日本語
The cost of system development varies depending on the scale, content, and difficulty of the system. In some cases, it is not uncommon for the cost to exceed several million yen.
To reduce the financial burden, subsidies from the government and local authorities are often used. There are many types of subsidies available for application within Japan, so many people may find it difficult to choose which subsidy to apply for.
This article introduces four carefully selected subsidies that can be used for system development.
We have also summarized points to consider when using subsidies and tips for increasing the approval rate. If you are considering using a subsidy, please refer to this article.
Akira Shimazoe
CEO of Solashi Japan LLC. Engaged in the development and operation of internal systems at Suntory. Founded Yper Inc., serving as CTO and CPO, contributing to product launch and growth.
List of Subsidies Available for System Development
The main subsidies available for system development are the following four:
| Name | Monozukuri Subsidy | IT Introduction Subsidy | Small Business Sustainability Subsidy | Business Restructuring Subsidy |
| Eligible Businesses | Small and medium-sized enterprises, small businesses, etc. | Small and medium-sized enterprises, small businesses, startups, venture companies, etc. | Corporations, sole proprietors, and certain non-profit organizations that meet the requirements | Small and medium-sized enterprises and medium-sized enterprises engaged in business restructuring |
| Characteristics | Supports the development of innovative services | Supports the introduction of IT tools | Supports business development through grants | Supports the expansion and restructuring of businesses |
Next, we will explain each subsidy in more detail.
Monozukuri Subsidy
The Monozukuri Subsidy, officially named the "Monozukuri, Commercial, and Service Productivity Improvement Subsidy," is aimed at supporting businesses that develop innovative services or prototypes and improve production processes.
This subsidy supports investment in necessary equipment for developing innovative services or prototypes, or improving production processes.
To apply for the Monozukuri Subsidy, you must submit a business plan covering 3 to 5 years. After the grant decision, the business must proceed according to the submitted business plan.
Eligible Expenses for Subsidy
The main expenses eligible for the Monozukuri Subsidy are costs related to machinery and equipment, system development, technology introduction, cloud service usage, and raw materials.
Eligible expenses must be ordered after the grant decision date and must be paid within the implementation period of the project.
| Eligible Expenses | Details |
| Machinery and Equipment/Systems Development Costs | Costs for purchasing, manufacturing, or renting machinery, equipment, tools, and instruments used for the subsidy project |
| Technology Introduction Costs | Costs for introducing intellectual property and other necessary technology for the project |
| Cloud Service Usage Costs | Costs for using cloud services |
| Raw Materials Costs | Costs for purchasing raw materials and auxiliary materials needed for developing prototypes |
| Expert Costs | Costs paid to experts contracted to assist with the project |
Subsidy Cap and Rate
The Monozukuri Subsidy offers several frameworks, including the automation (custom) framework, product/service high-value-added framework, and global framework. The subsidy amounts and rates for each framework are as follows:
| Category | Subsidy Limit | Subsidy Rate |
| Labor-saving (Custom-made) Category | 7.5 million to 80 million yen | ・Small and Medium Enterprises: 1/2・Small-scale & Revitalization: 2/3 |
| High Added Value Product/Service Category (Standard Type) | 7.5 million to 12.5 million yen | ・Small and Medium Enterprises: 1/2・Small-scale & Revitalization: 2/3 |
| High Added Value Product/Service Category (Growth Sector Expansion Type) | 10 million to 25 million yen | 2/3 |
| Global Category | 30 million yen | ・Small and Medium Enterprises: 1/2・Small-scale & Revitalization: 2/3 |
If you would like to learn more about how to apply and key points, please refer to “【2024 Latest】What is the Monozukuri Subsidy? Detailed Explanation of Conditions and Application Procedures.”
At “Solashi Co., Ltd”, we receive many inquiries about subsidy applications. We can support everything from application assistance to development.
If you are struggling with your first system development subsidy application, please feel free to contact us.
Business Restructuring Subsidy
The Business Restructuring Subsidy is a subsidy designed to support companies aiming for business model change, business transformation, or business restructuring.
It mainly targets small and medium-sized companies, mid-sized companies, sole proprietors, and corporate unions, with the following two requirements.
