5 Licensing Requirements
Note: Construction license requirements may vary depending on your company’s specific situation and past business background. The information on this website provides a general overview, so please feel free to contact us for details. We will gladly guide you through the process based on your individual circumstances.
What Types of Construction Licenses Are Available?
Construction licenses are broadly classified under the following three main categories. Choosing the optimal combination of licenses to match your business plan is essential.
1. General vs. Specific Licenses (Determined by the Scale of Subcontracting Contracts)
This classification depends on the scale of subcontracting amounts when outsourcing work received as a prime contractor.
- General Construction License: The fundamental license required for undertaking small-to-medium-scale projects or when subcontracting amounts remain below a certain threshold.
- Specific Construction License: A strictly regulated license required for prime contractors undertaking large-scale projects and outsourcing major portions of the work to subcontractors.
2. Classification into 29 Business Categories (Determined by the Type of Construction Work)
Construction licenses are subdivided into 29 distinct categories based on the nature of the construction work undertaken. Applications must select the specific categories that match your actual operations. Representative Examples:
- Building Construction (General) / Civil Engineering (General)
- Scaffolding & Earthwork / Electrical Work
- Plumbing (Piping) Work / Interior Finishing Work
- Painting Work / Waterproofing Work / Demolition Work, etc.
3. License Necessity (Determined by Project Scale)
As a general rule, construction licenses are required based on the following criteria:
- Obtaining a license is mandatory when undertaking construction projects valued at 5 million yen or more (or 15 million yen or more for building construction general projects).
- Even for projects under 5 million yen, if you continuously undertake construction as a business, obtaining a license is strongly recommended to build client trust and prepare for future business expansion.
Should You Obtain a General or Specific License?
Construction licenses are broadly divided into two types: “General” and “Specific.” Which license you should acquire depends on the total subcontracting amount for projects undertaken as a prime contractor.
- General License: Ideal for businesses focusing on in-house construction or those with relatively small subcontracting amounts. A General License is fully sufficient if your primary focus is small-to-medium-scale projects.
- Specific License: Required for prime contractors handling large-scale projects or businesses aiming to secure public works contracts. A Specific License is necessary when acting as a prime contractor and outsourcing to numerous subcontractors.
Unsure Which License to Choose?
Choosing the appropriate classification—General or Specific—according to your company’s project scale and future outlook is critical.
Many companies start with a General License and transition to a Specific License once their project scale expands in the future. We also offer diagnostic support to help you determine which license your company should obtain right now. Please feel free to consult with us.
Comparison Table: General vs. Specific License Requirements
General License
Subcontracting Amount
Under 50 million yen (Under 80 million yen for building construction)
Technical Requirements
Level 2 Certified Construction Operation Manager, etc.
Financial Requirements
Financial capacity of 5 million yen or more
Eligible Construction Work
Focusing on Small-to-Medium-Scale Projects
Specific License
Subcontracting Amount
50 million yen or more (80 million yen or more for building construction)
Technical Requirements
Level 1 Certified Construction Operation Manager, etc.
Financial Requirements
Capital of 20 million yen or more / Net assets of 40 million yen or more
Eligible Construction Work
Handling Large-Scale and Public Works Projects
Construction License Fundamentals & FAQ
Governor License vs. Minister License: Which construction license should I get?
It is determined by the number of prefectures where business offices are established.
Minister’s License: When business offices are established spanning across two or more prefectures (e.g., operating a construction business with a head office in Chiba Prefecture and a branch office in Tokyo).
Governor’s License: When business offices are located within only one prefecture (e.g., offices located exclusively within Chiba Prefecture).
Must I meet all five requirements to apply for a construction license?
As a rule, you must meet all five requirements. In particular, preparing documents in advance—such as verifying practical experience to prove a “responsible executive for management operations (full-time officer, etc.)” or a “full-time technical specialist”—is extremely important. If it is difficult to determine whether you meet the requirements, we can conduct an individual assessment for you, so please feel free to let us know.
Can I obtain a construction license even if I am a sole proprietor?
Yes, sole proprietors can also obtain a construction license. While the basic requirements are essentially the same for both corporations and individuals, the supporting documents required to satisfy the requirements for full-time technical specialists and business managers differ. Our office actively supports sole proprietors in obtaining their licenses.
Is it possible to get a license without a Business Manager?
Yes, it is possible. In some cases, alternative qualifications that satisfy the requirements can be used, such as “assistant experience” or “combined corporate officer experience.” Whether these apply to your situation requires individual verification.
Is a qualification mandatory for a full-time technical specialist?
Even without a qualification, approval may be granted based on 10 or more years of practical experience. However, since the criteria for judgment differ depending on the industry, the preparation of supporting documents is crucial.
Is it impossible to get a license if my financial status shows a capital deficit (net liabilities)?
As a rule, it is not allowed, but this can sometimes be resolved through methods such as capital increases, restructuring director loans, or improving financial statements. We support you starting from the discussion and planning of improvement methods.
Is it possible to get a construction permit as an individual business owner?
Yes, you can. Although you must meet the same requirements as corporations, many sole proprietors successfully obtain their licenses.
I am worried about whether I might fall under any of the disqualifying criteria.
For most people, there are no issues. However, if you have any past administrative dispositions, criminal fines, or bankruptcy, verification is required. We check confidentially whether any of these apply to your situation.
I am not sure which category of construction work I should apply for.
We make our determination based on the actual construction work you perform. Because there are many similar categories, we conduct a detailed consultation to propose the most appropriate trade category so you avoid applying for the wrong one.
Do I need multiple licenses if I perform multiple types of construction work?
Yes, you do. Because construction licenses are structured to be obtained for each type of construction work (= 29 categories), if the work you perform spans multiple categories, you must acquire a license for each respective category. However, exceptions or simplifications are possible in the following cases:
To be certain which categories are required, it is best to have a consultation to review your actual construction work.
When primarily undertaking comprehensive construction work (Building Construction or Civil Engineering Construction) → Certain scopes can be covered by the comprehensive license (though separate licenses are required if you perform specialized construction in-house).
When “dual-role technical specialists” are permitted in closely related trades → The requirements for full-time technical specialists can sometimes be satisfied concurrently.
For work that is only subcontracted out and not performed in-house → You may not need a license for categories of work that your company does not perform itself.
How long does it take to obtain a license?
It typically takes about 30 to 45 days after all documents are gathered. However, the timeline may be extended if corrections or additional documents are required.
There are periods for which I have not filed the annual financial notification (business report). Can I still apply for a license?
Yes, it is possible, but you must first submit all unsubmitted reports. Our office can handle everything together for you.
What do I need to do for ongoing management and maintenance after obtaining the license?
Annual financial notifications (business reports), renewals every 5 years, and change notifications are required. Our office also provides “post-approval ongoing support” after obtaining your license.
Checking requirements and preparing documents to obtain a license require specialized knowledge and a significant amount of time. At our office, we provide total support from application preparation to license acquisition so that business owners can focus on their core operations. You are more than welcome to contact us simply to find out your chances of approval. Please feel free to reach out to us.