What property requirements and permit does opening a pawnshop need? Pawnbroking Business Act and the Public Safety Commission

In short: For a pawnshop property, two things matter first: (1) whether it is subject to zoning limits as a store, and (2) whether you can install pledge-storage facilities (fire-resistant, locked, theft-proof) to the standard set by each prefectural Public Safety Commission rule. The permit is applied for per place of business to the prefectural Public Safety Commission where it is located (Pawnbroking Business Act Art. 2(1)). The preparation of the permit application goes to an administrative scrivener, the fire-resistance retrofit of the storage to an architect/contractor, the property search and lease to us (a real estate transaction specialist), and post-opening registration to a judicial scrivener.

This article is for those aiming to open a pawnshop or looking for a store suited to storing pledges; it organises, from the Pawnbroking Business Act and its delegated rules and the Building Standards Act, what can be checked about a property before contracting. What we handle is providing store-property information, the advance check of whether the use and storage facilities can be set up, and the brokerage of the lease. The preparation of the pawnbroking permit application to the Public Safety Commission goes to an administrative scrivener, the design and construction of the fire-resistance retrofit to an architect/contractor, and company formation or post-opening registration to a judicial scrivener; these are independent entities from Yotsuba Real Estate Co., Ltd. (四葉不動産株式会社), engaged separately for each service under a separation-of-engagement arrangement. For a restaurant property see exhaust and fire-prevention when opening a restaurant in a skeleton unit; for pet-related keeping facilities see property requirements for a grooming salon / pet shop.

What property requirements does opening a pawnshop have?

Think of the property requirements in two layers: the "store part" and the "pledge-storage facilities." Pawnbroking is the business of taking goods as a pledge and, where repayment is not received by the forfeiture deadline, lending money under a clause that applies that pledge to the repayment (Pawnbroking Business Act Art. 1(1)). A person who wishes to become a pawnbroker obtains, per place of business, the permit of the prefectural Public Safety Commission that has jurisdiction over its location (Art. 2(1)). The property must therefore be both a store where customers are served and contracts made, and premises where the pledges received can be kept safely.

At the property-selection stage, check four things: whether it clears zoning limits as a store; whether the pledge-storage facilities (fire-resistant structure, sturdy locks, theft prevention) can be set up to the Public Safety Commission rule's standard; whether there is a base for retrofitting the electrical, security and fire-prevention equipment; and, for a rented property, whether the lease forbids storing pledges or carrying out the retrofit. Whether the permit can be granted is judged by the Public Safety Commission, and the specific storage standard is confirmed in the rule of the prefecture where the property is located.

Layer to check	Main point	Basis / where to confirm
Store part	Whether a store may operate in the zone	Building Standards Act Appended Table 2 / designated administrative agency
Pledge storage	Whether it can meet the fire/lock/theft standard	Pawnbroking Business Act Art. 7 / prefectural Public Safety Commission rule
Base for equipment	Whether fire/security/locking equipment can be retrofitted	Current state / landlord's consent
Lease	Whether pledge storage and retrofit are allowed	Lease terms / landlord

The advance check of whether a property can meet the standard and the brokerage of the lease are handled by us; the final permit judgment is made by the Public Safety Commission.

How far must the pledge-storage facilities (fire-resistant structure, locks) go?

They are set up to the Public Safety Commission rule's standard. Pawnbroking Business Act Art. 7(1) provides that, where the Public Safety Commission finds it necessary to prevent fire, theft, etc., it may set a certain standard for the pledge-storage facilities a pawnbroker should install, and Art. 7(3) provides that, where such a standard is set, the pawnbroker must install the storage facilities in accordance with it. The content of the standard is not in the Act itself but in each prefecture's Public Safety Commission rule, and it differs by area, so confirm the rule where the property is located directly.

As one example of such a rule, the main structural parts are required to be a fire-resistant structure under Building Standards Act Art. 2 item 7 or storehouse construction, etc., with specified fire-prevention equipment at openings and theft-prevention equipment such as shutters and steel doors plus sturdy locks (Tochigi Prefectural Police rule on the storage-facility standard for pawnbrokers' pledges, accessed 15 October 2026). Because the item number of the Building Standards Act Enforcement Order cited for the fire-prevention equipment at openings differs by prefecture (the Okinawa example, accessed 15 October 2026), confirm the specific figures and structure in the rule where the property is located. An existing reinforced-concrete or storehouse-construction property is advantageous in this layer, while for a wooden store the dividing point is whether just the storage part can be retrofitted to a fire-resistant specification.

