This is a translation of the Japanese original. The Japanese version is authoritative; figures follow Japanese tax law.
The first round of the New Business Entry and Monodukuri Commerce and Services Subsidy (新事業進出・ものづくり商業サービス補助金), which merges the New Business Entry Subsidy and the Monodukuri Subsidy, opens for applications on 30 September 2026 and closes at 18:00 on 30 October. There are three tracks, with caps from ¥7.5 million to ¥70 million depending on headcount, and up to ¥90 million for firms that commit to large pay rises. In return, you must keep a 3-5 year plan that grows value added by 4.0% a year and pay per employee by 3.5% a year; if pay falls short, part of the subsidy is paid back[Secretariat, Round 1 application guidelines v1.3 (in Japanese)].
Both predecessor schemes had adoption rates in the mid-30% range. With only a month to the deadline, the realistic approach is to confirm eligibility first and pick up only the bonus points you can still secure. Figures here follow version 1.3 of the guidelines, revised on 28 September 2026.
The short answer: three tracks, up to ¥90 million, deadline 18:00 on 30 October
| Track | Cap (with wage-increase special rule) | Subsidy rate | Minimum | Project period |
|---|---|---|---|---|
| Innovative new products and services | ¥7.5m-¥25m (¥8.5m-¥35m) | 1/2 (2/3 for small and turnaround firms) | ¥1m | 10 months from grant decision |
| New business entry | ¥25m-¥70m (¥30m-¥90m) | 1/2 | ¥7.5m | 14 months from grant decision |
| Global | ¥25m-¥70m (¥30m-¥90m) | 2/3 | ¥7.5m | 14 months from grant decision |
Source: [Guidelines 1-2, eligible tracks (in Japanese)]. The cap depends on headcount. In the innovative and new business entry tracks, the rate rises to 2/3 under the regional minimum wage special rule.
- Applications open: Wednesday 30 September 2026. The online system goes live at 18:00 that day
- Deadline: Friday 30 October 2026, 18:00 (strict)
- Selection announced: around January 2027 (planned)
- You need: the documents required by the application guidelines and a GbizID Prime account
Are you eligible? Firms with no employees, and new-entry applicants under one year old, are out
Applicants must be small and medium enterprises with their head office and project site in Japan. You qualify if either your capital or your regular headcount is at or below the line for your industry.
| Industry | Capital | Regular employees | Small firm (2/3 rate line) |
|---|---|---|---|
| Manufacturing, construction, transport | ¥300m or less | 300 or fewer | 20 or fewer (manufacturing) |
| Wholesale | ¥100m or less | 100 or fewer | 5 or fewer |
| Services | ¥50m or less | 100 or fewer | 5 or fewer (20 for lodging and leisure) |
| Retail | ¥50m or less | 50 or fewer | 5 or fewer |
Source: [Guidelines 1-4-1 (in Japanese)]. The small-firm 2/3 rate applies only in the innovative products and services track.
Can apply
- Companies and sole proprietors within the table above
- Certain cooperatives, specified nonprofit corporations and agricultural producers' corporations
Cannot apply
- No employees at the time of application
- Founded less than a year ago and applying to the new business entry track (one set of accounts is required)
- Selected under the Business Restructuring, New Business Entry or Monodukuri subsidy within 16 months of the deadline
- "Deemed large enterprises", such as those half-owned by a large company
Which track? New product development, a new customer base, or exports
The tracks are divided by what is new. Investment that only makes an existing production process more efficient is out of scope in every track.
- Innovative new products and services: develop a new product or service using your own technology. Things already widespread among competitors do not count. This succeeds the Monodukuri Subsidy.
- New business entry: sell a product that is new to you to a customer base you have not served before. It does not need to be a world first. This succeeds the New Business Entry Subsidy, and building costs are eligible.
- Global: strengthen a domestic production base to export your own products to a new country or region. Projects started at a customer's request are excluded.
In the new business entry track, simply producing more of an existing product, reviving a former product, adding a menu item, or selling in another region does not qualify.
Watch the minimum as well. The new business entry and global tracks start at ¥7.5 million of subsidy. At a 1/2 rate, that means investment of at least ¥15 million before tax.
What changed from the two predecessor schemes? The value-added target rose for monodukuri-type projects
Caps and rates are carried over almost unchanged. The difference is that the old Monodukuri requirements were raised to the New Business Entry Subsidy's level.
| Item | Old Monodukuri (round 23) | Old New Business Entry (round 4) | New scheme (round 1) |
|---|---|---|---|
| Value added growth (annual average) | 3.0% or more | 4.0% or more | 4.0% or more (all tracks) |
| Pay per employee growth | 3.5% or more | 3.5% or more | 3.5% or more |
| Lowest wage at the site | Regional minimum +¥30 | Regional minimum +¥30 | Regional minimum +¥30 |
| Childcare-related requirement | Action plan (21+ staff) | Publish action plan | Publish action plan + workplace measure |
| Global track cap | ¥30m | - | ¥25m-¥90m |
| Bonus point items | - | 11 | 17 |
Source: this site's summary of [Monodukuri Subsidy round 23 summary guidelines (in Japanese)][New Business Entry Subsidy round 4 guidelines (in Japanese)].
