Application Conditions
Before renting out a car, it is necessary to obtain a car rental license (for-hire vehicle rental business). When applying for a license, the following conditions must be met.
- Personal Conditions
- Material Conditions
- Financial Conditions
Personal Conditions
Applicants (or officers in the case of corporations) may not fall under any of the following categories when applying for a rental car license. Failure to meet these requirements may result in denial of the license, so please take note.
- The applicant or their officers have been sentenced to imprisonment of one year or more, and the execution has not been completed or suspended for less than two years.
- The applicant or their officers have had a general passenger vehicle transport business license, specific passenger vehicle transport business license, general motor truck transportation business license, special motor truck transportation business license, or private car rental business license revoked within the two years prior to the application date.
- The applicant or their officers have submitted a business suspension application for a general passenger vehicle transport business, specific passenger vehicle transport business, general motor truck transportation business, special motor truck transportation business, or private car rental business within two years of receiving an administrative disposition notice for revocation (unless there is a justifiable reason for the suspension).
- The applicant or their officers have submitted a business suspension application for a general passenger vehicle transport business, specific passenger vehicle transport business, general motor truck transportation business, special motor truck transportation business, or private car rental business within two years of the start of an audit for a license revocation (unless there is a justifiable reason for the suspension).
- If the applicant or their officers are minors and do not have an adult with equivalent capacity in business operations, their legal representative must meet at least one of the above conditions.
- The applicant or their officers have been penalized for similar business practices related to vehicle transport operations within the two years prior to the application date.
Additionally, as the number of vehicles increases, daily inspections and maintenance will become more complex. To ensure vehicle safety and traffic safety, applicants will be required to appoint a maintenance manager familiar with the repair and upkeep of vehicles based on vehicle type and quantity.
| Category | Number |
|---|---|
| Bus (Public Bus) | 1 or more |
| Large Truck (etc.) | 5 or more |
| Other Vehicles | 10 or more |
Material Conditions
Although owning the relevant vehicles is not required when applying for a rental car license, it is necessary to pre-determine the approximate number of vehicles that will be used for rental purposes when submitting application documents.
While a license can be applied for without owning vehicles, the requirements for vehicle custody after approval are the same as those for general vehicle custody, requiring a garage within 2 kilometers of the business premises.
Financial Conditions
As mentioned earlier, it is possible to apply for a license even without possessing the vehicle. However, when applying, in addition to mandatory vehicle insurance, it is also required to have vehicle insurance with certain conditions or higher. The specific conditions are as follows:
| Insurance Type | Coverage Amount |
|---|---|
| Bodily Injury Insurance | 80,000,000 JPY or more per person |
| Property Damage Insurance | 2,000,000 JPY or more per person |
| Passenger Insurance | 5,000,000 JPY or more per passenger |
Application Process
Applying for a car rental license is relatively easy compared to applying for a Real Estate Brokerage license, etc. Simply prepare the documents according to the procedures.
Let's take a look at the general process now.
1. Confirmation of Application Requirements
As mentioned earlier, you must meet the following requirements: 1. Personal Requirements + 2. Material Requirements + 3. Financial Requirements.
2. Preparation of Required Documents
The required documents for applying for a car rental license are as follows:
- Application Form
- Rental Fee Schedule
- Rental Terms and Conditions
- Registration Certificate (for individuals, Resident Record)
- Affidavit
- List of Vehicles by Office and Vehicle Type
- Document describing the implementation plan for rentals
- If operating a rental-type car sharing service, additional documents are required.
3. Submission of Documents
Once the required documents are prepared, you can go to the transportation bureau to submit them.
Please note that you cannot operate a car rental business at this stage of submission.
4. Waiting for examination
Once the application is accepted, examinations will be conducted for about one month. During this period, if you are asked to correct any deficiencies in the documents, please respond promptly.
5. Approval Granted
Once the examinations is completed, you will be contacted by the transportation bureau. At this stage, you will need to pay the registration license tax. First, receive the payment slip at the counter, then make the payment at a financial institution such as a bank, and submit the receipt to the counter. Additionally, you can obtain a document called "Car Rental Business Operator Certificate," which is required for vehicle registration later on. If you need to appoint a maintenance manager due to the number of vehicles, you must notify them within 15 days after the appointment (Road Transport Vehicle Act Article 52).
6. Vehicle Registration
Once the approval is granted and you have obtained the Car Rental Business Operator Certificate, you will need to go to the inspection and registration office with the necessary documents for general vehicle registration to register the vehicles used for car rental.
7. Start of Operations
After registering the vehicles in the previous step, you can start operations by displaying the "Rental Fee List" and "Rental Terms and Conditions" submitted during the application at the business office, and preparing the necessary "Rental Certificate" and "Rental Ledger" for each rental transaction.
Summary
The entire process from document preparation to starting operations takes approximately two months. Therefore, it is recommended to prepare in advance if you are in a hurry.
If you have any questions, feel free to contact us at any time.