Item	Example required by a rule
Main structural parts	Fire-resistant structure / storehouse construction or equivalent or better
Openings	Specified fire-prevention equipment etc. (cited article differs by prefecture)
Theft prevention	Effective equipment such as shutters / steel doors
Locks	Sturdy locking equipment

Whether a fire-resistance retrofit is needed and its design and construction are handled by an architect/contractor; the final check of conformity is made by the Public Safety Commission.

Where is the permit applied for, and who handles the procedure?

The application goes to the prefectural Public Safety Commission with jurisdiction over the property's location (the counter is the police station with jurisdiction), and the permit is obtained per place of business (Pawnbroking Business Act Art. 2(1)). The Public Safety Commission must not grant the permit where the applicant falls under any of the disqualifying grounds (Art. 3(1)), which list a person for whom three years have not passed since the execution of a sentence of imprisonment or heavier ended, a person with no fixed residence, a person who has received a decision to commence bankruptcy proceedings and has not been restored, a corporation one of whose officers is disqualified, and so on. An important item for the property is that, where the Public Safety Commission has set a storage-facility standard under Art. 7(1), the permit must not be granted to a person who does not have storage facilities conforming to that standard (Art. 3(1) item 11). In other words, that the property's storage facilities can meet the standard is itself a precondition of the permit.

The roles are divided as follows. The preparation and submission of the permit application to the Public Safety Commission goes to an administrative scrivener, the design and construction of the fire-resistance retrofit to an architect/contractor, the provision of store-property information, the advance check of use and storage facilities, and the brokerage of the lease to us, and company formation or post-opening commercial registration to a judicial scrivener. Yotsuba Real Estate Co., Ltd. (四葉不動産株式会社), 四葉行政書士事務所 and other specialists (architect, judicial scrivener) are independent entities, engaged separately for each service. We proceed by direct contract, direct invoice and direct payment; no referral or lead-transfer fees are exchanged.

Procedure	Who handles it
Preparation/submission of the pawnbroking permit application	Administrative scrivener
Fire-resistance retrofit of the storage (design/construction)	Architect / contractor
Store-property search, advance check, lease brokerage	Real estate company (us)
Company formation / post-opening commercial registration	Judicial scrivener

For a property to set up an office, see commercial-property consultations; for the overall picture of investment and commercial real estate, see investment and commercial real estate.

Are there properties where you cannot open because of zoning or the Building Standards Act?

The store part is subject to zoning limits. Unlike a facility not subject to zoning limits such as a clinic, a pawnshop is generally treated as a "store" that serves visiting customers, so the use restrictions by zone that Building Standards Act Appended Table 2 sets apply. In residential-exclusive zones the floor area and business type of a store are restricted, and depending on the zone where the property sits it may not be usable as a store, or its scale may be limited. Whether a pawnshop amounts to a store, and whether a change-of-use confirmation application is needed, are confirmed by the designated administrative agency and an architect.

Also check whether the fire-resistance retrofit of the storage amounts to a "large-scale repair or remodelling" or a change of use requiring a confirmation application under the Building Standards Act, whether an existing-nonconforming building can be retrofitted, and whether the current state of firefighting equipment under the Fire Service Act is sufficient. Because these vary with the property's scale, number of storeys and structure, it is safest to have an architect inspect the current state before contracting.

Point to check	What to look at	Where to confirm
Zoning	Whether a store may operate in the zone	Building Standards Act Appended Table 2 / designated administrative agency
Change of use	Whether a confirmation application is needed	Architect / designated administrative agency
Fire-resistance retrofit	Whether a large-scale-repair confirmation is needed	Architect
Fire service	Current state of firefighting equipment	Fire department / fire-equipment engineer

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We confirm in advance the "conditions of location and the thing" such as zoning and the property's current state, and refer the final judgment on whether a confirmation application is needed and on the structure to an architect and the designated administrative agency.

