Chiyoda Ward Business Subsidies 2026: Start-up Loan at 0.4%

Chiyoda Ward Business Subsidies and Loans 2026 — Start-up Loans at Just 0.4% Personal Burden, Plus a Disaster Stockpile Subsidy

Chiyoda Ward, Tokyo's office district, has designed its business support around the idea of a "place to work." Its loan program brings the personal-burden interest rate for start-up funds down to 0.4% or less (the ward subsidizes 1.6% of the interest), and for small businesses, resident business owners get a 1.8% interest subsidy plus a full credit-guarantee-fee subsidy. Uniquely, the ward also subsidizes disaster stockpiles for business premises: if you belong to a neighborhood association, you can receive two-thirds of the cost, up to ¥100,000. On the other hand, the popular energy-efficiency renovation subsidy (up to ¥2,000,000) has already closed for fiscal 2026 after reaching its budget. This article rounds up the programs you can use, the order to apply in, and — just as important — the accounting and tax treatment once you actually receive the money.

First, the Big Picture — Think in Three Layers: National, Metropolitan, and Ward

Loans — Terms Depend on Whether the Representative Is a Ward Resident

The biggest feature of Chiyoda Ward's Commercial and Industrial Loan Referral Program is that the interest-subsidy rate changes depending on whether the business's representative lives in the ward[Chiyoda Ward]. Under the very same program, the burden can differ by almost double between the "resident" and "general" categories.

Subsidies — Small Amounts, but Easy to Use with Year-Round Online Applications

Starting a Business — Get Your Certificate from One of Three Windows

Chiyoda Ward's Certified Business Start-up Support Program issues a certificate once you complete the required number of consultations or sessions at any one of three windows: ① the ward's One-Stop Consultation Desk, ② Machi Mirai Chiyoda's Business Start-up School, or ③ the Chiyoda Branch of the Tokyo Chamber of Commerce and Industry[Chiyoda Ward]. Another notable feature is the speed: the certificate is issued within 3 business days of acceptance.

• The registration and license tax for incorporating a company is halved (0.7% → 0.35% for both stock companies and LLCs)
• You can use the Credit Guarantee Corporation's start-up related guarantee (no collateral, no third-party guarantor required)
• The interest rate on Tokyo's start-up loan is reduced by 0.4 percentage points
• You become eligible for the national Sustainability Subsidy's start-up track (up to ¥2,000,000)

The overall process for opening a business is covered in our business start-up guide, and the decision of when to incorporate is covered in timing your incorporation.

Planning Capital Investment? Don't Forget the "Advanced Equipment Introduction Plan"

This isn't a subsidy, but the practical effect is the same. If you get a plan certified for capital investment that raises labor productivity by an average of at least 3% per year, your fixed-asset tax is cut in half for 3 years if you commit to a wage increase of at least 1.5%, or to a quarter for 5 years if you commit to at least 3%[Chiyoda Ward]. Applications are accepted year-round, but you must get the plan certified before you purchase the equipment.

[Most Important] Accounting and Taxes After You Receive a Subsidy

① Corporate and Income Tax — Recording It as Income Is the Rule; Use Compressed Entry Accounting for Equipment

A subsidy is included in taxable gains (gross income, for sole proprietors) for the fiscal year in which it is received. The portion used to acquire a fixed asset can have its taxation deferred through compressed entry accounting (Articles 42–44 of the Corporation Tax Act).

② Consumption Tax — Out of Scope, but a "Repayment" Can Occur

A subsidy itself is outside the scope of consumption tax, but if you claimed an input tax credit on the consumption tax portion of the subsidized expense, you may be required to repay that amount. This applies only to taxable businesses using the standard (principle) taxation method — businesses using simplified taxation and tax-exempt businesses are not affected. As a rough guide, the amount is 10/110 of the subsidy. For a ¥200,000 subsidy, that's about ¥18,000, while for the ¥2,000,000 energy-efficiency renovation subsidy, it's about ¥180,000. See our guide to the difference between simplified and standard taxation to determine which method applies to you.

③ Interest Subsidies, Guarantee-Fee Subsidies, and Fixed-Asset Tax Reductions

• Borrowed funds — Not income, so not taxed. Interest paid is a deductible business expense.
• Interest and guarantee-fee subsidies — In principle, the amount the ward covers on your behalf must be recorded as income, as an economic benefit. However, because the same amount of interest or guarantee fee is also recorded as an expense, the net effect is often small. Chiyoda Ward's interest subsidies are relatively generous, so this amount can add up — make sure it isn't missed when you close your books.
• Fixed-asset tax reductions — These simply reduce the tax amount, so there's no need to record them as income.

How the Fiscal Year Unfolds — Application Calendar

1. April: The energy-efficiency renovation subsidy opens. It's popular and tends to reach its budget partway through the year, so move within April.
2. April and autumn: Tokyo's Start-up Grant (up to ¥4,000,000). Each application window lasts around 10 days.
3. Year-round: Loan referrals (appointment interview → letter of introduction → financial institution). Sales-channel expansion and industrial property rights support can also be applied for online year-round.
4. October 20 – November 25: The Year-End Special Loan application window. It lasts just over a month.
5. December 28: Deadline for the disaster stockpile purchase subsidy — original documents must arrive by this date.
6. Fiscal year-end: Check that compressed entry accounting and interest subsidies have been recorded properly.

Summary

• For Chiyoda Ward loans, the interest subsidy rate differs depending on whether the representative resides in the ward. For the startup fund, the borrower's own burden is 0.4% or less.
• Up to 100,000 yen is available for purchasing disaster-preparedness supplies for business premises: two-thirds if you belong to or participate in the neighborhood association, one-third otherwise.
• Market expansion (up to 200,000 yen) and industrial property rights (up to 200,000 yen) are small grants, but they accept applications online year-round.
• The energy-saving renovation grant for FY2026 has closed after reaching its budget cap. The year-end special fund runs October 20 to November 25, 2026.
• Subsidies used for equipment qualify for compressed-entry accounting; trade show exhibition costs and incentive grants are recorded as income as-is.

References (Sources)

This article was prepared by checking the following published materials. Interest rates, remaining budgets, and application status can change mid-fiscal-year, so please always check the latest official information before applying.

• Chiyoda Ward — Commercial and Industrial Loan Referral Program (in Japanese)
• Chiyoda Ward — Commercial and Industrial Loan Referral Program (Start-up Funds) (in Japanese)
• Chiyoda Ward — Business Start-up Support Program (Certified Business Start-up Support) (in Japanese)
• Chiyoda Ward — SME Sales-Channel Expansion Support Subsidy (in Japanese)
• Chiyoda Ward — Industrial Property Rights Acquisition Support Program (in Japanese)
• Chiyoda Ward — Subsidy for Purchasing Stockpile Supplies at Business Premises (in Japanese)
• Chiyoda Ward — Energy-Efficiency Renovation Subsidy Program (in Japanese)
• National Tax Agency No.2202 — When You Receive a National Treasury Subsidy (in Japanese)
• National Tax Agency — Corporation Tax Basic Circular, Chapter 10 Section 2: Compressed Entry Accounting for Assets Acquired with National Treasury Subsidies (in Japanese)

*This article provides general information and does not guarantee case-by-case tax or administrative determinations. Whether compressed entry accounting applies and the amount of any consumption tax repayment depend on each subsidy's terms and your business's taxation method. Please confirm the specifics with your tax accountant or local tax office.