Small and Medium-Sized Enterprises Business Enhancement Act

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Table of Contents

Chapter 1 General Provisions

(Purpose)
Article 1

The purpose of this Act is, in light of the importance of a role of the diverse and dynamic growth and development of small and medium-sized enterprises or the like in the vitalization of the economy, to enhance the business of small and medium-sized enterprises or the like through support of the business activities of newly established enterprises and of the business innovation, improvement of management capabilities, introduction of advanced equipment or the like and enhancement of business continuity capabilities of small and medium-sized enterprises or the like, and thereby contribute to the sound development of the national economy.

(Definitions)
Article 2

  1. The term “small and medium-sized enterprise operator” as used in this Act means a person who falls under any of the following:
    1. A company whose amount of stated capital or total amount of contribution is not more than three hundred million yen, and a company and an individual whose number of regular employees is not more than three hundred and who operates business, as a principal business, in the manufacturing, construction, transportation or other industries (excluding industries listed in the following item through item (iv) and industries provided for by Cabinet Order that are referred to in item (v))
    2. A company whose amount of stated capital or total amount of contribution is not more than one hundred million yen, and a company and an individual whose number of regular employees is not more than one hundred and who operates business, as a principal business, in the wholesale industry (excluding the industries provided for by Cabinet Order that are referred to in item (v))
    3. A company whose amount of stated capital or total amount of contribution is not more than fifty million yen, and a company and an individual whose number of regular employees is not more than one hundred and who operates business, as a principal business, in the service industry (excluding the industries provided for by Cabinet Order that are referred to in item (v))
    4. A company whose amount of stated capital or total amount of contribution is not more than fifty million yen, and a company and an individual whose number of regular employees is not more than fifty and who operates business, as a principal business, in the retail industry (excluding the industries provided for by Cabinet Order that are referred to in the following item)
    5. A company whose amount of stated capital or total amount of contribution is not more than the amount provided for by Cabinet Order for each industry, and a company and an individual whose number of regular employees is not more than the number provided for by Cabinet Order for each industry and who operates business, as a principal business, in the industry provided for by Cabinet Order
    6. An enterprise cooperative
    7. A cooperative partnership
    8. A business cooperative, small business cooperative, commercial and industrial partnership, federation of cooperatives, and other cooperatives and federations established pursuant to special laws that are provided for by Cabinet Order
  2. The term “small and medium-sized enterprise operator or the like” as used in this Act means a person who falls under any of the following.
    1. A small and medium-sized enterprise operator
    2. A general incorporated association whose direct or indirect members are small and medium-sized enterprise operators (limited to those who meet the requirements provided for by Cabinet Order)
    3. A company whose amount of stated capital or total amount of contribution is the amount not more than the amount provided for by Cabinet Order and other corporations provided for by Cabinet Order (excluding the person provided for in item (i))
    4. A company whose number of regular employees is not more than the number provided for by Cabinet Order, and other corporations and individuals provided for by Cabinet Order (excluding those provided for in the preceding three items)
  3. The term “new small and medium-sized enterprise operator” as used in this Act means a small and medium-sized enterprise operator who falls under any of the following:
    1. An individual whose period after the date of commencement of its business is less than five years
    2. A company whose period after the date of its establishment is less than five years
    3. An individual whose period after the date of commencement of its business is not less than five years but less than ten years or a company whose period after the date of its establishment is not less than five years but less than ten years and whose ratio of the total amount of study and research expenses and other expenses provided for by Cabinet Order in a previous year or a previous fiscal year to the amount of income provided for by Cabinet Order is beyond the ratio provided for by Cabinet Order
  4. The term “new small and medium-sized enterprise operator or the like” as used in this Act means a person who falls under any of the following:
    1. A new small and medium-sized enterprise operator
    2. An individual who is a small and medium-sized enterprise operator or the like whose period after the date of commencement of its business is less than five years (excluding the person listed in the preceding item)
    3. A company that is a small and medium-sized enterprise operator or the like and whose period after the date of its establishment is less than five years (excluding the person listed in item (i))
    4. An individual who is a small and medium-sized enterprise operator or the like whose period after the date of commencement of its business is not less than five years but less than ten years or a company whose period after the date of its establishment is not less than five years but less than ten years, and whose ratio of the number of regular employees who are engaged in the operation provided for by Ordinance of the Ministry of Economy, Trade and Industry as the operation performed by utilizing the advanced knowledge or skills related to the development of a program (meaning a program provided for in Article 2, paragraph (2), of the Act on Facilitation of Information Processing (Act No. 90 of 1970), the same shall apply in paragraph (14) and Article 17, paragraph (3)) and other information processing (meaning the information processing provided for in Article 2, paragraph (1), of the same Act, the same shall apply in Article 43, paragraphs (1) and (2)) to the total number of regular employees is beyond the ratio provided for by Ordinance of the Ministry of Economy, Trade and Industry (excluding the person listed in item (i))
  5. The term “specified business operator” as used in this Act means a person who falls under any of the following:
    1. A company and an individual whose number of regular employees is not more than five hundred and who operates business, as a principal business, in the manufacturing, construction, transportation or other industries (excluding the industries listed in the following item and item (iii) and industries provided for by Cabinet Order that are referred to in item (iv))
    2. A company and an individual whose number of regular employees is not more than four hundred and who operates business, as a principal business, in the wholesale industry (excluding the industries provided for by Cabinet Order that are referred to in item (iv))
    3. A company and an individual whose number of regular employees is not more than three hundred and who operates business, as a principal business, in the retail or service industries (excluding the industries provided for by Cabinet Order that are referred to in the following item)
    4. A company and an individual whose number of regular employees is not more than the number provided for by Cabinet Order for each industry and who operates business, as a principal business, in the industry provided for by Cabinet Order
    5. An enterprise cooperative
    6. A cooperative partnership
    7. A business cooperative, small business cooperative, commercial and industrial partnership, federation of cooperatives, and other cooperatives and federations established pursuant to special laws that are provided for by Cabinet Order
    8. A general incorporated association whose direct or indirect members are persons listed in the preceding each item (limited to those who meet the requirements provided for by Cabinet Order)
  6. The term “specified business operator or the like” as used in this Act means a person who falls under any of the following:
    1. A specified business operator
    2. A company whose number of regular employees is not more than the number provided for by Cabinet Order and other corporations and individuals provided for by Cabinet Order (excluding those provided for in the preceding item)
  7. The term “new business activity” as used in this Act means the development or production of new goods, development or provision of new services, introduction of new production or sales methods of goods, introduction of new providing methods of services, research and development on technology and utilization of its results, and other new business activities.
  8. The term “development of new business fields by utilizing highly skilled external human resources” as used in this Act means that a new small and medium-sized enterprise operator or the like receives investment and instructions from persons who meet the requirements provided for by Ordinance of the Ministry of Economy, Trade and Industry as persons who make investment in and provide instructions pertaining to new business activities to new small and medium-sized enterprise operators or the like as their business, and conducts new business activities by utilizing highly skilled external human resources (meaning persons other than officers, employees or other workers of the said new small and medium-sized enterprise operator or the like who meet the requirements provided for by Ordinance of the Ministry of Economy, Trade and Industry as persons who have advanced knowledge or skills useful for new business activities, hereinafter the same shall apply), and thereby develops new business fields.
  9. The term “business innovation” as used in this Act means that business operators improve their business to considerable degree by conducting new business activities.
  10. The term “improvement of management capabilities” as used in this Act means that business operators conduct business activities by developing human resources with knowledge or skills useful for business activities, utilizing the results of analysis of financial conditions, utilizing information on trends in demand for goods or services, constructing information systems to improve management efficiency, and introducing other methods of advanced utilization of the management resources currently possessed (meaning equipment, technology, knowledge, and skills possessed by individuals and other resources utilized for business activities, and hereinafter the same shall apply) or the management resources acquired from or provided by other business operators through any of the following acts (hereinafter referred to as “business succession or the like"), and thereby enhance their management capabilities and improve their business
    1. through an absorption-type merger (limited to the case where a company surviving the absorption-type merger provided for in Article 749, paragraph (1), of the Companies Act [Act No. 86 of 2005] and a company disappearing in the absorption-type merger provided for in item (i) of the same paragraph are specified business operators or the like) becoming that company surviving in the absorption-type merger and succeeding all rights and obligations of that company disappearing in the absorption-type merger;
    2. through a consolidation-type merger (limited to the case where a company incorporated in the consolidation-type merger provided for in Article 753, paragraph (1), of the Companies Act and a company disappearing in the consolidation-type merger provided for in item (i) of the same paragraph are specified business operators or the like) establishing that company incorporated in the consolidation-type merger and succeeding all rights and obligations of that company disappearing in the consolidation-type merger;
    3. through an absorption-type company split (limited to the case where a company succeeding in the absorption-type split provided for in Article 757 of the Companies Act and a company splitting in the absorption-type split provided for in Article 758, paragraph (1), item (i), of the same Act are specified business operators or the like) becoming that company succeeding in the absorption-type split and succeeding all or part of the rights and obligations possessed by that company splitting in the absorption-type split in connection with its business;
    4. through an incorporation-type company split (limited to the case where a company incorporated in the incorporation-type split provided for in Article 763, paragraph (1), of the Companies Act and a company splitting in the incorporation-type split provided for in item (v) of the same paragraph are specified business operators or the like) establishing that company incorporated in the incorporation-type split and succeeding all or part of the rights and obligations possessed by that company splitting in the incorporation-type split in connection with its business;
    5. through a share exchange (limited to the case where a wholly owning parent company resulting from the share exchange provided for in Article 767 of the Companies Act and a wholly owned subsidiary company resulting from the share exchange provided for in Article 768, paragraph (1), item (i), of the same Act are specified business operators or the like) becoming that wholly owning parent company resulting from the share exchange and acquiring all issued shares of that wholly owned subsidiary company resulting from the share exchange;
    6. through a share transfer (limited to the case where a wholly owning parent company incorporated in a share transfer provided for in Article 773, paragraph (1), item (i), of the Companies Act and a wholly owned subsidiary company resulting from a share transfer provided for in item (v) of the same paragraph are specified business operators or the like) becoming that wholly owned subsidiary company resulting from a share transfer and having that wholly owning parent company incorporated in a share transfer acquire all of its issued shares;
      vi-2. through share delivery (limited to the case where a share delivery parent company and a share delivery subsidiary company provided for in Article 774-3, paragraph (1), item (i), of the Companies Act are specified business operators or the like) becoming that share delivery parent company and acquiring the shares of that share delivery subsidiary company through transfer;
    7. acquisition of business or assets through transfer (limited to the case where a specified business operator or the like acquires from another specified business operator or the like);
    8. acquisition of shares or equity of other specified business operators or the like (limited to the case where that other specified business operators or the like become affiliated business operators (meaning the persons who have a relationship provided for by ordinance of the competent ministry as a relationship in which their business is considered to be substantially controlled by another business operator) of a specified business operator or the like through the said acquisition by that specified business operator or the like); and
    9. establishment of business cooperatives, enterprise cooperatives, or cooperative partnerships.
  11. The term “successor specified business operator or the like” as used in this Act means a specified business operator or the like when it implements business succession or the like (limited to those pertaining to the acquisition of business through transfer that are the acts listed in items (i) through (iv) of the preceding paragraph and the acts listed in item (vii) of the same paragraph, the same shall apply in the following paragraph, Article 17, paragraph (4), item (i); Article 18, paragraph (3); and Article 27, paragraphs (1) and (2)).
  12. The term “succeeded specified business operator or the like” as used in this Act means another specified business operator or the like in the case where a successor specified business operator or the like succeeds the business from that another specified business operator or the like.
  13. The term “business restructuring investment” as used in this Act means an investment in specified business operators or the like (limited to the investment in specified business operators or the like which intend mainly to improve their management capabilities (limited to the case where business succession or the like is implemented) that meets other requirements provided for by Ordinance of the Ministry of Economy, Trade and Industry) implemented by an investment limited partnership (an investment limited partnership provided for in Article 2, paragraph (2), of the Limited Partnership Act for Investment (Act No. 90 of 1998), the same shall apply in Article 20, paragraph (1), and Article 21, paragraph (1)) and that is provided for by Ordinance of the Ministry of Economy, Trade and Industry as those certainly expected to be along with instructions pertaining to methods of advanced utilization of the management resources toward that specified business operators or the like.
  14. The term “advanced equipment or the like” as used in this Act means facilities, equipment, machines, devices, or programs that utilize technologies that enable processing of large volumes of information compared to conventional processing and other advanced technologies that are provided for by the Ordinance of the Ministry of Economy, Trade and Industry as essential to be introduced quickly for improvement of productivity of small and medium-sized enterprise operators.
  15. The term “enhancement of business continuity capabilities” as used in this Act means that business operators, by considering the influence of natural disasters or significant disturbance of telecommunication or other infrastructures for business activities (hereinafter “natural disasters or the like”) on the business activities, determine the response procedures in the event of natural disasters or the like, install equipment contributing to the mitigation of that influence, conclude nonlife insurance contracts, cooperate and collaborate with parties concerned and take other measures contributing to the mitigation of that influence on the business activities and to continuation of business activities in advance, and enhance the ability to continue business activities in the event of the natural disaster or the like by developing the necessary organizations, conducting training, and making other efforts to ensure the effectiveness of the said measures.

(Basic Policy)
Article 3

  1. The competent minister must establish a basic policy for business enhancement of small and medium-sized enterprises or the like (hereinafter referred to as the "basic policy").
  2. In the basic policy, the following matters shall be provided.
    1. The following matters concerning the promotion of business activities of newly established enterprises
      • (a) The following matters concerning the promotion of business activities of new small and medium-sized enterprises
      • (a-i) A basic direction concerning the promotion of business activities of new small and medium-sized enterprises
      • (a-ii) Matters that should be considered for the promotion of business activities of new small and medium-sized enterprises
      • (b) The following matters concerning the development of new business fields by utilizing highly skilled external human resources
      • (b-i) Matters concerning the details of the development of new business fields by utilizing highly skilled external human resources
      • (b-ii) Matters concerning the details and modes of utilization of knowledge or skills that should be possessed by highly skilled external human resources to be used for the development of new business fields by utilizing highly skilled external human resources
      • (b-iii) Matters that should be considered for the promotion of development of new business fields by utilizing highly skilled external human resources
    2. The following matters concerning the business innovation and the improvement of management capabilities of small and medium-sized enterprises or the like
      • (a) The following matters concerning the business innovation
      • (a-i) Matters concerning the details of the business innovation
      • (a-ii) Matters concerning the implementation methods of the business innovation
      • (a-iii) Matters that should be considered for the maintenance of domestic business infrastructure and other promotions of the business innovation in the case where business for the business innovation is implemented in a foreign country
      • (a-iv) Matters that should be considered for research and development of technologies and for utilization of its results
      • (b) The following matters concerning the improvement of management capabilities
      • (b-i) Matters concerning the details of the improvement of management capabilities
      • (b-ii) Matters concerning the implementation methods of the improvement of management capabilities
      • (b-iii) Matters that should be considered for the maintenance of domestic business infrastructure and other promotions of the improvement of management capabilities in the case where business for the improvement of management capabilities is implemented in a foreign country
      • (b-iv) Matters concerning the details of business restructuring investment
      • (b-v) Matters concerning the implementation methods of business restructuring investment
      • (b-vi) Matters that should be considered for the promotion of business restructuring investment
      • (c) The following matters concerning the development of support system for the business innovation and the improvement of management capabilities
      • (c-i) Matters concerning the details of the support operations for business innovation (meaning the support operations for business innovation provided for in Article 31, paragraph (1), hereinafter the same shall apply in this item)
      • (c-ii) Matters concerning the implementation system of the support operations for business innovation
      • (c-iii) Matters that should be considered for the implementation of the support operations for business innovation
      • (c-iv) Matters concerning the details of the promotional operations for improvement of business field-specific management capabilities (meaning the promotional operations for improvement of business-specific management capabilities provided for in Article 39, paragraph (1), the same shall apply hereinafter in this item)
      • (c-v) Matters concerning the implementation system of the promotional operations for improvement of business-specific management capabilities
      • (c-vi) Matters that should be considered for implementation of the promotional operations for improvement of business-specific management capabilities
      • (c-vii) Matters concerning the details of the support operations for information processing (meaning the support operations for information processing provided for in Article 43, paragraph (1), hereinafter the same shall apply in this item)
      • (c-viii) Matters concerning the implementation system of the support operations for information processing
      • (c-ix) Matters that should be considered for implementation of the support operations for information processing
    3. The following matters concerning the promotion of introduction of advanced equipment or the like for small and medium-sized enterprises
      • (a) Matters concerning the setting of a goal of promotion of introduction of advanced equipment or the like
      • (b) Basic matters concerning the promotion of introduction of advanced equipment or the like
      • (c) Matters that should be considered for the promotion of introduction of advanced equipment or the like
    4. The following matters concerning the enhancement of business continuity capabilities of small and medium-sized enterprises
      • (a) The following matters concerning the details of the enhancement of business continuity capabilities implemented solely
      • (a-i) Response procedures in the event of a natural disaster or the like
      • (a-ii) Equipment, machines, and devices contributing to the enhancement of business continuity capabilities
      • (a-iii) Methods to raise funds to continue business activities
      • (a-iv) Cooperation pertaining to the enhancement of business continuity capabilities by parent businesses (parent businesses provided for in Article 2, paragraph (2) of the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises (Act No. 145, 1970), hereinafter the same shall apply), government-affiliated financial institutions and other persons
      • (a-v) Efforts to secure practicability of the enhancement of business continuity capabilities
      • (a-vi) Beyond what is provided for in (a-i) through (a-v) above, measures and efforts contributing to the enhancement of business continuity capabilities
      • (b) The following matters concerning the details of the enhancement of business continuity capabilities implemented in collaboration (hereinafter “collaborative enhancement of business continuity capabilities”)
      • (b-i) Methods of collaboration in the collaborative enhancement of business continuity capabilities
      • (b-ii) Equipment, machines, and devices contributing to the enhancement of business continuity capabilities
      • (b-iii) Cooperation pertaining to the collaborative enhancement of business continuity capabilities by local governments, commercial and industrial associations, chambers of commerce and industry, federations of small business associations, and other persons
      • ​(b-iv) Efforts to secure practicability of the collaborative enhancement of business continuity capabilities
      • (c) Matters that should be considered for the promotion of the enhancement of business continuity capabilities
  3. When the competent minister establishes or intends to change the basic policy, the minister must consult with the heads of the relevant administrative organs in advance and hear the opinions from the small and medium-sized enterprise policymaking council and the industrial structure council. Provided, however, that this shall not apply for minor changes provided for by ordinance of the competent ministry.
  4. When the competent minister establishes or intends to change the basic policy, the minister must make it public without delay.

