Grant Outline for the Business Establishment Subsidy Program
15 May 2023
５Susenji,No.284(Purpose)
1. The purpose of this Grand Outline is to promote efforts for establishing new businesses of Overseas
Corporations by granting subsidies to Overseas Corporations to cover a part of the costs incurred inestablishing new businesses in Special Zone for Asian Headquarters.
(Definition of Terms)
2.

In this Outline, the meanings of the terms listed in the following items shall be prescribed respectively in those
items.

(1)

Businesses to Discover and Attract Overseas Corporations
Business activities for individual overseas corporations conducted by the Tokyo Metropolitan Government.

(2)

Overseas Corporations
Corporations established based on foreign laws (excluding corporations that operate asset managementbusinesses or FinTech businesses as their main businesses.)(3)

Japanese Corporations, etc.
Japanese Corporations or branch offices established by Overseas Corporations(4) Establishment of Operations
The act of establishing a Japanese corporation or branch office established by an Overseas Corporation thatsatisfies all the following criteria.

a. Secure a facility to be used as the place of exclusive business operations
b. Register the establishment of an incorporated company or office of an overseas company in accordancewith the Commercial Registration Actc. Secure the necessary employees who will work full-timed. Start the operation of the main business.
(5) Research and Development Base
A site equipped with the necessary functions for conducting research and development activities such asindustrialization through activities ranging from research on industrial technology to the development ofapplications, manufacturing of prototypes, and product testing.
(6)

Regional Headquarter
A site equipped with the functions for supervising businesses within Asian region.

(7) Full-Time Employees
Employees for whom one of the following two criteria are applicable.
a. Persons who are employed for an indefinite period.
b. Persons who have been continuously employed for a year or more in the past, or persons who have worked
continuously for a year or more since their hiring (persons who are employed for a fixed period of time,or are employed daily, and their employment contract period is repeatedly renewed are recognized asequivalent to item a.).
Employees shall be covered by employment insurance.
(8) Offices, etc.
In addition to regular offices, spaces in which work can be performed, such as individual share offices(9) Business Development Center Tokyo
Institute established by the Tokyo Metropolitan Government to provide support for the business of foreign
corporations, etc. and their expansion into Tokyo(10) Business Support Services Application Form
Document submitted to the Business Development Center Tokyo by foreign corporations, etc. to request
business support services(11) Fiscal Year
Period from 1 April of a year to 31 March of the following year
(Parties Eligible for Subsidies)
3. Japanese Corporations, etc. established in Special Zone for Asian Headquarters in the same Fiscal Yearwhen the Overseas Corporation submits the application for the subsidy are eligible for subsidies under thisSubsidy Program.
2) The parties eligible for subsidies must fulfill all the following criteria.
(1) Has submitted their investment plan to the Tokyo Metropolitan Government in the businesses to discoverand attract overseas corporations.
(2) Before determining plans of the Establishment of Operations, the Overseas Corporation shall submit theCompany Overview (For Advance Consultation) (Form 1) to the Tokyo Metropolitan Government, andengage in advance consultation to provide an explanation of the plans, such as an outline of the said business
operations. The advance consultation with the Tokyo Metropolitan Government is carried out after submissionof the Business Support Services Application Form to Business Development Center Tokyo, and consultation
with the Business Development Center Tokyo about the contents of the plan, such as an outline of the business
operations.
(3) The Overseas Corporation has not established any business operations in Japan prior to the Establishment ofOperations eligible for this Subsidy Program.
(4) Carries functions that are recognized by the Tokyo Metropolitan Government as having the potential tocontribute significantly to the revitalization of Tokyo’s economy, such as research and development bases andRegional Headquarters etc. concerning the principal operations.
(5) Has one or more Employees in full-time employment at the Japanese Corporation, etc.
(6) Has an investment amount ratio of 1/3 or more from an Overseas Corporation.
(7) Has not been granted for the Subsidy to attract GX-Related Companies, Overseas Financial Corporation
Business Operations Establishment Subsidy, Subsidy to Support Base of Operations of Overseas Financial
Corporations, or Subsidy to Support Overseas Financial Corporations in Priority Fields.
3) The Overseas Corporation and the Japanese Corporation, etc. must fulfill all the following criteria.

