted.
Application Procedures and Notes:
- The Startup must consult with the city of Sapporo before publicly announcing any plans in opening a business location.
- The applicant Startup must apply for the subsidy prior to signing any lease contract, acquiring any facilities, or commencing construction.
If an R&D center is too specific, Sapporo city also has other subsidies targeted towards general solo-startup founders and established startups.
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Original source :
https://www2.city.sapporo.jp/invest/subsidy/it-bio.php