Secondhand Dealer License Guide for Foreign Nationals

In Japan, the reuse culture is thriving through platforms such as Mercari and Yahoo! Auctions. Internationally, platforms like eBay and Alibaba also support a robust second-hand marketplace. It’s fair to say that reuse culture is a major trend around the world.

To start a reuse business in Japan, it is essential to obtain a Second-Hand Dealer License (Kobutsusho License). This page outlines the necessary steps and requirements for foreign residents in Japan to obtain this license.

Acquiring the license can be complicated, as it involves many technical legal terms and complex documentation. Even after successfully obtaining the license, operating a business in Japan—especially as a foreigner—requires adapting to unique local business customs, which can be challenging.

That’s why Legal Plaza Reuse office(Gyoseishoshi) offers more than just assistance with document preparation and submission. We also provide ongoing support as your legal advisor, helping you establish and grow your reuse business in Japan.

What is “Kobutsu” (Second-Hand Goods)?

In the context of a Second-Hand Dealer License, what exactly does kobutsu refer to? According to Article 2, Paragraph 1 of the Secondhand Articles Dealer Act of Japan, “kobutsu” is defined as follows:

1. Items that have already been used
2. Items that have not been used, but were traded with the intention of being used
3. Items that fall under 1 or 2 and have undergone minor maintenance

Here, the term “used” means that the item has fulfilled its original intended purpose. Conversely, items that cannot fulfill their intended purpose are considered scrap and are not classified as kobutsu.

Basically, any product that a reuse or recycle shop purchases—whether it appears new or not—is considered kobutsu as long as it is acquired for the purpose of resale. Such goods are subject to regulation under the Secondhand Articles Dealer Act.

However, certain collectibles such as old coins, stamps, and telephone cards—when deemed to have been collected for hobby purposes rather than used in their original function—are generally not considered kobutsu under the law.

A Type 1 Second-Hand Dealer (Kobutsusho) refers to a business that either:

• Purchases kobutsu from individuals to sell or trade them, or
• Sells or trades kobutsu on behalf of others under a consignment arrangement.

When Is a Business Considered “Second-Hand Dealing”?

Examples That Are Considered Second-Hand Dealing:

• Receiving second-hand items on consignment and charging a fee upon sale
• Purchasing second-hand items and selling usable parts
• Purchasing second-hand items and offering them for rent
• Exporting second-hand goods purchased in Japan and selling them overseas
• Buying second-hand goods only at dealer markets and selling them to the general public
• Selling items that were originally purchased with the intent to resell

In short, reuse and recycle shops fall under the category of second-hand dealers. So does reselling. If your activity matches any of the above, you are considered to be engaged in second-hand dealing (kobutsu eigyō), and must obtain a Second-Hand Dealer License.

Examples That Are Not Considered Second-Hand Dealing:

• Selling second-hand goods received for free
• Selling personal belongings
• Selling items purchased personally while abroad
• Hosting a flea market that is open to the public
• Only selling second-hand goods without conducting any purchases
• Only buying back goods you yourself originally sold

It’s important to determine whether your business activities qualify as second-hand dealing. If they do, obtaining a license is required under Japanese law.どうかを見極め、該当するのであれば古物商許可証を取得する必要があります。

List of 13 Categories of Second-Hand Goods

Under Japan’s Second-Hand Goods Act, second-hand dealers must register the specific category of goods they intend to handle. Below is the official list of 13 categories:

Important Notes:

Please note: Old coins, collectible stamps, and phone cards that were not originally intended for their typical use (e.g., monetary exchange or communication) are not considered “second-hand goods” under the Act.

According to Article 2 of the Enforcement Regulations of the Second-Hand Goods Act, you must notify the Public Safety Commission within 14 days if you start handling a new category or change the category of goods you handle.

Requirements to Obtain a Second-Hand Dealer License

Foreign nationals can obtain a Second-Hand Dealer License in Japan. However, as a general rule, you must have a registered residential address in Japan.

Disqualification Conditions

In order to obtain the license, you must not fall under any of the disqualification conditions listed below. These conditions apply to both Japanese and non-Japanese applicants.