- Create a business plan in accordance with the business restructuring guidelines and have it verified by a certified management innovation support agency
- Increase the “added value amount” by adding operating profit, labor costs, and depreciation costs
Eligible Costs for Subsidy
The Business Restructuring Subsidy covers building costs, machinery and system construction costs, technology introduction costs, outsourcing costs, etc.
| Main Eligible Expenses | Details |
| Building Costs | Construction/renovation of buildings, demolition of buildings, restoration of leased properties, etc. |
| Machinery/Equipment/System Construction Costs, Cloud Service Usage Fees, Transportation Costs | Purchase or lease of dedicated software, etc. |
| Technology Introduction Costs, Intellectual Property-Related Expenses | Costs for introducing intellectual property rights |
| Outsourcing Costs, Expert Fees | Processing and design costs required for product development ※Outsourcing and expert fees for business plan preparation are not eligible |
| Advertising and Promotion Costs | Costs for creating ads, media publications, exhibition participation, etc. |
| Training Costs | Education and training costs, course fees, etc. |
Subsidy Amount & Subsidy Rate
The Business Restructuring Subsidy includes categories such as minimum wage category, growth category, green growth category, etc. The subsidy amounts and subsidy rates for each category are as follows:
| Category | Subsidy Limit | Subsidy Rate |
| Minimum Wage Category | Maximum 15 million yen | 3/4 |
| Price Inflation Countermeasure & Recovery Support Category | Maximum 30 million yen | 2/3 (some 3/4) |
| Industrial Structure Transformation Category | Maximum 70 million yen | 2/3 |
| Growth Category | Maximum 70 million yen | 1/2 (2/3 with significant wage increases) |
| Green Growth Category (Entry) | Maximum 80 million yen (Mid-sized 100 million yen) | 1/2 (2/3 with significant wage increases) |
| Green Growth Category (Standard) | 100 million yen (Mid-sized 150 million yen) | 1/2 (2/3 with significant wage increases) |
| Supply Chain Strengthening Category | Maximum 500 million yen | 1/2 |
IT Introduction Subsidy
The IT Introduction Subsidy is a subsidy that supports the introduction of IT tools to improve labor productivity in small and medium-sized enterprises and small businesses.
Software and services eligible for the IT Introduction Subsidy must be approved in advance by the administrative office.
Eligible Costs for Subsidy
The IT Introduction Subsidy covers expenses related to the digitalization of businesses, such as software, systems, and accounting software compatible with the invoice system.
The IT Introduction Subsidy covers a wide range of areas, and applications are made based on five categories according to the purpose. Please refer to the table below for the subsidy targets by category.
| Category | Eligible Subsidy Targets |
| Standard Category | Software and systems aimed at digitalizing the business |
| Invoice Category (Invoice-Compatible Type) | Accounting software, order management software, payment software, PCs, hardware, etc. compatible with the invoice system |
| Invoice Category (Electronic Transaction Type) | Order management systems compatible with the invoice system |
| Security Measures Promotion Category | Various risk reduction measures related to cyber incidents |
| Multi-Company IT Introduction Category | Introduction of IT tools to multiple companies |
Reference: IT Introduction Subsidy 2024
Subsidy Amount & Subsidy Rate
The IT Introduction Subsidy has set subsidy amounts and rates for each category. The details are as follows:
| Category | Subsidy Amount | Subsidy Rate |
| Standard Category | ・1 process or more: 50,000 yen to less than 1.5 million yen ・4 processes or more: 1.5 million yen to 4.5 million yen | Up to 1/2 |
| Invoice Category (Invoice-Compatible Type) ※Accounting, order management, and payment software compatible with invoice system | 50,000 yen or less | Up to 3/4, up to 4/5 |
| Over 50,000 yen to 350,000 yen | Up to 2/3 | |
| Invoice Category (Electronic Transaction Type) | No lower limit to 350,000 yen or less | ・Small and medium-sized enterprises, small businesses, etc.: Up to 2/3 ・Other businesses: Up to 1/2 |
| Security Measures Promotion Category | 50,000 yen to 100,000 yen | Up to 1/2 |
| Multi-Company IT Introduction Category ※PC, Tablets | 100,000 yen × number of group members | Up to 1/2 |
Reference: IT Introduction Subsidy 2024
Small Business Continuity Subsidy
The Small Business Continuity Subsidy is a subsidy that supports small businesses in reviewing their management and promoting efforts to develop sales channels and improve productivity.
To apply, a business plan aimed at sustainable management must be created. The following categories are set for the Small Business Continuity Subsidy.