What is the difference from a secondhand-dealer permit or money-lending registration?

Both are "separate frameworks." First, the relation to a secondhand-dealer permit (Secondhand Articles Dealer Act). A pawnbroker acquires ownership of the pledge (the forfeited pledge) at the time the forfeiture deadline passes (Pawnbroking Business Act Art. 18(1)) and may dispose of that forfeited pledge. As to selling forfeited pledges, Art. 18(2) provides that, notwithstanding Secondhand Articles Dealer Act Art. 14(3), they may be sold at a secondhand market, and it is understood that a separate secondhand-dealer permit is not needed for a pawnbroker to sell forfeited pledges. A secondhand-dealer permit is required to "buy" and resell used goods, but the act of taking a pledge, acquiring it by forfeiture and selling it is within the pawnbroking framework. If you also run a buying business, a secondhand-dealer permit may separately be needed in some cases, so confirm the business model with the police and an administrative scrivener.

Next, the relation to money-lending registration (Money Lending Business Act). Money Lending Business Act Art. 2(1) excludes certain things from the "money lending business," and item 2 of that paragraph excludes lending carried out by a person who has a special provision in another Act for carrying on lending as a business. Pawnbroking under the Pawnbroking Business Act is understood to fall under this, and pawn-lending carried out as pawnbroking is said not to require money-lending registration. However, if a pawnbroker carries out unsecured lending etc. not based on a pledge contract, that may amount to the money lending business under the Money Lending Business Act, so depending on the scope of the business the need for money-lending registration must be confirmed with the Financial Services Agency / competent authority. The Pawnbroking Business Act has special rules on interest, the forfeiture deadline and so on, and the specific application is left unverified and confirmed with the competent authority.

System	Relation to pawnbroking
Secondhand-dealer permit (Secondhand Articles Dealer Act)	Not needed to sell forfeited pledges (Pawnbroking Business Act Art. 18); may be separately needed if a buying business is added
Money-lending registration (Money Lending Business Act)	Pawnbroking is understood to be excluded by Art. 2(1) item 2; lending outside a pledge contract may need it
Pawnbroking permit (Pawnbroking Business Act)	Permit of the Public Safety Commission per place of business (Art. 2(1))

The separation of the systems is organised by an administrative scrivener, while the property-side conditions and the lease are handled by us.

Frequently asked questions

Q. Where do I apply for a pawnshop permit?
A. You apply, per place of business, to the prefectural Public Safety Commission with jurisdiction over its location (the counter is the police station with jurisdiction) (Pawnbroking Business Act Art. 2(1)). The Public Safety Commission must not grant the permit where a disqualifying ground applies (Art. 3(1)), and in an area where a storage-facility standard is set, it is not granted without conforming storage facilities (item 11). The preparation and submission of the application are undertaken by an administrative scrivener.

Q. Must the pledge-storage facilities be of fire-resistant structure?
A. Where the Public Safety Commission has set a standard for storage facilities to prevent fire, theft, etc., the pawnbroker must set them up in accordance with it (Pawnbroking Business Act Art. 7). The standard is in each prefecture's Public Safety Commission rule, and there are examples requiring the main structural parts to be fire-resistant / storehouse construction, specified fire-prevention equipment at openings, and sturdy locks and theft-prevention equipment. Confirm the specific figures and structure in the rule where the property is located; the design and construction of the retrofit are handled by an architect/contractor.

Q. Do I also need a secondhand-dealer permit to run a pawnshop?
A. For merely selling forfeited pledges, it is understood under Pawnbroking Business Act Art. 18 that a pawnbroker acquires ownership of the forfeited pledge and may sell it, and a separate secondhand-dealer permit is not needed. However, if you add a buying business that buys used goods for resale rather than taking a pledge, a secondhand-dealer permit may separately be needed in some cases. Confirm the scope of the business with the police and an administrative scrivener.

Q. Can I open a pawnshop even in a wooden store property?
A. The store part is subject to zoning limits, and the pledge-storage part must meet the Public Safety Commission rule's standard (fire resistance, locks, theft prevention). Even in wood, there is room to open if just the storage part is retrofitted to a fire-resistant specification to meet the standard. Whether the retrofit amounts to a confirmation application under the Building Standards Act, and whether the lease allows the retrofit, are confirmed before contracting by an architect and us.

