Q: What kind of licenses or permits are required for buying and selling secondhand goods?
If you are buying and selling or exchanging secondhand goods as a business, you need to be licensed as a secondhand dealer, and you have to get a license from the police station where your business office is located. Here, the term “used goods” refers to items that have been used previously or that have been traded for use.
Q: Can foreign nationals get a secondhand dealer's license to run a used car business?
Yes, they can. Since there are no nationality requirements to get a secondhand dealer’s license, foreign nationals can obtain a secondhand dealer’s license. In fact, there are many foreign nationals who have obtained secondhand goods dealer licenses and are running a secondhand business.
Q: Is Japanese language ability necessary to obtain a secondhand dealer’s license to operate a secondhand business?
When a secondhand dealer’s license is issued to sell secondhand goods, the police will explain the precautions you need to take when running a secondhand goods business, and depending on the police station, you may be required to have a certain level of Japanese language ability. Since the secondhand dealer business is based on a license system where government officials have the discretion to grant or deny a license, it is possible that an application from someone who does not understand Japanese at all may be denied. If the foreign business owner does not understand Japanese sufficiently to conduct the business, it would make sense to have an employee who does. Truth be told, most of the foreign secondhand dealers that I know are either fluent in Japanese or have Japanese employees or family members.
Q: Can I still be a secondhand dealer even if I am abroad?
In Japan, you need to obtain a license for each of your sales offices, and you must also have a manager at each sales office. The business owner may be abroad, but the license will only be granted if there is a manager at each sales office who manages and operates the secondhand dealer business.
Q: What does a manager of a secondhand dealer business do? Can I work part-time?
The manager of a secondhand dealer business is a person who supervises and manages the business at the sales office and appropriately manages the business at the sales office in compliance with laws and regulations related to the secondhand goods business. The manager also acts as the contact person with the local police station. To perform such work, the manager has to work at the sales office on a full-time basis to fulfill his or her responsibilities. As such part-time work is not possible in this case.
In addition, secondhand dealers also must make efforts to ensure that the manager acquires a certain degree of knowledge, skills, and experience to determine whether the secondhand goods are genuine or not.
Q: Can you introduce me to a person I can hire as the manager of my secondhand dealer business?
Unfortunately, we cannot introduce you to potential managers. Also, we do not know of any company that introduces such personnel to companies that do not have a proven track record.
Q: Are there any special requirements for managers who deal with used cars?
When dealing with used cars, the manager must have the knowledge, skills or experience required to decide whether any of the cars are authentic or counterfeit, whether there have been any modifications, and the extent of any modifications, and the manager must have the knowledge normally possessed by someone who has been engaged in the business of a secondhand dealer for at least three years, or, if not, must have taken a course run by a private organization to acquire this knowledge.
Q: Can the business owner himself or herself become the manager?
Yes, the business owner can become the manager.
Q: Are there any special requirements for secondhand car dealers?
When dealing with used cars, the police will also check and ask questions about where the cars will be stored after they have been purchased. The lease agreement for renting the parking lot will also need to be submitted as a document at the time of application for the license. If the parking lot/garage where the cars are stored is difficult to use due to its distance from the sales office, it will not be approved.
In exceptional cases, for example, in a business that exports used cars purchased overseas, if the company does not store the used cars at all, even temporarily, and instead delivers them directly to another exporter, in other words, if the company takes the form of a business that takes the cars straight to the large-scale export parking spaces (so-called yards) at the port, it may be permitted under the terms of the contract with the yard or used car exporter.
Q: I want to start with a virtual office or co-working space. Is that possible?
It is difficult to get a license using a virtual office, co-working space, or other similar work space where you basically only rent an address because it will be thought that you do not have an actual sales office.
Q: I would like to participate in car auctions.
You may not be eligible to participate in car auctions that deal in used cars unless you have a secondhand dealer's license and a certain number of years of transactional experience thereafter. In addition, there are also conditions for participation, such as having a permanent exhibition space and office, having a company structure, and having a Japanese guarantor. It would be a good idea to check requirements for membership/participation with the auction company that you plan to use in advance.
Please understand that we are not familiar with the detailed requirements for participating in a car auction. However, if you are unable to complete the membership procedures on your own, it is likely that you will not be able to purchase cars at a given auction. There are several English language websites or blogs on the web that might be useful for you.
Q: How much money should I prepare to start a used car business？
You will need to prepare at least for the immediate running costs to get the business up and running, such as the costs of setting up the business, office space, parking lot fees, and the cost of purchasing a used car. Please make sure to have a business and financial plan before starting your business. Unfortunately, there are many people who start a business with insufficient upfront capital, thinking that they will make a quick profit. Unfortunately, they often run into economic problems and are stuck.
Q: Can I get a start-up visa to start a used car business?
No, it is not possible. The start-up visa is basically granted to those who are involved in cutting-edge businesses such as IT or the medical industry. It is not granted to those involved in the trade of second-hand cars.
Q: I don't think I'll be able to meet the requirements of a secondhand good dealer. Should I give up the idea of starting a used car business?
I once spoke with a foreign business owner who ran a secondhand goods business, and he said that he had run across several challenges before he was able set up his secondhand goods business. If you can't meet the requirements for a secondhand dealer right now, it might be less risky to start by importing from a Japanese used car dealer and then wait for an opportunity to enter the Japanese market.
Used car exporters who do business with our office can be introduced to Australia and the UAE.
Q: I'm thinking of getting a secondhand dealer's license. Can you give me some advice?
If you have read the explanations on this site carefully, and if you can meet the various conditions and have a proper business and funding plan, please contact us. Please note that we may not reply to your inquiry if we think you have clearly not read the articles on this site.