(1) Are not in violation of any laws or ordinances, etc.
(2) Have no delinquent taxes.

(3) Are not in violation of the terms of any contracts made with public offices, etc.
(4) Are not corporations that have the possibility of threatening public safety or well-being.
(5) Are not corporations whose business objectives include political, religious, or election
campaign-related activities.
(6) Are not Organized Crime Groups (an Organized Crime Group as stipulated in item (ii) of Article 2 of theTokyo Metropolitan Ordinance for Eliminating Organized Crime Groups (Tokyo Metropolitan
Government Ordinance No. 54 of 2011; hereinafter referred to as “Organized Crime EliminationOrdinance”)), and do not have an Organized Crime Group Member, etc. (a member of an Organized Crime
Group as stipulated in item (iii) of Article 2 of the Organized Crime Elimination Ordinance, or someone
related to an Organized Crime Group as stipulated in item (iv) of the same Article) among therepresentatives, executives, Employees, or other members of the corporation.
(7) Do not have past businesses or other concerns that the Tokyo Metropolitan Government deems unsuitable
as a company eligible for subsidy.
(Expenses Eligible for Subsidy)
4. Of the expenses required for the establishment of business operations, the subsidy covers the following expenses(hereinafter referred to as “Expenses Eligible for Subsidy”) that are deemed as necessary and appropriate by theGovernor of Tokyo, within the scope of the budget. However, this excludes fees equivalent to consumption tax

and local consumption tax, payments to governmental offices, and other fees that do not come underprovision of services, as well as expenses that are eligible for other public subsidies or grants(1) Fees incurred in consultation with experts
Fees paid to lawyers, administrative scriveners, tax accountants, licensed social insurance consultants,
etc. for services such as consultation on legal/tax matters and drafting and submission of materials
required in case of requesting such experts to provide such services upon commencement of the main
businesses.
(2) Personnel recruitment costs
Fees paid to a fee-charging employment placement business provider, as defined in Article 30(1) of
the Employment Security Act, for the introduction of personnel during the establishment of business
operations, or to a fee-charging employment placement business provider from overseas for theemployment of full-time personnel at the said business operations for one year or more.
Overseas fee-charging employment placement business providers that are eligible must be providers
for which notification/permission/declaration, etc. have been accepted by the national/local government,etc. of the business provider in question.
(3) Initial costs for office occupancy

Key money, admission fees, and other moving-in, non-refundable costs that must be paid when securing
offices in Special Zone for Asian Headquarters that are necessary for executing the primary business.
2) The aforementioned expenses are eligible for the subsidy when they are paid for by the Overseas Corporationand the Japanese Corporation, etc. that received services during the period when the following requirements weremet.
(1) Must be after the date of advance consultation with the Tokyo Metropolitan Government, as listed in 3.2.2(2) From April 1 of the fiscal year for which the subsidy was applied for, until the subsidy grant application.

(Amount of Subsidy)
5. The amount of subsidy for one company shall be no more than ½ of the Expenses Eligible for Subsidy, and becapped at a maximum amount of 7,500,000 yen.
2) The calculated amount of subsidy is rounded off to the nearest 1,000 yen.
(Subsidy Application)
6. Japanese Corporations, etc. wishing to receive the subsidy (hereinafter, “subsidy applicant”) shall verify thecontents of this Outline and other provisions set forth in the Application Guidelines. Immediately after theestablishment of business operations, the subsidy applicant shall submit the Company Overview (Form 2),
Subsidy Application Form (Form 3), Pledge (Form 4), together with the following attachments, to the Governorof Tokyo.
Each Overseas Corporation may submit an application for subsidy only once.
[Universal](1) Documents that can confirm the name of the representative of the applicant (representative in Japan in thecase of a branch office) (certified copy of commercial registration, etc.)(2) Documents that can confirm the address of the applicant (certified copy of commercial registration, etc.)(3) Documents that can confirm the shareholder composition of the applicant (registry of main shareholders,etc.)(4) Documents that enable the authentication of the seal, etc. used by the applicant (certificate of seal impression,etc.)(5)

Documents that can confirm the business performance of overseas corporations in the past two years(settlement materials etc.)(6) Documents that can confirm the business plans for the applicant concerning each Fiscal Year, in the Fiscal
Year of establishment and the following two Fiscal Years(7)