Chapter 2 Promotion of Business Activities of Newly Established Enterprises

Section 1 Promotion of Business Activities of New Small and Medium-Sized Enterprises

Article 4 Deleted
(Special Provisions for the Small and Medium-Sized Enterprise Investment Business Corporation Act)
Article 5
  1. A small and medium-sized enterprise investment business corporation may engage in the following businesses in addition to the business listed in each item of Article 5, paragraph (1), of the Small and Medium-sized Enterprise Investment Business Corporation Act (Act No. 101 of 1963).
    1. Subscription for shares issued by a new small and medium-sized enterprise operator when it establishes a corporation with stated capital exceeding three hundred million yen, and possession of shares pertaining to the said subscription
    2. Subscription for shares, share options (excluding those attached to a corporate bond with share options), corporate bonds with share options or the like (meaning the corporate bonds with share options or the like provided for in Article 5, paragraph (1), item (ii), of the Small and Medium-Sized Enterprise Investment Business Corporation Act, hereinafter the same shall apply) issued by a new small and medium-sized enterprise operator who is a corporation with stated capital exceeding three hundred million yen to raise necessary funds, and possession of shares, share options (including shares issued or transferred through the exercise of the share options), or corporate bonds with share options or the like (including shares issued or transferred through the exercise of share options attached to the corporate bond with share options or the like) pertaining to the said subscription
  2. With respect to the application of the Small and Medium-Sized Enterprise Investment Business Corporation Act, the business listed in each item of the preceding paragraph is deemed as the businesses provided for in Article 5, paragraph (1), items (i) and (ii), of the same Act.
(Diagnosis and Instruction)
Article 6

For companies that are new small and medium-sized enterprise operators who meet the requirements provided for by Ordinance of the Ministry of Economy, Trade and Industry as particularly necessary and appropriate to actively receive external investment and conduct business activities in order to promote the future growth and development of their business (in the next article referred to as the “specified new small and medium-sized enterprise operator”), the Minister of Economy, Trade and Industry shall diagnose and provide instructions with respect to provision of information on management status necessary for smooth fundraising through investments.

(Special Provisions for Taxation)
Article 7

When an individual acquires shares issued by a specified new small and medium-sized enterprise operator (limited to the case where the said acquisition of shares is confirmed by the Minister of Economy, Trade and Industry in accordance with the provisions of the ordinance of the Ministry of Economy, Trade and Industry), and when a capital loss or the like occurs with respect to the said shares, special provisions for taxation such as carryover deductions or the like shall apply for the said capital loss or the like in accordance with the provisions of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957).

Section 2 Development of New Business Fields by Utilizing External Highly Skilled Human Resources

(Accreditation of a Plan for Development of New Business Fields by Utilizing External Highly Skilled Human Resources)
Article 8
  1. A new small and medium-sized enterprise operator or the like who intends to develop new business fields by utilizing highly skilled external human resources may prepare a plan for development of new business fields by utilizing highly skilled external human resources (hereinafter in this article and the following article, referred to as a “plan for development of new business fields by utilizing highly skilled external human resources”), and submit it to the competent minister and obtain accreditation as the plan is appropriate in accordance with the provisions of ordinance of the competent ministry.
  2. In the plan for development of new business fields by utilizing highly skilled external human resources, the following matters must be stated.
    1. Objectives of the development of new business fields by utilizing highly skilled external human resources
    2. Details and implementation period of the development of new business fields by utilizing highly skilled external human resources
    3. Details and modes of utilization of the knowledge and skills possessed by highly skilled external human resources to be utilized for the development of new business fields by utilizing highly skilled external human resources
    4. In the case where share options of the new small and medium-sized enterprise operator or the like are given to the highly skilled external human resources as remuneration for the provision of their knowledge or skills, details of the said remuneration
    5. Amounts and raising methods of funds necessary for implementation of the development of new business fields by utilizing highly skilled external human resources
  3. When an application for the accreditation of paragraph (1) is filed, and when the competent minister finds that the plan for development of new business fields by utilizing highly skilled external human resources pertaining to the said application conforms to all of the following, the minister shall grant its accreditation.
    1. Matters listed in items (i) through (iii) of the preceding paragraph are appropriate in light of the basic policy.
    2. Demand for new goods or services pertaining to the development of new business fields by utilizing highly skilled external human resources is cultivated significantly, or through the introduction of new methods of production or sales of the goods pertaining to the development of new business fields by utilizing highly skilled external human resources, new demand for the said goods or services is significantly cultivated.
    3. Matters listed in items (ii) through (v) of the preceding paragraph are appropriate for secure implementation of the development of new business fields by utilizing highly skilled external human resources.
(Changes in the Plan for Development of New Business Fields by Utilizing External Highly Skilled Human Resources)
Article 9
  1. When a new small and medium-sized enterprise operator or the like who obtained accreditation of paragraph (1) of the preceding article (in Articles 12 and 13, referred to as “accredited new small and medium-sized enterprise operator or the like”) intends to change the plan for development of new business fields by utilizing highly skilled external human resources pertaining to the said accreditation, it must be accredited by the competent minister in accordance with the provisions of the ordinance of the competent ministry.
  2. When the competent minister finds that the business pertaining to the development of new business fields by utilizing highly skilled external human resources is not implemented in accordance with the plan for development of new business fields by utilizing highly skilled external human resources pertaining to the accreditation of paragraph (1) of the preceding article (or the changed plan, if any changes are accredited pursuant to the preceding paragraph, hereinafter “accredited plan for development of new business fields by utilizing highly skilled external human resources”), the minister may withdraw its accreditation.
  3. Provisions of paragraph (3) of the preceding article shall apply mutatis mutandis to the accreditation of paragraph (1).
(Special Provisions for the Small and Medium-Sized Enterprise Credit Insurance Act)
Article 10
  1. With respect to the application of the provisions of the Small and Medium-Sized Enterprise Credit Insurance Act (Act No. 264 of 1950) listed in the left-hand column of the following table to insurance relationships of ordinary insurance provided for in Article 3, paragraph (1), of the same Act (hereinafter “ordinary insurance”), unsecured insurance provided for in Article 3-2, paragraph (1), of the same Act (hereinafter “unsecured insurance”), or special petty insurance provided for in Article 3-3, paragraph (1), of the same Act (hereinafter “special petty insurance”) that pertain to a small and medium-sized enterprise operator who has received a guarantee related to the development of new business fields by utilizing highly skilled external human resources (meaning a guarantee of obligations provided for in Article 3, paragraph (1); Article 3-2, paragraph (1); or Article 3-3, paragraph (1), of the same Act that pertains to funds necessary for an accredited business for development of new business fields by utilizing highly skilled external human resources [meaning the business pertaining to the development of new business fields by utilizing highly skilled external human resources implemented in accordance with an accredited plan for development of new business fields by utilizing highly skilled external human resources, hereinafter the same shall apply], hereinafter the same shall apply in this article), the phrases listed in the middle column of the same table as used in those provisions shall be deemed to be replaced with the phrases listed in the right-hand column of the same table.
    Article 3, paragraph (1) the total amount of insurance value the total amount of insurance value of insurance relationships pertaining to a guarantee related to the development of new business fields by utilizing highly skilled external human resources provided for in Article 10, paragraph (1), of the Small and Medium-Sized Enterprises Business Enhancement Act (hereinafter referred to as “guarantee related to the development of new business fields by utilizing highly skilled external human resources”) and the total amount of insurance value of other insurance relationships, respectively
    Article 3-2, paragraph (1) and Article 3-3, paragraph (1) the total amount of insurance value the total insurance value of the insurance relationships pertaining to the guarantee related to the development of new business fields by utilizing highly skilled external human resources and the total amount of insurance value of other insurance relationships, respectively
    Article 3-2, paragraph (3) and Article 3-3, paragraph (2) out of the amount of the borrowings out of the respective amount of the borrowings for each guarantee related to the development of new business fields by utilizing highly skilled external human resources and other guarantees
    that debtor that debtor for the guarantee related to the development of new business fields by utilizing highly skilled external human resources and other guarantees, respectively
  2. With respect to the application of the provisions of Article 3-7, paragraphs (1) and (2), of the Small and Medium-Sized Enterprise Credit Insurance Act to insurance relationships of overseas investment-related insurance provided for in Article 3-7, paragraph (1), of the same Act (hereinafter “overseas investment-related insurance”) that pertain to a small and medium-sized enterprise operator who has received the guarantee related to the development of new business fields by utilizing highly skilled external human resources, the phrases “two hundred million yen” and “four hundred million yen” as used in paragraph (1) of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than funds necessary for the accredited business for the development of new business fields by utilizing highly skilled external human resources provided for in Article 10, paragraph (1), of the Small and Medium-sized Enterprises Business Enhancement Act (hereinafter “business funds for the development of new business fields by utilizing highly skilled external human resources”)” and “six hundred million yen (or four hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the business funds for the development of new business fields by utilizing highly skilled external human resources),” respectively, and the phrase “two hundred million yen” as used in paragraph (2) of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the business funds for the development of new business fields by utilizing highly skilled external human resources).”
  3. With respect to the application of the provisions of Article 3-8, paragraphs (1) and (2), of the Small and Medium-Sized Enterprise Credit Insurance Act to insurance relationships of new business development insurance provided for in Article 3-8, paragraph (1), of the same Act (hereinafter referred to as “new business development insurance”) that pertain to a small and medium-sized enterprise operator who has received a guarantee related to the development of new business fields by utilizing highly skilled external human resources, the phrases “two hundred million yen” and “four hundred million yen” as used in paragraph (1) of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than funds necessary for the accredited business for the development of new business fields by utilizing highly skilled external human resources provided for in Article 10, paragraph (1), of the Small and Medium-Sized Enterprises Business Enhancement Act (hereinafter referred to as “business funds for the development of new business fields by utilizing highly skilled external human resources”)” and “six hundred million yen (or four hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the business funds for the development of new business fields by utilizing highly skilled external human resources), respectively, and the phrase “two hundred million yen” as used in paragraph (2) of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the business funds for the development of new business fields by utilizing highly skilled external human resources).”
  4. With respect to the application of the provisions of Article 3, paragraph (2), and Article 5 of the Small and Medium-Sized Enterprise Credit Insurance Act to insurance relationships of ordinary insurance that pertain to the guarantee related to the development of new business fields by utilizing highly skilled external human resources, the phrase “seventy percent” as used in the same paragraph and the phrase "seventy percent (or eighty percent in the case of unsecured insurance, special petty insurance, current assets-backed insurance, pollution prevention insurance, energy conservation insurance, overseas investment-related insurance, new business development insurance, business restructuring insurance, and specific corporate bond insurance)" as used in the same article shall be deemed to be replaced with "eighty percent."
  5. Notwithstanding the provisions of Article 4 of the Small and Medium-Sized Enterprise Credit Insurance Act, the amount of insurance premiums for insurance relationships of ordinary insurance, unsecured insurance, or special petty insurance that pertain to a guarantee related to the development of new business fields by utilizing highly skilled external human resources shall be the amount obtained by multiplying the insured amount by the rate provided for by Cabinet Order within two percent per annum.
(Special Provisions for the Small and Medium-Sized Enterprise Investment Business Corporation Act)
Article 11
  1. A small and medium-sized enterprise investment business corporation may engage in the following businesses in addition to the business listed in each item of Article 5, paragraph (1), of the Small and Medium-Sized Enterprise Investment Business Corporation Act.
    1. Subscription for shares issued by a small and medium-sized enterprise operator when it establishes a corporation with stated capital exceeding three hundred million yen to implement the accredited business for the development of new business fields by utilizing highly skilled external human resources, and possession of shares pertaining to the said subscription
    2. Subscription for shares, share options (excluding those attached to a corporate bond with share options), corporate bonds with share options, or the like issued by a small and medium-sized enterprise operator who is a corporation with stated capital exceeding three hundred million yen to raise funds necessary to implement the accredited business for the development of new business fields by utilizing highly skilled external human resources, and possession of shares, share options (including shares issued or transferred through the exercise of the share options), corporate bonds with share options, or the like (including shares issued or transferred through the exercise of share options attached to the corporate bonds with share options or the like) pertaining to the said subscription
  2. With respect to the application of the Small and Medium-Sized Enterprise Investment Business Corporation Act, the business listed in each item of the preceding paragraph shall be deemed as the businesses provided for in Article 5, paragraph (1), items (i) and (ii), of the same Act.
(Promotional Operations for Development of New Business Fields by Utilizing External Highly Skilled Human Resources Implemented by Independent Administrative Agency, Organization for Small and Medium Enterprises and Regional Innovation, Japan)
Article 12

In order to promote the development of new business fields by utilizing highly skilled external human resources, an independent administrative agency, Organization for Small and Medium Enterprises and Regional Innovation, Japan (hereinafter “Organization for Small and Medium Enterprises and Regional Innovation”) implements an operation of guarantee of obligations pertaining to borrowing of funds required by accredited new small and medium-sized enterprise operators or the like for implementation of the accredited business for the development of new business fields by utilizing highly skilled external human resources and guarantee of obligations pertaining to corporate bonds (excluding short-term corporate bonds provided for in Article 66, item (i) of the Act on Book Entry Transfer of Corporate Bonds and Shares (Act No. 75 of 2001), the same shall apply in Article 25, paragraph (1)) issued by accredited new small and medium-sized enterprise operators or the like to raise the said funds.

(Special Provisions for Taxation)
Article 13

When a highly skilled external person who is engaged in the development of new business fields by utilizing highly skilled external human resources implemented in accordance with an accredited plan for development of new business fields by utilizing highly skilled external human resources acquires shares of an accredited new small and medium-sized enterprise operator or the like (limited to companies that meet requirements provided for by ordinance of the competent ministry with respect to capital amounts and other matters) who implements the said development of new business fields by utilizing highly skilled external human resources through the exercise of share options given from the said small and medium-sized enterprise operator or the like in accordance with the said plan, special provisions for taxation shall apply with respect to the economic benefit pertaining to the said acquisition of shares in accordance with the provisions of the Act on Special Measures Concerning Taxation.