The new addition is a requirement to improve the workplace for childcare. You pick one of: a household finance advice service, housekeeping or babysitter services, or promoting existing leave schemes to staff. Firms with Kurumin certification are exempt.
Funding comes from the FY2025 supplementary budget, using an existing fund on a scale of ¥120 billion[SME Agency, FY2025 supplementary budget (in Japanese)]. For a comparison of the older schemes, see the guide to subsidies and grants.
Promises kept for 3-5 years: miss the pay target and you pay back
Selection is not the end. Taking the fiscal year in which the project ends as the base, you must hit targets over a 3-5 year plan period.
- Value added: 4.0% or more a year on average (operating profit + labour costs + depreciation)
- Total pay per employee: 3.5% or more a year on average, excluding directors' pay and statutory welfare costs
- Lowest wage at the site: each year, at least the prefectural minimum wage + ¥30
The pay target must be announced to all employees by the grant application. Without that announcement, the whole subsidy is repaid.
- Equipment investment ¥18 million before tax. A manufacturer with 20 or fewer staff counts as small, so the rate is 2/3
- ¥18m × 2/3 = ¥12m, but the cap for 6-20 staff is ¥10m, so the subsidy is ¥10 million
- With the wage-increase special rule the cap rises to ¥12.5m, so the subsidy is ¥12 million (¥2m more)
- The special rule requires pay growth of 6.0% a year and a lowest wage of minimum + ¥50
If pay per employee is ¥4 million a year, the target after five years is about ¥4.75 million under the basic rule and about ¥5.35 million under the special rule (estimate). The special rule is only open to firms whose investment times the rate exceeds the basic cap.
Repayment = subsidy × (1 − actual growth ÷ target growth)
- Subsidy ¥10m, target 3.5%, actual 2.1%: 1 − 0.6 = 0.4, so ¥4 million is repaid
- Zero or negative pay growth: full repayment
- Falling below minimum + ¥30 in any year: subsidy ÷ plan years (¥2m for a 5-year plan) is repaid
- Missing the special rule: the uplift (¥2m in the example above) is repaid in full
No repayment is required if value added did not grow and most years of the plan were loss-making, or in the case of natural disasters. Pay rises can also be combined with the tax credit under the wage increase promotion tax system.
17 bonus point items: only what you hold on 30 October counts
Bonus points must be satisfied at the application deadline. Version 1.2 of 14 August added three items (technology information management certification, the growth acceleration matching service and the Atotsugi Koshien pitch contest), taking the total to 17.
| May be achievable within a month | Slow to obtain or limited to certain firms |
|---|---|
| Partnership Building Declaration (published using the template updated 1 January 2026) | Kurumin or Eruboshi certification |
| Register as a member of the growth acceleration matching service and post a challenge | Health and Productivity Management Outstanding Organization 2026 |
| Lowest wage at the site already raised by ¥63 or more since July 2025 | Management innovation plan, business continuity plan, DX certification |
| Affected by the regional minimum wage rise (30%+ of staff for 3 months) | R&D or experimental research costs booked by the previous year |
| Registered with the export support programmes for 10,000 firms (global track only) | Turnaround firm, J-Startup selection, technology information certification, Atotsugi Koshien entrant |
Source: [Guidelines 3-1 (8), bonus points (in Japanese)]. The split by timing is this site's judgement.
There are also deductions. Firms that received one grant decision under the Monodukuri or New Business Entry Subsidy in the past three years lose points. Firms that took a wage-related bonus under an earlier subsidy and missed it face heavy deductions for 18 months.
Reviewers also look at "pay rises now". If pay per employee from the latest fiscal year to the base year grows less than inflation, you are at a significant disadvantage.
What can it pay for? Machinery and buildings yes; PCs, vehicles and land no
The core is machinery and system costs. They are mandatory in the innovative track; the other two tracks require either machinery or building costs.
Eligible costs
- Machinery and system construction (leases allowed)
- Building construction and renovation (new business entry and global tracks)
- Outsourcing (up to 1/4 of total costs), experts (up to 1/5)
- Technology introduction and intellectual property costs (up to 1/3 each)
- Cloud services, raw materials, advertising and sales promotion
Ineligible costs
- Buying land or buildings; simple structures such as plastic greenhouses or containers
- Office PCs, printers, tablets, smartphones, multifunction copiers
- Cars and other vehicles, ships, aircraft
- Rent and deposits, tax filing fees paid to accountants, the cost of preparing applications
- Equipment shared with existing business
Other subsidies serve different purposes. The same cost cannot be claimed under two subsidies.
