In our previous article, we covered the basic definitions under the Secondhand Articles Dealer Act and the general flow of the application process. Today, we will focus on the specific operational requirements you must meet to obtain the license, as well as the legal "disqualification clauses" that could prevent approval.

To successfully apply, you must satisfy three main criteria:

1. Establish a primary business office.
2. Appoint a full-time Manager for each office.
3. Ensure no officers or managers fall under "Disqualification Clauses."

We will also cover the specific procedures for when a foreign national acts as the Manager.

1. Establishing a Primary Business Office

You must designate a physical base where the secondhand dealing will legally take place. This can be a property you own or a rented space.

A Critical Note on Leases: Depending on the jurisdiction of the local police station, officers may conduct strict checks on your "Right of Use." If you are renting, they will often require a copy of the lease agreement. If you own the building, they may ask for the property registry. A common "local rule" (unwritten procedural variation) in some districts is that if your lease is for "Residential Use Only," the police may refuse the application unless you get a signed authorization from the landlord explicitly permitting commercial activity.

2. Appoint a Full-Time Manager for Each Office

A "Manager" (Kanrisha) refers to the person responsibly overseeing the trading operations.

• Who can be a Manager? A company director can concurrently serve as the Manager.
• Qualifications: No special license or certification is required.
• Residency Requirement: The Manager must be "full-time." This effectively means they must live within a reasonable commuting distance of the office.
• Multiple Offices: In principle, one person cannot serve as the Manager for multiple offices simultaneously. Exception: If two offices are physically very close to each other, the police may allow one Manager to cover both. You must consult the police in advance for this exception.

3. Avoiding Disqualification Clauses

"Disqualification Clauses" are specific legal conditions that prohibit an individual from holding a license. You must ensure that no company directors (officers) or Managers fall into these categories.

Common Disqualification Examples:

• Undischarged Bankruptcy
  Individuals who have been declared bankrupt and have not yet had their rights reinstated (Fukken) cannot apply. Once the court issues an order of reinstatement, this disqualification is lifted.
• Criminal Records (Imprisonment and Certain Fines)
  Under the Japanese Penal Code, punishments are ranked in severity.
  1. Death Penalty
  2. Imprisonment with Work (Choeki)
  3. Imprisonment without Work (Kinko)
  4. Detention
  5. Fines
     If an applicant has received a sentence of Imprisonment without Work (Kinko) or heavier, they are disqualified. Note: Even regarding fines (which are lighter than imprisonment), if the fine was for specific offenses such as Theft or violations of the Secondhand Articles Dealer Act, this constitutes a disqualification.
• Organized Crime Involvement
  Current members of organized crime groups (Boryokudan / Yakuza) are obviously disqualified. However, the law also extends to those who have left such groups within the last 5 years.
• No Fixed Abode
  Individuals without a fixed address are disqualified as responsibility cannot be easily enforced.
• Previously Revoked Licenses
  If a corporation has had its Secondhand Dealer license revoked, it cannot reapply for 5 years.
• Cognitive or Mental Impairment
  If a director or Manager cannot appropriately perform their duties (cognitive processing, judgment, communication) due to mental impairment, the license will not be granted. All officers and Managers must submit a signed "Written Pledge" stating they do not fall under this category.

Translation Note: If a foreign officer or Manager cannot read the Japanese text of the Pledge, the police may require a translation of the document to be attached. Consult the police in advance regarding language requirements.

4. Special Section: When the Manager is a Foreign National

Foreign nationals can absolutely serve as Managers, provided they do not fall under the disqualification clauses mentioned above.

However, the documentation process differs slightly regarding the "Mibun Shomeisho" (Certificate of Civil Status).

The "ID" Confusion: For Japanese nationals, a "Mibun Shomeisho" is a specific document issued by their permanent domicile city hall proving they are not bankrupt or under guardianship. Foreign nationals cannot obtain this document. Please note: In this legal context, "Mibun Shomeisho" does not mean a Passport or Residence Card. It refers strictly to the bankruptcy/guardianship proof.

The Solution: Since foreign nationals cannot provide the Japanese civil status certificate, they usually need to provide a substitute document. You must consult the police station in advance to see what they accept. Commonly, they will require:

1. A strict Written Pledge stating you are not bankrupt.
2. A Signature Certificate (an affidavit signed by the individual and notarized by their home country's embassy or consulate in Japan).

5. Summary

As outlined above, cases involving foreign officers or Managers often require deviation from the standard documentation list found on police websites. "Local rules" at different police stations can also complicate matters.

If you are concerned about the specific documents required for your situation, we highly recommend consulting with an Administrative Scrivener (Gyoseishoshi), a state-certified specialist in government licensing procedures.

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