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Second-hand Goods Dealer License in Japan

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What is Secondhand Goods Dealer License in Japan ?

Necessary documents to obtain Second-hand Goods Dealer License in Japan

Appoint of administrator

Office space is necessary

Penalty for illegal actions

Revocation of license

In Temporary facility

Notification of URL

Necessary days 

What is Secondhand Goods Dealer License in Japan ?

In the case you purchase Second-hand Goods (Kobutsu=古物) from other person and sell it, you need to obtain license in Japan.

Because some persons try to steal something from other persons and sell it to Second-hand Goods dealer shop.

So if you purchase a used vehicle from car auction in Japan, you still need to obtain Second-hand Goods dealer dealer.

If you purchase an item (Not used item) from retailer shop and sell it to other person, you do not need to obtain this Kobutsu Sho License.

If you used a car for several years and decide to sell it to other person, you do not need to obtain Secondhand Goods dealer permit = permit. 

If you are not living in Japan and purchase used items from Japan and sale it to other country or in Japan, you (non-resident of Japan) still needs to obtain this permit.

This license, permit is called “Kobutsusho kyoka”.  

Second-hand Goods dealer needs to make a record of seller of such goods and prevent from theft.

That is why, you can apply for Second-hand Goods dealer license to police department.

Necessary documents to apply for Second-hand Goods dealer license in Japan

1 Application paper

2 Lease contract paper of office space.
(You can use your residence as your office space. But you need to receive permit from landlord. If you can not acquire it by yourself, you can contact me. If you do not have legal address in Japan, you will not be able to rent an office space in Japan. In that case, I will try to prepare it on your behalf depending on conditions. ) Email me. akiyama(a)japan-law-tax.com

If you rent an office space in rural area, amount of monthly rent will be 30,000 yen or less.

However you will not be able to find administrator in neighborhood.

So you will look for it in Kachidoki, Chuo-ku, Tokyo. In this area, lowest rental fee will be 60,000 yen per month.

However you may be able to find an administrator.

3 Written oath
(You need to declare that you will operate your business abide by law)

4 Lease contract paper of parking lot

(Depending on situation, it is not necessary. If you purchase a car at car auction site and send it to port directly, you will not use parking lot. In that case you do not need to prepare parking lot to acquire the license. )

5 Certificate of residence

6 Certificate that you are qualified person to operate this business (Mibun shomeisho issued by city hall)

7 Resume (past for 5 years)
etc.

8 Administrator in Japan
(If you are not living in Japan, you can not become administrator of this business. So you needs to resident of Japan)

When you apply for this license, government fee of 19,000 yen is necessary.

Even if it is rejected, this money is not returned to you.

Once you can acquire Kobutsu License, you will be able to participate in this car auction by your name.

Appointment of Administrator 

In order to obtain Kobutsu Sho Kyoka, you need to appoint administrator, called Kanrisha.

If you establish several offices, you need to prepare administrator in each office.

She should be full time employee of your business and she needs to stay at your office when she is operating second hand goods dealer business. 

So if her address is far from office space, it is not feasible to obtain this license.

In the case you sell a vehicle, bike, administrator needs to have necessary business experience.

If you sell a jewelry, the administrator needs to have necessary skill to find fake jewelry.

In order to obtain Kobutsu License, Office space is necessary

You can not use shared office to obtain Second hand goods dealer license.

In the office space, administrator needs to stay always and prepare registry, signboard of Kobutsu Business.

In the office space, you will purchase used item. 

So if you use the space only as warehouse or parking or sale, it is not included in Office space.

And even if an address is registered as head office of your company, when it is virtual office, it is not included in Office space.

You need to have a right to use the space as Office space for Kobutsu Business.

If you are renting an office building or own residential apartment, you need to acquire permit from owner of office building or apartment owners association. 

In the case of residential apartment, apartment management rule will indicate that residents can not operate business in the apartment.

In that case, you need to obtain permit from apartment management company.

Penalty of illegal operation of Secondhand articles dealer business

If you operate Secondhand articles dealer business without permit or operate the business unlawfully, you will be punished by imprisonment with work not exceeding three years or a fine not exceeding one million yen, or both.

For example, you obtain the license by your personal name and operate the business by your company name, it is illegal.

If you allow other person to operate Secondhand Goods Dealer business by your name, it is illegal.

If you do not keep necessary record relating to Secondhand goods business, you will be punished by imprisonment with work not exceeding six months or a fine not exceeding 300,000 yen, or both.

Revocation of Kobutsusho Kyoka

Assumed that you have obtained the license. However you do not operate this business for six months or more. 

Or location of Kobutsu Sho Business is not found by authorities for 3 months or more.

In these situation, Kobutusho Kyoka can be revoked by authorities.

If your license is revoked by government, you and your company can not obtain the license within five year again.

According to alternation of law, you needed to submit this paper by end of March 2020.

You need to inform authorities of your main office. 

Even if you have license certificate, without submission of this paper, you can not operate Secondhand Goods Dealer Business legally.
So your license can be revoked.

kobutsu license
After date of enforcement of Secondhand goods dealer business law, you can obtain from one police department.

For instance, you are going to start Kobutsusho Busness in Tokyo prefecture and Chiba prefecture.

In this case you can choose one main office (assumed Tokyo) and obtain permit from Police department of Tokyo.

And you can file submission to police department in Chiba.

Operation of Kobutsu Business in temporary facility

In the case you receive secondhand goods from ordinary person, you need to receive it at your office or her residence.

However after enforcement of new Kobutsu Sho law, you can receive it at temporary facility as far as you notify it to police department in advance.

Notification of URL

In the case you operate Secondhand Goods Dealer Business using your website, you need to notify URL of the website to Police Department.

When you make website and sale Secondhand Goods, you need to follow this obligation.

Assumed that you make a page in Amazon or Yahoo and sale Secondhand Goods, notification of URL is necessary.

When you submit URL of your website, content of the website should be prepared.

If it is not made completely, you can complete the website and submit URL to police department.

Necessary days to obtain Secondhand Goods Dealer License

In view to obtain Secondhand Goods Dealer License in Japan, you need to prepare several documents and submit them to police department in person.

You can not submit it via internet nor by post.

After submission of documents, it will take about 40 days to obtain the license.

By the way, if you purchase second-hand vehicle and take away vehicle parts from it, you need to obtain Vehicle Dismantler License (Kaitai Gyo Kyoka), too.

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