Subsidy for the Promotion of Innovation Centers

In order to attract many startups and human resources to Sapporo and to advance its industries, the city believes that facilities such as co-working offices and other places to promote the formation of communities are effective in facilitating startups from inside and outside of Hokkaido to set up operations as mini-bases.

There are already some examples of such facilities in the city, but in order to further increase this number, Sapporo city will subsidize the establishment cost for corporations that develop and operate such “Innovation Centers” in Sapporo.

What is an “Innovation Center”?

An innovation center eligible for this subsidy program refers to an office, research institute, or other similar facility that is established to provide an environment that encourages community building and the creation of new startups, and that?have both 1. (soft aspects) and 2. (hard aspects)?described below.

1. The center is a base that contributes to promoting the location of startups from inside and outside of Sapporo and encourages the formation of a startup community. The center must conduct one of the following A or B activities on a daily basis.

※ Startups are considered as businesses or individuals who develop products/services that create new value for the economy and society based on cutting-edge technology and innovative ideas with the intention of growing rapidly.

2. The innovation center must be equipped with shared workspaces and facilities (listed below) that can be used by multiple startups or individuals.

Other requirements (all of the below) to be eligible for this subsidy:

• The facility must be newly established in Sapporo city, or be a reconstruction or renovation of a facility already established in Sapporo city that meets the definition of “innovation center.”

In the case of reconstruction or renovation of a facility, it must be accompanied by a physical expansion of existing facility offerings.

• The facility must begin operations between April 1, 2022 and March 31, 2023
• The facility must be available to be used by companies & startups outside of Hokkaido that do not have a business office in the city.
• The facility must not have received any other subsidy for the establishment of the facility or as capital investment into the facility from the national or local government, or other similar public organizations, funds, or entities.
• The facility must be in compliance with the relevant laws and regulations.
• The facility must continue to operate for 3 years from the date that the subsidy is granted.

Subsidy Details :

Non-eligible Expenses

• Consumption tax & local consumption tax
• Payment processing fees (such as bank transfer)
• Acquisition & rental costs of buildings
• Equipment & furniture that is leased or rented
• Consumables
• Equipment that does not qualify as office equipment, such as coffee makers
• Communication (phone or internet) contract fees
• Running costs for operations

※ The payments & costs eligible for subsidy must be made on or after April 1, 2022

※ If there are spaces used for other purposes, such as living spaces, only the portion used exclusively for the Innovation Center will be eligible for the subsidy.

Requirements for those who are eligible to apply :

• The applicant company must be directly responsible for the development and operation of the Innovation Center.
• The applicant must not have failed to pay Sapporo city taxes in the past.
• The applicant must be recognized as having a sufficient financial base to continue to fund the relevant project.
• The applicant (including officers and directors) does not fall under the category of organized crime groups or members of organized crime groups as defined in Article 2 of the?Sapporo City Ordinance on Promotion of Elimination of Organized Crime Groups (Ordinance №6 of 2013).
• The applicant company shall not be a corporation or entity wholly-owned or funded by any national, local, or foreign government.
• The applicant must not be engaged in activities that are or may be offensive to public order/morals or in violation of laws and ordinances.

※ If there are co-operators, all co-operators must fall under all of the requirements above. (However, a representative must be designated to submit the application.)

Designation (Initial) Application Period:

From April 1, 2022 to December 28, 2022

※ Facilities must apply before the start of the operation of the facility.

However, for facilities that commenced or are commencing operations?between April 1, 2022 and May 31, 2022, the application period is until June 30, 2022.?Facilities that start operation after that date must apply before the start of operation of the facility.

※ Applications will be reviewed on a first-come, first-served basis.

※ Applications will be closed when the City’s budgeted amount is reached.

※ Sapporo City plans to accept and award about 3 applications.

Subsidy Procedure Flow:

※ Please refer to the?“Application Guide”?on our website for the necessary documents and other requirements.

For more information or questions, please contact us ???CONTACT FORM