Chapter 3 Business Innovation and Improvement of Management Capabilities of Small and Medium-Sized Enterprises or the like

Section 1 Business innovation

(Approval of Business Innovation Plan)
Article 14
  1. A specified business operator may prepare a plan for business innovation to be implemented independently or jointly (in the case where the specified business operator intends to establish a partnership or association listed in Article 2, paragraph (5), items (v) through (vii), or a company, a plan for business innovation implemented by the specified business operator jointly with its partnership, association, or company is included, and in the case where the specified business operator intends to establish a company through merger, a plan for business innovation implemented by the company established through merger (including a surviving company after merger) is included, and in the case where the specified business operator intends to implement the business innovation jointly with the whole or part of its affiliated foreign corporation or the like (meaning the corporations established in accordance with laws of foreign countries and other foreign organizations (including those to be established newly) that have a relationship as provided for by Ordinance of the Ministry of Economy, Trade and Industry as a relationship in which a specified business operator substantially controls the management of that corporations or organizations, hereinafter the same shall apply in this chapter), a plan for business innovation implemented by the specified business operator jointly with the affiliated foreign corporation or the like is included, hereinafter “business innovation plan”), and may submit it to the administrative authority and obtain approval as the business innovation plan is appropriate in accordance with the provisions of the ordinance of the Ministry of Economy, Trade and Industry. Provided, however, that when the specified business operator jointly prepares the business innovation plan, the operator shall appoint a representative and submit the plan to the administrative authority in accordance with the provisions of the ordinance of the Ministry of Economy, Trade and Industry.
  2. In the business innovation plan, the following matters must be stated.
    1. Objectives of the business innovation
    2. Indicator of the degree of improvement of management through the business innovation
    3. (iii) Details and implementation period of the business innovation 
    4. Amount and raising methods of funds necessary for implementation of the business innovation
    5. When the specified business operator (limited to those listed in Article 2, paragraph (5), items (vii) and (viii)) intends to impose contributions on its direct or indirect members to cover the cost of testing and research pertaining to the business innovation, criteria for the imposition of contributions
  3. When an application for approval of paragraph (1) is filed, and when the administrative authority finds that the business innovation plan pertaining to the said application conforms to all of the following, the administrative authority shall grant its approval.
    1. Matters listed in items (i) through (iii) of the preceding paragraph are appropriate in light of the basic policy.
    2. Matters listed in items (iii) through (iv) of the preceding paragraph are appropriate for secure implementation of the business innovation;
    3. When contributions are imposed as provided for in item (v) of the preceding paragraph, criteria for the imposition is appropriate.
(Changes in the Business Innovation Plan)
Article 15
  1. When a specified business operator who obtained approval of paragraph (1) of the preceding article intends to change the business innovation plan pertaining to the said approval, it must be approved by the administrative authority that granted the said approval in accordance with the provisions of the ordinance of the Ministry of Economy, Trade and Industry.
  2. When the administrative authority finds that the business innovation is not implemented in accordance with the business innovation plan pertaining to the approval of paragraph (1) of the preceding article (or the changed plan, if any changes are approved pursuant to the provisions of the preceding paragraph, hereinafter “approved business innovation plan”), the authority may withdraw its approval.
  3. Provisions of paragraph (3) of the preceding article shall apply mutatis mutandis to the approval of paragraph (1).

Section 2 Improvement of Management capabilities

(Business Field-Specific Guidelines)
Article 16
  1. The competent minister may, based on the basic policy, designate business fields in which improvement of management capabilities of specified business operators or the like is recognized as particularly necessary among business fields pertaining to its jurisdiction, and set guidelines concerning the improvement of management capabilities in those business fields (hereinafter “business field-specific guidelines”).
  2. In the business field-specific guidelines with respect to the matters listed in Article 3, paragraph (2), item (ii), (b) and (c-iv) through (c-vi), the method of introducing a method of advanced utilization of management resources in the relevant business field and other matters necessary for the improvement of management capabilities in the relevant business field shall be provided.
  3. When the competent minister finds it necessary by considering changes in the environment surrounding business operators and other circumstances, the minister shall change the business field-specific guidelines.
  4. When the competent minister provides or changes the business field-specific guidelines, the minister shall hear the opinions regarding the relevant business field from experts and other persons concerned in advance. Provided, however, that this shall not apply to minor changes provided for by ordinance of the competent ministry.
  5. When the competent minister provides or changes the business field-specific guidelines, the minister must make it public without delay.
(Accreditation of Management capability improvement plan)
Article 17
  1. A specified business operator or the like may prepare a plan for improvement of management capabilities to be implemented independently or jointly (in the case where the specified business operator or the like intends to establish a partnership or association listed in Article 2, paragraph (5), items (v) through (vii), a company or a corporation provided for by Cabinet Order that is referred to in paragraph (6), item (ii), of the same article [hereinafter in this paragraph, simply referred to as “corporation”], a plan for improvement of management capabilities implemented by the specified business operator jointly with its partnership, association, company, or corporation is included, and in the case where the specified business operator or the like intends to establish a company or corporation through merger, a plan for improvement of management capabilities implemented by the company or corporation established through merger [including a surviving company or corporation after merger] is included, and in the case where the specified business operator or the like intends to implement the improvement of management capabilities jointly with the whole or part of its affiliated foreign corporation or the like, a plan for improvement of management capabilities implemented by the specified business operator jointly with the affiliated foreign corporation or the like is included, hereinafter “management capability improvement plan”), and may submit it to the competent minister and obtain accreditation as the management capability improvement plan is appropriate, in accordance with the provisions of ordinance of the competent ministry. Provided, however, that when the specified business operator or the like jointly prepares the management capability improvement plan, it shall appoint a representative and submit the plan to the competent minister in accordance with the provisions of ordinance of the competent ministry.
  2. In the management capability improvement plan, the following matters must be stated.
    1. Objectives of the improvement of management capabilities
    2. Indicator of the degree of improvement of management capabilities through the improvement of management capabilities
    3. Details and implementation period of the improvement of management capabilities (when the business succession or the like is implemented, include its implementation period)
    4. Amount and raising methods of funds necessary for implementation of the improvement of management capabilities
    5. Types of equipment or the like for the improvement of management capabilities
  3. The term “equipment or the like for the improvement of management capabilities” in item (v) of the preceding paragraph means facilities, equipment, machines, devices, or programs used for the production or sale of goods or the provision of services, which are provided for by Ordinance of the Ministry of Economy, Trade and Industry as being particularly contributing to the improvement of management capabilities.
  4. In the management capability improvement plan, the following matters may be stated as the matters listed in paragraph (2), item (iii).
    1. Matters concerning a status of succeeded specified business operator or the like based on the specified permission (meaning the permission provided for in Article 2, item (iii), of the Administrative Procedure Act (Act No. 88 of 1993) that is provided for by Cabinet Order that, when the succeeded specified business operator or the like has a status based on the said permission, the succession of the said status by a successor specified business operator or the like is particularly contributing to the facilitation of the improvement of management capabilities, hereinafter the same shall apply) that the said successor specified business operator or the like intends to succeed through business succession or the like for the improvement of management capabilities
    2. Matters concerning a survey to be conducted from legal, financial, tax, and other perspectives (in the next article, paragraph (2), and Article 22, paragraph (1), referred to as “preliminary survey on business succession or the like”) with respect to whether there is a possibility of damage because the management resources acquired or to be acquired by the specified business operator or the like through business succession or the like does not have the functions and other elements necessary to be used in an integrated manner with other management resources.
  5. In the management capability improvement plan as the matters listed in paragraph (2), item (iv), it may be stated that the amount of net assets of the specified business operator is above a certain amount and that the specified business operator meets other requirements provided for by Ordinance of the Ministry of Economy, Trade and Industry.
  6. When an application for accreditation of paragraph (1) is filed, and when the competent minister finds that the management capability improvement plan pertaining to the said application conforms to all of the following, the minister shall grant its accreditation.
    1. Matters listed in items (i) through (iii) of paragraph (2) are appropriate in light of the business field-specific guidelines (or the basic policy in the case where the business field-specific guidelines are not provided for the business field pertaining to the said management capability improvement plan)
    2. Matters listed in items (iii) through (v) of paragraph (2) are appropriate for secure implementation of the improvement of management capabilities.
  7. When the management capability improvement plan states a status of succeeded specified business operator or the like based on the specified permission provided for in paragraph (4), item (i), and when the competent minister intends to grant accreditation of paragraph (1), the minister shall consult with the administrative authority that granted the said specified permission and obtain its consent.
  8. The administrative authority may request the competent minister and the person who has applied for the accreditation of paragraph (1) to provide the information necessary for the consent of the preceding paragraph.
  9. The administrative authority shall determine whether or not to give the consent of paragraph (7), taking into consideration the purpose of the provisions that serve as the grounds for granting the said specified permission.
  10. Beyond what is provided for in the preceding three paragraphs, matters necessary with respect to the consent of paragraph (7) shall be provided for by Cabinet Order.
(Changes in the Management Capability Improvement Plan)
Article 18
  1. When a specified business operator or the like who obtained accreditation of paragraph (1) of the preceding article intends to change the management capability improvement plan pertaining to the said accreditation, it must be accredited by the competent minister who granted the said accreditation in accordance with the provisions of ordinance of the competent ministry.
  2. When the competent minister finds that the business pertaining to the improvement of management capabilities (including a preliminary survey of business succession or the like, if the matters listed in paragraph (4), item (ii), of the preceding article are stated in the accredited management capability improvement plan) is not implemented in accordance with the management capability improvement plan pertaining to the accreditation of paragraph (1) of the preceding article (or the changed plan, if any changes are accredited pursuant to the provisions of the preceding paragraph, hereinafter “accredited management capability improvement plan”), the minister may withdraw its accreditation.
  3. When an application for accreditation of change pursuant to the provisions of paragraph (1) has been filed before the succession of business or the like takes place in accordance with the accredited management capability improvement plan, and the said change falls under any of the following, and when the competent minister intends to grant accreditation of the same paragraph, the minister shall consult with the administrative authority provided for in the relevant each item and obtain consent from the said administrative authority.
    1. Changes in the management capability improvement plan pertaining to the accreditation of paragraph (1) of the preceding article with consent pursuant to the provision of paragraph (7) of the same article: Administrative authority provided for in paragraph (7) of the same article (when the said changes are intended to delete all or part of the statement of the status of succeeded specified business operator or the like based on the specified permission, the administrative authority that granted the said specified permission pertaining to the said deletion is excluded)
    2. Changes that are intended to newly state the status of succeeded specified business operator or the like based on the specified permission: Administrative authority that granted the said specified permission
  4. Provisions of paragraph (6) of the preceding article and the provisions of paragraphs (8) through (10) of the same article shall apply mutatis mutandis to the accreditation of paragraph (1) and to the consent of the preceding paragraph, respectively.
(Request for Cooperation)
Article 19

When the competent minister finds it necessary for enforcement of the provisions of the preceding two articles, the minister may request an accredited business field-specific management capability improvement promotion organization provided for in Article 39, paragraph (2), to submit materials and provide other necessary cooperation.

(Accreditation of Business Restructuring Investment Plan)
Article 20
  1. An investment business limited partnership that intends to invest for business restructuring may prepare a plan for business restructuring investment (hereinafter in this article and the following article, referred to as “business restructuring investment plan”) and may submit it to the Minister of Economy, Trade and Industry and obtain accreditation as the business restructuring investment plan is appropriate in accordance with the provisions of the ordinance of the Ministry of Economy, Trade and Industry.
  2. In the business restructuring investment plan, the following matters must be stated.
    1. Details and implementation period of the business restructuring investment
    2. Amount and raising methods of funds necessary for implementation of the business restructuring investment
  3. When an application for accreditation of paragraph (1) is filed, and when the Minister of Economy, Trade and Industry finds that the business restructuring investment pertaining to the said application conforms to all of the following, the Minister shall grant its accreditation.
    1. Matters listed in item (i) of the preceding paragraph are appropriate in light of the basic policy.
    2. Matters listed in each item of the preceding paragraph are appropriate for secure implementation of the business restructuring investment.
(Changes in the Business Restructuring Investment Plan)
Article 21
  1. When an investment business limited partnership that obtained accreditation of paragraph (1) of the preceding article (hereinafter “accredited business restructuring investment partnership”) intends to change the business restructuring investment plan pertaining to the said accreditation, it must be accredited by the Minister of Economy, Trade and Industry in accordance with the provisions of the ordinance of the Minister of Economy, Trade and Industry.
  2. When the Minister of Economy, Trade and Industry finds that the business restructuring investment is not implemented in accordance with the business restructuring investment plan pertaining to the accreditation of paragraph (1) of the preceding article (or the changed plan, if any changes are accredited pursuant to the provisions of the preceding paragraph, hereinafter “accredited business restructuring investment plan”), the Minister may withdraw its accreditation.
  3. Provisions of paragraph (3) of the preceding article shall apply mutatis mutandis to the accreditation of paragraph (1).

