Many business owners wonder where to start when obtaining a construction business license in Japan. This license is required to undertake construction work above a certain scale. This article explains the 3 key requirements you must understand before applying.
Point 1: Business Management Director (Keikan)
A person qualifying as the “Business Management Director” must be a full-time employee. Generally, this is a director with at least 5 years of experience managing a construction business. If no qualifying person is available, the license application cannot proceed.
Point 2: Specialized Technical Personnel (Sengi)
For each type of construction work, a “Specialized Technical Person” must be stationed at each business office. Qualification requires a national license (Construction Management Engineer, Architect, etc.) or a combination of educational background and practical experience.
Point 3: Financial Standing
For a General Construction license, you need equity capital of at least ¥5 million, or the ability to secure ¥5 million in funding. Special Construction licenses require stricter standards (equity of ¥40 million or more). Review your most recent financial statements carefully.
Consult Inui Administrative Law Firm
Construction license applications require verifying requirements and gathering numerous documents. Our firm provides comprehensive support from initial licensing through annual financial reports and management review (Keishin) applications. The first consultation is free. Please feel free to contact us.
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