A Construction Business License is generally required when a company or individual undertakes construction work in Japan for remuneration, regardless of whether the project is public or private.A license may not be required if the business undertakes only minor construction work. However, the minor work exemption is limited, and the analysis should be made carefully based on the construction category, contract amount, tax, materials and project structure.

Minor construction work that do not require a license generally means: For general building construction work, work with a contract price of less than JPY 15,000,000, or wooden residential construction with a total floor area of less than 150 square meters. For construction work other than general building construction work, work with a contract price of less than JPY 5,000,000. These amounts include consumption tax. The value of materials also need to be considered when assessing whether the threshold is exceeded.

No. A project should not be divided into several smaller contracts simply to avoid the licensing threshold.If several contracts are effectively part of the same construction work, the total value is considered when assessing whether the work qualifies as minor construction work.

A foreign company with no registered Japanese presence and no construction business office in Japan will generally not be able to apply for a Construction Business License in practice.Foreign companies planning to carry out construction work in Japan will usually need to establish an appropriate local structure, such as a Japanese subsidiary or registered Japanese branch, before applying for a license.

A representative office is generally not sufficient because it cannot conduct revenue-generating business activities in Japan.Where a foreign company intends to undertake construction work in Japan, a Japanese subsidiary or registered Japanese branch should usually be considered before applying for a Construction Business License.

If the company itself contracts with the client to undertake construction work, it may need its own Construction Business License, even if the actual work is performed by a licensed subcontractor.Using a licensed subcontractor does not necessarily remove the licensing obligation of the company contracting with the client. The structure should be reviewed carefully before signing the contract.

A consortium, partnership or subcontracting structure may be considered depending on the project.However, the legal role of each party must be structured carefully. The party undertaking construction work must hold the required license, unless an exemption applies. A foreign company providing technical advice, materials or support services should ensure that its role does not amount to unlicensed construction business in Japan.

A Minister license is required where the applicant has construction business offices in two or more prefectures.A Governor license applies where the applicant has construction business offices in only one prefecture.This distinction is based on the location of the applicant’s construction business offices, not the location of construction sites.

Yes. The Minister/Governor distinction relates to the location of the applicant’s construction business offices, not the area where construction work may be performed.For example, a contractor with only one construction business office in Tokyo may generally apply for a Tokyo Governor license, but this does not mean that construction work is limited to Tokyo.

An Ordinary Construction Business License is the standard license for construction businesses.A Specific Construction Business License is required where the main contractor directly contracts with the client and subcontracts work totaling JPY 50,000,000 or more, or JPY 80,000,000 or more for general building construction work.A Specific Construction Business License is subject to stricter requirements, especially financial requirements, because it is intended to protect subcontractors.

Not necessarily. The requirement depends on the subcontracting structure, not simply on the total amount of the contract with the client.A contractor may need a Specific Construction Business License if it directly contracts with the client as main contractor and subcontracts work exceeding the relevant threshold. If the contractor performs the work itself, or if the subcontracted amount does not reach the threshold, an Ordinary Construction Business License may be sufficient.

The Specific Construction Business License requirement applies to a main contractor that directly contracts with the client and subcontracts work above the relevant threshold.A subcontractor does not become subject to the Specific Construction Business License requirement merely because it performs high-value work as subcontractor. However, the subcontractor must still hold the appropriate license classification for the work it undertakes, unless the work qualifies as minor construction work.

There are 29 construction work classifications.Construction Business Licenses are granted by construction work category, and the applicant must obtain the classification that matches the work it will actually perform. More than one classification may be required depending on the business model.1.        Public engineering2.        Building works3.        Carpentry works4.        Plastering works5.        Scaffolding, earthwork, concrete works6.        Stone works7.        Roofing works8.        Electrical works9.        Piping works10.    Tile / brick / block works11.    Steel construction works12.    Steel reinforcement works13.    Paving works14.    Dredging works15.    Sheet metal works16.    Glass works17.    Painting works18.    Waterproofing works19.    Interior finishing works20.    Machinery and equipment installation works21.    Thermal insulation works22.    Telecommunications works23.    Landscaping and Gardening works24.    Well drilling works25.    Fittings works26.    Water and Sewerage works27.    Firefighting facilities works28.    Waste and sanitation facilities works29.    Demolition works

No. A Construction Business License does not automatically cover all construction work.The license is granted by classification. A contractor must be licensed for the construction work category it undertakes. If the business carries out several types of construction work, it may need to apply for several classifications.