Section 3 Support Measures

(Special Provisions for the Small and Medium-Sized Enterprise Credit Insurance Act)
Article 22
  1. Among specified business operators (limited to those listed in items (i) through (iv) of Article 2, paragraph (5), and excluding those equivalent to the small and medium-sized enterprise operator provided for in Article 2, paragraph (1), of the Small and Medium-Sized Enterprise Credit Insurance Act) who implement the approved business for the business innovation (meaning the business for the business innovation implemented in accordance with the approved business innovation plan, hereinafter the same shall apply) or accredited business for the improvement of management capabilities (meaning the business pertaining to the improvement of management capabilities implemented in accordance with the accredited management capability improvement plan [including the preliminary survey of business succession or the like, in the case where the matters listed in Article 17, paragraph (4), item (ii), are stated in the said accredited management capability improvement plan], hereinafter the same shall apply in this paragraph, Article 25, paragraph (1), and Chapter 6) with respect to those who engage in the specified business provided for in Article 2, paragraph (1), item (i), of the same Act and who have received a guarantee related to the business innovation (meaning a guarantee of obligations provided for in Article 3, paragraph (1), Article 3-2, paragraph (1) or Article 3-3, paragraph (1), of the same Act, which pertains to funds necessary for the approved business for the business innovation, hereinafter the same shall apply in this article) or a guarantee related to the improvement of management capabilities (meaning a guarantee of obligations provided for in Article 3, paragraph (1), Article 3-2, paragraph (1) or Article 3-3, paragraph (1), of the same Act, which pertains to funds necessary for the accredited business for the improvement of management capabilities that are provided for by Ordinance of the Ministry of Economy, Trade and Industry as being particularly contributing to the improvement of management capabilities, hereinafter the same shall apply in this article), those specified business operators shall be deemed as small and medium-sized enterprise operators provided for in Article 2, paragraph (1), of the same Act, and the provisions of Articles 3 through 3-3, Article 3-7, Article 3-8, and Articles 4 through 8 shall be applied. In this case, the phrase “the borrowing” as used in Article 3 through Article 3-3, Article 3-7, and Article 3-8 of the same Act shall be deemed to be replaced with “the borrowing of funds necessary for implementation of the approved business for the business innovation or the accredited business for the improvement of management capabilities provided for in Article 22, paragraph (1), of the Small and Medium-Sized Enterprises Business Enhancement Act.”
  2. With respect to the application of the provisions of the Small and Medium-Sized Enterprise Credit Insurance Act listed in the left-hand column of the following table (including the application pursuant to the provision of the preceding paragraph, the same shall apply in paragraphs (5) and (6)) to insurance relationships of ordinary insurance, unsecured insurance, or special petty insurance that pertain to a specified business operator who has received a guarantee related to the business innovation, the phrases listed in the middle column of the same table as used in those provisions shall be deemed to be replaced with the phrases listed in the right-hand column of the same table.
    Article 3, paragraph (1) the total amount of insurance value the total amount of insurance value of insurance relationships pertaining to a guarantee related to the business innovation (hereinafter “business innovation-related guarantee”) provided for in Article 22, paragraph (1), of the Small and Medium-Sized Enterprises Business Enhancement Act and the total amount of insurance value of other insurance relationships, respectively
    Article 3-2, paragraph (1), and Article 3-3, paragraph (1) the total amount of insurance value the total amount of insurance value of insurance relationships pertaining to the business innovation-related guarantee and the total amount of insurance value of other insurance relationships, respectively
    Article 3-2, paragraph (3), and Article 3-3, paragraph (2) out of the amount of that borrowings out of the respective amount of that borrowings for each of the business innovation-related guarantee and other guarantees
    that debtor that debtor for the business innovation-related guarantee and other guarantees, respectively
  3. With respect to the application of the provisions of Article 3-7, paragraphs (1) and (2), of the Small and Medium-Sized Enterprise Credit Insurance Act (including the application pursuant to the provision of paragraph (1), the same shall apply in paragraph (7)) to insurance relationships of overseas investment-related insurance that pertain to a specified business operator who has received the business innovation-related guarantee, the phrases “two hundred million yen” and “four hundred million yen” as used in paragraph (1), of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than funds necessary for the approved business for the business innovation provided for in Article 22, paragraph (1), of the Small and Medium-Sized Enterprises Business Enhancement Act (hereinafter, “business funds for the business innovation”)” and “six hundred million yen (or four hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the business funds for the business innovation),” respectively, and the phrase “two hundred million yen” as used in paragraph (2) of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the business funds for the business innovation).”
  4. With respect to the application of the provisions of Article 3-8, paragraphs (1) and (2), of the Small and Medium-Sized Enterprise Credit Insurance Act (including the application pursuant to the provision of paragraph (1), the same shall apply in paragraph (8)) to insurance relationships of new business development insurance that pertain to a specified business operator who has received the business innovation-related guarantee, the phrases “two hundred million yen” and “four hundred million yen” as used in paragraph (1), of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than funds necessary for an approved business for the business innovation provided for in Article 22, paragraph (1), of the Small and Medium-Sized Enterprises Business Enhancement Act (hereinafter, “business funds for the business innovation”)” and “six hundred million yen (or four hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the business funds for the business innovation),” and the phrase “two hundred million yen” as used in paragraph (2) of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the business funds for the business innovation).”
  5. With respect to the application of the provisions of the Small and Medium-Sized Enterprise Credit Insurance Act listed in the left-hand column of the following table to insurance relationships of ordinary insurance, unsecured insurance, or special petty insurance that pertain to a specified business operator who has received a guarantee related to the improvement of management capabilities, the phrases listed in the middle column of the same table as used in those provisions shall be deemed to be replaced with the phrases listed in the right-hand column of the same table.
    Article 3, paragraph (1) the total amount of insurance value the total amount of insurance value of insurance relationships pertaining to a guarantee related to the improvement of management capabilities (hereinafter “management capability improvement-related guarantee”) provided for in Article 22, paragraph (1), of the Small and Medium-Sized Enterprises Business Enhancement Act and the total amount of insurance value of other insurance relationships, respectively
    Article 3-2, paragraph (1), and Article 3-3, paragraph (1) the total amount of insurance value the total amount of insurance value of insurance relationships pertaining to the management capability improvement-related guarantee and the total amount of insurance value of other insurance relationships, respectively
    Article 3-2, paragraph (3), and Article 3-3, paragraph (2) out of the amount of that borrowings out of the respective amount of that borrowings for each of the management capability improvement-related guarantee and other guarantees
    that debtor that debtor for the management capability improvement-related guarantee and other guarantees, respectively
  6. Notwithstanding the provisions of the preceding paragraph with respect to the application of the provisions of the Small and Medium-Sized Enterprise Credit Insurance Act listed in the left-hand column of the following table to insurance relationships of ordinary insurance, unsecured insurance, or special petty insurance pertaining to a specified business operator who has received the management capability improvement-related guarantee pertaining to funds necessary for business succession of the like implemented in accordance with an accredited management capability improvement plan (limited to those that has statements pursuant to the provisions of Article 17, paragraph (5)) (in Article 30, paragraph (2), referred to as “special management capability improvement-related guarantee”), the phrases listed in the middle column of the same table as used in those provisions shall be deemed to be replaced with the phrases listed in the right-hand column of the same table.
    Article 3, paragraph (1) including…) including…) that do not allow the provision of a guarantor's guarantee with respect to that guarantee
    the total amount of insurance value the total amount of insurance value of insurance relationships pertaining to the management capability improvement-related guarantee provided for in Article 22, paragraph (1), of the Small and Medium-Sized Enterprises Business Enhancement Act (including the special management capability improvement-related guarantee provided for in paragraph (6) of the same article, hereinafter “management capability improvement-related guarantee”) and the total amount of insurance value of other insurance relationships, respectively
    Article 3-2, paragraph (1) excluding a guarantor’s guarantee including a guarantor’s guarantee
    Article 3-2, paragraph (1), and Article 3-3, paragraph (1) the total amount of insurance value the total amount of insurance value of insurance relationships pertaining to the management capability improvement-related guarantee and the total amount of insurance value of other insurance relationships, respectively
    Article 3-2, paragraph (3) and Article 3-3, paragraph (2) out of the amount of that borrowings out of the respective amount of that borrowings for each of the management capability improvement-related guarantee and other guarantees
    that debtor that debtor for the management capability improvement-related guarantee and other guarantees, respectively
  7. With respect to the application of the provisions of Article 3-7, paragraphs (1) and (2), of the Small and Medium-Sized Enterprise Credit Insurance Act to insurance relationships of overseas investment-related insurance that pertain to a specified business operator who has received the management capability improvement-related guarantee, the phrases “two hundred million yen” and “four hundred million yen” as used in paragraph (1) of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than funds necessary for the accredited business for the improvement of management capabilities provided for in Article 22, paragraph (1), of the Small and Medium-sized Enterprises Business Enhancement Act (hereinafter “business funds for the improvement of management capabilities”)” and “six hundred million yen (or four hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the business funds for the improvement of management capabilities),” respectively, and the phrase “two hundred million yen” as used in paragraph (2) of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the business funds for the improvement of management capabilities).”
  8. With respect to the application of the provisions of Article 3-8, paragraphs (1) and (2), of the Small and Medium-Sized Enterprise Credit Insurance Act to insurance relationships of new business development insurance that pertain to a specified business operator who has received the management capability improvement-related guarantee, the phrases “two hundred million yen” and “four hundred million yen” as used in paragraph (1) of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than funds necessary for the accredited business for the improvement of management capabilities provided for in Article 22, paragraph (1), of the Small and Medium-sized Enterprises Business Enhancement Act (hereinafter “business funds for the improvement of management capabilities”)” and “six hundred million yen (or four hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the business funds for the improvement of management capabilities),” respectively, and the phrase “two hundred million yen” as used in paragraph (2) of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the business funds for the improvement of management capabilities).”
  9. With respect to the application of the provisions of Article 3, paragraph (2), and Article 5 of the Small and Medium-Sized Enterprise Credit Insurance Act (including the application pursuant to the provision of paragraph (1)) to insurance relationships of ordinary insurance that pertain to the business innovation-related guarantee or the management capability improvement-related guarantee, the phrase “seventy percent” as used in paragraph (2) of Article 3 of the same Act and the phrase “seventy percent (or eighty percent in the case of unsecured insurance, special petty insurance, current assets-backed insurance, pollution prevention insurance, energy conservation insurance, overseas investment-related insurance, new business development insurance, business restructuring insurance, and specific corporate bond insurance)” as used in Article 5 of the same Act shall be deemed to be replaced with “eighty percent.”
  10. Notwithstanding the provisions of Article 4 of the Small and Medium-Sized Enterprise Credit Insurance Act, the amount of insurance premiums for insurance relationships of ordinary insurance, unsecured insurance, or special petty insurance that pertain to the business innovation-related guarantee or the management capability improvement-related guarantee shall be the amount obtained by multiplying the insured amount by the rate provided for by Cabinet Order within two percent per annum.
(Special Provisions for the Small and Medium-Sized Enterprise Investment Business Corporation Act)
Article 23
  1. A small and medium-sized enterprise investment business corporation may engage in the following businesses, in addition to the business listed in each item of Article 5, paragraph (1), of the Small and Medium-Sized Enterprise Investment Business Corporation Act.
    1. Subscription for shares issued by a specified business operator when it establishes a corporation with the stated capital exceeding three hundred million yen to implement an approved business for the business innovation or an accredited business for the improvement of management capabilities (meaning the business pertaining to the improvement of management capabilities to be implemented in accordance with an accredited management capability improvement plan, hereinafter the same shall apply in this Section except Article 25, paragraph (1)), and possession of shares pertaining to the said subscription
    2. Subscription for shares, share options (excluding those attached to a corporate bond with share options) or corporate bonds with share options or the like issued by a specified business operator who is a corporation with the stated capital exceeding three hundred million yen to raise funds necessary for implementation of an approved business for the business innovation or an accredited business for the improvement of management capabilities, and possession of shares, share options (including shares issued or transferred through the exercise of the share options) or corporate bonds with share options or the like (including shares issued or transferred through the exercise of share options attached to the corporate bonds with share options or the like) pertaining to the said subscription
  2. With respect to the application of the Small and Medium-Sized Enterprise Investment Business Corporation Act, the business listed in each item of the preceding paragraph shall be deemed to be the businesses of Article 5, paragraph (1), items (i) and (ii), of the same Act.
(Special Provisions for the Japan Finance Corporation Act and the Okinawa Development Finance Corporation Act)
Article 24
  1. Japan Finance Corporation may engage in the following operations, in addition to the operations listed in the provisions of Article 11 of the Japan Finance Corporation Act (Act No. 57 of 2007).
    1. In the case where a specified business operator implements the business innovation jointly with all or part of its affiliated foreign corporation or the like, operations of lending long-term funds to the said affiliated foreign corporation or the like required by the said affiliated foreign corporation or the like to implement the approved business for the business innovation in a foreign country
    2. In the case where a specified business operator implements the improvement of management capabilities jointly with all or part of its affiliated foreign corporation or the like, operations of lending long-term funds to the said affiliated foreign corporation or the like required by the said affiliated foreign corporation or the like to implement the accredited business for the improvement of management capabilities in a foreign country
    3. Guarantee of obligations (including an act of incurring obligations, which is equivalent to a guarantee of obligations, hereinafter the same shall apply in this paragraph and Article 63, paragraph (1)) pertaining to the borrowing of long term funds (limited to the borrowing from foreign banks and other financial institutions provided for by Ordinance of the Ministry of Economy, Trade and Industry and Ordinance of the Ministry of Finance, hereinafter the same shall apply in this paragraph and Article 63, paragraph (1)) required by the specified business operator (in the case where the specified business operator implements the business innovation jointly with all or part of its affiliated foreign corporation or the like, the said foreign affiliated corporation or the like is included) to implement the approved business for the business innovation in a foreign country
    4. Guarantee of obligations pertaining to the borrowing of long term funds required by a specified business operator (in the case where the specified business operator implements the improvement of management capabilities jointly with all or part of its affiliated foreign corporation or the like, the said foreign affiliated corporation or the like is included) to implement the accredited business for the improvement of management capabilities in a foreign country
  2. With respect to the application of the Japan Finance Corporation Act, the operation of lending long-term funds to affiliated foreign corporations or the like pursuant to items (i) and (ii) of the preceding paragraph shall be deemed to be the operation of lending funds listed in the right-hand column of item (xiv) of Schedule 1 of the same Act to the persons listed in the middle column of the same item pursuant to Article 11, paragraph (1), item (i) of the same Act.
  3. With respect to the application of the Japan Finance Corporation Act, a guarantee of obligations pursuant to paragraph (1) items (iii) and (iv) shall be deemed to be the operation listed in the right-hand column of item (iv) of the Schedule 2 of the same Act pursuant to the provisions of Article 11, paragraph (1), item (ii), of the same Act.
  4. In addition to the operations specified in Article 11 of the Japan Finance Corporation Act or Article 19 of the Okinawa Development Finance Corporation Act (Act No. 31 of 1972), Japan Finance Corporation or Okinawa Development Finance Corporation may engage in the operation of lending long-term funds to the specified business operators who implement the approved business for the business innovation or accredited business for the improvement of management capabilities (limited to persons listed in Article 2, paragraph (5), items (i) through (iv), and excluding persons equivalent to the small and medium-sized enterprise operator provided for in Article 2, item (iii) of the Japan Finance Corporation Act) and who engage in the specified business of small and medium-sized enterprise provided for in (a) of the same item, necessary for implementation of the approved business for the business innovation or accredited business for the improvement of management capabilities.
  5. With respect to the application of the Japan Finance Corporation Act or the Okinawa Development Finance Corporation Act, the operation of lending funds to the specified business operator pursuant to the preceding paragraph shall be deemed to be the operation of lending funds listed in the right-hand column of item (xiv) of Schedule 1 of the Japan Finance Corporation Act to the persons listed in the middle column of the same item pursuant to Article 11, paragraph (1), item (i), of the same Act, or the operation of Article 19, paragraph (1), item (v), of the Okinawa Development Finance Corporation Act, respectively.
(Promotional Operations for the Improvement of Management capabilities and Facilitation Operations for the Business Restructuring Investment Implemented by the Organization for Small and Medium Enterprises and Regional Innovation)
Article 25
  1. Organization for Small and Medium Enterprises and Regional Innovation, in order to promote the improvement of management capabilities, implements the operation of guarantee of obligations pertaining to the borrowing of funds required by specified business operators or the like (limited to those specified in Article 2, paragraph (6), item (ii), hereinafter the same shall apply in this article) to implement the accredited business for the improvement of management capabilities and guarantee of obligations pertaining to corporate bonds issued by specified business operators or the like (limited to companies) to raise the said funds.
  2. Organization for Small and Medium Enterprises and Regional Innovation, in order to facilitate the business restructuring investment, implements the operation of guarantee of obligations pertaining to the borrowing of funds required by accredited business restructuring investment partnerships to implement the business restructuring investment in accordance with the accredited business restructuring investment plans.
(Special Provisions for the Act on Rationalizing Distribution and Securing Fair Trade for Food and Other Products)
Article 26
  1. Organization of Food-Marketing Structure Improvement designated by the provisions of Article 16, paragraph (1), of the Act on Rationalizing Distribution and Securing Fair Trade for Food and Other Products (Act No. 59 of 1991) may engage in the following operations, in addition to the operation listed in each item of Article 17 of the same Act.
    1. Guarantee of obligations pertaining to the borrowing of funds necessary for the approved business for the business innovation or accredited business for the improvement of management capabilities implemented by persons who engage in the business of producing, manufacturing, processing, or selling foods and other products (meaning foods and other products provided for in Article 2, paragraph (1), of the Act on Rationalizing Distribution and Securing Fair Trade for Food and Other Products) (referred to as "manufacturer or the like of foods and other products" in the following item)
    2. Provision of mediation for necessary funds for manufacturers or the like of foods and other products who implement the approved business for the business innovation or accredited business for the improvement of management capabilities
    3. Operations incidental to those listed in the preceding two items
  2. When the operations of the Organization of Food-marketing Structure Improvement are implemented pursuant to the provisions of the preceding paragraph with respect to the application of the provisions of the Act on Rationalizing Distribution and Securing Fair Trade for Food and Other Products listed in the left-hand column of the following table, the phrases listed in the middle column of the same table as used in those provisions shall be deemed to be replaced with the phrases listed in the right-hand column of the same table.
    Article 18, paragraph (1) the operation listed in item (i) of the preceding article the operation listed in item (i) of the preceding article and the operation listed in Article 26, paragraph (1), item (i), of the Small and Medium-Sized Enterprise Business Enforcement Act (Act No. 18 of 1999)
    Article 19, paragraph (1) the operation listed in Article 17, item (i) the operation listed in Article 17, item (i) and the operation listed in Article 26, paragraph (1), item (i), of the Small and Medium-Sized Enterprise Business Enforcement Act
    Article 23, paragraph (1), Article 24 and Article 25, paragraph (1), item (i) the operation listed in each item of Article 17 the operation listed in each item of Article 17 or the operation listed in each item of Article 26, paragraph (1), of the Small and Medium-Sized Enterprise Business Enforcement Act
    Article 25, paragraph (1), item (iii) this Section this Section or the Small and Medium-Sized Enterprise Business Enforcement Act
    Article 32, item (ii) Article 23, paragraph (1) Article 23, paragraph (1), applied by replacing certain terms pursuant to the provisions of Article 26, paragraph (2), of the Small and Medium-Sized Enterprise Business Enforcement Act
    Article 32, item (iii) Article 24 Article 24 applied by replacing certain terms pursuant to the provisions of Article 26, paragraph (2), of the Small and Medium-Sized Enterprise Business Enforcement Act
(Succession of the Status Based on the Specified Permissions)
Article 27
  1. In the case where a status of succeeded specified business operator or the like based on the specified permissions provided for in Article 17, paragraph (4), item (i), is stated in an accredited management capability improvement plan (limited to those with statements of matters pertaining to business succession or the like), and when the succession of business or the like is implemented in accordance with the said accredited management capability improvement plan, notwithstanding the provisions of laws and regulations that serve as grounds of the said permissions, a successor specified business operator or the like succeeds the status of succeeded specified business operator or the like based on the said specified permissions.
  2. When a successor specified business operator or the like implemented the succession of business or the like in accordance with the said accredited management capability improvement plan, the successor specified business operator or the like must report to that effect to the competent minister without delay with a document proving that effect attached.
  3. When a successor specified business operator or the like succeeds a status of succeeded specified business operator or the like based on the specified permissions pursuant to the provisions of paragraph (1), and when the competent minister receives the report pursuant to the provisions of the preceding paragraph, the minster shall give notice of the matters pertaining to the report to the administrative authority pertaining to the said specified permissions in accordance with the provisions of ordinance of the competent ministry.
  4. Beyond what is provided for in this Act, necessary matters for the succession of a status based on the specified permissions shall be provided for by Cabinet Order.
(Special Provisions for the Small and Medium-Sized Enterprise Cooperatives Act and the Act on the Organization of Small and Medium-Sized Enterprise Association)
Article 28

In the case where a specified business operator establishes a business cooperative, an enterprise cooperative and a cooperative partnership pertaining to an accreditation before the day on which two months have elapsed from the date of the said accreditation in accordance with the relevant accredited management capability improvement plan (limited to those with statements of matters pertaining to succession of business or the like (limited to those pertaining to the acts listed in Article 2, paragraph (10), item (ix))) with respect to the application of Article 24, paragraph (1), of the Small and Medium-Sized Enterprise Cooperatives Act (Act No. 181 of 1949) and Article 5-15, paragraph (1), of the Act on the Organization of Small and Medium-Sized Enterprise Association (Act No. 185 of 1957), the phrase “four or more persons” as used in those provisions shall be deemed to be replaced with “three or more persons.”