- Labour-saving investment subsidy: equipment that offsets labour shortages
- Sustainability subsidy: sales development for small businesses
- Digitalisation and AI adoption subsidy: software for business efficiency
- Business succession and M&A subsidy: investment and expert fees around handovers and acquisitions. The terms of round 16 are set out in Business Succession and M&A Subsidy round 16
From application to payment: money arrives after you have paid for the equipment
The subsidy is paid in arrears. You order after the grant decision, pay in full by bank transfer, and receive the subsidy after the completion report and inspection.
- Before applying: obtain GbizID Prime (about a week to issue) and publish a general employer action plan (about 1-2 weeks).
- Online application: the applicant enters the business plan personally. Proxy applications are not allowed; any adviser's name and fee must be declared.
- After selection: attend the online briefing or the selection lapses. Submit the grant application within 2 months of the announcement.
- Grant application: orders of ¥500,000 (before tax) or more need at least three quotes. Orders placed before the grant decision are ineligible.
- Delivery and reporting: bank transfer only. File the completion report within 30 days; the amount is fixed after inspection.
Because you pay the full equipment cost first, you need bridge financing. If you borrow, a confirmation from the lender is needed at application. For the amounts and interest involved, see subsidies are paid in arrears.
The subsidy received is taxable. The part used to buy fixed assets can use compressed book-keeping.
Who it does not suit: one month to prepare and a mid-30% adoption rate
If any of the following apply, it is safer to skip round 1 and prepare for the next.
- No GbizID Prime yet: about a week to issue; publishing the action plan takes 1-2 weeks, and the deadline will not move
- No realistic path to raising pay 3.5% every year: missing it means repayment, and current pay rises are assessed before the equipment earns anything
- No funds to pay for equipment up front: payment comes after completion
- Small investment: the new business entry track needs roughly ¥15 million before tax to reach the minimum
Adoption rates are not generous either. In the latest rounds of both predecessor schemes, about one in three applicants was selected.
| Round | Applications | Selected | Rate |
|---|---|---|---|
| New Business Entry round 1 | 3,006 | 1,118 | 37.2% |
| New Business Entry round 2 | 2,350 | 832 | 35.4% |
| New Business Entry round 3 | 1,212 | 423 | 34.9% |
| Monodukuri round 21 | 1,872 | 638 | 34.1% |
| Monodukuri round 22 | 1,552 | 582 | 37.5% |
| Monodukuri round 23 | 1,275 | 448 | 35.1% |
Source: [New Business Entry Subsidy results (in Japanese)][Monodukuri Subsidy results (in Japanese)]. Rates calculated by this site.
There is another hurdle after selection. In Monodukuri round 21, 638 firms were selected but 511 received grant decisions (as of 8 July 2026). Through cost reviews and withdrawals, about 20% did not reach a grant decision.
Be careful with application support too. The guidelines list success fees out of proportion to the work and padded costs as "inappropriate conduct". If someone else is found to have written the plan, the application is rejected or the grant cancelled.
Other subsidies closing in October are listed in subsidies with October deadlines. Past awards to your firm or trading partners can be checked by company name in the subsidy database.
Frequently asked questions
Do I need a confirmation from a certified support organisation?
No. What is required is a "confirmation from a financial institution" if you borrow to fund the project. If you use only your own funds, it is not needed. You may take advice from certified support organisations, but you must write the plan yourself.
If rejected, can I reapply in the next round?
Yes, after revising the business plan. As of 29 September 2026, the round 2 schedule has not been announced.
Summary
- Round 1 applications run from September 30 to October 30, 2026 (18:00 deadline). There are 3 tiers, with subsidy caps of ¥7.5 million to ¥70 million depending on employee count, rising to ¥90 million under the wage-hike special provision.
- In return, recipients must maintain annual growth of 4.0% in value added and 3.5% in per-employee pay for 3 to 5 years. Partial repayment is required if the pay targets are missed.
- Companies with zero employees, the "new business entry" track for businesses under 1 year old, and companies already selected for a related subsidy within the past 16 months are not eligible.
- The subsidy is paid after the fact. Businesses must cover the full equipment cost upfront; payment arrives no earlier than the second half of 2027.
- The selection rate before the program merger was in the mid-30% range. Secure a GBizID Prime account and publish your action plan beforehand.
References (sources)
- Secretariat, "Application guidelines (round 1) v1.3" (revised 28 September 2026) (in Japanese)
- New Business Entry and Monodukuri Commerce and Services Subsidy Secretariat (SMRJ) (in Japanese)
- SMRJ subsidy navigator, "Round 1 guidelines published" (29 June 2026) (in Japanese)
- SME New Business Entry Subsidy, "Results" (in Japanese)
- Monodukuri Subsidy portal, "Results" (in Japanese)
- SME New Business Entry Subsidy, "Application guidelines (round 4)" (in Japanese)
- SME Agency, "FY2025 supplementary budget (SME-related)" (in Japanese)
This article is general information. For eligibility or your own plan, check with the secretariat's call centre, Yorozu Support Centres, or your local chamber of commerce and industry.
