The Economy, Trade and Industry Ministry plans to fully digitize applications for subsidies and benefits for small and midsize companies by fiscal 2023, according to sources.
The move is aimed at encouraging small and midsize firms to speed up steps toward digitization. More than 100 procedures are expected to be covered under the plan.
The ministry will, in principle, only accept applications through the existing government system and will stop accepting applications at regional Bureaus of the Economy, Trade and Industry or by mail.
To reduce the administrative burden on companies when applying for subsidies, the ministry plans to establish a system to store financial information and past records of subsidies, with an eye on using cloud services to manage information on the internet. This will eliminate the need for companies to enter such information for each application.
Only about 60% of small companies use cloud services. The ministry aims to raise the rate to about 80%, matching the level where large companies are at. Support for companies unfamiliar with electronic procedures will be provided through the dispatch of support staff to chambers of commerce and industry.
The ministry has, so far, dealt with digitization through procedures such as subsidies to support the purchase of tech equipment. In fiscal 2021, it will start preparations to shift to electronic applications for subsidies to support the expansion of sales channels.
The ministry plans to expand the scope of the electronic system in the future, with an eye on digitizing all application procedures except for those related to local governments, such as subsidies provided to cope with natural disasters.
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