(Notice of Objection by Creditors in the Case of Transfer of Business of a Succeeded Company)
Article 29
  1. In the case where a resolution of the general meeting of shareholders or the board of directors or a decision of the executive officers has been made with respect to transfer of all or part of the business implemented in accordance with an accredited management capability improvement plan, a succeeded specified business operator or the like stated in that accredited management capability improvement plan (limited to those with statements of matters pertaining to succession of business or the like [limited to the acts listed in Article 2, paragraph (10), item (vii), that pertain to transfer of business]) who is a corporation (hereinafter in this paragraph and paragraph (4) referred to as “succeeded company”) may, within two weeks from the said resolution or decision, notify separately each specified creditor (meaning a person who has a claim against that succeeded company and who will obtain a claim against the transferee of all or part of the business and will lose the said claim against that succeeded company upon the said transfer of all or part of the business, the same shall apply in paragraphs (3) and (4)) of the procedure for the said transfer of all or part of the business and may give a notice that an objection should be made within a certain period of time if there is an objection to the said transfer of all or part of the business.
  2. The period provided for in the preceding paragraph must not be less than one month.
  3. When a specified creditor who has received the notice provided for in paragraph (1) does not make an objection within the period provided for in the same paragraph, the specified creditor shall be deemed to have approved the transfer of all or part of the said business.
  4. When a specified creditor made an objection within the period provided for in paragraph (1), the succeeded company must repay a debt or provide reasonable security, or entrust a substantial amount of property to a trust company or a financial institution engaged in trust business for the purpose of having the specified creditor receive repayment. Provided, however, that this shall not apply if the transfer of all or part of the business is not likely to harm the specified creditor.
(Advisory Operations by the Organization for Small and Medium Enterprises and Regional Innovation)
Article 30
  1. Organization for Small and Medium Enterprises and Regional Innovation gives the necessary advice on the implementation of approved business for the business innovation or accredited business for the improvement of management capabilities upon request from specified business operators (excluding those who are equivalent to the small and medium-sized enterprise operators provided for in the provisions of Article 2, paragraph (1), of the Act on the Organization for Small and Medium Enterprises and Regional Innovation, Independent Administrative Agency [Act No. 147 of 2002]) who implement the said approved business for the business innovation or accredited business for the improvement of management capabilities.
  2. Upon request from financial institutions (meaning financial institutions provided for in Article 3, paragraph (1), of the Small and Medium-Sized Enterprise Credit Insurance Act) that intend to lend funds to specified business operators who intend to receive the special management capability improvement-related guarantee, the Organization for Small and Medium Enterprises and Regional Innovation provides information on the guarantee and implements other cooperative operations.

Section 4 Development of Support System

(Accredited Support Organizations for Business Innovation)
Article 31
  1. The competent minister may, in accordance with the provisions of ordinance of the competent ministry, grant accreditation to a person who implements the operations provided for in the following paragraph (hereinafter “support operations for business innovation”) and who is accepted as conforming to the basic policy as a person who implements the support operations for business innovation through its application.
  2. A person who obtained accreditation of the preceding paragraph (hereinafter referred to as “accredited business innovation support organization”) shall implement the following operations.
    1. Analysis of details of management resources, financial condition and other business conditions of small and medium-sized enterprises or the like that intend to implement the business innovation or the improvement of management capabilities
    2. Provision of instructions and advice pertaining to the preparation of plans of the business for the business innovation or business for the improvement of management capabilities, and provisions of the instructions and advice necessary for the implementation of the businesses to be implemented in accordance with those plans
  3. A person who intends to obtain accreditation of paragraph (1) must submit an application form stating the following matters to the competent minister in accordance with the provisions of ordinance of the competent ministry.
    1. Name or trade name and address, as well as name of representative in the case of corporation
    2. Office address
    3. The following matters concerning the support operations for business innovation
      • (a) Details of the support operations for business innovation
      • (b) Implementation system of the support operations for business innovation
      • (c) Beyond what is provided for in (a) and (b), matters provided for by ordinance of the competent ministry
  4. When there are changes in the matters listed in item (i) and (ii) of the preceding paragraph, an accredited business innovation support organization must notify the competent minister to that effect without delay, and when the organization intends to change the matters listed in items (iii)-(a) through (c) of the same paragraph (excluding minor changes provided for by ordinance of the competent ministry), the organization must notify the competent minister to that effect in advance.
(Disqualification Clause)
Article 32

A person who falls under any of the following may not obtain accreditation of paragraph (1), of the preceding article.

  1. A person who has been sentenced to imprisonment or more severe punishment and for whom five years have not elapsed from the date on which the execution of the sentence has been completed or the sentence has become no longer applicable
  2. A person who has been punished by a fine pursuant to the provisions of this Act and for whom five years have not elapsed from the date on which the execution of the sentence has been completed or the sentence has become no longer applicable
  3. A person designated by ordinance of the competent ministry as a person who is not able to engage in the support operations for business innovation properly due to mental and physical breakdown
  4. A person who has been ordered to commence bankruptcy proceedings and whose rights have not yet been restored or a person who is treated in the same manner under foreign laws and regulations.
  5. A person who is withdrawn an accreditation pursuant to the provisions of Article 36 and for whom five years have not elapsed from the date of the said withdrawal
  6. Organized crime group members specified in the provisions of Article 2, item (vi) of the Act on Prevention of Unjust Acts by Organized Crime Group Members (Act No. 77 of 1991) or a person for whom five years have not elapsed from the day the person ceased to be an organized crime group member provided for in the same item (referred to as “organized crime group member or the like” in item (viii))
  7. A corporation, any of whose officers fall under any of the preceding items
  8. A person whose business activities are controlled by an organized crime group member or the like
(Update of Accreditation)
Article 33
  1. If accreditation of Article 31, paragraph (1), is not updated every five years, it will lose its effect by the passage of that period.
  2. Provisions of Article 31, paragraphs (1) and (3), and the provisions of the preceding article shall apply mutatis mutandis to the update of accreditation of the preceding paragraph.
(Notification of Discontinuance)
Article 34

When an accredited business innovation support organization discontinues its operations pertaining to its accreditation, it must notify the competent minister to that effect in advance in accordance with the provisions of ordinance of the competent ministry.

(Improvement Orders)
Article 35

When the competent minister finds that improvement is necessary with respect to the administration of support operations for business innovation by an accredited business innovation support organization in light of the basic policy, the minister may give an order to the accredited management support organization to take actions necessary for the improvement.

(Withdrawal of Accreditation)
Article 36

When an accredited business innovation support organization falls under any of the following, the competent minister may withdraw its accreditation.

  1. When the organization has come to fall under any of the items of Article 32 (excluding item (v))
  2. When the organization breached an order pursuant to the provisions of the preceding article
  3. When it was found out that the accreditation of Article 31, paragraph (1), was granted or the update of accreditation of Article 33, paragraph (1), was authorized through unjustified methods
(Special Provisions for the Small and Medium-Sized Enterprise Credit Insurance Act)
Article 37

With respect to the general incorporated associations (limited to those whose one-half or more of the voting rights at its general meetings of members are hold by small and medium-sized enterprise operators), general incorporated foundations (limited to those whose one-half or more of the value of its property contributed at the time of its establishment is contributed by small and medium-sized enterprise operators) or corporations engaging in specified nonprofit activities provided for in Article 2, paragraph (2), of the Act on Promotion of Specified Nonprofit Activities (Act No. 7 of 1998) (limited to those whose one-half or more of the decision-making rights at its general meetings of members is hold by small and medium-sized enterprise operators, and excluding those fallen under Article 2, paragraph (1), item (vi), of the Small and Medium-Sized Enterprise Credit Insurance Act) who have obtained accreditation pursuant to the provisions of Article 31, paragraph (1), and who received a guarantee of obligations specified in Article 3, paragraph (1), or Article 3-2, paragraph (1), of the Small and Medium-Sized Enterprise Credit Insurance Act pertaining to funds necessary for implementation of the support operations for business innovation (hereinafter referred to as “accredited general incorporated associations or the like” in this article), these accredited general incorporated associations or the like shall be deemed as small and medium-sized enterprise operators of Article 2, paragraph (1), of the same Act and the provisions of Article 3, Article 3-2, and Articles 4 to 8 of the same Act shall be applied. In this case, the phrase “the borrowing” as used in those provisions shall be deemed to be replaced with “the borrowing of funds necessary for implementation of the support operations for business innovation provided for in Article 31, paragraph (1), implemented by accredited general incorporated associations or the like provided for in Article 37 of the Small and Medium-Sized Enterprise Business Enforcement Act.”

(Cooperative Operations for Accredited Business Innovation Support Organization Implemented by the Organization for Small and Medium Enterprises and Regional Innovation)
Article 38

Organization for Small and Medium Enterprises and Regional Innovation dispatches experts and implements other necessary cooperative operations for implementation of the support operations for business innovation upon request from accredited business innovation support organization.

(Accredited Business Field-Specific Management capability improvement promotion organization)
Article 39
  1. In accordance with the provisions of ordinance of the competent ministry, the competent minister may accredit a person who implements the operations provided for in the following paragraph in the business fields for which business field-specific guidelines are provided (hereinafter referred to as “promotional operations for improvement of business field-specific management capabilities”) and who is accepted as conforming to the business filed-specific guidelines as a person who implements the promotional operations for improvement of business field-specific management capabilities for each business field through its application.
  2. A person who obtained accreditation of the preceding paragraph (hereinafter “accredited business field-specific management capability improvement promotion organization”) shall implement the following operations:
    1. Raise public awareness and provide training with respect to the matters provided for in the business field-specific guidelines in the relevant business field
    2. In order to enhance the latest knowledge on improvement of management capabilities in the relevant business field, collect, organize and analyze information, and conduct research and studies related to the said enhancement.
  3. A person who intends to obtain accreditation of paragraph (1) must submit an application form stating the following matters to the competent minister in accordance with the provisions of ordinance of the competent ministry.
    1. Name or trade name and address, as well as name of representative in the case of corporation
    2. Office address
    3. The following matters concerning the promotional operations for improvement of business field-specific management capabilities
      • (a) Details of the promotional operations for improvement of business field-specific management capabilities
      • (b) Implementation system of the promotional operations for improvement of business field-specific management capabilities
      • (c) Beyond what is provided for in (a) and (b), matters provided for by ordinance of the competent ministry
  4. When there are changes in the matters listed in item (i) and (ii) of the preceding paragraph, an accredited business field-specific management capability improvement promotion organization must notify the competent minister to that effect without delay, and when the organization intends to change the matters listed in item (iii)-(a) through (c) of the same paragraph (excluding minor changes provided for by ordinance of the competent ministry), the organization must notify the competent minister to that effect in advance.
(Cooperative Operations for Accredited Business Field-Specific Management Capabilities Enhancement Promotion Organizations Implemented by the Organization for Small and Medium Enterprises and Regional Innovation)
Article 40

Organization for Small and Medium Enterprises and Regional Innovation dispatches experts and implements other necessary cooperative operations for implementation of the promotional operations for improvement of business field-specific management capabilities upon request from accredited business field-specific management capability improvement promotion organizations.

(Subsidies and Assistance as Human Resourced Development Program for Accredited Business Field-Specific Management Capability Improvement Promotion Organizations)
Article 41

In order to develop and improve the abilities of workers employed by specified business operators or the like who intend to improve their management abilities, the government may provide the necessary subsidies and assistance as a human resources development program of Article 63 of the Employment Insurance Act (Act No. 116 of 1974) to accredited business field-specific management capability improvement promotion organizations (limited to those who implement the operations listed in Article 39, paragraph (2), item (i), that pertain to the improvement of the knowledge and skills of workers).

(Application Mutatis Mutandis)
Article 42

Provisions of Article 32 through Article 36 shall apply mutatis mutandis to accredited business field-specific management capability improvement promotion organizations. In this case, the phrase “support operations for business innovation” as used in Article 32, item (iii) and Article 35 shall be deemed to be replaced with “promotional operations for improvement of business field-specific management capabilities,” and the phrase “basic policy” as used in the same article shall be deemed to be replaced with “business field-specific guidelines.”

(Accredited Information Processing Support Organization)
Article 43
  1. In accordance with the provisions of the ordinance of the Ministry of Economy, Trade and Industry, the Minister of Economy, Trade and Industry may accredit a person who engages in business in the software industry or the information process service industry with advanced knowledge and skills concerning information processing and who implements the operations provided for in the following paragraph (hereinafter “support operations for information processing”) and who is recognized as conforming to the basic policy as a person who implements the support operations for information processing through its application.
  2. A person who obtained accreditation of the preceding paragraph (hereinafter referred to as “accredited information processing support organization”) shall provide instructions, advice and information pertaining to the methods of information processing (including the ensuring of cybersecurity (meaning the cybersecurity provided for in Article 2 of the Basic Act on Cybersecurity [Act No. 104 of 2014], the same shall apply in Article 45) and provide other assistance related to the information processing to small and medium-sized enterprises or the like that intend to improve their management efficiency to a considerable degree.
  3. A person who intends to obtain accreditation of paragraph (1) must submit an application form stating the following matters to the Minister of Economy, Trade and Industry in accordance with the provisions of the ordinance of the Ministry of Economy, Trade and Industry.
    1. Name or trade name and address, as well as name of representative in the case of a corporation
    2. Office address
    3. The following matters concerning the support operations for information processing
      • (a) Details of the support operations for information processing
      • (b) Implementation system of the support operations for information processing
      • (c) Beyond what is provided for in (a) and (b), matters provided for by Ordinance of the Ministry of Economy, Trade and Industry
  4. When there are changes in the matters listed in item (i) and (ii) of the preceding paragraph, an accredited information processing support organization must notify the Minister of Economy, Trade and Industry to that effect without delay, and when the organization intends to change the matters listed in item (iii)-(a) through (c) of the same paragraph (excluding minor changes provided for by Ordinance of the Ministry of Economy, Trade and Industry), the organization must notify the Minister to that effect in advance.
(Special Provisions for the Small and Medium-Sized Enterprise Credit Insurance Act)
Article 44

With respect to general incorporated associations (limited to those whose one-half of the voting rights of its general meeting of members is hold by small and medium-sized enterprise operators) or general incorporated foundations (limited to those whose one-half of the value of its property contributed at the time of its establishment is contributed by small and medium-sized enterprise operators) who have obtained accreditation pursuant to the provisions of paragraph (1) of the preceding article and who have received a guarantee of obligations provided for in Article 3, paragraph (1), or Article 3-2, paragraph (1), of the Small and Medium-Sized Enterprises Credit Insurance Act pertaining to funds necessary for undertaking of the support operations for information processing (hereinafter referred to as “accredited general incorporated associations or the like” in this article), these accredited general incorporated associations or the like shall be deemed as small and medium-sized enterprise operators of Article 2, paragraph (1), of the same Act and the provisions of Article 3, Article 3-2, and Articles 4 through 8 of the same Act shall be applied. In this case, the phrase “the borrowing” as used in those provisions shall be deemed to be replaced with “the borrowing of funds necessary for implementation of the support operations for information processing provided for by provisions of Article 43, paragraph (1), implemented by accredited general incorporated associations or the like provided for in Article 44 of the Small and Medium-Sized Enterprise Business Enforcement Act.”

