Act on Strengthening the Management of Small and Medium-Sized Enterprises, etc.

• A specified business (特定事業者) can make a management innovation plan (経営革新計画) — to raise its management to a substantially higher level through new business activities (新事業活動) such as new products or services, new ways of producing, selling or providing them, or research and development — alone or with others, and have it approved (承認). A plan made alone by a company, an individual, an enterprise association (企業組合) or a cooperative partnership (協業組合) is approved by the governor of the prefecture where its main office is, as are a plan made alone by another cooperative whose district stays within one prefecture and a joint plan confined to one prefecture in the ways Article 72 sets out. Any other plan, a general incorporated association's own plan among them, is approved by the Minister of Economy, Trade and Industry together with the minister responsible for the business.(Art. 2(5), Art. 2(7), Art. 2(9), Art. 14(1), Art. 72(1)) (the provisions it rests on)
• A specified business, or a company, another corporation a Cabinet Order names or an individual within the number of regular employees a Cabinet Order sets (特定事業者等), can make a management capacity improvement plan (経営力向上計画) and have it certified (認定) by the minister responsible for its business. The plan strengthens management by putting resources to much fuller use — by means such as training staff, using financial analysis or information on demand, and building information systems for efficiency — including resources obtained from another such business by merger, company split, share exchange or similar reorganization, by taking over its business or assets, by acquiring shares that bring it under control, or by setting up a cooperative (事業承継等). It is certified if it fits the guidelines for its field (事業分野別指針), or the basic policy where none have been set, and can be reliably carried out.(Art. 2(6), Art. 2(10), Art. 17(1), Art. 17(6), Art. 73(4)) (the provisions it rests on)
• A small and medium-sized enterprise (中小企業者) can have an advanced equipment introduction plan (先端設備等導入計画), for bringing in facilities, equipment or programs using advanced technology of the kinds a Ministry of Economy, Trade and Industry Order lists, certified by the municipality (市町村) where the equipment will be, if that municipality has an introduction promotion basic plan (導入促進基本計画) the Minister of Economy, Trade and Industry has agreed to. It can also have a business continuity strengthening plan (事業継続力強化計画) certified by the Minister: measures taken in advance against natural disasters and serious failures of communications or other business infrastructure, such as response procedures, equipment, insurance and training. Several such enterprises can make a joint plan (連携事業継続力強化計画), naming any larger businesses taking part.(Art. 2(14), Art. 2(15), Art. 49(1), Art. 49(3), Art. 52(1), Art. 56(1), Art. 56(2), Art. 58(1), Art. 58(2)) (the provisions it rests on)
• Approval or certification opens special terms on credit guarantee insurance under the Small and Medium-sized Enterprise Credit Insurance Act (中小企業信用保険法), which that separate Act governs, for guarantees of the plan's funds. Among them, the guarantees count against the insurance ceilings separately from the business's other guarantees, under ordinary insurance (普通保険) the figure of 70% in that Act's rules becomes 80%, the premium is at a rate a Cabinet Order sets, no more than 2% a year, and for every plan but the advanced equipment plan the ceilings of overseas investment insurance (海外投資関係保険) and new business development insurance (新事業開拓保険) are raised. Where the guarantee is for funds to take over a business under a management capacity improvement plan that records that the business meets requirements a Ministry of Economy, Trade and Industry Order sets, such as net assets of at least a set amount, that Act's rules are also reworded for guarantees given without a personal guarantor (保証人の保証).(Art. 10(1), Art. 10(2), Art. 10(3), Art. 10(4), Art. 10(5), Art. 17(5), Art. 22(2), Art. 22(3), Art. 22(4), Art. 22(5), Art. 22(6), Art. 22(7), Art. 22(8), Art. 22(9), Art. 22(10), Art. 54(1), Art. 54(2), Art. 54(3), Art. 60(1), Art. 60(2), Art. 60(3), Art. 60(4), Art. 60(5), Art. 61(1), Art. 61(2), Art. 61(3), Art. 61(4), Art. 61(5)) (the provisions it rests on)
• For every plan but the advanced equipment plan, Small and Medium Business Investment and Consultation Companies (中小企業投資育成株式会社) may take up shares in companies with capital over 300 million yen to fund the plan. Japan Finance Corporation (株式会社日本政策金融公庫) may guarantee long-term borrowing from foreign banks or other financial institutions a ministerial order names for the work abroad of a management innovation, management capacity improvement or business continuity plan, and, under the first two, lend such funds to the business's foreign affiliates (外国関係法人等). The Organization for Small and Medium Enterprises and Regional Innovation, JAPAN (独立行政法人中小企業基盤整備機構) guarantees loans or gives advice and other help, depending on the plan and the business.(Art. 11(1), Art. 12(1), Art. 23(1), Art. 24(1), Art. 25(1), Art. 30(1), Art. 62(1), Art. 63(1), Art. 64(1)) (the provisions it rests on)

• 1 January 2026

  The text on this site

  Act Partially Amending the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors and the Act on the Promotion of Subcontracting Small and Medium-Sized Enterprises

  下請代金支払遅延等防止法及び下請中小企業振興法の一部を改正する法律

  Act No. 41 of 2025The text after this amendment, on e-Gov

• 1 October 2025

  Act Partially Amending the Act on Rationalization of Distribution and Proper Trading of Food, etc. and the Wholesale Market Act

  食品等の流通の合理化及び取引の適正化に関する法律及び卸売市場法の一部を改正する法律

  Act No. 69 of 2025The text after this amendment, on e-Gov

• 1 June 2025

  Act on the Arrangement of Related Acts upon the Enforcement of the Act Partially Amending the Penal Code, etc.

