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SME Business Succession Support Package Formulated

December 20, 2019

The Ministry of Economy, Trade and Industry (METI) formulated a Comprehensive Package of Measures for Supporting SMEs in Business Succession to Third Parties as an initiative for comprehensively supporting SMEs with no business successors in succeeding their businesses to third parties.

1. Purpose

METI has been providing measures to encourage smooth succession of SME’s, such as the tax system for business succession in which the government substantially reduces tax burdens involving business succession imposed on both legal persons and individuals to virtually zero.

Meanwhile, these conventional measures have provided insufficient points for SMEs with no predetermined business successors, and, to address this, METI formulated the Comprehensive Package of Measures for Supporting SMEs in Business Succession to Third Parties. This package aims to encourage the business resources, e.g., techniques and employment, of SMEs which are anticipated to close their businesses while producing a surplus to pass over to and converge on next-generation, proactive business operators.

Under this package, public and private support organizations will combine their efforts and strive to achieve the future goals of SMEs’ business succession to third parties: 60,000 companies per year and 600,000 companies over a decade.

2. Overview

METI will dramatically enhance the package upholding the following three pillars:

3. Outline of the Council on Thoroughly Promoting SMEs Business Succession to Third Parties

As an effort for conducting the package, METI will hold a series of meeting of the Council on Thoroughly Promoting SMEs Business Succession to Third Parties in March 2020. This council will bring together officials from METI and the Financial Services Agency and representatives of SME support organizations, financial institutes, private intermediary agencies and other companies and will aim to provide opportunities for kicking off related initiatives in order to steadily advance measures for supporting SMEs in business succession to third parties across Japan by combining the efforts of the members of the council.

METI will publicize the details of the council at a later date.

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