The notification and supervision standards for unlicensed childcare facilities: how they differ from licensed and company-led daycare

In short: if you start an unlicensed childcare facility (including a baby hotel, workplace daycare, or a facility covered by the company-led daycare programme), you must notify the prefectural governor of the location within one month of starting the business (Article 59-2, paragraph 1 of the Child Welfare Act). A notified facility is required to meet the supervision standards for unlicensed childcare facilities (the number and qualifications of childcare staff, the floor area of the playroom, and so on), and failing to notify or filing a false notification carries a non-penal fine of up to 500,000 yen (Article 62-4 of the Child Welfare Act). This article organises the notification and the supervision standards from an administrative scrivener's view as general information; it does not judge whether the standards are met or give individual legal advice. Preparing the notification documents is for the administrative scrivener, checking the zoning and floor area of the premises for a real estate broker, labour and staffing of childcare workers for a labour and social security attorney, and building confirmation and change of use for an architect — each handed off separately, on the premise that you contract with each as an independent business.

When you start an unlicensed childcare facility, when and where do you notify?

An unlicensed childcare facility is a general term for a facility that provides childcare for infants or young children other than a licensed nursery, a certified centre for early childhood education and care, or a regional childcare business. A baby hotel, a workplace daycare facility, or a facility covered by the company-led daycare programme falls here if it is not licensed. Whoever sets one up must notify the prefectural governor of the facility's location (the mayor in a designated or core city) within one month of the day the business starts (Article 59-2, paragraph 1 of the Child Welfare Act). This is a post-opening procedure: you do not notify first and then open — you start, then notify within one month.

Situation	Deadline	Basis
When the business starts	Notify within one month of the starting day	Child Welfare Act Article 59-2, paragraph 1
When the notified particulars change	Notify within one month of the change	Child Welfare Act Article 59-2
When the business is suspended or closed	Notify within one month of the suspension/closure	Child Welfare Act Article 59-2

Beyond the notification, you must explain the content of the service to users (Article 59-2-2) and deliver a written document at the time of contract (Article 59-2-3), and you owe the governor a duty to report on operations. The notification forms, where to file, and the attachments (a floor plan, documents proving staff qualifications, the capacity for infants, and so on) differ by municipality, so check the official page of the ward or city where you are opening directly. Within the scope of administrative-scrivener work, Yotsuba Administrative Scrivener Office supports preparing and filing the notification documents.

How do the supervision standards treat floor area, staff numbers and equipment?

A notified unlicensed childcare facility becomes subject to supervision by the prefecture and must meet the supervision standards for unlicensed childcare facilities. These standards appear as an appendix to the Children and Families Agency's "Implementation of supervision of unlicensed childcare facilities" (Notice Ko-sei-ho No. 206 of 29 March 2024); the predecessor was Notice Ko-ji-hatsu No. 177 of 29 March 2001. The main points are as follows.

Item	Main content of the supervision standard
Number of childcare staff	For the main opening hours of 11 hours, at least the number set by the standards for the facilities and operation of child welfare institutions, but never fewer than two. For hours beyond 11, at least two at all times except when only one child is actually being cared for
Qualifications of staff	Roughly one-third or more (or at least one where the required number is three or fewer) must be qualified as a childcare worker, or as a nurse, assistant nurse, public health nurse or midwife
Floor area of playroom, etc.	At facilities caring for roughly six or more infants, at least roughly 1.65 square metres per infant
Equipment	A playroom, toilets and a cooking room (where meals are served), plus firefighting equipment, emergency exits and other equipment needed for emergencies and disasters

The "standards for the facilities and operation of child welfare institutions" (Order of the Ministry of Health and Welfare No. 63 of 1948; formerly the minimum standards for child welfare institutions) base staffing on numbers by age band, such as roughly three for infants and roughly six for children aged one to under three. A facility that meets the standards can receive a certificate that it meets the supervision standards for unlicensed childcare facilities. Because the figures and operation may be revised, check the latest version of the notice just before writing.

What is the difference between licensed, small-scale licensed, company-led and unlicensed?