- Standard Category
- Wage Increase Category
- Graduation Category
- Successor Support Category
- Start-up Category
Eligible Expenses
The following expenses are eligible for the Small Business Continuity Subsidy:
| Major Eligible Expenses | Details |
| Machinery and Equipment Costs | Costs for purchasing machinery and equipment necessary for the subsidy project |
| Advertising Costs | Costs for creating pamphlets, posters, flyers, etc. |
| Website-Related Costs | Costs for developing and building websites or e-commerce sites to expand sales channels |
| Travel Expenses | Travel expenses for expanding sales channels based on the business plan |
| Development Costs | Costs for raw materials, design, and other expenses related to the development of new products |
| Outsourcing Costs | Costs for outsourcing tasks necessary to carry out the subsidy project |
Reference: Small Business Continuity Subsidy
Subsidy Amount & Subsidy Rate
The subsidy amounts and ratios set for the Small Business Sustainability Subsidy (小規模事業者持続化補助金) are as follows:
| Framework | Subsidy Upper Limit | Subsidy Ratio |
| Regular Framework | ¥500,000 | 2/3 |
| Wage Increase Framework | ¥2,000,000 | 2/3 (3/4 for deficit businesses) |
| Graduation Framework | ¥2,000,000 | 2/3 |
| Successor Support Framework | ¥2,000,000 | 2/3 |
| Startup Framework | ¥2,000,000 | 2/3 |
In the Wage Increase Framework, the subsidy ratio is raised to 3/4 for businesses with a negative taxable income in the past year.
For corporations, the taxable income is listed under the "Income Amount or Loss Amount" section of the corporate tax return.
Points to Note When Using Subsidies
Applying for a subsidy does not guarantee immediate receipt. Various checks are required during the period from application to adoption and the start of subsidy receipt.
To receive the subsidy smoothly, there are several points to pay attention to in advance.
Here, we will explain the important points to keep in mind when using subsidies.
Ensure Sufficient Budget Since Subsidies Are Paid in Arrears
Subsidies are, in principle, not paid in advance, but in arrears.
For example, if the subsidy ratio is set at half, you will need to prepare twice the subsidy amount in advance.
If the budget is tight, you may face cash flow difficulties until the subsidy is paid, so caution is needed.
When considering the use of subsidies, first clarify the budget required for system development and start by preparing the necessary budget.
Expenses Outside the Period Are Not Eligible
It is important to recognize that expenses incurred outside the subsidy period are not eligible for reimbursement. Subsidies have a specified use period, and expenses incurred outside this period will not be recognized as eligible costs.
For example, if the system development period is from April 1 to August 31, any expenses incurred before April are not recognized as eligible.
Also, if system development does not proceed as planned, it may extend beyond the subsidy period. Therefore, it is important to manage the schedule carefully after starting the development.
Only One Type of Subsidy Can Be Used for Each System Development Project
In principle, only one type of subsidy can be used for each system development. You cannot combine multiple subsidies for a single system development project, so be careful.
To choose the appropriate subsidy for your company, it is essential to thoroughly read the application guidelines for each subsidy.
The subsidy application guidelines are very detailed and can take a considerable amount of time and effort to read through. It is recommended to work with multiple people to check and organize the key points of the guidelines.
There is a Possibility of Not Being Accepted
Even if you put in significant effort and time to apply for a subsidy, it is not guaranteed that you will be accepted.
For example, in the 16th application deadline of the Monodukuri Subsidy, out of 5,608 applicants, only 2,738 were accepted.
Additionally, if there are errors in the documents submitted during the subsidy application, it is possible that the application will not be accepted and will not proceed to the review stage.
Especially for first-time applicants, the preparation process may take a significant amount of time. Double-checking the submitted documents can help prevent mistakes such as filling errors or missing information.
Steps to Apply for a Subsidy for System Development
Next, we will introduce the process of applying for a subsidy for system development. The general process is summarized into three steps.
Request an Estimate for System Development
First, request an estimate from the system development vendor.
Then, organize the development schedule and the costs required for the subsidy application. It is particularly important to properly understand the breakdown of development costs, payment timing, and expenses eligible for subsidies.
Additionally, there is a possibility that some non-eligible expenses are included in the system development estimate.
Since the expenses eligible for subsidies vary depending on the subsidy program, be sure to carefully check the breakdown of system development costs in advance.
Related Article: What is the Average Cost of System Development? Explanation of Estimation Methods and Cost Reduction Strategies
In addition to obtaining an estimate, selecting an appropriate theme for the subsidy project is also crucial. It is essential to ensure that the project aligns with the purpose of the subsidy being applied for.
If you're unsure about which theme is appropriate, you can consult with an application professional or reach out to our company, "Solashi Co., Ltd." Based on our subsidy adoption track record, we will propose the most suitable theme for your needs.
Decide on the Subsidy to Apply For
Once you receive the estimate, decide which subsidy to apply for. Based on the breakdown of the system development costs and schedule, choose the subsidy that best suits your company.
There is a pre-determined period during which you can apply for the subsidy. Consider the system development schedule and the preparation time for the required documents, and decide on the application period as well.
Since you will need to prepare documents while handling regular business operations, it can be quite time-consuming. It is essential to have a well-planned schedule to prepare in advance.
