Construction business license in Japan is necessary
Assumed that your company in Japan has received an order from a client to construct photovoltaic power plant ( Taiyo ko panel ) in Japan. Then, in the event order amount from the client is 5 million yen or more, your company needs to acquire construction business license.
Photovoltaic power plant is not included in statutory building, but it is a kind of “facility”. So license is necessary.
With regard to ” Construction business act = Kensetsu gyo ho “, there is not difference between building and facility.
So, even if your company ( hereinafter named P company ) plans to construct photovoltaic power plant in Japan, construction business license is required.
Type of construction business license (=permit) is different from content of construction, scale ( the amount of money to be paid to subcontractor company ).
( In the case P company is Prime company = Moto uke gyosha, it will pay fee for its subcontractor company).
Types of construction business permission
In the case P company installs photovoltaic solar panel on the roof, the construction should be included in ” roofing construction = Yane koji = 屋根工事 “.
In that case P company needs to obtain construction business permit with category of roofing construction.
In the case P company installs photovoltaic panel on the land, it is included in ” electric construction “.
So, in order to construct mega photovoltaic power plant, construction business permit with category of electric construction is required.
General construction and Specific construction license
In the case cost of construction is less than 40 million yen, P company needs to obtain general construction business permit ( Ippan kensetsugyo kyoka = 一般建設業許可）. (Of course, if the construction cost is less than 5 million yen, Construction license is not necessary)
If P company hires subcontractor company and P company pays expense of 40 million yen or more to subcontractor company, P company needs to obtain Specific construction business permit = Tokutei kensetsu gyo kyoka.
If your company completes all construction without subcontractor, limitation of 40 million yen is not applied.
( Your company does not need to obtain specified construction business permit ).
If the amount to be paid to subcontractor company is 40 million yen or more and P company fails to pay the money to its subcontractor company, this subcontractor company should receive serious financial damage.
In order to avoid such situation, P company is required to sustain enough financial back ground.
And if P company can not fulfill such requirements, P company can not obtain Specific construction business permit.
In order to obtain specific construction business permit, the amount of registered capital should be 20 million yen or more.
In the case of general construction business permit, the amount of registered capital amount should be 5 million yen or more.
As mentioned above, regulation related to construction business is harsh.
So a company ( Named O company ) builds photovoltaic power plant by O company and sell power plant to client company.
( O company does not receive contract from its client. O company becomes first owner of the power plant )
In this case, client does not pay money to O company in advance and there is not risk for client company.
So, in this case O company does not need to obtain construction business permit.
Necessary cost and days to obtain Construction business license in Japan
When P company submits application paper to authority ( in the case P company has sales office = Eigyosho), government fee of about 90,000 yen is required ( In the case of Tokyo prefecture ).
In the case your company renew Construction business permit, the amount of government fee is 50000 yen.
( Your company needs to apply for extension of Construction business permit by 30 days prior to expiration date )
In the case your company adds new category to its Construction business permit, the amount of government fee is 50000 yen.
Once application papers to obtain construction business permit is submitted to authority, it will take about 30 days to obtain it.
During these days, documents are inspected by authority.
Requirement to obtain construction business license in Japan
In the case P company ( who hopes to obtain construction business permit ) is legal entity, one of full time directors ( managing member of LLC. executive officer of joint stock company are included ) should satisfy either of below.
In the case P company is an individual, he/she ( “he” ) or one of registered manager ( Shihainin ) should satisfy either of below.
In order to obtain construction business permit, P company should hire a chief administrator = 経営管理責任者.
（a）He should have work experience as chief administrator of more than 5 years in the category of construction business to obtain permit.
It means that he has been director of the company.
（b）He should have work experience as chief administrator of more than ６ years in other category of construction business to obtain permit.
So, even if P company hires employee who has experience of chief administrator, P company can not obtain construction business permit.
If P company hires him as one of director, it is all right.
（c） He should have similar position to chief administrator related to the category to obtain permit
and he can satisfy either of below.
(1）He has engaged in the construction business based on authority delegated by board of directors ( for five years or more )
（2）He has assisted business administration for six years or more.
( his former category should be coincide with category to be newly obtained )
Settlement of chief administrator is required to operate construction business.
So, even if P company has obtained construction business permit, when only chief administrator has left P COMPANY、construction business permit should be revoked.