Disqualified Individuals:

• A person who has not been rehabilitated after bankruptcy procedures were initiated.
• A person convicted of a crime, including:
  • Those sentenced to imprisonment or penal servitude
  • Those fined for crimes such as:
    • Theft
    • Breach of trust
    • Embezzlement of lost property
    • Receiving stolen property
  • Violation of the Second-Hand Goods Act, including:
    • Operating without a license
    • Illegally obtaining a license
    • Lending a license to another person
    • Failing to carry your license or dealer identification when engaging in business (even for a short period, such as 3 days)
    • Failing to report suspicious items
    • Ignoring police (Public Safety Commission) instructions
    • Violating other laws
• A person who is:
  • A member or former member of a criminal organization (bōryokudan)
  • A person who left such an organization within the past 5 years
  • A person who has engaged in organized or habitual illegal activity, or is considered likely to do so
  • A person who has been ordered or instructed by a Public Safety Commission under the Anti-Bōryokudan Act within the past 3 years
• A person who has no fixed address
• A person whose license was revoked within the past 5 years
• A person who:
  • Obtained a license by fraudulent means
  • Became disqualified after obtaining the license
• A person who has not conducted any business for over 6 months and has no plan to resume
• A person who did not start their business within 6 months of obtaining the license
• A person who has been missing for over 3 months
• A person with mental or physical disabilities that prevent them from properly conducting business (as defined by regulations of the National Public Safety Commission)
• A minor (under 18 years old)

Required Visa Status (for Foreign Nationals)

古To apply for a Second-Hand Dealer License in Japan, you must have one of the following visa statuses:

• Permanent Resident (永住者)
• Long-Term Resident (定住者)
• Spouse of a Japanese National (日本人の配偶者等)
• Spouse of a Permanent Resident (永住者の配偶者等)
• Business Manager (経営・管理)

Other statuses such as Engineer / Specialist in Humanities / International Services (技術・人文知識・国際業務) might technically be acceptable, but they are not intended for operating a second-hand business. If you plan to run a business, the “Business Manager” visa is most appropriate.

On the other hand, if your visa status is not one of the above (e.g., Student Visa or Technical Intern Visa), you cannot obtain a Second-Hand Dealer License. In principle, you must have a resident-type or Business Manager visa.

Required Documents

When applying for a Second-Hand Dealer License as an individual, you will need to prepare the following documents:

• Application Form (Second-Hand Dealer License Application Form No. 1–3)
• Resume (Rirekisho)
• Copy of Certificate of Residence (Juminhyo)
• Certificate of Identity issued by local government (※)
• Pledge Form (Seiyakusho)
• If you conduct online transactions: Proof of website ownership and URL authorization documents

Important Notes on the Certificate of Identity

The Certificate of Identity issued by the local municipal office is not the same as a passport or driver’s license. It is a special certificate issued only if your family register (koseki) is within that municipality.

• For naturalized citizens: Your family register is in Japan, so you can obtain the Certificate of Identity at your local government office.
• For foreign nationals without a Japanese family register: You cannot obtain this certificate, so it is not required.

Instead, you must submit a substitute document, such as a written pledge, which format may vary depending on your local police department. In some cases, you may be asked to submit a copy of your Residence Card.

The main purpose of the Certificate of Identity is to confirm that the applicant has not been declared bankrupt without rehabilitation.

Other Important Requirements

1. A Certain Level of Japanese Speaking Ability

Buying second-hand goods (as opposed to selling) often involves negotiation. When assessing and pricing items brought in by customers, they may not always accept the offered price. To successfully complete the purchase, you must negotiate — and sometimes, customers will negotiate with you as well.

To handle this kind of negotiation smoothly, a reasonable level of conversational Japanese is required.

At our company, we once employed a foreign staff member who had excellent Japanese proficiency. However, even with strong language skills, negotiating purchase prices was a significant challenge. From this experience, we found that conducting purchases as a foreigner can be particularly demanding.

Furthermore, during the course of operating a second-hand business, you may be subject to on-site inspections by police officers. They may review your ledgers, verify item records, or ask for information based on police bulletins (品触れ).