Cooperative Operations for Accredited Information Processing Support Organization Implemented by Information-Technology Promotion Agency, Japan)
Article 45

Information-Technology Promotion Agency, Japan provides information on ensuring cybersecurity and implements other necessary cooperative operations for implementation of their support operations for information processing upon request from accredited information processing support organizations.

(Cooperative Operations for Accredited Information Processing Support Organization Conducted by the Organization for Small and Medium Enterprises and Regional Innovation)
Article 46

Organization for Small and Medium Enterprises and Regional Innovation dispatches experts and implements other cooperative operations necessary for implementation of the support operations for information processing upon request from accredited information processing support organizations.

(Application Mutatis Mutandis)
Article 47

Provisions of Article 32 through Article 36 shall apply mutatis mutandis to the accredited information processing support organizations. In this case, the phrase “support operations for business innovation” as used in Article 32, item (iii), and Article 35, the phrase “ordinance of the competent ministry” as used in the same item and Article 34, the phrase “five years” as used in Article 33, paragraph (1), and the phrase “competent minister” as used in the provisions of Article 34 through Article 36 shall be deemed to be replaced with “support operations for information processing,” “Ordinance of the Ministry of Economy, Trade and Industry,” “three years” and “Minister of Economy, Trade and Industry,” respectively.

Section 5 Miscellaneous

(Promotion of Research and Development)
Article 48

For business enhancement through research and development related to technology of small and medium-sized enterprises or the like, the State shall strive to comprehensively promote human resource development through cooperation between small and medium-sized enterprises or the like and universities, colleges of technology and others, appropriate protection and utilization of intellectual property, improvement of trade practices pertaining to handling of research and development results, and other necessary measures.

Chapter 4 Introduction of Advanced Equipment or the like by Small and Medium-Sized Enterprises

Section 1 Introduction of Advanced Equipment or the like

(Basic Plan for Introduction Promotion)
Article 49
  1. Municipalities (including special wards, hereinafter the same shall apply) may prepare a basic plan for promotion of introduction of advanced equipment or the like (hereinafter “basic plan for introduction promotion”) based on the basic policy, consult with the Minister of Economy, Trade and Industry and seek for the consent of the Minister, in accordance with the provisions of the ordinance of the Ministry of Economy, Trade and Industry.
  2. In the basic plan for introduction promotion, the following matters shall be provided.
    1. Objectives of the promotion of introduction of advanced equipment or the like
    2. Types of advanced equipment or the like
    3. Matters related to the details of the promotion of introduction of advanced equipment or the like
    4. Period of the plan
    5. Matters that should be considered for the promotion of introduction of advanced equipment or the like
  3. When the Minister of Economy, Trade and Industry finds that the basic plan for introduction promotion meets all of the following, the Minister shall give its consent.
    1. The plan conforms to the basic policy.
    2. Introduction of advanced equipment or the like pertaining to the said basic plan for introduction promotion is expected to be implemented smoothly and surely.
    3. The implementation of the basic plan for introduction promotion contributes to the improvement of productivity of enterprises located in the relevant municipality.
  4. When consent is given for the basic plan for introduction promotion, the municipality must make it public without delay.
(Changes in the Basic Plan for Introduction Promotion)
Article 50
  1. When the municipality intends to change the basic plan for introduction promotion that obtained the consent of paragraph (3) of the preceding article, the municipality must consult with the Minister of Economy, Trade and Industry and obtain its consent in accordance with the provisions of the ordinance of the Ministry of Economy, Trade and Industry.
  2. When the Minister of Economy, Trade and Industry finds that the municipality does not promote the introduction of advanced equipment or the like in accordance with the basic plan for introduction promotion that obtained the consent of paragraph (3) of the preceding article (or the changed basic plan, if any changes are consented pursuant to the provisions of the preceding paragraph, hereinafter “consented basic plan for introduction promotion”), the Minister may withdraw its consent.
  3. When the Minister of Economy, Trade and Industry finds that a consented basic plan for introduction promotion becomes not applicable to any of the items of paragraph (3) of the preceding article, the Minister may instruct the municipality that prepared the said consented basic plan for introduction promotion to change the plan or may withdraw its consent.
  4. When the Minister of Economy, Trade and Industry withdraw its consent of paragraph (3) of the preceding article pursuant to the provisions of the preceding two paragraphs, the Minister shall make it public.
  5. Provisions of paragraphs (3) and (4) of the preceding article shall apply mutatis mutandis to the changes of the basic plans for introduction promotion pursuant to the provisions of paragraph (1).
(Provisions of Information to Municipalities)
Article 51
  1. The State shall, in order to contribute to the preparation of basic plans for introduction promotion and the achievement of consented basic plans for introduction promotion by municipalities, strive to collect, organize, analyze, and provide information on regional economic trends and information necessary to promote the introduction of advanced equipment or the like by the municipalities and to provide the means to enable the collection, organization, and analysis of this information.
  2. The State shall give advice necessary for smooth and secure implementation of the consented basic plan for introduction promotion to the municipality pertaining to the said plan.
(Accreditation of the Plan for Introduction of Advanced Equipment or the like)
Article 52
  1. A small and medium-sized enterprise operator who intends to introduce advanced equipment or the like based on a consented basic plan for introduction promotion (hereinafter “introduction of advanced equipment or the like”) may prepare a plan concerning the introduction of advanced equipment or the like that the operator intends to implement (hereinafter referred to as “plan for introduction of advanced equipment or the like” in this article and the following article) and, in accordance with the provisions of the ordinance of the Ministry of Economy, Trade and Industry, submit it to the specified municipality (meaning the municipality that prepared the consented basic plan for introduction promotion, hereinafter the same shall apply) that has jurisdiction over the location of the advanced equipment or the like to be introduced and obtain accreditation.
  2. When two or more small and medium-sized enterprise operators jointly introduce the advanced equipment or the like, these two or more small and medium-sized enterprise operators may jointly prepare a plan for introduction of advanced equipment or the like and obtain accreditation of the preceding paragraph.
  3. In the plan for introduction of advanced equipment or the like, the following matters must be stated.
    1. Types and period of introduction of the advanced equipment or the like
    2. Details of introduction of advanced equipment or the like
    3. Amount and raising methods of funds necessary for introduction of advanced equipment or the like
  4. When an application for the accreditation of paragraph (1) is filed, and when the specified municipality finds that the plan for introduction of advanced equipment or the like conforms to all of the following, the municipality shall grant its accreditation.
    1. The plan conforms to the basic policy and the consented basic plan for introduction promotion of the relevant specified municipality.
    2. Introduction of advanced equipment or the like pertaining to the relevant plan for introduction of advanced equipment or the like is expected to be implemented smoothly and reliably.
  5. When the specified municipality granted accreditation of paragraph (1), the municipality must notify the Minister of Economy, Trade and Industry to that effect without delay.
(Changes in the Plan for Introduction of Advanced Equipment or the like)
Article 53
  1. When a small and medium-sized enterprise operator who obtained accreditation of paragraph (1), of the preceding article (hereinafter referred to as “accredited business operator of introduction of advanced equipment or the like”) intends to change a plan for introduction of advanced equipment or the like pertaining to the said accreditation, it must be accredited by the specified municipality that granted the said accreditation in accordance with the provisions of the ordinance of the Ministry of Economy, Trade and Industry.
  2. When the specified municipality finds that an accredited operator of introduction of advanced equipment or the like does not introduce advanced equipment or the like in accordance with the plan for introduction of advanced equipment or the like pertaining to the said accreditation (or the changed plan, if any changes are accredited pursuant to the provisions of the preceding paragraph, hereinafter “accredited plan for introduction of advanced equipment or the like”), the municipality may withdraw its accreditation.
  3. When the specified municipality finds that an accredited plan for introduction of advanced equipment or the like no longer conforms to any of the items of paragraph (4) of the preceding article, the municipality may withdraw its accreditation.
  4. When the specified municipality withdraws accreditation of paragraph (1) of the preceding article pursuant to the provisions of the preceding two paragraphs, the municipality shall notify the Minister of Economy, Trade and Industry to that effect.
  5. Provisions of paragraphs (4) and (5) of the preceding article shall apply mutatis mutandis to the accreditation of paragraph (1).

Section 2 Support Measures

(Special Provisions for the Small and Medium-Sized Enterprise Credit Insurance Act)
Article 54
  1. With respect to the application of the provisions of the Small and Medium-Sized Enterprise Credit Insurance Act listed in the left-hand column of the following table to insurance relationships of ordinary insurance, unsecured insurance, or special petty insurances that pertain to a small and medium-sized enterprise operator who has received a guarantee related to the introduction of advanced equipment or the like (meaning a guarantee of obligations provided for in Article 3, paragraph (1), Article 3-2, paragraph (1), or Article 3-3, paragraph (1), of the same Act that pertains to funds necessary for the introduction of advanced equipment or the like to be implemented in accordance with an accredited plan for introduction of advanced equipment or the like (referred to as “accredited introduction of advanced equipment or the like” in Article 69, paragraph (4) and Article 70, paragraph (9)), hereinafter the same shall apply in this article), the phrases listed in the middle column of the same table as used in those provisions shall be deemed to be replaced with the phrases listed in the right-hand column of the same table.
    Article 3, paragraph (1) the total amount of insurance value the total amount of insurance value of insurance relationships pertaining to a guarantee related to the introduction of advanced equipment or the like provided for in Article 54, paragraph (1), of the Small and Medium-Sized Enterprise Business Enforcement Act (Act No. 18 of 1999) (hereinafter “guarantee related to the introduction of advanced equipment or the like”) and the total amount of insurance value of other insurance relationships, respectively
    Article 3-2, paragraph (1), and Article 3-3, paragraph (1) the total amount of insurance value the total amount of insurance value of insurance relationships pertaining to the guarantee related to the introduction of advanced equipment or the like and the total amount of insurance value of other insurance relationships, respectively
    Article 3-2, paragraph (3), and Article 3-3, paragraph (2) out of the amount of that borrowings out of the respective amount of that borrowings for each of the guarantee related to the introduction of advanced equipment or the like and other guarantees
    that debtor that debtor for the guarantee related to the introduction of advanced equipment or the like and other guarantees, respectively
  2. With respect to the application of the provisions of Article 3, paragraph (2), and Article 5 of the Small and Medium-Sized Enterprise Credit Insurance Act to insurance relationships of ordinary insurance that pertain to the guarantee related to the introduction of advanced equipment or the like, the phrase “seventy percent” as used in the same paragraph and the phrase “seventy percent (or eighty percent in the case of unsecured insurance, special petty insurance, current assets-backed insurance, pollution prevention insurance, energy conservation insurance, overseas investment-related insurance, new business development insurance, business restructuring insurance, and specific corporate bond insurance)” as used in the same article shall be deemed to be replaced with “eighty percent.”
  3. Notwithstanding the provisions of Article 4 of the Small and Medium-Sized Enterprise Credit Insurance Act, the amount of insurance premiums for insurance relationships of ordinary insurance, unsecured insurance, or special petty insurance that pertains to the guarantee related to the introduction of advanced equipment or the like shall be the amount obtained by multiplying the insured amount by the rate provided for by Cabinet Order within two percent per annum.

Chapter 5 Enhancement of Business Continuity Capabilities of Small and Medium-Sized Enterprises

Section 1 Enhancement of Business Continuity Capabilities

(Guidelines for Preparing Business Continuity Capability Enhancement Plan)
Article 55
  1. The Minister of Economy, Trade and Industry shall, in order to contribute to the proper preparation of plans for enhancement of business continuity capabilities (meaning the business continuity capability enhancement plans provided for in paragraph (1) of the following article) and plans for collaborative enhancement of business continuity capabilities (meaning the collaborative business continuity capability enhancement plans provided for in Article 58, paragraph (1)), provide guidelines for preparation of these plans (hereinafter referred to as “guidelines for preparing business continuity capability enhancement plans” in this article).
  2. When the Minister of Economy, Trade and Industry finds it necessary in consideration of the situation of efforts to enhance business continuity capabilities of small and medium-sized enterprise operators and other circumstances, the Minister shall change the guidelines for preparing business continuity capability enhancement plans.
  3. When the Minister of Economy, Trade and Industry provides or intends to change the guidelines for preparing business continuity capability enhancement plans, the Minister shall hear the opinions of experts and other parties concerned in advance. Provided, however, that this shall not apply to minor changes provided for by Ordinance of the Ministry of Economy, Trade and Industry.
  4. When the Minister of Economy, Trade and Industry provides or intends to change the guidelines for preparing business continuity capability enhancement plans, the Minister must make it public without delay.
(Accreditation of Business Continuity Capability Enhancement Plans)
Article 56
  1. A small and medium-sized enterprise operator may prepare a plan for the enhancement of business continuity capabilities (hereinafter referred to as “business continuity capability enhancement plan” in this article and the following article), submit it to the Minister of Economy, Trade and Industry and obtain accreditation as the plan is appropriate, in accordance with the provisions of the ordinance of the Ministry of Economy, Trade and Industry.
  2. In the business continuity capability enhancement plan, the following matters must be stated.
    1. Objectives of the enhancement of business continuity capabilities
    2. The following matters concerning the details of enhancement of business continuity capabilities
      • (a) Response procedures in the event of a natural disaster or the like
      • (b) Types of equipment or the like for the enhancement of business continuity capabilities (referred to those provided for by Ordinance of the Ministry of Economy, Trade and Industry as equipment, machines or devices that are particularly contributing to the enhancement of business continuity capabilities, the same shall apply in Article 58, paragraph (2), item (iii)-(b))
      • (c) Matters related to the conclusion of nonlife insurance contracts and other means of raising funds to continue business activities
      • (d) If there are local governments, parent business operators, government-related financial institutions, commercial and industrial associations, chambers of commerce and industry, federations of small business associations, and others who cooperate in the implementation of enhancement of business continuity capabilities (hereinafter referred to as "cooperator” in this item), name and address of the cooperators, as well as the name of their representatives, and details of the said cooperation
      • (e) Matters related to the development of necessary organizations, implementation of training, and other efforts to ensure the effectiveness of enhancement of business continuity capabilities
      • (f) Beyond what is provided for in (a) through (e), matters related to measures and efforts that contribute to the enhancement of business continuity capabilities
      • (g) Other matters provided for by Ordinance of the Ministry of Economy, Trade and Industry
    3. Implementation period of the enhancement of business continuity capabilities
    4. Amount and raising methods of funds necessary for implementation of the enhancement of business continuity capabilities
  3. When an application of paragraph (1) is filed, and when the Minister of Economy, Trade and Industry finds the business continuity capability enhancement plan pertaining to the said application conforms to all of the following, the Minister shall grant its accreditation.
    1. Matters listed in items (i) through (iii) of the preceding paragraph are appropriate in light of the basic policy.
    2. Matters listed in item (ii) through (iv) of the preceding paragraph are appropriate for secure implementation of the enhancement of business continuity capabilities.
(Changes in the Business Continuity Capability Enhancement Plan)
Article 57
  1. When a small and medium-sized enterprise operator who has obtained accreditation of paragraph (1) of the preceding article intends to change the business continuity capability enhancement plan pertaining to the said accreditation, it must be accredited by the Minister of Economy, Trade and Industry in accordance with the provisions of the ordinance of the Ministry of Economy, Trade and Industry.
  2. When the Minister of Economy, Trade and Industry finds that the enhancement of business continuity capabilities is not implemented in accordance with the business continuity capability enhancement plan pertaining to the accreditation of paragraph (1) of the preceding article (or the changed plan, if any changes are accredited pursuant to the provisions of preceding paragraph, hereinafter referred to as “accredited business continuity capability enhancement plan”), the Minister may withdraw its accreditation.
  3. Provisions of paragraph (3) of the preceding article shall apply mutatis mutandis to the accreditation of paragraph (1).
(Accreditation of Collaborative Business continuity capability enhancement plan)
Article 58
  1. Multiple small and medium-sized enterprise operators may jointly prepare a plan for collaborative enhancement of business continuity capabilities (when multiple small and medium-sized enterprise operators intend to enhance their business continuity capabilities jointly with all or part of their respective foreign affiliated corporations or the like, a plan for collaborative enhancement of business continuity capabilities implemented by the said multiple small and medium-sized enterprise operators jointly with the said foreign affiliated corporations or the like is included, hereinafter referred to as “collaborative business continuity capability enhancement plan” in this article and the following article), and may appoint a representative and submit the plan to the Minister of Economy, Trade and Industry to obtain accreditation as the collaborative business continuity capability enhancement plan is appropriate in accordance with the provisions of the ordinance of the Ministry of Economy, Trade and Industry.
  2. In the collaborative business continuity capability enhancement plan, the following matters must be stated.
    1. Objectives of the collaborative enhancement of business continuity capabilities
    2. If there are business operators other than small and medium-sized enterprise operators who implement the collaborative enhancement of business continuity capabilities (when multiple small and medium-sized enterprise operators intend to implement the collaborative enhancement of business continuity capabilities jointly with all or part of their respective foreign affiliated corporations or the like [corporations and other foreign organizations established in accordance with the laws and regulations of foreign countries (including those to be established newly) who have relationships provided for by Ordinance of the Ministry of Economy, Trade and Industry as their management are deemed to be controlled substantially by a small and medium-sized enterprise operator, hereinafter the same shall apply in this article and Article 63, paragraph (1), item (ii)], those foreign affiliated corporations or the like are included) (hereinafter referred to as “big enterprise operators”), name and address, as well as name of representative of the big enterprise operators
    3. The following matters related to the details of collaborative enhancement of business continuity capabilities
      • (a) Mode of collaboration of the collaborative enhancement of business continuity capabilities
      • (b) Types of equipment or the like for the enhancement of business continuity capabilities
      • (c) If there are local governments, parent business operators, government-affiliated financial institutions, commercial and industrial associations, chambers of commerce and industry, federations of small business associations, and others who cooperate in implementation of the collaborative enhancement of business continuity capabilities (hereinafter referred to as “cooperator” in this item), name and address, as well as name of representatives of these cooperators, and the details of the said cooperation
      • (d) Matters related to the development of necessary organizations, implementation of training, and other efforts to ensure the effectiveness of collaborative enhancement of business continuity capabilities
      • (e) Other matters provided for by Ordinance of the Ministry of Economy, Trade and Industry
    4. Implementation period of the collaborative enhancement of business continuity capabilities
    5. Amount and raising methods of funds necessary for implementation of the collaborative enhancement of business continuity capabilities
  3. When an application for accreditation of paragraph (1) is filed, and when the Minister of Economy, Trade and Industry finds that the collaborative business continuity capability enhancement plan pertaining to the said application conforms to all of the following, the Minister shall grant its accreditation.
    1. Matters listed in items (i), (iii) and (iv) of the preceding paragraph are appropriate in light of the basic policy.
    2. Matters listed in items (iii) through (v) of the preceding paragraph are appropriate for implementation of the collaborative enhancement of business continuity capabilities.
(Changes in the Collaborative Business Continuity Capability Enhancement Plan)
Article 59
  1. When a small and medium-sized enterprise operator who obtained accreditation of paragraph (1) of the preceding article intends to change the collaborative business continuity capability enhancement plan pertaining to the said accreditation, it must be accredited by the Minister of Economy, Trade and Industry in accordance with the provisions of the ordinance of the Ministry of Economy, Trade and Industry.
  2. When the Minister of Economy, Trade and Industry finds that the collaborative enhancement of business continuity capabilities is not implemented in accordance with the collaborative business continuity capability enhancement plan pertaining to the accreditation of paragraph (1) of the preceding article (or the changed plan, when any changes are accredited pursuant to the provisions of the preceding paragraph, hereinafter referred to as “accredited collaborative business continuity capability enhancement plan”), the Minister may withdraw its accreditation.
  3. Provisions of paragraph (3) of the preceding article shall apply mutatis mutandis to the accreditation of paragraph (1).

