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Regional Information Sendai city

Sendai, a city that continues to be the choice of many IT-related companies with its superior location environment

Your Regional Guide : Tatsufumi Yoshida

  • Inquires about investment in Japan.

Industry Promotion Section Industry Policy Dept

3-7-1 Kokubun-cho, Aoba-ku, Sendai-city, Miyagi Prefecture 980-8671
Tel: +81-22-214-8276 Fax: +81-22-214-8321

Sendai city

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  • Please note that inquires not regarding investment in Japan may not be answered.

The information below is as of November 2017. (Basic Information: September 2018)

Basic Information

Population *1 1.05 million
Labor force *1 0.5 million
Area (square kilometer) *2 786.3
GDP *3 5,057,680 million yen
Major industries Wholesaling/retailing, service, construction, transport/communications, manufacturing
Wage *4
Initial wage for university graduates(Average)
Initial wage for college of technology/junior colledge graduates (Average)
Initial wage for upper secondery school graduates (Average)
Scheduled cash eanings (Average)
Land price(for 1square meter) *5
Land price for industrial use (Average)
Land Price for Commercial Use (Average)
Number of Establishments *6 53,154
Number of Employees *6 597,651
JETRO office

JETRO Sendai

Regional Profile

Strength of the region's industries and economy

With more than 100 higher education institutions and some 80,000 students, Sendai is known as an academic town and one of the nation's leading locations for the education of industrial human resources. Many of the companies located in the city decided to locate here in order to secure skilled personnel.
Sendai City also has world-leading R&D centers such as Tohoku University.
A cluster of R&D centers is developing through business-academia collaboration such as the world's most advanced next generation semiconductor memory (magnetic memory) R&D center contributed by private contributions and established at Tohoku University R&D center.

The center of Sendai city, Jyozenji street

Related Link
Industrial cluster, project: MEMS Park ConsortiumExternal site: a new window will open.
Industrial cluster, project: Sendai Finland Wellbeing CenterExternal site: a new window will open.

Available incentives

Sendai City provides a top-level support program compared to other large cities, thereby encouraging companies inside and outside Japan to develop business in the prefecture.

Incentive name

Special Zone for Reconstruction

Incentive type Preferential Tax Treatment
Incentive target industries Special Zone for Promoting Private Investment
Manufacturing industries
  • Automotive-related
  • Advanced electronics
  • Food-related industries
  • Logging-related industries
  • Medical- and health-related industries
  • Clean energy-related industries
  • Aerospace-related industries
  • Vessel-related industries
Information services industries
  • Software, information processing, and delivery services
  • Internet-related services
  • Call centers
  • BPO offices
  • Data centers
  • Design-/development-related sector
  • Digital content-related industries
Special Zone for Promoting the Agricultural and Food Frontier
  • Agricultural processing-, distribution-, and sales-related industries
  • Agricultural renewable energy-related industries
  • Agricultural testing research-related industries
Outline of Incentives (Requirements etc.) Target: Businesses operated by corporations or individuals with businesses applicable as a cluster business in the Industrial Cluster Zones for Reconstruction, and which contribute to employment opportunities

Types of Tax Preferential Measures:

  1. Special depreciation and tax deductions when enterprise assets were obtained
  2. Special deduction of the corporate tax relating to employment of disaster victims
  3. Special depreciation and tax deduction when assets for research and development were obtained
  4. Inclusion of amount of reinvestment reserve fund for newly established corporations as deductible expenses
  5. Exemption of local tax (corporate business tax, real estate acquisition tax and fixed assets tax)

*Some of these special measures cannot be applied concurrently.

Incentive name

Business Location Promotion Subsidy

Incentive type Subsidies
Incentive target industries
  • Manufacturing
  • Headquarters functions
  • R&D facilities
  • Specified distribution industries
  • Specified call centers, back offices, etc.
  • Software industries, digital contents industries, data centers
  • Wide-area customer attraction industries
  • Business base at Gamo North District
Outline of Incentives (Requirements etc.) The equivalent amount to the fixed assets tax relating to new investment will be refunded after tax payments over 3 to 5 years. It is applicable to rent fees of land and/or buildings and lease fees of facilities. Other programs provide additional assistance according to the number of employees and target companies’ refurbishment of facilities.
  1. Establishing new offices, expanding exiting offices, and transferring offices to the city (also covering rent):
    100% of the equivalent value to the fixed assets tax involving new investment for 3 to 5 years
  2. Additional assist for employment:
    100,000 yen to 1 million yen per new employee, relocated permanent employee and other employee for 1 year

*Subsidy amount, period of time, and maximum amount of subsidy depend on subsidy programs.

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