In such situations, you must be able to communicate with police officers in Japanese. Unfortunately, Japanese police typically do not conduct business in English, Korean, or other languages — communication must be in Japanese.

2. Sufficient Operating Capital

As with any business, having enough working capital is essential, especially for buying goods from customers. Without sufficient funds, it will be difficult to run a second-hand business.

3. Industry Connections in Japan

There are always trends and market dynamics within the Japanese reuse industry. Much of this information is acquired through horizontal connections — relationships and networking within the industry.

It is important to build connections not only with other foreigners, but also with Japanese reuse business owners. These relationships can provide valuable insights and business opportunities.

Apply for a Secondhand Dealer License with Legal Plaza Reuse Consulting Office

Foreign nationals can also obtain a secondhand dealer license in Japan, as long as certain conditions such as visa status are met.
However, all documents must be prepared in Japanese, and the required formats differ slightly depending on the police department.
Even if you manage to gather all the documents, you must also be able to answer questions from police officers during the application process.
Moreover, even if you successfully obtain the license, violating the Secondhand Articles Dealer Act in your business activities could result in the license being revoked.

These hurdles can be overwhelming.

But don’t worry—Legal Plaza Administrative Scrivener Office is on your side.
We provide full support for foreign nationals looking to start a reuse business in Japan.

We’ll gather the necessary documents and create a perfect application for you.

All documents must be in Japanese.
For foreign applicants, this alone can be a major burden—but we will handle the entire process on your behalf.

We can also submit the application on your behalf.

Even if the documents are ready, going to the police station can be stressful.
For those who find it difficult, we offer proxy submission services.

We provide post-approval support as well.

Obtaining the license is just the beginning of your reuse business journey.
We are here to help you grow your sales and ensure legal compliance.

– From Application to Obtaining Your Secondhand Dealer License –

1: Contact & Application

Start by contacting us via email or phone. Then, please fill out the application form with the required information.
We mainly respond by email or phone, but in-person consultations at our office are also available by appointment.

2: Estimate Issuance

Based on your form responses, we will prepare and send you an estimate.

3: Payment

Please make the payment within two weeks after receiving the estimate.

4: Preparation of Application Documents

After confirming your payment, we will send you a form by email to collect the necessary details for your application. Based on your responses, we will prepare the required documents.

5: Delivery of Application Documents

Once all documents are ready, we will promptly mail them to you.

6: Submission & Receipt of License

Please review, sign, and stamp the documents we prepared, and submit them to the police station in charge of your area.
The standard processing time from submission to receiving the license is approximately 40 days.

Application Document Preparation Fee for Secondhand Dealer License

What sets Legal Plaza apart is that the documents are prepared by an administrative scrivener who is actively engaged as a licensed secondhand dealer.
While other scriveners can also create documents or file applications, only Legal Plaza offers practical advice based on actual experience in the reuse industry.
Every plan includes a 30-minute spot consultation to help address your concerns or questions regarding secondhand operations after obtaining your license.
Feel free to request it anytime!
※ Even if you already have a secondhand dealer license, you can still apply for the spot consultation.

The standard processing period from application to receiving the license is approximately 40 days.
To get your license as soon as possible, it’s critical to submit the application to the police without delay.
Choose the best plan based on your schedule. You can also combine the following options, so please consider them as well.

Standard Application Document Preparation Plan

• Individual: ¥55,000 (tax included)
• Corporation: ¥66,000 (tax included)

※ Service available nationwide

We will prepare the “Secondhand Dealer License Application Form” for you.
You are responsible for collecting the required attachments and submitting the application to the police yourself.
PDF delivery is also available upon request.

Full Delegation Plan for Secondhand Dealer License

• Individual: ¥110,000 (tax included)
• Corporation: ¥132,000 (tax included)
  ※ This service is available only for customers in Kanagawa Prefecture

This all-inclusive plan covers everything you need to become a licensed secondhand dealer—from application form preparation to the creation of your dealer nameplate!