Section 2 Support Measures

(Special Provisions for the Small and Medium-Sized Enterprise Credit Insurance Act)
Article 60
  1. With respect to the application of the provisions of the Small and Medium-Sized Enterprise Credit Insurance Act listed in the left-hand column of the following table to insurance relationships of ordinary insurance, unsecured insurance, or special petty insurance that pertain to a small and medium-sized enterprise operator who has received a guarantee related to the enhancement of business continuity capabilities (meaning a guarantee of obligations provided for in Article 3, paragraph (1), Article 3-2, paragraph (1), or Article 3-3, paragraph (1), of the same Act that pertains to funds necessary for the accredited enhancement of business continuity capabilities (meaning the enhancement of business continuity capabilities implemented in accordance with the accredited business continuity capability enhancement plan, hereinafter the same shall apply), hereinafter the same shall apply in this article), the phrases listed in the middle column of the same table as used in those provisions shall be deemed to be replaced with the phrases listed in the right-hand column of the same table.
    Article 3, paragraph (1) the total amount of insurance value the total amount of insurance value of insurance relationships pertaining to a guarantee related to the enhancement of business continuity capabilities provided for in Article 60, paragraph (1), of the Small and Medium-Sized Enterprises Business Enhancement Act (hereinafter “business continuity capabilities enhancement-related guarantee”) and the total amount of insurance value of other insurance relationships, respectively
    Article 3-2, paragraph (1), and Article 3-3, paragraph (1) the total amount of insurance value the total amount of insurance value of insurance relationships pertaining to the business continuity capabilities enhancement-related guarantee and the total amount of insurance value of other insurance relationships, respectively
    Article 3-2, paragraph (3) and Article 3-3, paragraph (2) out of the amount of that borrowings out of the respective amount of that borrowings for each of the business continuity capabilities enhancement-related guarantee and other guarantees
    that debtor that debtor for the business continuity capabilities enhancement-related guarantee and other guarantees, respectively
  2. With respect to the application of provisions of Article 3-7, paragraphs (1) and (2), of the Small and Medium-Sized Enterprise Credit Insurance Act to insurance relationships of overseas investment-related insurance that pertain to a small and medium-sized enterprise operator who has received the business continuity capabilities enhancement-related guarantee, the phrases “two hundred million yen” and “four hundred million yen” as used in paragraph (1) of the same article shall be deemed to be replaced with “four hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than funds necessary for the accredited enhancement of business continuity capabilities provided for in Article 60, paragraph (1), of the Small and Medium-Sized Enterprises Business Enhancement Act (hereinafter referred to as “business continuity capabilities enhancement funds”)” and “six hundred million yen (or four hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the business continuity capabilities enhancement funds),” and the phrase “two hundred million yen” as used in paragraph (2) of the same article shall be deemed to be replaced with “four hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the business continuity capabilities enhancement funds).”
  3. With respect to the application of provisions of Article 3-8, paragraphs (1) and (2), of the Small and Medium-Sized Enterprises Credit Insurance Act to insurance relationships of new business development insurance that pertain to a small and medium-sized enterprise operator who has received the business continuity capabilities enhancement-related guarantee, the phrases “two hundred million yen” and “four hundred million yen” as used in paragraph (1) of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than funds necessary for the accredited enhancement of business continuity capabilities provided for in Article 60, paragraph (1), of the Small and Medium-Sized Enterprises Business Enhancement Act (hereinafter “business continuity capabilities enhancement funds”)” and “six hundred million yen (or four hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the business continuity capabilities enhancement funds),” respectively, and the phrase “two hundred million yen” as used in paragraph (2) of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the business continuity capabilities enhancement funds).”
  4. With respect to the application of the provisions of Article 3, paragraph (2), and Article 5 of the Small and Medium-Sized Enterprises Credit Insurance Act to insurance relationships of ordinary insurance that pertain to the business continuity capabilities enhancement-related guarantee, the phrase “seventy percent” as used in the same paragraph and the phrase “seventy percent (or eighty percent in the case of unsecured insurance, special petty insurance, current assets-backed insurance, pollution prevention insurance, energy conservation insurance, overseas investment-related insurance, new business development insurance, business restructuring insurance, and specific corporate bond insurance) shall be deemed to be replaced with “eighty percent.”
  5. Notwithstanding the provisions of Article 4 of the Small and Medium-Sized Enterprises Credit Insurance Act, the amount of insurance premiums for insurance relationships of ordinary insurance, unsecured insurance, or special petty insurance that pertain to the business continuity capabilities enhancement-related guarantee shall be the amount obtained by multiplying the insured amount by the rate provided for by Cabinet Order within two percent per annum.
Article 61
  1. With respect to the application of provisions of the Small and Medium-Sized Enterprises Credit Insurance Act listed in the left-hand column of the following table to insurance relationships of ordinary insurance, unsecured insurance, or special petty insurance that pertain to a small and medium-sized enterprise operator who has received the collaborative business continuity capabilities enhancement-related guarantee (meaning a guarantee of obligations provided for in Article 3, paragraph (1), Article 3-2, paragraph (1), or Article 3-3, paragraph (1), of the same Act that pertains to funds necessary for the accredited collaborative enhancement of business continuity capabilities [collaborative enhancement of business continuity capabilities implemented in accordance with the accredited collaborative business continuity capability enhancement plan, hereinafter the same shall apply], hereinafter the same shall apply in this article), the phrases listed in the middle column of the same table as used in those provisions shall be deemed to be replaced with the phrases listed in the right-hand column of the same table.
    Article 3, paragraph (1) the total amount of insurance value the total amount of insurance value of insurance relationships pertaining to the collaborative business continuity capabilities enhancement-related guarantee provided for in Article 61, paragraph (1), of the Small and Medium-Sized Enterprises Business Enhancement Act (hereinafter referred to as “collaborative business continuity capabilities enhancement-related guarantee”) and the total amount of insurance value of other insurance relationships, respectively
    Article 3-2, paragraph (1), and Article 3-3, paragraph (1) the total amount of insurance value the total amount of insurance value of insurance relationships pertaining to the collaborative business continuity capabilities enhancement-related guarantee and the total amount of insurance value of other insurance relationships, respectively
    Article 3-2, paragraph (3), and Article 3-3, paragraph (2) out of the amount of that borrowings out of the respective amount of that borrowings for each collaborative business continuity capabilities enhancement-related guarantee and other guarantees
    that debtor that debtor for the collaborative business continuity capabilities enhancement-related guarantee and other guarantees, respectively
  2. With respect to the application of provisions of Article 3-7, paragraphs (1) and (2), of the Small and Medium-Sized Enterprises Credit Insurance Act to insurance relationships of overseas investment-related insurance that pertain to a small and medium-sized enterprise operator who has received the collaborative business continuity capabilities enhancement-related guarantee, the phrases “two hundred million yen” and “four hundred million yen” as used in paragraph (1) of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than funds necessary for the accredited collaborative enhancement of business continuity capabilities provided for in Article 61, paragraph (1), of the Small and Medium-Sized Enterprises Business Enhancement Act (hereinafter “collaborative business continuity capabilities enhancement funds”)” and “six hundred million yen (or four hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the collaborative business continuity capabilities enhancement funds),” respectively, and the phrase “two hundred million yen” as used in paragraph (2) of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the collaborative business continuity capabilities enhancement funds).”
  3. With respect to the application of the provisions of Article 3-8, paragraphs (1) and (2), of the Small and Medium-Sized Enterprises Credit Insurance Act to insurance relationships of new business development insurance that pertain to a small and medium-sized enterprise operator who has received the collaborative business continuity capabilities enhancement-related guarantee, the phrases “two hundred million yen” and “four hundred million yen” as used in paragraph (1), of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than funds necessary for the accredited collaborative enhancement of business continuity capabilities provided for in Article 61, paragraph (1), of the Small and Medium-Sized Enterprises Business Enhancement Act (hereinafter “collaborative business continuity capabilities enhancement funds”)” and “six hundred million yen (or four hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the collaborative business continuity capabilities enhancement funds),” respectively, and the phrase “two hundred million yen” as used in paragraph (2) of the same article shall be deemed to be replaced with “three hundred million yen (or two hundred million yen in the case of insurance relationships pertaining to a guarantee of obligations pertaining to funds other than the collaborative business continuity capabilities enhancement funds).”
  4. With respect to the application of the provisions of Article 3, paragraph (2), and Article 5 of the Small and Medium-Sized Enterprises Credit Insurance Act to insurance relationships of ordinary insurance that pertain to the collaborative business continuity capabilities enhancement-related guarantee, the phrase “seventy percent” as used in the same paragraph and the phrase “seventy percent (or eighty percent in the case of unsecured insurance, special petty insurance, current assets-backed insurance, pollution prevention insurance, energy conservation insurance, overseas investment-related insurance, new business development insurance, business restructuring insurance, and specific corporate bond insurance) as used in the same article shall be deemed to be replaced with “eighty percent.”
  5. Notwithstanding the provisions of Article 4 of the Small and Medium-Sized Enterprises Credit Insurance Act, the amount of insurance premiums for insurance relationships of ordinary insurance, unsecured insurance, or special petty insurance that pertain to the collaborative business continuity capabilities enhancement-related guarantee shall be the amount obtained by multiplying the insured amount by the rate provided for by Cabinet Order within two percent per annum.
  6. With respect to a big enterprise who implements the accredited collaborative enhancement of business continuity capabilities who is equivalent to the persons listed in Article 2, paragraph (2), item (iii) or (iv), and who has received a guarantee of obligations provided for in Article 3, paragraph (1) or Article 3-2, paragraph (1), of the Small and Medium-Sized Enterprises Credit Insurance Act that pertain to funds (limited to those provided for by Ordinance of the Ministry of Economy, Trade and Industry) necessary for implementation of the accredited collaborative enhancement of business continuity capabilities, the said big enterprise shall be deemed as a small and medium-sized enterprise operator provided for in Article 2, paragraph (1), of the same Act, and the provisions of Article 3, Article 3-2, and Articles 4 through 8 of the same Act shall be applied. In this case, the phrase “the borrowing” as used in Article 3, paragraph (1), and Article 3-2, paragraph (1), of the same Act shall be deemed to be replaced with “the borrowing of funds necessary for implementation of the accredited collaborative enhancement of business continuity capabilities provided for in Article 61, paragraph (1), of the Small and Medium-Sized Enterprises Business Enhancement Act (limited to those provided for by Ordinance of the Ministry of Economy, Trade and Industry as specified in paragraph (6) of the same article).”
(Special Provisions for the Small and Medium-sized Enterprise Investment Business Corporation Act)
Article 62
  1. A small and medium-sized enterprise investment business corporation may engage in the following businesses in addition to the business listed in each item of Article 5, paragraph (1), of the Small and Medium-Sized Enterprise Investment Business Corporation Act.
    1. Subscription for shares issued by a small and medium-sized enterprise operator when it establishes a corporation with stated capital exceeding three hundred million yen to implement the accredited enhancement of business continuity capabilities or accredited collaborative enhancement of business continuity capabilities, and possession of shares pertaining to the said subscription
    2. Subscription for shares, share options (excluding those attached to a corporate bond with share options), or corporate bonds with share options or the like issued by a small and medium-sized enterprise operator who is a corporation with the stated capital exceeding three hundred million yen to raise funds necessary for implementation of the accredited enhancement of business continuity capabilities or accredited collaborative enhancement of business continuity capabilities, and possession of shares, share options (including shares issued or transferred by the exercise of the share options) or corporate bonds with share options or the like (including shares issued or transferred by the exercise of the share options attached to the corporate bonds with share options or the like) pertaining to the said subscription
  2. With respect to the application of the Small and Medium-Sized Enterprise Investment Business Corporation Act, the business listed in each item of the preceding paragraph shall be deemed as businesses of Article 5, paragraph (1), items (i) and (ii), of the same Act.
(Special Provisions for the Japan Finance Corporation Act and the Okinawa Development Finance Corporation Act)
Article 63
  1. The Japan Finance Corporation may engage in the following operations in addition to the operations listed in Article 11 of the Japan Finance Corporation Act.
    1. Guarantee of obligations pertaining to the borrowing of long-term funds required by a small and medium-sized enterprise operator for implementation of the accredited enhancement of business continuity capabilities in a foreign country
    2. Guarantee of obligations pertaining to the borrowing of long-term funds required by multiple small and medium-sized enterprise operators (in the case where the said multiple small and medium-sized enterprise operators implement the accredited enhancement of business continuity capabilities jointly with all or part of their respective foreign affiliated corporations or the like, the said foreign affiliated corporations or the like are included) for implementation of the accredited collaborative enhancement of business continuity capabilities in foreign countries
  2. With respect to the application of the Japan Finance Corporation Act, a guarantee of obligations pursuant to the provisions of the preceding paragraph shall be deemed to be the operation listed in the right-hand column of item (iv) of the Schedule 2 of the same Act pursuant to the provisions of Article 11, paragraph (1), item (ii), of the same Act.
  3. In addition to the operations specified in Article 11 of the Japan Finance Corporation Act or Article 19 of the Okinawa Development Finance Corporation Act, the Japan Finance Corporation or the Okinawa Development Finance Corporation may engage in the operation of lending long-term funds (limited to those provided for by Ordinance of the Ministry of Economy, Trade and Industry) necessary for implementation of the accredited collaborative enhancement of business continuity capabilities to a big enterprise operator who implements the accredited collaborative enhancement of business continuity capabilities who is equivalent to the person listed in Article 2, paragraph (2), item (iii) or (iv).
  4. With respect to the application of the Japan Finance Corporation Act or the Okinawa Development Finance Corporation Act, the operation of lending funds to a big enterprise operator pursuant to the preceding paragraph shall be deemed to be the operation of lending funds listed in the right-hand column of item (xiv) of Schedule 1 of the Japan Finance Corporation Act to a person listed in the middle column of the same item pursuant to the provisions of Article 11, paragraph (1), item (i), of the same Act or the operation of Article 19, paragraph (1), item (v), of the Okinawa Development Finance Corporation Act, respectively.
(Cooperative Operations Related to the Accredited Enhancement of Business Continuity Capabilities or Accredited Collaborative Enhancement of Business Continuity Capabilities Implemented by the Organization for Small and Medium Enterprises and Regional Innovation)
Article 64

Organization for Small and Medium Enterprises and Regional Innovation provides information on the accredited enhancement of business continuity capabilities or accredited collaborative enhancement of business continuity capabilities implemented by a small and medium-sized enterprise operator who has obtained accreditation of Article 56, paragraph (1), or Article 58, paragraph (1), and implements other necessary cooperative operations upon request from the small and medium-sized enterprise operator.