  刑法等の一部を改正する法律の施行に伴う関係法律の整理等に関する法律

  Act No. 68 of 2022The text after this amendment, on e-Gov

• 15 March 2024

  Act Partially Amending the Small and Medium-sized Enterprise Credit Insurance Act and the Shoko Chukin Bank Limited Act

  中小企業信用保険法及び株式会社商工組合中央金庫法の一部を改正する法律

  Act No. 61 of 2023The text after this amendment, on e-Gov

• 1 April 2023

  Act on Arrangement of Relevant Acts Incidental to Enforcement of the Act for Establishment of the Children and Families Agency

  こども家庭庁設置法の施行に伴う関係法律の整備に関する法律

  Act No. 76 of 2022The text after this amendment, on e-Gov

• 22 June 2022

  Act on Arrangement of Relevant Acts Incidental to Enforcement of the Act for Establishment of the Children and Families Agency

  こども家庭庁設置法の施行に伴う関係法律の整備に関する法律

  Act No. 76 of 2022The text after this amendment, on e-Gov

• 17 June 2022

  Act on the Arrangement of Related Acts upon the Enforcement of the Act Partially Amending the Penal Code, etc.

  刑法等の一部を改正する法律の施行に伴う関係法律の整理等に関する法律

  Act No. 68 of 2022The text after this amendment, on e-Gov

• 1 April 2022

  Act Partially Amending the Act on Strengthening Industrial Competitiveness, etc., and Other Matters

  産業競争力強化法等の一部を改正する等の法律

  Act No. 70 of 2021The text after this amendment, on e-Gov

• 2 August 2021

  Act Partially Amending the Act on Strengthening Industrial Competitiveness, etc., and Other Matters

  産業競争力強化法等の一部を改正する等の法律

  Act No. 70 of 2021The text after this amendment, on e-Gov

• 16 June 2021

  Act Partially Amending the Act on Strengthening Industrial Competitiveness, etc., and Other Matters

  産業競争力強化法等の一部を改正する等の法律

  Act No. 70 of 2021The text after this amendment, on e-Gov

All 23 amendments already in force

• A specified business with an approved or certified management innovation or management capacity improvement plan that is too large to count as a small business under the Small and Medium-sized Enterprise Credit Insurance Act is treated as one for guarantees of the plan's funds — for a capacity improvement plan, the funds a Ministry of Economy, Trade and Industry Order names — if it is a company or individual and carries on a business that Act covers. Japan Finance Corporation and the Okinawa Development Finance Corporation (沖縄振興開発金融公庫) may likewise lend long-term funds for the plan to such a company or individual that is too large to count as a small business under the Japan Finance Corporation Act (株式会社日本政策金融公庫法) and carries on a business that Act covers.(Art. 22(1), Art. 24(4)) (the provisions it rests on)
• A larger business taking part in a certified joint business continuity plan that is within the capital or employee limits a Cabinet Order sets is treated as a small business under the Small and Medium-sized Enterprise Credit Insurance Act for guarantees of the plan's funds that a Ministry of Economy, Trade and Industry Order names, and Japan Finance Corporation and the Okinawa Development Finance Corporation may lend it such funds.(Art. 2(2), Art. 61(6), Art. 63(3)) (the provisions it rests on)
• A certified support institution for management innovation and the like (認定経営革新等支援機関) or certified information-processing support body (認定情報処理支援機関) that is a general incorporated association in which small and medium-sized enterprises hold at least half of the votes, or a general incorporated foundation to whose founding assets they contributed at least half — or, for the support institutions only, a specified nonprofit corporation (特定非営利活動法人) in which they hold at least half of the votes and which that Act does not already cover — is treated as a small business under the Small and Medium-sized Enterprise Credit Insurance Act for guarantees of the funds for its support work.(Art. 37(1), Art. 42(1), Art. 44(1)) (the provisions it rests on)
• A small and medium-sized enterprise with a certified business continuity plan, or joint plan, that stops counting as a small business under the Act on Mutual Relief System for the Prevention of Bankruptcies of Small and Medium-sized Enterprises (中小企業倒産防止共済法) after applying is still treated as one for that Act's mutual-aid loans (共済金の貸付け) until the plan's period ends.(Art. 64-2(1), Act on Mutual Relief System for the Prevention of Bankruptcies of Small and Medium-sized Enterprises Art. 9(1)) (the provisions it rests on)
• Where a specified business sets up a business cooperative (事業協同組合), enterprise association (企業組合) or cooperative partnership (協業組合) that its certified management capacity improvement plan records, within two months of certification, 'four or more' in Article 24(1) of the Small and Medium-sized Enterprise Cooperatives Act (中小企業等協同組合法) and Article 5-15(1) of the Act on the Organization of Small and Medium-sized Enterprise Associations (中小企業団体の組織に関する法律), which those separate Acts govern, reads 'three or more'. A stock company that such a plan names as transferring its business may, within two weeks of the resolution or decision, tell each creditor whose claim passes to the buyer and ask for objections within a period of at least a month; a creditor who does not object is taken to approve, and one who objects must be paid, given security or have assets put in trust for them unless the transfer is not likely to harm them.(Art. 2(10), Art. 28(1), Art. 29(1), Art. 29(2), Art. 29(3), Art. 29(4)) (the provisions it rests on)
• Where a management capacity improvement plan for taking over another business names that business's status under a licence or permit of a kind a Cabinet Order lists (特定許認可等), the minister certifies it only with the consent of the authority that granted the licence. That authority may ask the minister and the business applying for the information it needs, and decides with the purpose of the licence's own rules in mind. Once the takeover is carried out under the certified plan, the business taking over succeeds to that status despite the rules of the licence's own law, and must report it to the minister without delay with documents proving it.(Art. 17(4), Art. 17(7), Art. 17(8), Art. 17(9), Art. 27(1), Art. 27(2)) (the provisions it rests on)
• Until 31 March 2023, a small and medium-sized enterprise that was not a specified business was treated as one for management innovation plans, and a business within Article 2(2) (中小企業者等) that was not a specified business or similar (特定事業者等) as one for management capacity improvement plans. For such a plan approved or certified by that day, or applied for by then, the earlier rules still govern (なお従前の例による) its changes, revocation, the credit insurance, investment and lending special terms and the reports. Under such a capacity improvement plan, the Organization's loan guarantees of Article 25(1) continue.(Suppl. Prov. Art. 8(2), Suppl. Prov. Art. 8(3), Suppl. Prov. Art. 8(4), Suppl. Prov. Art. 9(2), Suppl. Prov. Art. 9(3), Suppl. Prov. Art. 9(4), Suppl. Prov. Art. 9(5), Art. 25(1)) (the provisions it rests on)