Primary sources

• Pawnbroking Business Act (Act No. 158 of 1950) / 質屋営業法 (Art. 1(1) = definition of pawnbroking (taking goods as a pledge and lending money under a clause applying the pledge to repayment where not repaid by the forfeiture deadline); Art. 2(1) = permit of the prefectural Public Safety Commission per place of business; Art. 3(1) = grounds on which a permit must not be granted (item 11 = a person without facilities conforming to a set storage standard); Art. 7 = the Public Safety Commission may set a storage-facility standard to prevent fire/theft etc. and the pawnbroker follows it; Art. 18 = the pawnbroker acquires ownership of the pledge when the forfeiture deadline passes, and para. 2 allows selling forfeited pledges at a secondhand market. Accessed 15 October 2026)
• Money Lending Business Act (Act No. 32 of 1983) / 貸金業法 (Art. 2(1) = definition of "money lending business" and the exclusions in the proviso. Item 2 = excludes lending by a person who has a special provision in another Act for carrying on lending; pawnbroking under the Pawnbroking Business Act is understood to fall under this. Accessed 15 October 2026)
• Building Standards Act (Act No. 201 of 1950) / 建築基準法 (Appended Table 2 = use restrictions on buildings within zones; basis for whether a store may be located and whether a change-of-use confirmation application is needed. Accessed 15 October 2026)
• Each prefectural Public Safety Commission rule (storage-facility standard for pawnbrokers' pledges): the Tochigi Prefectural Police rule requires the main structural parts to be a fire-resistant structure under Building Standards Act Art. 2 item 7 / storehouse construction etc., with specified fire-prevention equipment at openings and sturdy locks / theft-prevention equipment. The Okinawa rule cites a different Enforcement Order article for the fire-prevention equipment at openings. The standard differs by area, so confirm the rule where the property is located (Accessed 15 October 2026).

Updated and additional sources checked on 15 October 2026. The provisions of the Pawnbroking Business Act, Money Lending Business Act and Building Standards Act were checked on e-Gov. The specific figures and structure of the storage-facility standard are set in each prefectural Public Safety Commission rule and differ by area, so they are not asserted here but left as unverified and confirmed in the rule where the property is located and at the police station with jurisdiction. The application as a store subject to zoning, the need for a secondhand-dealer permit when a buying business is added, and the need for money-lending registration when lending outside a pledge contract also vary by case and are left as unverified; the designated administrative agency, police, Financial Services Agency and each qualified professional confirm them against original materials. The statutory text, URLs and the content of the Public Safety Commission rules are as of the access date and may change by amendment or in structure. Publication remains held pending qualified review.

This article provides general information and does not present individual legal conclusions, the grant of a permit, or the suitability of a property. Confirmation by the competent authorities (Public Safety Commission, designated administrative agency, fire service) and qualified professionals is required. Yotsuba Real Estate Co., Ltd. (四葉不動産株式会社), 四葉行政書士事務所, 四葉社会保険労務士事務所 and other specialists (architect, judicial scrivener) are independent entities, engaged separately for each service. We proceed by direct contract, direct invoice and direct payment; no referral or lead-transfer fees are exchanged. The preparation of the pawnbroking permit application lies with an administrative scrivener, the fire-resistance retrofit with an architect/contractor, and company formation or post-opening registration with a judicial scrivener. The initial property consultation is free; confirm each professional's scope and fees with that provider.

Author

Joji Uramatsu (浦松 丈二), real estate transaction specialist (Tokyo Governor registration No. 293544) and administrative scrivener (registration No. 25087022); representative director of Yotsuba Real Estate Co., Ltd. (四葉不動産株式会社; Real Estate Brokerage, Tokyo Governor (1) No. 113304) and representative of 四葉行政書士事務所. In Kohinata, Bunkyo-ku, Tokyo, about five minutes' walk from Myogadani Station. For opening a pawnshop he handles the store-property search, the advance check of whether the use and storage facilities can be set up, and the brokerage of the lease; the permit application to the Public Safety Commission goes to an administrative scrivener, the fire-resistance retrofit to an architect/contractor, and post-opening registration to a judicial scrivener. Author profile.