LPA 行政書士法人
LPA Administrative Scrivener Corporation
Secondhand Dealer License
Japan regulates the sale, purchase, and handling of secondhand goods under the Secondhand Dealers Act in order to prevent the circulation of stolen or illicit property and to ensure proper market oversight. Businesses that engage in transactions involving secondhand goods may be required to obtain a Secondhand Dealer License, depending on the nature and structure of their activities.
Please find below the key elements to have in mind when applying for a secondhand dealer license in Japan.
1. Definition of secondhand goods (Kobutsu)
Under Japan’s Secondhand Dealers Act, secondhand goods refers to:
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Products that have been used;
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Unused products that have been traded for the purpose of use (i.e., product purchased or received by a person that is resold without being used); and
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Items that have been cleaned, maintained, or lightly repaired
There are currently 13 categories of products for which secondhand dealer license can be obtained
2. Acts that require a Secondhand Dealer License
A license is required if you engage in any of the following activities involving secondhand goods (“kobutsu”):
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Purchasing secondhand goods and reselling them
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Purchasing secondhand goods, repairing or maintaining them, and then reselling them
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Purchasing secondhand goods and selling usable parts or components from them
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Acting as an intermediary on a consignment basis (selling goods you do not purchase yourself) and receiving a commission after the sale
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Exchanging secondhand goods for other items
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Purchasing secondhand goods and renting them out
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Exporting secondhand goods purchased in Japan and selling them overseas
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Conducting any of the above activities online
A license is not required, however, if you:
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sell items you personally used,
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sell items you received free of charge, or
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buy back an item from the person to whom you originally sold it.
3. Conditions to obtain a Secondhand Dealer License
A Secondhand Dealer License will not be issued unless a principal business office is designated before the application is filed. This is the address that serves as the operational base for the licensed business and where regulated activities are carried out.
When the business location is leased (including a rented home), the police may request documents confirming the right to use the premises for the intended purpose, such as:
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a copy of the lease agreement; and/or
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a written consent letter from the owner or building management association.
3.1. Existence of a principal business office
Practical notes
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For corporations, the registered head office and the licensed principal business location may be different.
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A sales-only site (no purchasing) may not be treated as a licensed “business location.”
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Storage-only facilities (warehouses, parking spaces, etc.) are generally not accepted as business locations.
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Where a large floor is shared with other companies (e.g. shared office), police officers often raise concerns about whether the office is sufficiently independent.
3.2. Hiring a Designated Manager
When applying for a secondhand dealer license, you must appoint a designated manager for each business office.
The designated manager is effectively the person in charge at the office: they are responsible for ensuring the business is operated lawfully and they act as the main point of contact with the police.
Appointment requirement
For a sole proprietor operating alone, the applicant may also serve as the designated manager, and an additional employee is not usually required solely for this purpose.
If a company applies for multiple offices at once, it must designate a full-time designated manager for each office. This often applies to chain businesses that are newly starting secondhand activities.
If the designated manager changes after the license is granted, a change notification must be filed.
Knowledge and experience
Because the designated manager is responsible for proper operations at the office, they are expected to have appropriate knowledge and experience relating to secondhand goods dealing and prevention of stolen property transactions.
In practice, where the business handles items such as antiques, jewelry, or automobiles, police officers often ask questions about the manager’s knowledge and experience.
The required level depends on the items handled. For example, for automobiles, the manager is expected to be able to identify suspicious indicators, such as possible illicit goods or irregularities in a vehicle identification number. As a general reference point, this may be assessed by comparison to the knowledge typically held by someone with around three years’ experience in the relevant business.
Managers are also expected to make ongoing efforts to build expertise, including attending training on secondhand goods and stolen property prevention.
3.3. Absence of disqualification criterion
For individual applications, both the applicant and the designated manager must not be subject to any of the disqualification criteria set out below. For corporate applications, none of the company’s officers nor the designated manager may fall under any of the disqualification criteria.
4. Secondhand Dealer License Application process
An application is filed with the Crime Prevention Division (Bōhan Section) of the police station having jurisdiction over the location of the business office. The statutory application fee is JPY 19,000.
Once submitted, the statutory review period is 40 days, counted from the day after the filing date. In calculating this period, Saturdays, Sundays, national holidays, and the year-end/New Year period (December 29 to January 3) are excluded.
The license itself has no expiry date and no renewal is required. However, the license may be revoked if the license holder does not commence business within six months of obtaining the license, or suspends business for six consecutive months or more and is found not to be operating (Secondhand Dealers Act, Article 6).
5. Main Obligations of the Secondhand Dealer
The main obligations of the secondhand dealer after obtaining of the license are as follows:
6. Our Support
We provide comprehensive support for secondhand dealer license applications, including assessment of eligibility, preparation of application documents, and coordination with the relevant police station. Our assistance is available for applications within the Tokyo metropolitan area.