<Plan Details>

• 30-minute spot consultation
• Preparation of secondhand dealer license application documents
• Collection of attachments (Resident Certificate / Certificate of Identification)
• Proxy application submission to the relevant police station
  (includes ¥19,800 service fee + revenue stamp fee)
• Proxy pickup of license from the police
• Secondhand dealer nameplate
• Professional secondhand logbook

＜Notes＞

• This service is available only in Kanagawa Prefecture.
• The above price includes all actual expenses (revenue stamps, transportation, mailing fees).
  No additional fees will be charged.
• Even if you do not require some of the services, the price remains the same.
  For example, we cannot offer discounts like “I’ll get the Resident Certificate myself, so reduce the fee.”
• Installing the dealer nameplate and maintaining the secondhand logbook are legal obligations under the Secondhand Articles Dealer Act.

Optional Services and Fees

🔻 Proxy Application Service – ¥44,000 (incl. tax)
🔻 Proxy License Collection – ¥11,000 (incl. tax)
Available only for customers in Kanagawa Prefecture

Applications for secondhand dealer licenses can only be submitted during weekday business hours, making it difficult for some people to visit the police station. For such clients, we offer a proxy application service on your behalf to the relevant police station.
The fee includes the ¥19,000 revenue stamp required at the time of submission.

• This service is limited to residents of Kanagawa Prefecture.
• Transportation fees for both application and license collection are included.

📄 Proxy Document Collection – ¥16,500 (incl. tax)
📄 For Second and Subsequent Corporate Officers – ¥5,500 per person (incl. tax)

We will obtain the required supporting documents (Resident Certificate and Certificate of Identification) on your behalf if you cannot visit public offices during the week.

Secondhand Dealer Nameplate – ¥3,300 (incl. tax)

• Navy blue acrylic dual-layer board
• Laser-engraved

Please provide the following information at the time of order:

• Name of the Public Safety Commission (Prefecture)
• License number
• Category of secondhand goods
• Company or Representative Name
• Preferred font: Rounded Gothic / Gothic / Mincho

Please note: Once the engraving details are finalized, they cannot be changed.

Mobile Seller ID Card – ¥3,300 (incl. tax)

Attach a 2cm x 2.5cm ID photo (.jpg) to your email and provide the following details:

• Full Name
• Date of Birth
• Name of Secondhand Dealer
• Address of Secondhand Dealer
• License Number
• Category of Goods to be handled

📒 Professional Secondhand Dealer Logbook – ¥3,300 (incl. tax)
📑 Professional Sales Contract Template – ¥5,500 (incl. tax)

Since our establishment in 2011, we have operated in the reuse business through trial and error.
Now, we offer our actual professional-use Excel templates for both the secondhand dealer logbook and the sales contract.

Police officers may inspect your logbook at your primary business location after you obtain the license. Although there’s no official format for these documents, our templates are already streamlined to include only the essential fields, making them immediately usable.

The sales contract includes cooling-off clause details to support door-to-door purchasing.
You can customize the Excel data freely, and we also provide support on how to use them.

📞 Nationwide 1-on-1 Reuse Consultation for Beginners – ¥11,000 (incl. tax)
🏠 On-site Consultation – ¥33,000 (incl. tax)
On-site consultations available only in Kanagawa

Obtaining a secondhand dealer license is just the beginning of your business journey.
At Legal Plaza, we offer tailored advice based on real-world reuse industry experience.

• Remote consultation via Zoom (30 minutes)
• In-person consultation at our office available (up to 1 hour)
• Share your ideas, challenges, or business concerns—let’s talk reuse strategy!
• On-site consultation available for Kanagawa customers

Sample Topics for Beginners in the Reuse Industry:

• Sales strategies
• Identity verification procedures
• Inventory storage & management
• Product photography techniques
• How to maintain your logbook

📝 Application Document Preparation – ¥11,000 each (incl. tax)

For those who already hold a secondhand dealer license and need to submit the following forms:

• Notification of Change
• Notification of Change / Application for Reissue
• Notification of Temporary Shop Operation
• Notification of Auction Operation
• Notification of Starting Auction Intermediary Business
• Application for Certification of Auction Intermediary
• Application for Certification of Foreign Auction Intermediary
• Secondhand Market Rules
• Secondhand Market Participant List