The entire application process required for a foreigner to run a used goods business in Japan

This article provides a detailed explanation of the entire process required for foreigners living abroad who plan to run a second-hand goods business and apply for a second-hand goods dealer license in Japan.

Table of Contents

  1. Company Establishment
  2. Application for Second-hand Goods Dealer License
  3. Visa Acquisition

Company Establishment

In Japan, both individuals and companies can apply for a second-hand goods dealer license. However, for business operations, many applicants are companies with a certain scale of transactions. Therefore, this article assumes the application is for a company and will explain the process based on that premise.

So, where should you start? The first step is to establish a company in Japan. Specifically, you should first proceed with the registration procedure at the Legal Affairs Bureau in the jurisdiction where your company is located. The entire process of company establishment typically takes about one month. However, preparing the necessary documents for registration can be quite difficult for applicants themselves, so it is common to delegate the registration procedure to professionals.

In addition, before registration, you need to secure a business address for your company. Some foreign investors come to Japan for a short period to inspect and sign office lease contracts. However, it is not necessary for the investor to be physically present; many office properties allow you to complete the interior inspection and sign contracts remotely from overseas.

Application for Second-hand Goods Dealer License

After successfully completing the company registration, you can move on to the next step of applying for the second-hand goods dealer license. This process usually takes about two months. This article will focus on the aspect of the manager’s role. The “manager” here refers to the person responsible for managing and overseeing the second-hand goods trading business. By law, the manager must be a full-time employee, residing in Japan, and the residence must be within a reasonable commuting distance to the business location. Therefore, foreign nationals residing abroad cannot serve as managers. Additionally, due to the legal requirements and the need to communicate with police and other authorities, the manager must have a sufficient level of Japanese language proficiency, both spoken and written.

Visa Acquisition

When conducting business activities in Japan, the corresponding visa (referred to as “residence status” in this article) is required. Generally, the investor will serve as the company’s representative, so here we will explain the “Business Manager” visa, which allows individuals to engage in company operations in Japan. The processing time for the “Business Manager” visa is typically 3 to 6 months as of the publication of this article. When applying for this visa, a business plan must be submitted. The immigration office will primarily examine the sustainability of the business and the clarity of the business operation. They will also verify if the required business licenses, such as the second-hand goods dealer license, have been obtained before granting the visa. Therefore, it is best to obtain the second-hand goods dealer license before applying for the visa.

Furthermore, if a manager cannot be appointed in Japan initially, foreign entrepreneurs can apply for the second-hand goods dealer license and enter Japan later to serve as the manager after obtaining the residence status. In this case, the order of steps 2 and 3 will be reversed.

The above outlines the simplified process for foreigners to start a second-hand goods business. After company establishment, you will also need to apply for a corporate bank account and make necessary filings with the tax office and pension office. However, since this article focuses on topics unique to foreigners, it mainly explains the three key points: company establishment, license application, and visa acquisition. We offer comprehensive support for these related procedures. Feel free to contact us for consultation.