So, it is better to appoint more than one chief administrator.
Regarding Registered full time engineer = Sen nin gijutsu sha = 専任技術者
P COMPANY should also appoint Registered full time engineer who has enough knowledge to conclude contract agreement.
He should have enough experience in the category of electrical construction ( If P company hopes to obtain construction business permit with category of electrical construction business.)
P COMPANY needs to prepare Registered full time engineer at each office.
He is full time employee. So, he should work in his office everyday other than holiday of the company.
Requirement to become Registered full time engineer differs depending on general construction business permit or specific construction business.
And it also differs depending of category of construction business ( electrical construction etc ).
And the full time engineer should be full time worker at the office.
( This applies to 経営管理責任者 )
If a Registered full time engineer has left the office and there is no other Registered full time engineer at the office, construction business permit of P company can not be available.
In the case your company has two operating offices (eigyosho) in same prefecture, you need to obtain Construction business permit from prefectural government.
If your company has two operating offices (eigyosho) in different prefecture, you need to obtain Construction business permit from Ministry.
In the case your company aims to obtain Construction business permit in a building for residence, you need to obtain permit from landlord, apartment association.
Your company needs to prepare sign board that indicates name of your company.
Valid period of Construction business permit is for five years.
As for registered full time engineer (Sen nin gijutsu sha)
In the case a person has license of 技術士（電気電子部門・総合技術監理部門）, he can become registered full time engineer.
In the case a person has license of 電気通信主任技術者 with experience of 5 years or more, he can become registered full time engineer.
In the case a person does not have license of 技術士, he needs to satisfy requirements below.
In the case a person graduated from designated faculty ( 電気工学, 電気通信工学 ) of university, college ( tan dai ), National Institute of Technology (koto senmon gakko = 高等専門学校) and with practical experience of 3 year, he can be registered full time engineer.
In the case a person graduated from designated faculty ( 電気工学, 電気通信工学 ) of vocational school ( senshu gakko = 専修学校) and with practical experience of 5 years, he can be registered full time engineer.
If he uses his experience of from 2001～2005 for one category of Construction business permit, he can not use this experience of from 2001～2005 for another category of Construction business permit.
As for office space to obtain Construction Business License in Japan
There is not regulation related to size of office space.
However your company needs to prepare telephone ( mobile phone is not available ), desk, chair, lounge suit.
Space for residence and office space should be cleared separated.
Pictures of office space are required.
Legally speaking, legal entity needs to enroll in social insurance ( shakai hoken ).
Even though your company has not enrolled in social insurance, it is not problem to obtain Construction business permit.
However at the time of application for Construction business permit, your company will be ordered to enroll in it.
Necessary documents to acquire Construction Business License in Japan
As for 経営管理責任者
There are many documents to be prepared.
Some documents are not easy to prepare.
１ Scanned copy of health insurance card (Hokensho).
In your health insurance card, name of company will be indicated.
BY this documents, you can prove you are full time director.
2 Certified copy of commercial register.
With this documents, you can prove term of your office as director ( 5 years or more).
3 Contract paper for construction that proves your company has engaged in construction business for past five years.( details of construction should be indicated )
At the time your company entered into contract with client, it made contract paper. So, you need to look for such old contract paper, too.( generally original paper is required).
As for registered full time engineer (専任技術者).
1 Document that can prove the registered full time engineer is full time worker. On his health insurance card, name of your company will be indicated.
2 If he can become registered full time engineer thanks to his license, original certificate of his license.
3 If he can become registered full time engineer thanks to his practical experience, either of following documents.
Assumed he worked in xx corporation ( this company has Construction business permit) from 2001 to 2010 and wants to use this period as his practical experience. In this case he needs to prepare scanned copy of Construction business permit of xx corporation.
Assumed he worked in zz corporation ( this company does not have Construction business permit) from 2001 to 2010 and wants to use this period as his practical experience. In this case he needs to prepare contract paper of zz corporation and its clients for several years.
( If he needs to prove work experience of past ten years, he needs to receive contract paper for past ten years from zz corporation. If he can not ask zz corporation, there is another option )
In order to prove his practical experience, he needs to provide scanned copy of health insurance card.
( on this card, date of acquisition of his status of employee should be indicated)