What does it take to obtain a construction business permit? The managing officer, the full-time engineer and the financial basis

In short: anyone who carries on a construction business must obtain a permit under Article 3, paragraph 1 of the Construction Business Act. The exception is where you only take on "minor construction works" prescribed by cabinet order, for which no permit is required. To obtain the permit you must meet the criteria — a managing officer for business management, a full-time engineer at each office, integrity, and a financial basis (Article 7; for specified construction business, Article 15) — and must not fall under the disqualifications in Article 8. This article is general information organising the line between works that need a permit and minor works, the managing officer, the full-time engineer, the financial basis and disqualifications, the difference between governor and minister permits and between general and specified construction business, and the split among the administrative scrivener, the certified social insurance labour consultant and the judicial scrivener; it does not judge the outcome of any individual permit or whether the criteria are met.

When does a construction business permit become necessary (the line with minor works)?

Whether a permit is required turns on the scale of the works. If you only take on "minor construction works" prescribed by cabinet order, no permit is required (proviso to Article 3, paragraph 1 of the Construction Business Act; Article 1-2 of the Order for Enforcement of the Construction Business Act).

Type of work	Scope of minor works (no permit)
General building works (ikkatsu)	A single contract price under 15 million yen, or wooden-house work with a total floor area under 150 m²
Works other than general building works	A single contract price under 5 million yen

The contract price is judged inclusive of consumption tax and local consumption tax. Where a single work is split into two or more contracts without a legitimate reason, the prices of the contracts are added together. You cannot make it look under 5 million yen by splitting. Prime contractors or business partners ask you to obtain a permit so you have the structure to take on works above these amounts continuously. Within the scope of administrative-scrivener work, Yotsuba Administrative Scrivener Office supports confirming whether a permit is required, organising the requirements, preparing the application documents and acting as agent.

What are the requirements for the "managing officer for business management"?

The managing officer (keikan) is a full-time officer placed to manage the construction business appropriately. Article 7, item 1 of the Construction Business Act requires a person who meets the standards set by ministry ordinance as having the ability to appropriately manage the business.

A typical way to qualify is five or more years of experience managing business operations as an officer of a construction business. A revision effective 1 October 2020 (Reiwa 2) also allows the standard to be met by a structure in which one full-time officer is supported by others with experience in finance, labour and business operations. The content of the experience must be backed up with confirming materials (certificate of registered matters, contracts, tax returns and the like).

What qualifications and experience does the "full-time engineer" need?

The full-time engineer (sengi) is an engineer placed full time at each office to secure, on the technical side, the proper conclusion and performance of contracts. The ways to qualify are as follows, judged per trade category (29 categories).

Category	Main requirements
National qualification, etc.	A qualification matching the trade, such as a construction management engineer (civil, building, electrical, etc.), professional engineer, or architect
Designated course plus experience	Three or more years of experience after graduating in a designated course at a university or technical college; five or more years after a high school, etc.
Experience only	Ten or more years of practical experience in the trade, regardless of academic background

The full-time engineer for a specified construction business is, in principle, limited to holders of a first-class national qualification and the like, with heavier requirements. Obtaining the national qualification itself is a matter for each examination system. Our office does not obtain qualifications. Who is placed as the full-time engineer at which office directly affects the permit outcome.

What is looked at for the financial basis, disqualifications and social insurance?

The financial basis requires a financial basis or monetary credit sufficient to perform contracts (Article 7, item 4; for specified business, Article 15, item 3).

Category	Guide to the financial basis
General construction business	Any of: own capital of 5 million yen or more; the ability to raise 5 million yen or more; or a record of continuously carrying on the business under a permit for the preceding five years
Specified construction business	Capital of 20 million yen or more and own capital of 40 million yen or more; a deficit not exceeding 20% of capital; and a current ratio of 75% or more (all of these)

If any one of the disqualifications in Article 8 applies, the permit cannot be granted. They include false statements in the application, a person who has received a decision to commence bankruptcy proceedings and has not been restored to rights, a person sentenced to imprisonment (kokin-kei) or a heavier penalty for whom five years have not passed since the sentence ended, and certain violations of the Construction Business Act or organised-crime ties; they extend to officers and certain employees. The 2022 (Reiwa 4) Penal Code revision unified imprisonment with and without labour into "imprisonment (kokin-kei)." In addition, enrolment in appropriate social insurance (health insurance, employees' pension insurance, employment insurance) is a requirement for the permit. The setup of social- and labour-insurance enrolment and work rules is handled by a certified social insurance labour consultant (Yotsuba Certified Social Insurance Labour Consultant Office), a separate business from Yotsuba Administrative Scrivener Office, as an independent business under a separate contract. Our office receives no referral fee.

How do governor and minister permits, and general and specified, differ?

Permits are divided by "where the office is located" and by "the amount subcontracted."