• Making a plan is a business's own choice: the Act says a business can draw one up and apply. Small and medium-sized enterprises are only to make efforts to strengthen their business continuity, and the national government, local governments, government-affiliated lenders, chambers of commerce and others to try to help them.(Art. 8(1), Art. 14(1), Art. 17(1), Art. 52(1), Art. 56(1), Art. 65(1), Art. 66(1)) (the provisions it rests on)
• A business with an approved or certified plan must have any change to it approved or certified in the same way, and the authority that granted it may revoke it if the business is not carrying out the plan; a municipality may also revoke an advanced equipment plan that no longer meets the conditions for certification.(Art. 9(1), Art. 9(2), Art. 15(1), Art. 15(2), Art. 18(1), Art. 18(2), Art. 21(1), Art. 21(2), Art. 53(1), Art. 53(2), Art. 53(3), Art. 57(1), Art. 57(2), Art. 59(1), Art. 59(2)) (the provisions it rests on)
• The authorities survey how businesses with plans are doing and give them guidance and advice for carrying the plans out.(Art. 70(2), Art. 70(3), Art. 70(5), Art. 70(6), Art. 70(7), Art. 70(8), Art. 70(9)) (the provisions it rests on)
• The authority may require a business carrying out a plan, an investment partnership with a certified plan, or a certified support body to report on how the plan or its work is being carried out. Failing to report or reporting falsely is punishable by a fine of up to 300,000 yen, and where a representative, agent or employee does so in a corporation's or employer's business, the corporation or employer is fined as well as the person who acted (Article 76).(Art. 71(1), Art. 71(2), Art. 71(3), Art. 71(4), Art. 71(6), Art. 71(7), Art. 76(1), Art. 76(2)) (the provisions it rests on)
• A support body cannot be certified if, among other grounds, less than five years have passed since it finished serving, or was freed from, a sentence of imprisonment (拘禁刑) or heavier, or of a fine under this Act, had its certification revoked within five years, is bankrupt and not discharged, or is, or is controlled by, an organized crime group member (暴力団員) or someone who left such a group less than five years ago, or is a corporation with an officer who comes within any of these. Where the minister finds that how a certified body runs its work needs improving in light of the basic policy (for a field body, the field's guidelines), it may order the body to improve, and it may revoke the certification if the body comes within these grounds, breaks such an order, or obtained the certification or its renewal by wrongful means.(Art. 32(1), Art. 35(1), Art. 36(1), Art. 42(1), Art. 47(1)) (the provisions it rests on)
• A Cabinet Order may have prefectural governors carry out some of the Minister of Economy, Trade and Industry's work under this Act, and have the ministers' powers exercised by their regional offices.(Art. 74(1), Art. 75(1)) (the provisions it rests on)