Outline of Construction License System
Construction License System
A construction license is required in accordance with the Construction Business Act in order to carry on a construction business in Japan, regardless of public or private works.
However, a company is not necessarily required to register the construction license which receives only minor works* and carry on a business.
* Minor works means as follows:
1) General building works less than 15 million yen or wooden house construction with total floor area less than 150 m2.
2) Other types of works less than 5 million yen.
License Type
1) License issued by Minister of Land, Infrastructure, Transport and Tourism (MLIT) and License issued by Governor of municipal government
A license issued by MLIT is required to establish office in more than one prefecture, and a license issued by Governor of municipal government is required to establish office(s) in only one prefecture.
2) Special Construction License and Ordinary Construction License
There are two types of Licenses, the Special Construction License and the Ordinary Construction License that may be issued for any of the 28 classifications of works. There are some additional requirements for the Special Construction License in order to protect subcontractors.
3) License Classification
There are 28 classifications of work listed below, each of which represents a trade or field of the construction profession. A contractor must be licensed for each classification of work in which it intends to engage.
It is possible to obtain at one time a License covering more than one classification of work, and there is no limit to the number of classifications that may be added to the original License.
General Civil Engineering, General Building, Carpentry, Plastering, Scaffolding, Earthwork and Concrete, Masonry, Roofing, Electrical, Plumbing, Tile, Brick and Block, Steel Structure, Reinforcement Steel, Paving, Dredging, Sheet Metal, Glazing, Painting, Waterproofing, Interior Finishing, Machine and Equipment Installation, Heat Insulation, Telecommunication, Landscaping and Gardening, Well Drilling, Fittings, Water and Sewerage, Fire Protection Facilities, Sanitation Facilities
4) Term of Validity
A Construction License is issued for a five-year period. A License must be renewed every five years.
