Secondhand Dealer License in Japan: Requirements for Foreigners

A business that buys and sells used goods needs a secondhand dealer license (古物商許可) under the Secondhand Articles Dealer Act (古物営業法). Applications are made to the Prefectural Public Safety Commission through the police station with jurisdiction over the main business office. Foreign nationals and foreign-owned companies can apply, but preparation of the status of residence, business office and manager decides whether a license is granted.

When a secondhand dealer license is required

“Secondhand articles” means goods that have been used once, goods traded for the purpose of use, and such goods after repair or refurbishment. Even new goods count as secondhand once they have passed into a consumer’s hands. A license is required to buy and sell, exchange, or sell on consignment secondhand articles as a business.

The application requires you to select categories of secondhand articles. There are 13: art; clothing; watches and jewelry; automobiles; motorcycles and mopeds; bicycles; cameras; office equipment; machinery and tools; general goods; leather and rubber products; books; and vouchers and tickets. You choose one main category and list any others you will handle in the application.

Requirements for the license

The review focuses mainly on three things: the people, the business office and the manager.

No grounds for disqualification

The applicant (for a corporation, every officer) and the manager must not fall under the disqualification grounds in Article 4 of the Secondhand Articles Dealer Act. The main grounds are as follows.

• A person subject to an order commencing bankruptcy proceedings who has not been discharged
• A person sentenced to imprisonment or a heavier penalty, or fined for theft or certain other offences, where five years have not passed since the sentence was served
• A member of an organized crime group, or a person for whom five years have not passed since ceasing to be one
• A person with no fixed residence
• A person for whom five years have not passed since revocation of a secondhand dealer license
• A person specified by regulation as unable to perform the business properly due to a mental or physical disorder
• A minor who does not have the same legal capacity as an adult with respect to business
• A person for whom there are substantial reasons to believe a manager will not be appointed for each business office

For a corporation, if even one officer falls under a disqualification ground, the corporation cannot be licensed.

A business office

Even when operating only online, a business office must be declared. It must be a genuine place from which the secondhand business can be carried on continuously. A location whose independence or continuity cannot be confirmed may not be accepted. For rented premises, check that the lease permits that use.

A manager for each office

One person responsible for managing operations must be appointed for each business office. The representative may take on this role. The manager must also not fall under any disqualification ground. A person who cannot actually manage the office’s operations (for example, someone living far away or also managing another office) may not be accepted.

Key points for foreign nationals and foreign-owned companies

The disqualification grounds in the Secondhand Articles Dealer Act say nothing about nationality. Both foreign individuals and foreign-owned Japanese companies can apply. Preparation differs from that of Japanese applicants in the following respects, however.

• Status of residence: A foreign national operating as an individual needs a status of residence (在留資格) that permits running a business. Besides the Business Manager visa (経営・管理), statuses such as Permanent Resident, Spouse or Child of Japanese National and Long-Term Resident carry no work restrictions.
• Copy of certificate of residence: Japanese nationals need one showing their registered domicile (honseki); foreign nationals provide one showing their nationality. Some prefectures also require the status of residence to be shown.
• Certificate of identity status (身分証明書): This is issued by the municipality of the registered domicile, so foreign nationals cannot obtain it. Confirm the alternative with the police station where you apply.
• Officers living overseas: Officers without an address in Japan cannot obtain a certificate of residence. Discuss the required documents with the police station in advance.
• Foreign-language documents: As a rule, a Japanese translation is attached.

For corporate applications, the police will also check whether the business purposes in the articles of incorporation include buying and selling secondhand articles. Including this at incorporation makes the process smoother. The incorporation process is explained in How foreign nationals and companies set up a company in Japan. On the status of residence for foreign executives, see also Business Manager visa: application documents, processing times and renewal.

What to decide before applying

Individual or corporate license

A secondhand dealer license is granted to the individual or corporation that receives it. A license obtained by an individual cannot later be transferred to a corporation established afterwards. If you plan to operate through a company, set up the company first and apply in its name.

Categories and mode of business

In addition to your main category, you can list categories you plan to handle in future at the time of application. Whether you buy in store, buy at customers’ premises or buy online changes how you verify identity and keep records. Deciding your mode of business first also makes it easier to answer questions during the review.

Who will be the manager

At foreign-owned companies whose representative is not based in Japan, it is common to appoint an employee in Japan as manager. Because the manager oversees day-to-day transactions, choose someone who can attend the business office.

Application steps and required documents

1. Decide the categories of secondhand articles, the business office and the manager.
2. Prepare the application form and attachments.
3. Apply at the police station with jurisdiction over the main business office (crime prevention section or similar) and pay the fee. For the Tokyo Metropolitan Police Department, the fee is 19,000 yen.
4. The police review the application. The standard processing period is set by each prefecture, so check the guidance of the prefectural police where you apply.
5. If approved, a license certificate is issued.
6. Display a sign at the business office and begin operating.

The main attachments are as follows (based on Tokyo Metropolitan Police Department guidance). Details vary by prefecture, so check the guidance where you apply.

Since April 2020, a single license from the Public Safety Commission with jurisdiction over the main business office has been sufficient. Adding offices in other prefectures is handled by notification rather than a new license.

Obligations after licensing and the October 2025 amendment

Once licensed, you must comply with the following obligations.

• Verifying counterparties: When buying secondhand articles and in certain other cases, verify the counterparty’s address, name, occupation and age.
• Recording in ledgers: Record transaction details and keep the records for three years from the date of the last entry.
• Displaying a sign: Display a sign in a visible place at each business office.
• Reporting suspect goods: If goods are suspected of being stolen, report this to a police officer immediately.
• Notifying changes: Changes to officers, managers, business offices and other matters must be notified. Depending on the change, notice is required either in advance or within 14 days after the change (20 days if a certificate of registered matters is attached).

Counterparty verification is generally not required where the total consideration is under 10,000 yen. However, items frequently targeted by theft must be verified regardless of value. Until now, these were motorcycles and mopeds (including parts), home video game software, recording media such as CDs and DVDs, and books.

An amendment to the enforcement ordinance that took effect on 1 October 2025 added four items in response to a sharp rise in metal theft: outdoor air-conditioner units, heat pumps for electric water heaters, electric wire, and metal gratings. Businesses handling these items must verify identity and keep records even for small purchases. According to Tokyo Metropolitan Police Department guidance, LAN cables, household extension cords, charging cables and similar items are not covered. If you are unsure whether an item is covered, check with the police station with jurisdiction over your business office.

A license may also be revoked if, for example, business does not begin within six months of licensing.

How TIMOA can help

Once the business office and manager are in place, documents for all officers are ready and the status of residence has been confirmed, the secondhand dealer license procedure itself is not complicated. For foreign nationals and foreign-owned companies, it is important to settle in advance how substitutes for the certificate of residence and certificate of identity status will be handled.

Working with partner administrative scriveners (行政書士), TIMOA helps confirm requirements, prepare documents and consult the police station in advance. We can also advise alongside company setup, status of residence and other permits such as liquor licenses (Types and requirements of liquor sales licenses). For details, see our Permits & Financial Licenses service.