Guide to Starting a Used Car Sales Business in Japan for Foreigners

Used car sales in Japan are attracting attention due to the high quality of Japanese vehicles and their stable demand in overseas markets such as Asia, the Middle East, and Africa. As a result, there has been an increase in cases where foreign entrepreneurs establish used car sales and export businesses in Japan.

However, many clients consult us after encountering issues such as:

• “We established the company, but couldn't obtain a used goods dealer license.”

• “We couldn't meet the requirements for a residence status, and were unable to continue the business.”

At Royal Office, we leverage our expertise and extensive practical experience supporting foreign entrepreneurs in used car sales and export projects—from business startup to ongoing operation.

Can Foreigners Start a Used Car Business in Japan?

Yes, foreign nationals can operate a used car business in Japan if they follow the appropriate legal procedures.

However, there are specific points that differ from domestic entrepreneurs, including company establishment, licensing, and residence status requirements.

When a foreign national plans to sell used cars in Japan, the following steps are generally required:

• Establish a Japanese company (KK or GK)

• Design appropriate articles of incorporation and business purpose

• Apply for a Used Goods Dealer License (including office requirements and appointing a manager)

• Open a corporate bank account

• Obtain or update a residence status (such as Business Manager visa)

Why Proper Planning from the Start Matters

In the used car business, progressing “company formation → licensing → visa application” independently often leads to issues in practice.

For example:

• Capital investment not aligned with Business Manager visa expectations

• Business objectives that are unsuitable for the Used Goods Dealer License

• Business plans that do not account for overseas exports

While it is sometimes possible to correct these later, doing so often increases time and costs significantly.

Support for Used Car Businesses with Export Focus

When exporting used cars overseas, different perspectives are required compared to domestic sales only. It is important to organize the business setup and related applications from the outset with export in mind.

For example:

• Writing business objectives with export markets in mind

Clarify the target market and intended trading partners early on.

• Crafting a business plan that considers trade practices

Define the process from procurement to export logistics in a practical and realistic way.

• Establishing a corporate structure that supports future growth

Design a system capable of handling future increases in transactions and export volume.

At Royal Office, we go beyond basic explanations and paperwork preparation to support the construction of business plans that can be operated in practice.

Royal Office’s Support Services

Royal Office provides comprehensive support to help foreign entrepreneurs start used car sales and export businesses in Japan, including:

• Company formation support for foreign nationals

Assisting with structuring a company that fits your business plan and future goals.

• Used Goods Dealer License application

Managing application requirements from preparation through submission.

• Business Manager visa application support

Assisting in preparing documentation and business plans with visa requirements in mind.

• Business planning support with export focus

Organizing operational plans that consider both domestic procedures and export strategies.

Our support emphasizes not only document preparation but also ensuring that your business can be operated and sustained in the real world.

Summary

Used car sales with export potential is a promising business field.

However, for foreign nationals starting such a business in Japan, there are many legal and procedural requirements that must be correctly understood and executed.

For this reason, consulting an expert in the early stages to design your entire project with both legal and practical considerations in mind is crucial.

Proper planning from the beginning can lead to more stable business operations.

Royal Office offers experienced support for foreign entrepreneurs pursuing used car sales and export businesses in Japan.