Yes. A licensed contractor may apply to add a new construction work classification to an existing Construction Business License.The applicant must satisfy the applicable requirements for the additional classification, including the technical personnel requirement.

The applicant must have a construction business office in Japan. The office must be a place where substantive construction business activities are carried out, such as estimates, bidding, contract negotiation and contract execution.A mere registered address, representative office, liaison office or temporary project site is generally not sufficient. The office should be capable of supporting actual construction business operations, including the placement of the required full-time personnel.The office requirement should be checked early, especially for newly established companies, foreign-owned businesses, shared offices or structures involving remote management.

For a corporate applicant, the management requirement must be satisfied by at least one full-time officer or equivalent person.The standard route is to appoint a person who has at least five years of experience as a person responsible for the management of a construction business.Other routes may be available, including: At least five years of experience managing construction business operations in a position equivalent to a responsible manager, where management authority was formally delegated. At least six years of experience assisting a person responsible for construction business management in an equivalent managerial position. Certain combinations of officer-level experience and an internal support structure, where the full-time officer is directly supported by persons with at least five years of experience in financial management, labor management and business operations. These alternative routes are assessed on a case-by-case basis and should be confirmed with the competent authority before filing the application.The management personnel requirement must continue to be satisfied after the license is granted. If the required person ceases to be in place and no qualified replacement is appointed, the license may become subject to cancellation.

Possibly, but overseas experience, foreign academic background and foreign professional qualifications are not automatically accepted for Construction Business License purposes.Where the applicant wishes to rely on such experience or qualifications for the management personnel requirement, office engineer requirement or site engineer requirement, a separate Ministerial recognition process may be required before the Construction Business License application can be filed.The process generally involves:Identifying which licensing requirement the overseas experience or qualification is intended to satisfy. Collecting supporting documents from overseas, such as employment certificates, agreements, graduation certificates, transcripts or professional qualification documents. Preparing Japanese translations of the relevant documents and, where required, notarized or otherwise certified documents. Submitting a Ministerial recognition application to MLIT. Obtaining the recognition certificate and using it as supporting evidence for the Construction Business License application. This process should be reviewed at an early stage, as collecting overseas documents, preparing translations and obtaining recognition may take several months. Recognition is assessed on a case-by-case basis and is not guaranteed.

Yes. The full-time engineer is assigned to the construction business office and is part of the licensing requirements.Separately, a construction company may need to appoint a chief engineer or supervising engineer for each construction site. The site engineer requirement depends on the contractor’s role, subcontracting structure, project type and project scale.

For an Ordinary Construction Business License, the applicant generally needs to show one of the following:Self-capital of JPY 5,000,000 or more. Ability to procure funds of JPY 5,000,000 or more. A prescribed record of licensed construction business operation.For a Specific Construction Business License, stricter financial requirements apply, including requirements relating to capital, self-capital, loss ratio and current ratio.

A Construction Business License is valid for five years.To continue the licensed business, the license must be renewed before expiration. The renewal application must generally be filed no later than 30 days before the expiration date.

For a new Minister license, the registration and license tax is generally JPY 150,000.For a new Governor license, the official license fee is generally JPY 90,000.For renewal or addition of a construction work classification within the same license category, the official fee is generally JPY 50,000.

After obtaining a Construction Business License, the license holder must maintain the licensing requirements and file required notifications when certain information changes.Post-license procedures may include change notifications, annual business reports, renewal applications and applications for additional construction work classifications. The required procedure depends on the type of change and the competent authority.

The applicant must appoint a qualifying office engineer for each construction business office.The office engineer must be assigned full-time to the relevant office and must satisfy the technical requirements for the construction work classification covered by the application.For an Ordinary Construction Business License, the office engineer may qualify through one of several routes, including completion of designated academic subjects and practical experience, ten years or more of practical experience in the relevant construction work, a recognized Japanese technical qualification, or Ministerial recognition.For a Specific Construction Business License, stricter technical requirements apply. Depending on the construction work classification, the office engineer will generally need a recognized national qualification, prescribed supervisory experience, or Ministerial recognition.