Documents that can confirm the employment of one or more Employees by the business (employmentcontracts, etc.)(8) Documents that serve as grounds for the sum of expenses filed for the application (receipts, etc.)(9) Other documents deemed necessary by the Tokyo Metropolitan Government[Expenses incurred in consultation with experts](10) Documents that can confirm the contents, frequency, period, etc. of the consultations[Expenses incurred in personnel recruitment](11)

Documents that can confirm the employment or Employees, in relation to the subsidy, for one year or

more (employment contracts, etc.)(12) In cases where a fee-charging employment placement business provider overseas is used, documents thatcan confirm that notification/permission/declaration by the business operator in question have been acceptedby the national/local government of the business in question【Initial costs for office occupancy】(13) Documents that can confirm that the office concerning the said expenses is secured (lease contract, etc.)
2) If any of the aforementioned documents have been prepared in a language other than Japanese or

English, please attach a translation in Japanese or English.
(Decision to Grant Subsidy)7. The Governor of Tokyo shall decide to grant the subsidy if it is deemed that the application has been properly

filed in accordance with item 6. above, and it is appropriate to grant the subsidy2) Once the decision has been made to grant the subsidy in accordance with the aforementioned provisions, thesubsidy applicant shall be notified promptly on the amount of subsidy and other necessary matters through theNotification on Decision to Grant Subsidy (Form 5).
3) Upon granting of the subsidy, necessary conditions may be placed on the applicant.
4) If a decision is made not to grant the subsidy, the subsidy applicant shall be notified through Notification on
Decision Not to Grant Subsidy (Form 6).
(Delivery of Subsidy )8. The subsidy shall be paid out in Japanese yen.
In cases where the Expenses Eligible for Subsidy are paid for in a foreign currency, the exchange rate applied

shall be the middle price of the telegraphic transfer rate (foreign exchange posted rates) of a designatedfinancial institution of Tokyo on the date of payment of the Expenses Eligible for Subsidy, or a date deemedsuitable by the Tokyo Metropolitan Government (figures below 1 yen are rounded off to the nearest wholenumber).
2) Any costs such as remittance fees in relation to delivery of the subsidy shall be borne by the recipient.
(Duty to Ensure Continuation of Business Operations)
9. Until the end of the following two Fiscal Years after the end of the Fiscal Year of the establishment of business
operations, the subsidized party must ensure the continuation of business operations in Special Zone for Asian
Headquarters. However, this excludes circumstances that the Governor of Tokyo deems to be unavoidable.
(Duty to Report)
10. The subsidized party must submit business reports concerning business activities conducted in each Fiscal

Year (the Fiscal Year of establishment, and the following two Fiscal Years) to the Governor of Tokyo in theform of the Business Activity Report (Form 7) by 30 June of the Fiscal Year following each Fiscal Year.
(Notification of Changes)
11. In the event that changes are made to any of the items listed below by the end of the following two Fiscal

Years after the Fiscal Year of establishment, the subsidized party shall submit the Notification of Changes(Form 8) to the Governor of Tokyo immediately after the change has been effected.
(1) A change to the name of the subsidized party(2) A change to the address of the subsidized party(3) A change to the representative of the subsidized party (representative in Japan in the case of a branchoffice)2) In addition to the aforementioned, in the event that the subsidized party becomes unable to fulfill the grant criteria

set forth in items 3. 2) above by the end of the following two Fiscal Years after the Fiscal Year of establishment,
the details must be provided in the Notification of Changes (Form 8) and submitted.
(Rescission of Decision to Grant Subsidy)
12. Should any of the following apply to a subsidized party, the Governor of Tokyo can rescind all or part of thedecision to grant the subsidy.
(1) When fraudulent information was given or other improper means were taken to receive the subsidy.
(2) When conditions attached to the granting of the subsidy, or any laws or ordinances are violated.
(3) When it becomes impossible to fulfill the grant criteria set forth in item 3. by the end of the following

