Question:

I heard that there are businesses in Japan that require government licenses. What are these documents?
 

Answer:

A government license refers to documentation issued by administrative bodies such as the police station, health center, prefectural government, etc., which is a requirement to be able to operate specific kinds of businesses.
 

Explanation

Government licenses

Government licenses here loosely refers to documents that are either submitted to (notifications, etc.) or obtained from (permits, licenses, etc.) administrative bodies such as the police station, health center, prefectural government, etc. that signify to the authority to conduct certain kinds of business. Operating a business despite failure to obtain the necessary documentation is a criminal activity and is punishable under law.

Applying for government licenses is generally done after the incorporation/registration of a company or branch office in Japan. However, it is important to be aware of what kinds of government licenses your business will need even prior to the establishment of the company, as there are some permits or licenses that include capital or business purposes requirements, which are indicated in the company’s articles of incorporation, facility/location-related requirements, which are usually decided early on in the establishment process.

The different government licenses are divided into 5 classifications, depending on how they are processed, their requirements, etc. (refer to Chart 7-4).
 

Chart 7-4 Classifications of Government Licenses

ClassificationDescription
NotificationBusiness operation is permitted following submission of a notification to the relevant government office/agency.
RegistrationBusiness operation is permitted following the notification to the relevant government office/agency and registration of the business at a certain registry.
AuthorizationBusiness operation is permitted following notification to the relevant government office/agency, provided that the business meets the predetermined criteria.
PermitBusiness operation is permitted following notification to the relevant government office/agency, provided that they pass an examination or inspection.
LicenseA person who holds specific qualifications can submit notification to the relevant government office/agency, and may operate their business if the requirements are met.


Types of government licenses

Depending on the business contents, the permits and licenses as well as the government agency/office where applications are filed differ. Chart 7-5 shows typical businesses that require government licenses.
 

Chart 7-5 Types of Government Licenses

ClassificationIndustryRelevant AgencyLegal Basis
NotificationHairdresserHealth centerBarbers Act
Dry-cleaningHealth centerLaundries Act
Massage (government certified for medical treatment)Health centerAct on Anma, Massage and Shiatsu, Acupuncture, and Moxibustion Practitioners
Paid parking lot (hourly rental)Municipal governmentParking Lot Act
RegistrationTravel industry/agencyPrefectural governmentTravel Agency Act
Pet shopPrefectural governmentAct on Welfare and Management of Animals
Electrical and demolition workPrefectural governmentConstruction Business Act
WarehousingTransport BureauWarehousing Business Act
AuthorizationSecurity servicesPolice stationSecurity Services Act
NurseryPrefectural governmentChild Welfare Act
PermitSale of second-hand goods such as recycling shops, second-hand bookstores, second-hand car salesPolice stationAntique Dealings Law
Pachinko parlors, arcades, mahjong parlors, host/hostess clubs, bars, etc.Police stationLaw Regulating Adult Entertainment Business
Food service such as restaurants, cafes, and packed lunch stalls (Businesses offering alcoholic beverages beyond past midnight, the Law Regulating Adult Entertainment Business will apply)Health centerFood Sanitation Act
Police stationLaw Regulating Adult Entertainment Business
Food production and sales of confectionery, bread, delicatessen, etc.Health centerFood Sanitation Act
Pharmacy, drug store, drug wholesaleHealth centerPharmaceutical Affairs Act
Hotels and innsHealth centerHotel Business Act
Hospitals and clinicsHealth centerMedical Care Act
Nursing business (home visits, care at institution, home care, etc.)Prefectural governmentLong-Term Care Insurance Act
Construction and renovation work (excluding minor contract work)Prefectural governmentConstruction Business Act
Manpower and job placement businessesLabor BureauWorker Dispatching Act
Taxi and bus business (passenger transportation)Transport BureauRoad Transportation Law
Shipping (freight forwarding)Transport BureauMotor Truck Transportation Business Act
LicenseReal estate transactionPrefectural governmentReal Estate Brokerage Act

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