ANNAPOLIS, Md., Aug. 29, 2016 /PRNewswire-USNewswire/ -- Japan's Kanagawa Prefecture Government (KPG) has created the Select Kanagawa 100 program to promote investment in the prefecture. This new program's aim is to help establish 100 domestic and foreign company offices in Kanagawa by March 31st, 2019. KPG is offering investors incentives in two forms: Subsidies and Business Services.
The Kanagawa Prefecture Government (KPG) is offering subsidies in its special zones for five categories:
- Investment: 10% of investment in capital will be subsidized. This includes land, buildings, and equipment up to ¥1 billion.
- Taxes: Taxes on newly purchased real estate will be reduced to 50%.
- Financing: ¥1 billion with ~1% interest. *
- Rent: For 6 months, ½ of monthly rent will be subsidized up to ¥9 million.
- Startup Costs: Cost of acquiring resident status, filing costs for incorporation, employee recruitment costs. 50% of expenses are subsidized up to ¥2 million.
* Applies to small and medium-sized businesses only.
KPG's Business Environment Guide Program offers the following services to support businesses' transition to Kanagawa:
- Guided tours of potential offices or factories
- Introduction to companies in related industries
- Presentations on housing, schools, and other community features for employees
- Free consultations with professionals (tax accountants, notaries, solicitors, etc.)
- Interpretation costs
- Free office space for foreign companies for 50 business days
- Low-cost office space for up to 3-year contracts. Monthly price range is ¥47,000-60,000.
- Press releases featuring the company's profile, as well as support for company's own PR activities
- Seminars on networking and business in Japan
As these services help to prepare businesses for expansion into Kanagawa, companies must only submit an application, and these services will be provided.1
At a population of 9 million, residence in Kanagawa offers direct access to Japan's second-largest market, and borders Tokyo. Its GDP is just over $300 billion, and with over 250 foreign firms in the capital, Yokohama, Kanagawa has a vibrant international business community.
Despite being a highly-developed city with access to the best rail system in the world, Yokohama's average office rental costs are 70% of those in Tokyo. And compared to Tokyo, it has a higher number of graduates from science and engineering schools. Foreign employees in Kanagawa will find adjusting to life abroad easier than expected, due to the high number of international schools and medical facilities.
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SOURCE Japan External Trade Organization