(Special Provisions for the Act on Mutual Relief System for the Prevention of Bankruptcies of Small and Medium-Sized Enterprises)
Article 64-2

When a small and medium-sized enterprise operator who has obtained accreditation of Article 56, paragraph (1), or Article 58, paragraph (1), and who was a small and medium-sized enterprise operator provided for in Article 2, paragraph (1), of the Act on Mutual Relief System for the Prevention of Bankruptcies of Small and Medium-sized Enterprises (Act No. 84 of 1977) at the time of application for the said accreditation (or at the time of application for accreditation of changes, in the case where an application for accreditation of changes was filed pursuant to the provisions of Article 57, paragraph (1), or Article 59, paragraph (1), before the start of implementation period of an accredited business continuity capability enhancement plan or accredited collaborative business continuity capability enhancement plan) became no longer a small and medium-sized enterprise operator provided for in the same paragraph during the period from the application for the said accreditation to the end of implementation period of the said accredited business continuity capability enhancement plan or accredited collaborative business continuity capability enhancement plan, the said operator shall be continuously deemed as a small and medium-sized enterprise operator provided for in the same paragraph during the implementation period of the accredited business continuity capability enhancement plan or accredited collaborative business continuity capability enhancement plan, and the provisions of Article 9 and Article 10 of the same Act shall be applied.

Section 3 Miscellaneous

(Efforts toward Enhancement of Business Continuity Capabilities of Small and Medium-Sized Enterprise Operators)
Article 65

Small and medium-sized enterprise operators shall strive to make active efforts to enhance their business continuity capabilities by taking the basic policy into account.

(Measures to Contribute to Enhancement of Business Continuity Capabilities of Small and Medium-Sized Enterprise Operators)
Article 66
  1. The State, local governments, parent business operators, government-related financial institutions, commercial and industrial associations, chambers of commerce and industry, federations of small business associations, and other persons shall, in order to contribute to the enhancement of business continuity capabilities of small and medium-sized enterprise operators, strive to provide advice, trainings and information, and to implement other necessary measures related to the enhancement of business continuity capabilities implemented by small and medium-sized enterprise operators by taking the basic policy into account.
  2. The State must strive to provide advice and implement other necessary measures for local governments, government-related financial institutions, commercial and industrial associations, chambers of commerce and industry, federations of small business associations and other persons, so that small and medium-sized enterprise operators can smoothly receive information on natural disasters that are expected to occur in the areas where they locate.

Chapter 6 Miscellaneous

(Comprehensive Promotion of Measures Necessary for the Development of Infrastructure for Business Enhancement of Small and Medium-Sized Enterprises or the like)
Article 67

In addition to the measures provided for in this Chapter, the State shall strive to comprehensively promote measures necessary for the development of human resources that assume a role for business enhancement of small and medium-sized enterprises or the like, appropriate protection of intellectual property owned by small and medium-sized enterprises or the like, and other measures necessary for the development of infrastructure for business enhancement of small and medium-sized enterprises or the like.

(Consideration for the Local Economy)
Article 68

For promotion of measures for business enhancement of small and medium-sized enterprises or the like, the State shall strive to take consideration for the healthy development of the local economy.

(Securing of Funds)
Article 69
  1. The State shall strive to secure funds necessary for the accredited business for the development of new business field by utilizing highly skilled external human resources.
  2. National and prefectural government shall strive to secure funds necessary for the approved business for the business innovation.
  3. The State shall strive to secure funds necessary for the accredited business for the improvement of management capabilities.
  4. The State shall strive to secure funds necessary for the accredited introduction of advanced equipment or the like.
  5. The State shall strive to secure funds necessary for the accredited enhancement of business continuity capabilities or accredited enhancement of collaborative business continuity capabilities.
(Survey, Instruction and Advice)
Article 70
  1. With respect to new small and medium-sized enterprise operators or the like who engage in the accredited business for the development of new business fields by utilizing highly skilled external human resources, the competent minister shall conduct a survey to grasp the situation of their development of new business fields by utilizing external advanced human resources.
  2. With respect to the specified business operators who engage in the approved business for the business innovation, the administrative authority shall conduct a survey to grasp the situation of their business improvement.
  3. With respect to the specified business operators or the like who engage in the accredited business for the improvement of management capabilities, the competent minister shall conduct a survey to grasp the situation of their business improvement.
  4. With respect to the accredited business restructuring investment partnerships, the Minister of Economy, Trade and Industry shall conduct a survey to grasp the situation of their business restructuring investment.
  5. With respect to accredited business operator of introduction of advanced equipment or the like, the specified municipality shall conduct a survey to grasp the situation of their introduction of advanced equipment or the like.
  6. With respect to small and medium-sized enterprise operators who implement the accredited enhancement of business continuity capabilities or accredited collaborative enhancement of business continuity capabilities, the Minister of Economy, Trade and Industry shall conduct a survey to grasp the situation of their accredited enhancement of business continuity capabilities or accredited collaborative enhancement of business continuity capabilities.
  7. The State shall provide the instructions and advice necessary for secure implementation of the accredited business for the development of business fields by utilizing highly skilled external human resources, accredited business for the improvement of management capabilities, business restructuring investment to be implemented in accordance with accredited business restructuring investment plans, accredited enhancement of business continuity capabilities or accredited collaborative enhancement of business continuity capabilities.
  8. National and prefectural governments shall provide the instructions and advice necessary for secure implementation of the approved business for the business innovation.
  9. Specified municipality shall provide the instructions and advice necessary for secure implementation of the accredited introduction of advanced equipment or the like.
(Collection of Reports)
Article 71
  1. The competent minister may request a person who engages in the accredited business for the development of new business fields by utilizing highly skilled external human resources to provide a report on the situation of implementation of the accredited plan for development of new business fields by utilizing highly skilled external human resources.
  2. An administrative authority may request a person who engages in the approved business for the business innovation, while the competent minister may request a person who engages in the accredited business for the improvement of management capabilities to provide a report on the situations of implementation of the approved business innovation plan or the accredited management capability improvement plan, respectively.
  3. The Minister of Economy, Trade and Industry may request an accredited business restructuring investment partnership to provide a report on the situation of implementation of the accredited business restructuring investment plan.
  4. The competent minister may request an accredited business innovation support organization or accredited business field-specific management capability improvement promotion organization, while the Minister of Economy, Trade and Industry may request an accredited information processing support organization to provide a report on the situations of implementation of the support operations for business innovation, or promotional operations for improvement of business field-specific management capabilities, or support operations for information processing, respectively.
  5. The Minister of Economy, Trade and Industry may request the specified municipality to provide a report on the situation of implementation of the consented basic plan for introduction promotion.
  6. The head of specified municipality may request an accredited business operator of introduction of advanced equipment or the like to provide a report on the situation of the accredited plan for introduction of advanced equipment or the like.
  7. The Minister of Economy, Trade and Industry may request a person who implement the accredited enhancement of business continuity capabilities or the accredited collaborative enhancement of business continuity capabilities to provide a report on the situation of implementation of the accredited business continuity capability enhancement plan or the accredited collaborative business continuity capability enhancement plan.
(Competent Administrative Authority)
Article 72
  1. The administrative authority in this Act shall be the prefectural governor or ministers specified in each of the following in accordance with the categories of business innovation plans listed in the respective items.
    1. A business innovation plan prepared solely by a person listed in Article 2, paragraph (5), items (i) through (vi) (referred to as “individual specified business operator” in item (iii)): The governor of prefecture governing the district that includes the location of the principal office of the person who prepared the plan
    2. A business innovation plan prepared solely by a person listed in Article 2, paragraph (5), item (vii), whose articles of incorporation specify the district (referred to as “district union” in the following item) and whose district does not exceed the area of one prefecture: The governor of that prefecture
    3. A business innovation plan prepared jointly by specified business operators of which representatives consist of individual specified business operators or persons listed in the following (a) or (b) and of which prefecture that includes the locations of the principal offices of the said individual specified business operators within its area, or prefecture pertaining to the persons listed in the following (a) or (b) is the same one prefecture: The governor of that prefecture
      • (a) A district union whose district does not exceed the area of one prefecture
      • (b) A general incorporated association provided for in Article 2, paragraph (5), item (viii) whose business is limited to the business conducted in the area of one prefecture
    4. Other than business innovation plans listed in the preceding three items: The Minister of Economy, Trade and Industry and the ministers with jurisdiction over the business for the business innovation implemented in accordance with the said business innovation plan
  2. When a prefectural governor granted approval pursuant to the provisions of Article 14, paragraph (1) or Article 15, paragraph (1), the governor shall notify the Minister of Economy, Trade and Industry of the business innovation plan pertaining to the said approval in accordance with the provisions of the ordinance of the Ministry of Economy, Trade and Industry.
(Competent Minister)
Article 73
  1. The competent ministers of Article 3, paragraphs (1), (3), and (4), shall be the Minister of Economy, Trade and Industry and the Minister of Health, Labor and Welfare as for the part pertaining to the improvement of knowledge and skills of labor in the matters listed in paragraph (2), item (ii)-(b)-(i) and (c)-(iv) of the same article in the basic policy, and the Minister of Economy, Trade and Industry as for the other parts.
  2. The competent ministers of Article 8, paragraphs (1) and (3) (including the case where they are applied mutatis mutandis pursuant to Article 9, paragraph (3)), Article 9, paragraphs (1) and (2), Article 70, paragraph (1), and Article 71, paragraph (1), shall be the Minister of Economy, Trade and Industry and the ministers having jurisdiction over accredited business for the development of new business fields by utilizing highly skilled external human resources.
  3. The competent ministers of Article 16 (excluding paragraph (2)) shall be the ministers having jurisdiction over the business in the business field pertaining to the business field-specific guidelines.
  4. The competent ministers of Article 17, paragraphs (1) and (6), (including the case where they are applied mutatis mutandis pursuant to Article 18, paragraph (4)), paragraphs (7) and (8) (including the cases where they are applied mutatis mutandis pursuant to Article 18, paragraph (4)); Article 18, paragraphs (1) through (3); Article 19; Article 27, paragraphs (2) and (3); Article 70, paragraph (3); and Article 71, paragraph (2), (limited to the cases pertaining to the situation of implementation of an accredited management capability improvement plan) shall be the ministers having jurisdiction over the accredited business for the improvement of management capabilities.
  5. The competent ministers of Article 31, paragraphs (1), (3), and (4); Article 31, paragraphs (1) and (3), as applied mutatis mutandis pursuant to Article 33, paragraph (2); Articles 34 through 36; and Article 71, paragraph (4), (limited to the cases pertaining to the situation of implementation of the support operations for business innovation) shall be the Minister of Economy, Trade and Industry and the prime minister.
  6. The competent ministers of Article 39, paragraphs (1), (3), and (4); Article 31, paragraphs (1) and (3), as applied mutatis mutandis pursuant to Article 33, paragraph (2), as applied mutatis mutandis pursuant to Article 42; Article 34 and Article 36 as applied mutatis mutandis pursuant to Article 42; Article 35 as applied mutatis mutandis by replacing the certain terms pursuant to Article 42; and Article 71, paragraph (4), (limited to the cases pertaining to the situations of implementation of the promotional operations for improvement of business field-specific management capabilities) shall be the ministers having jurisdiction over the business pertaining to the promotional operations for improvement of business field-specific management capabilities.
  7. Ordinances of the competent ministry of the proviso of Article 3, paragraph (3), shall be orders issued jointly by the competent ministers provided for in paragraph (1).
  8. Ordinances of the competent ministry of Article 8, paragraph (1), Article 9, paragraph (1), and Article 13 shall be orders issued jointly by the competent ministers provided for in paragraph (2).
  9. Ordinances of the competent ministry of the proviso of Article 16, paragraph (4), shall be orders issued jointly by the competent ministers provided for in paragraph (3).
  10. Ordinances of the competent ministry of Article 2, paragraph (10), item (viii); Article 17, paragraph (1); Article 18, paragraph (1); and Article 27, paragraph (3) shall be orders issued jointly by the competent ministers provided for in paragraph (4).
  11. Ordinances of the competent ministry of Article 31, paragraphs (1), (3) and (4); Article 32, item (iii); Article 31, paragraphs (1) and (3); and the same item as applied mutatis mutandis pursuant to Article 33, paragraph (2); and Article 34 shall be orders issued jointly by the competent ministers provided for in paragraph (5).
  12. Ordinances of the competent ministry of Article 39, paragraphs (1), (3) and (4); Article 32, item (iii) as applied mutatis mutandis by replacing the certain terms pursuant to Article 42; Article 31, paragraphs (1) and (3) and the same item as applied mutatis mutandis pursuant to Article 33, paragraph (2) as applied mutatis mutandis pursuant to Article 42; and Article 34 as applied mutatis mutandis pursuant to Article 42 shall be orders issued jointly by the competent ministers provided for in paragraph (6).
  13. The prime minister delegate the authority under this Act (limited to those pertaining to the jurisdiction of the Financial Services Agency, and excluding those provided for by Cabinet Order) to the Commissioner of the Financial Services Agency.
(Business Affairs Processed by Prefectural Governments)
Article 74

Part of the business affairs under the authority of the Minister of Economy, Trade and Industry provided for in this Act may be conducted by prefectural governors in accordance with the provisions of Cabinet Order.

(Delegation of Authority)
Article 75
  1. Authorities of the administrative authorities (excluding the prefectural governors), the Minister of Economy, Trade and Industry and the competent ministers in this Act may be delegated to the heads of local branch offices in accordance with the provisions of Cabinet Order.
  2. The Commissioner of the Financial Services Agency may, in accordance with the provisions of Cabinet Order, delegate a part of the authority delegated pursuant to the provisions of Article 73, paragraph (13) to the head of a finance bureau or the head of a branch finance bureau.

Chapter 7 Penal Provisions

Article 76
  1. In the event that a person fails to make a report pursuant to the provisions of Article 71 (excluding paragraph (5)) or makes a false report, the person who has committed such violation shall be punished by a fine of not more than 300,000 yen.
  2. In the event that a representative of a corporation or an agent, an employee or other worker of a corporation or a person makes a violation of the preceding paragraph with respect to the business of that corporation or person, not only the offender shall be punished but also that corporation or person shall be punished in accordance with the same paragraph.

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