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Regional Information Kanagawa

"Select Kanagawa 100": All out support for your site location

Your Regional Guide

  • Inquires about investment in Japan.

Investment Promotion and International Business Division, Industry Department, Industry and Labor BureauExternal site: a new window will open.

1 Nihon-Odori, Naka-ku, Yokohama, Kanagawa, 231-8588
Tel: 045-210-5567 Fax: 045-210-8875
intlbiz_k@pref.kanagawa.jp

Kanagawa

  • If you can't find the information you need, please contact JETRO .
  • Please note that inquires not regarding investment in Japan may not be answered.

The information below is as of November 2017.

Basic Information

Population *1 9.05 million
Labor force *1 4.4 million
Area *2 2,416.0 km²
GDP *3 30,322,000 million yen
Major industries Transport equipment, general equipment, chemicals, food products, petroleum products
Wage *4
Initial wage for university graduates(Average)
207,200yen
Initial wage for college of technology/junior colledge graduates (Average)
186,000yen
Initial wage for upper secondery school graduates (Average)
177,900yen
Scheduled cash eanings (Average)
335,100yen
Land price(for 1m²) *5
Land price for industrial use (Average)
99,500yen
Land Price for Commercial Use (Average)
493,900yen
Number of Establishments *6 323,506
Number of Employees *6 3,725,924
Offices overseas

Singapore (Joint office with JETRO) / State of Maryland, US (Joint office with JETRO (Kanagawa Prefecture Department of JETRO NY)) / Dalian, China

JETRO office

JETRO Yokohama

Regional Profile

Strength of the region's industries and economy

Many excellent companies not only in Japan but from abroad in the areas of manufacturing and research/development with leading-edge technology of knowledge- and technology-intensive nature gather in Kanagawa Prefecture, forming a major industrial cluster. Being conveniently located near the giant market, Tokyo, and having the transportation network of railroad and roadway directly connected with major cities in Japan and Yokoyama Port and Kawasaki Port supporting active international trade, the prefecture will promote company activities. It is also a region where people can enjoy a comfortable life, with the city of Yokohama, one of the first cities to incorporate Western style in Japan, and abundant natural environment such as the coast of Shonan and the mountains of Hakone.

Keihin Rinkai

Foreign company(s) operating in the industry

Over 400 foreign-affiliated companies operate business in Kanagawa Prefecture (of which 278 have headquarter functions), which is the second highest number of all Japanese prefectures after Tokyo (source: Gaishikei Kigyo Soran 2017: (Foreign-affiliated companies in Japan, a comprehensive directory) based on a 2016 survey by Toyo Keizai Inc.).
Many companies are eying Kanagawa as the best candidate site for establishing a location of business. Support centers from Germany, the UK, the U.S. and other countries have opened in Kanagawa to assist their own domestic companies wishing to expand into the Japanese market. These support centers are functioning as a foothold for those companies entering into the Japanese market.

Company name Zimmer Biomet G.K.External site: a new window will open.
Country U.S.
Industry sector

Leading-edge medical care-related industry

Outline of business

Manufacturing and sales of medical equipment and devices used for implant and surgery in the area of orthopedics dedicated to muscular and skeletal systems

Date of entry 2016, June
Motivation for selecting region
  • Because Kanagawa Prefecture is the second largest market following Tokyo.
  • In order to expand the domestic business to Kanto, Kansai and Tohoku Regions, by locating in Hiratsuka City with its high levels of transportation convenience and concentrating the manufacturing function.
  • Because the area has a certain size of population, from the perspective of securing human resources.
Support provided by local government or JETRO
  • Support from Kanagawa Prefecture Subsidy Program to Promote Attracting Businesses
Comments

Kanagawa Prefecture is located in Kanto Region, which is a large market. The area has factors favorable for business expansion, for instance a certain size of population for securing new human resources, in addition to excellent location condition and transportation convenience. The company believes that concentrating manufacturing function in Kanagawa Prefecture is a strategic investment for further developing its business as the leader in the area of orthopedics in Japan.

Company name Rocket Software Japan Ltd.External site: a new window will open.
Country U.S.
Industry sector

Information and telecommunications business, software business

Outline of business

Research, development and sales of business software products for companies

Date of entry 2014 October
Motivation for selecting region
  • Favorable business environment including the convenient transportation access to the Tokyo metropolitan area, market size, relatively reasonable rent, and support from local governments
  • Being possible to collaborate with many companies and universities in terms of research and development
Support provided by local government or JETRO
  • Utilizing the subsidy system of Kanagawa Prefecture to promote attracting businesses (currently the Kanagawa Prefecture Subsidy Program to Promote Attracting Businesses) to support part of the rent
  • Provision of a start-up office
  • Information provision and consultation on incorporation
Comments

Thanks to support from the local government including information provision and subsidies, given from the very start of opening the Yokohama Office, we are able to implement business in a wonderful environment. Our company has amassed excellent members with experiences in the IT industry, and is able to take new steps forward to further growth, including the reinforcement of development/sales systems. Based on our past achievements of maintaining high quality in software products as an OEM partner to major manufacturers since our start of business, we would like to develop business that can contribute in society by addressing leading-edge issues.