two Fiscal Years after the Fiscal Year of establishment.
(4) When the duty to ensure continuation of business operations, set forth in item 9., has been violated.
(5) When other instructions set forth based on this Outline have been violated.
2) When the decision to grant a subsidy is rescinded based on the aforementioned provision, the subsidized party
shall be notified through the Notification on Rescission of Decision to Grant Subsidy (Form 9).
(Return of the Subsidy)
13. When the decision to grant a subsidy is rescinded in accordance with the provisions of item 12., the subsidized
party must return the amount determined in item 14. to the Tokyo Metropolitan Government. However, thisexcludes circumstances that the Governor of Tokyo deems to be unavoidable.
2) The Governor of Tokyo shall notify the subsidized party of matters concerning the return of the subsidy throughthe Request for Return of Subsidies, etc. (Form 10).
(Calculation of Amount of Subsidy Rescinded)
14. The calculation of the amount of subsidy rescinded is determined as follows.
(1) When the decision to grant the subsidy is fully rescinded by the Governor of Tokyo
The full amount of subsidy granted(2) When the decision to grant the subsidy is partially rescinded by the Governor of Tokyo
The difference between the amount of subsidy received by the subsidized party, and the amount obtainedby multiplying the amount of subsidy received, by the percentage of the number of days from the date ofreceipt of subsidy to the day before the date of the event leading to the rescission (if the date of the event
leading to the rescission is unknown, use the date when the Tokyo Metropolitan Government was informedof the event leading to the rescission) (including the date of receipt of subsidy), in the number of days fromthe date of receipt of subsidy to the last day of two Fiscal Years after the Fiscal Year of establishment (thefinal amount is rounded off to the nearest yen).
(Penalty for Breach and Delinquency Charge)
15. When the Governor of Tokyo orders the return of the subsidy as prescribed in item 13., the subsidized party
shall pay a penalty for breach (excluding penalties below 100 yen), corresponding to the number of days fromreceipt of the subsidy pertaining to this order to the date of repayment. An annual interest rate of 10.95% (the annualrate shall be daily prorated per 365 days even with respect to a period that includes a leap year) shall apply (for theperiod following partial repayment, the partially repaid amount shall be deducted from the amount subject tointerest). However, the subsidized party may be exempted from payment of the penalty for breach in circumstancesleading to the rescission that are deemed unavoidable by the Governor.
2) If the party ordered to return the subsidy under the provisions of item 13. fails to do so by the deadline, adelinquency charge (excluding delinquency charges below 100 yen) must be paid, corresponding to the number ofdays from the day following the deadline for repayment. An annual interest rate of 10.95% (the annual rate shall bedaily prorated per 365 days even with respect to a period that includes a leap year) shall apply for the outstanding
amount.
(Calculation of Penalty for Breach and Delinquency Charge)
16. In the event that the Governor of Tokyo orders the payment of penalty for breach in accordance with 1) of item
15., until the amount of subsidy returned by the party ordered to return the subsidy reaches the amount that wasordered to be returned, the partial repayment shall first be allocated to the amount of subsidy that was ordered tobe returned.
2) In the event that the Governor of Tokyo orders the payment of penalty for breach in accordance with 2) of item
15., if partial repayment of the subsidy has been made with respect to the subsidy that was ordered to be returned,
the calculation of delinquency charges for the period from the day following the said repayment date shall bebased on the outstanding amount following the deduction of such partial repayment.
(Site Investigations, etc.)
17. The Governor of Tokyo may instruct his staff or staff from the Business Development Center Tokyo (hereinafter,“Staff, etc.”) to enter the base of business operations to conduct the necessary investigations or inquiries toward
the Japanese Corporation, etc. with respect to its business activities, etc., within the scope necessary for theenforcement of this Outline.
2) The Staff, etc. conducting the site investigations or inquiries in accordance with the aforementioned provision
shall carry proof of their identification, and must present this proof when requested to do so by the JapaneseCorporation, etc.
(Disclosure of Contents of Subsidy, etc.)
18. The Governor of Tokyo is authorized to disclose the company name, name of representative, contents of thesubsidy, and other information concerning the subsidized party.
(Other)19. Matters necessary for granting the subsidy, other than what is provided in this Outline, are as provided under
the Tokyo Metropolitan Government Regulations for Subsidy Grants, etc. (Tokyo Metropolitan GovernmentRegulation No. 141 of 1962) and Implementation of Tokyo Metropolitan Government Regulations for Subsidy
Grants, etc. (Zaishuchouhatsu No. 20 of 11 December 1962).
Supplementary ProvisionThis Outline shall apply from 1 April 2023