• Governor permit and minister permit: if offices are only within one prefecture, it is a prefectural governor permit; if within two or more prefectures, it is a Minister of Land, Infrastructure, Transport and Tourism permit (Article 3, paragraph 1). A governor permit does not confine where you may operate; the division is decided by where the offices are.
• General and specified construction business: a prime contractor that, for a single work received directly from the orderer, subcontracts a total of 45 million yen or more (70 million yen for general building works) needs a specified construction business permit. These amounts were raised from the former 40 million and 60 million yen by a revision of the enforcement order effective 1 January 2023 (Reiwa 5). The specified business has heavier financial-basis and full-time-engineer requirements.

Who asks the administrative scrivener, the labour consultant and the judicial scrivener for what?

Obtaining a construction business permit and building the structure involve several fields. The roles are as follows.

• Confirming whether a permit is required, organising requirements, preparing documents and acting as agent → Yotsuba Administrative Scrivener Office (administrative scrivener)
• Registration such as company incorporation, change of officers and capital increase → a judicial scrivener
• Enrolment in social and labour insurance, work rules and labour matters → a certified social insurance labour consultant
• Arranging and leasing property for the office or material yard → Yotsuba Real Estate Co., Ltd. (licensed real estate broker)
• Obtaining the national qualification (construction management engineer, etc.) needed for the full-time engineer → each examination system

Yotsuba Administrative Scrivener Office and Yotsuba Real Estate Co., Ltd. are separate businesses. Each field, including the labour consultant and the judicial scrivener, is on the premise that you contract separately with each qualified professional as an independent business, and our office receives no referral fee. For the flow of engagement, see Engagement Flow; for fees, see Fee Schedule; and for the whole picture of our services, see Permits and Applications. The split between registration and permit when you take on demolition is organised in What is the difference between demolition-work registration and a construction business permit (demolition).

FAQ

Q. If I only take works under 5 million yen, do I not need a construction business permit?
A. For works other than general building works, no permit is required if you only take on minor works with a single contract price under 5 million yen (tax included) (Article 1-2 of the enforcement order). But where a single work is split without a legitimate reason, the contracts are added together. If you plan to take works above the amount continuously, we recommend obtaining a permit early.

Q. Can one person serve as both the managing officer and the full-time engineer?
A. At the same office, if the person is full time and meets each set of requirements, one person can generally serve as both the managing officer and the full-time engineer. However, the full-time engineer must be full time at each office and cannot also serve at another office or another company. The individual outcome is a matter for the permitting authority's examination.

Q. Which is better, obtaining the permit after forming a company or as an individual?
A. A permit can be obtained as either an individual or a company. Company incorporation involving capital and registration is the field of a judicial scrivener, and the social-insurance setup is that of a labour consultant. Because business scale, partners' demands and tax judgements (the field of a tax accountant) are also involved, decide the form under a separate contract with each professional. Our office handles the permit-application part.

Q. Can you switch between specified and general construction business later?
A. If you expect to subcontract 45 million yen or more (70 million for general building works), you need a specified construction business permit. If the requirements are met, you can apply to switch from general to specified. Because the financial-basis and full-time-engineer requirements are heavier, you apply after confirming your accounts and your engineers' qualifications.

Sources (Primary Information)

• e-Gov Law Search, "Construction Business Act" (Act No. 100 of 1949), Article 3, paragraph 1, Article 7, Article 8 and Article 15 (accessed 2026-09-07)
• e-Gov Law Search, "Order for Enforcement of the Construction Business Act" (Cabinet Order No. 273 of 1956), Article 1-2 and Article 2 (accessed 2026-09-07)
• Ministry of Land, Infrastructure, Transport and Tourism, Construction Industry Division, "On the Cabinet Order partially amending the Order for Enforcement of the Construction Business Act" (administrative notice of 18 November 2022; raising the subcontract amount for specified construction business to 45 million yen / 70 million yen for general building works, effective 1 January 2023) (accessed 2026-09-07)
• Ministry of Land, Infrastructure, Transport and Tourism, "Guidelines for Construction Business Permit Administration" (including the treatment of the criteria, the managing officer, the full-time engineer and social-insurance enrolment) (accessed 2026-09-07)

This article is general information and does not guarantee the outcome of any individual permit, the meeting of the criteria, the required documents or the examination period. The permit outcome and examination are matters for the permitting authority (prefectural governor or the Minister). Registration such as company incorporation, change of officers and capital increase is handled by a judicial scrivener; social- and labour-insurance enrolment and labour matters by a certified social insurance labour consultant; and arranging the office or material yard by Yotsuba Real Estate Co., Ltd. (licensed real estate broker), each as an independent business under a separate contract. Our office receives no referral fee. Individual judgements are made by a qualified professional after a meeting. Written by Joji Uramatsu, administrative scrivener and licensed real estate broker.