Prepare the Documents
After deciding on the subsidy and application period, prepare the necessary documents. The required content for the documents will vary depending on the subsidy.
However, for system development, detailed explanations about the system's key features, how it will be utilized, and expected improvements in business processes are often required.
To avoid missing any details, it's best not to complete the documents in one go. Instead, work carefully on the documents with multiple people reviewing them.
It can also be helpful to assign roles in advance, deciding who will create which document.
4 Key Points to Increase the Chances of Subsidy Adoption
To increase the chances of subsidy adoption, the following points must be considered.
- Clarify the purpose of system development
- Review the company's business plan and financial management
- Manage the subsidy and system development schedules
- Utilize support from experts knowledgeable about subsidies
Let's explore each of these points in more detail.
Clarify the Purpose of System Development
To increase the chances of subsidy adoption, it is crucial to organize the business objectives and challenges and create a system development plan that aligns with these objectives. Be careful not to let the subsidy application become the primary goal.
Additionally, during the subsidy review process, the social significance and business feasibility of the project are often highly valued. By clearly demonstrating the social significance and business viability of your system development, you can increase the likelihood of receiving a higher evaluation.
During the review, the clarity of the purpose and the likelihood of successful implementation will also be evaluated.
Assume that the person in charge of the evaluation is not familiar with the details of the system development, so the key is to make the content understandable and realistic for everyone.
Review the Company's Management Plan and Financial Management
In the subsidy evaluation, the business operator’s management ability and financial situation are also evaluated. If the proposed plan is too far from previous achievements or performance, it may raise doubts about whether it can be realized after adoption.
To highlight the business operator’s management capability, it is important to showcase achievements related to the proposed project and explain the business operation strategy with external collaborators.
Additionally, financial status is one of the evaluation points. It’s important to prepare and clearly explain the flow of funds after adoption and how the project will lead to profits.
By reviewing and improving the company’s management plan and financial status, you are more likely to receive a higher evaluation.
Carefully Check the Contents of the Public Offering Guidelines
It is also essential to thoroughly review the public offering guidelines.
The public offering guidelines for subsidies include not only the application schedule but also detailed information about the purpose of the subsidy, evaluation criteria, required documents, and other important aspects that can increase your adoption chances.
By carefully reviewing the public offering guidelines, you will gain valuable insights for increasing your adoption chances.
Moreover, the additional points or priorities vary for each subsidy. For example, environmental initiatives or contributions to the community may be designated as additional evaluation points.
By gathering this information and meeting these additional criteria, it will be easier to gain a higher evaluation.
Utilize Support from Experts in Subsidies
Subsidies such as the manufacturing subsidy and business restructuring subsidy are difficult to apply for and win approval by yourself.
Consulting with experts can improve the quality of your submission documents, which will help increase your chances of approval.
Companies that support the creation of necessary documents for subsidy applications are familiar with the subsidy objectives and evaluation criteria, enabling them to efficiently create documents that are more likely to receive high evaluations.
To win adoption, seeking help from experts is an effective strategy.
At Solashi Co., Ltd, we can introduce various companies that can assist with application代理 services. If you would like to receive support, feel free to contact us.
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Consult about System Development Subsidies with Solashi
We have introduced four representative subsidies that can be utilized for system development. Let’s proceed with your application by understanding the key points and the factors to increase your chances of adoption.
If this is your first time applying for a subsidy for system development, you may not know where to start.
For consultations regarding system development subsidies, leave it to our company, Solashi Co., Ltd.
We are a system development company based in Vietnam. We offer a wide range of services including support through partnership, IT introduction consulting, and system development.
We have a proven track record of successful adoption of the manufacturing subsidy and can offer specific advice and suggestions. Please note that subsidy applications are limited to contract-based development (subcontracted development). We do not accept lab-type contracts or SES contracts.
Additionally, we have several Japanese PMs with experience in starting businesses and startups, so we can also support the development of new services. If you are interested, please feel free to contact us at Solashi Co., Ltd.
Akira Shimazoe
Representative of Solashi Japan LLC. Born in April 1989 in Fukuoka Prefecture. Graduated from the Graduate School of Information and Mathematical Sciences at Osaka Prefecture University. Joined Suntory System Technology Co., Ltd., an IT subsidiary of Suntory Holdings, in 2014. Broadly responsible for the development, operation, and implementation of vending machine delivery management, efficiency improvements, and sales management systems. Founded Yper Inc. in 2017, serving as CTO and CPO. Contributed to the launch and growth of the app-linked delivery bag "OKIPPA." Selected for Toyo Keizai's prestigious "Amazing Venture 100" and Forbes' "Forbes 30 Under 30 Asia 2019."
