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Sakai city


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Support Before Starting Businesses

Sakai has material and state-of-the-art industries in the waterfront area, machinery and metalworks and traditional industries in the inland area, and it ranks 9th in Japan for value of product shipment. Sakai City commits itself to the revitalization of industries by providing various support systems to new and upcoming businesses.

Sakai City Business Investment Promotion System

This system invites new investments to areas that are suitable for the manufacturering industry in order to increase employment and business opportunities and prevent the hollowization of industries. The system is expected to revitalize the local economy, upgrade industry and improve residents’ lives.

Objective Businesses

Manufactures, utilities, information and communications, transportation and postal service, academic research and technological service

Objective Areas

Waterfront Industrial Area (exclusive industrial zone and industrial zone)

Period

Maximum 5 years

Advantages

Reduction of fixed property tax (building, depreciable property), urban planning tax (building) and business office tax

(1) Investment on the fixed property: "60billion and over → 4/5 reduction
(2) Investment on the fixed property: "30billion and over → 2/3 reduction
(3) Investment on the fixed property: "1billion and over → 1/2 reduction

Contact

Industrial Policy Division, Commerce, Industry and Labor Department, Industrial Promotion Bureau, Sakai City
Tel:+81 (0)72 228 7629 Fax:+81 (0)72 228 8816

Industrial Promotion Tax System (Reduction of real estate acquisition tax)

Real estate acquisition tax will be reduced in the Second Type Industrial Promotion Area to maintain and promote manufacturing business.

Second Type Industrial Promotion Area (Official designation date: October 2, 2007)

Sakai City Waterfront Exclusive Manufacturing Zone

Objective Real Estate

Buildings and land of factory or research institutions that were purchased within the Second Type Industrial Promotion Area between October 2, 2007 and March 31, 2012.

Amount of Reduction

1/2 amount of real estate acquisition tax that is imposed on the objective real estate. (Maximum "200 million per area)

Object person

Person who acquired the objective real estate for his/her business and received the municipality’s advantages.

Osaka Prefecture Investment Promotion Subsidy

Part of the necessary costs for a company to construct or reconstruct factories or research institutions in the Second Type Industrial Promotion Area will be covered. (The costs of construction or machinery purchase that were contracted or ordered before applying for the subsidy will not be covered.)

Objective Company

Company that will construct or reconstruct factories or research institutions within the objective area

Conditions to Receive Subsidy

  • For smaller companies, building and depreciable property purchase costs must be "100 million or more.
  • For larger companies, it must be a state-of-the-art industry, and the building and depreciable propertys purchase costs must be "500 million or more.
  • Municipality’s advantages for the investment promotion are expected to be applied.

Objective Costs

The costs to acquire buildings and depreciable properties (machinery etc) or construction or reconstruction of buildings

Coverage Ratio

5% of the objective costs (if headquarters, factories or research institutions are located within the prefecture, 10% will be covered) (Maximum "50 million)

Contact

Investment Promotion Division, Department of Commerce, Industry and Labor, Osaka Prefecture Government
Tel:+81 (0)6 6944 8160 Fax:+81 (0)6 6944 6721

Urban Office Investment Promotion Subsidy

Part of tenant fee is subsidized when a company newly opens offices within the city’s urban designated area

Objective Business

  • Industrial Support Business: Information and communication, Transportation, Wholesaler, Banks, Insurance, Manufacturer, Utilities (new energy business)
  • Intellectual Property Business: Academic research, Special technology service
  • International Business: other services
  • Educational Business: School education

Conditions to Receive Subsidy

Fulfill the following 1 or 2

(1) The office has 5 or more fulltime employees.
(2) The office has 100m2 or more floor area.

Advantages

(1) In case of purchase:5% of building and land purchase costs (maximum "6 million) will be covered.

  • Special cases:in case of headquarters moves in the city, 5% (maximum "18 million) will be covered.

(2) In case of rent:30% of rent (maximum "5 million) will be covered for 3 years after moving in.

  • Special cases:in case of the fulfillment of one of the 4 conditions below, 10% will be added on for each condition. (maximum 50% , "15 million in case of (A) and "5 million in case of (B)~(D))
    (A) Headquarters moves in the city
    (B) Located in urban central area
    (C) Foreign affiliated company
    (D) Foreign official office

※Under special approval from the Mayor, foreign official office relocations may be eligible for the case of (A) (higher maximum subsidy of "18 million).

Objective Area

Urban area (approx. 200ha) that was surrounded by major roads (east: Osaka-Izumi-Sennan Route, west: National road Route 26, south: Phoenix Street, north: Sakai-Yamato-Takada Route) or the land that adjoins to the area, or the area that is contiguous with the Daido-suji Street and:

  • that is stipulated as Neighborhood Commercial District by section 8, article 9 of the City Planning Law (enacted in 1968 Law No.100) or stipulated as Commercial Zone by section 9 of the same article
  • that is zoned both as Sakai City Urban Area Revitalization Plan’s area (1999) and Urban Revitalization and Priority Development Area’s (2004) Sakai Higashi Station West Area.

Contact

Industrial Policy Division, Commerce, Industry and Labor Department, Industrial Promotion Bureau, Sakai City
Tel:+81 (0)72 228 7629 Fax:+81 (0)72 228 8816

Private Business Energy Saving Facility Installment Support Subsidy

Part of the costs will be covered by the system when smaller manufactures install high energy efficient or new energy facilities.

Objective Facility

High energy efficient facilities (air-conditioning equipments, boilers, lighting facilities etc.) and new energy facilities (photovoltaic power generation facilities)

Objective Business

Small and medium-sized manufacturers in the city

Advantages

In case of energy-saving facilities

1/2 of the costs of design, purchase and installment that exceed "5 million (maximum "15 million)

In case of new energy facilities

If the facility’s output exceeds 10kW, the lower amount between 1/6 of the costs of design, purchase and installment of the facility and "100,000/kW for the facility (maximum "50 million).

Contact

Manufacturing Support Division, Commerce, Industry and Labor Department, Industrial Promotion Bureau, Sakai City
Tel:+81 (0)72 228 7534 Fax:+81 (0)72 228 8816

Local Ordinance in Accordance to Factory Location Law

Major deregulation of factory’s green area ratio for the promotion of company’s investment

  • 5-10 % deregulation of green area ratio
  • To promote new factory construction and factory reconstruction

Green Area Ratio

  Exclusive manufacturing zone/manufacturing zone Light manufacturing zone
Before deregulation 20%(25%) or more
After deregulation 10%(15%) or more 15%(20%) or more

( ) indicates the ratio of environmental facility area including green area.

Contact

Manufacturing Support Division, Commerce, Industry and Labor Department, Industrial Promotion Bureau, Sakai City
Tel:+81 (0)72 228 7534 Fax:+81 (0)72 228 8816

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