Company name DANISENSEJAPAN K.K.External site: a new window will open.
Country Denmark
Industry sector

Home appliances manufacturing business

Outline of business

Manufacturing and sales and high-precision stable current sensor

Date of entry 2015, July
Motivation for selecting region
  • Convenient access to Tokyo metropolitan area and airport
  • Abundant natural environment and living environment based on the historic background that the area incorporated Western culture early
Support provided by local government or JETRO
  • Provision of rental office for foreign companies
Comments

Yokohama, with good access to Tokyo International Airport (Haneda Airport), is a place where local government is active for internationalization, with the historical background of incorporating Western culture early. Moving into the rental office owned by the prefectural government was highly effective upon starting business in Japan.

Available incentives

Outline of the Select Kanagawa 100 program

The Select Kanagawa 100 program is a measure taken by Kanagawa Prefecture to attract and encourage companies to locate their offices in Kanagawa. The friendly title “Select Kanagawa 100” represents the prefecture’s wish that “many companies would choose Kanagawa for their location and develop business activities in the prefecture.”
Kanagawa Prefecture will support companies in locating in the prefecture through a variety of support programs, including subsidies, tax breaks and low-interest loans, which are provided up to 1 billion yen.

Incentive name

Start-Ups Support Program for Overseas Companies

Incentive type Subsidies
Incentive target industries

Industries related to: presymptomatic diseases, robots, energies, tourism, cutting-edge raw materials, cutting-edge medical care, IT/electronics, and machinery and appliances for transportation

Outline of Incentives (Requirements etc.)

Under this program, the prefecture will provide subsidies for eligible overseas companies that plan to establish their bases in the prefecture of one half of the following expenditures (up to 2 million yen):

Incentive name

Rent Subsidy Program for Attracting and Promoting Companies’ Location

Incentive type Subsidies
Incentive target industries

Industries related to: presymptomatic diseases, robots, energies, tourism, cutting-edge raw materials, cutting-edge medical care, IT/electronics, and machinery and appliances for transportation

Outline of Incentives (Requirements etc.)

- One third of the monthly rent for 6 months up to 6 million yen
(As for companies utilizing the special zone program, one half of the monthly rent up to 9 million yen)
- Applicant must hire more than 5 permanent employees at a newly established facility, with at least 3 of these being either Japanese-nationals or permanent residents.

Incentive name

Subsidy Program for Attracting and Promoting Companies’ Location

Incentive type Subsidies
Incentive target industries

Industries related to: presymptomatic diseases, robots, energies, tourism, cutting-edge raw materials, cutting-edge medical care, IT/electronics, and machinery and appliances for transportation

Outline of Incentives (Requirements etc.)

- Result from the multiplication of the total investment in land, buildings or facilities (excluding consumption taxes) and the predetermined ratios, within the upper threshold
- 5% of the total investment, up to 500 million yen
(As for companies utilizing the special zone program, 10% of the total investment, up to 1 billion yen)
Note: Companies are required to meet certain conditions, e.g., investment value and number of permanent employees.

Incentive name

Tax Breaks

Incentive type Preferential Tax Treatment
Incentive target industries

Industries related to: presymptomatic diseases, robots, energies, tourism, cutting-edge raw materials, cutting-edge medical care, IT/electronics, and machinery and appliances for transportation

Outline of Incentives (Requirements etc.)

- Relocation from other prefectures, re-investment in the prefecture
- Tax reduction by one half of the real estate acquisition tax
Note: Companies are required to meet certain conditions, e.g., investment value and the number of permanent employees.

Incentive name

Loan Program for Attracting and Promoting Companies’ Location

Incentive type Loan program
Incentive target industries

Industries related to: presymptomatic diseases, robots, energies, tourism, cutting-edge raw materials, cutting-edge medical care, IT/electronics, and machinery and appliances for transportation

Outline of Incentives (Requirements etc.)

- Lower-interest loans from financial institutes due to the provision of subsidies from the prefectural government to such financial institutes
- Up to 1 billion yen
(within 80% of the total business expenditure; within 15 years of a finance period, including 2-year or less grace period)
Note: Companies are required to meet certain conditions, e.g., investment value and number of permanent employees.

Related Link
Incentive: SELECT KANAGAWAExternal site: a new window will open.

Services for investment in Japan

Providing market information Advice on the matters related to entering into Japanese market
Support for establishing a base Provision of facilities including a incubation office
Other Other services

JETRO IBSC Kanagawa (Business Support Center Kanagawa)
Office rent for overseas companies

Support service

Database of candidate partners

  • KANAGAWAAerospaceCompaniesExternal site: a new window will open.

    List of companies in the prefecture having unique technical power related to aerospace industry is provided.

  • KANAGAWALeadingBiotechCompaniesExternal site: a new window will open.

    List of companies in the prefecture having innovative technology related to biotechnology and regeneration/cellular medicine is provided.

  • KANAGAWABiotechCompaniesExternal site: a new window will open.

    The aim of this booklet is to provide information throughout Japan and overseas about the excellent products of Kanagawa Prefecture's food companies and to revitalize Kanagawa Prefecture's industry, both globally and locally.

  • KANAGAWAAutomotiveIndustryCompaniesExternal site: a new window will open.

    List of companies in the prefecture engaged in automobile-related industry and having advanced technology is provided.

  • KANAGAWASmartEnergyInitiativeExternal site: a new window will open.

    List of companies in the prefecture engaged in energy-related industry is provided.