Even among "childcare facilities," the legal position and the entry procedure differ. The root distinction is between a facility that receives a licence from the prefectural governor and one that notifies without a licence.

Type	Position / main basis	Entry procedure
Licensed nursery	A child welfare institution (Child Welfare Act Article 35, etc.)	Licence by the prefectural governor, etc.
Small-scale childcare (regional childcare)	Regional childcare benefit under the child and childcare support system. Capacity of 6 to 19 (Child Welfare Act Article 34-15)	Licence by the municipality
Company-led daycare	Unlicensed, but covered by the national (Children and Families Agency) company-led daycare programme	Requires the Article 59-2 notification as an unlicensed facility
Unlicensed facility (general / baby hotel / workplace)	A childcare facility that is not licensed	The Article 59-2 notification plus meeting the supervision standards

Of these, a baby hotel is an unlicensed childcare facility that, on an ongoing basis, runs any of the following: (1) childcare after 8 p.m., (2) childcare with overnight stays, or (3) short-term drop-in care where such children are at least half of the users. Company-led daycare is unlicensed yet held to standards close to a licensed facility, while it can be set up without going through the municipality. Which type you choose changes the standards, procedures and costs required. The flow of designation for child development support and after-school day services in the disability welfare field is covered in The flow of designation for after-school day services and child development support.

What supervision, publication and penalties apply if you run one without notifying?

An unlicensed childcare facility is subject to the governor's supervision whether or not it notifies. The governor may demand reports and conduct on-site inspections and questioning about operations (Child Welfare Act Article 59, paragraph 1). Where there is a problem against the standards, the governor issues a written recommendation for improvement, publishes the fact if the recommendation is not followed, and, where necessary for children's welfare, may order suspension of the business or closure of the facility (Child Welfare Act Article 59, paragraphs 3 to 5).

Situation	Administrative response	Basis
Checking operations	Report demand, on-site inspection, questioning	Child Welfare Act Article 59, paragraph 1
A problem against the standards	Written recommendation for improvement	Child Welfare Act Article 59, paragraph 3
Recommendation not followed	Publication of that fact	Child Welfare Act Article 59, paragraph 4
Necessary for children's welfare	Order to suspend the business / close the facility	Child Welfare Act Article 59, paragraph 5
Failing to notify / false notification	Non-penal fine of up to 500,000 yen	Child Welfare Act Article 62-4

Running one without notifying not only exposes you to the fine as a breach of the notification duty, but also drops the facility out of the supervision picture, hampering the certificate and the confirmation for free childcare. Notifying is not "file and finish": it presupposes continued compliance with the standards and reporting. Within the scope of administrative-scrivener work, Yotsuba Administrative Scrivener Office supports notification and the change/closure procedures, but whether the standards are met, and objecting to an administrative disposition, are fields a qualified professional handles individually.

Who should you assign the premises, labour and building checks to?

Opening a childcare facility is not completed by administrative procedure alone. The roles divide as follows, each on the premise that you contract separately as an independent business.

• Preparing and filing the unlicensed-facility notification, and organising the flow of designation for a licensed or small-scale licensed facility → Yotsuba Administrative Scrivener Office (administrative scrivener)
• Checking the zoning and floor area of the premises, and the lease and important-matters explanation → a real estate broker (Yotsuba Real Estate Co., Ltd., a separate business)
• The labour side of a staffing plan that meets the childcare-worker ratios, and work rules, shifts and social-insurance coverage → a labour and social security attorney (Yotsuba Labour and Social Security Attorney Office)
• Building confirmation and change of use, and building-code checks such as lighting, smoke exhaust and evacuation → an architect

Zoning and floor area often become issues from the stage of choosing the premises, so the real estate side's checks and the administrative procedure run in parallel. How to think about premises and zoning suited to a nursery is organised by Yotsuba Real Estate Co., Ltd., a separate business, in Premises usable for a nursery and zoning. For the whole picture of administrative-scrivener services, see Services; for the flow of engagement, see Engagement Flow; and for fees, see Fee Schedule. Yotsuba Administrative Scrivener Office, Yotsuba Labour and Social Security Attorney Office and Yotsuba Real Estate Co., Ltd. are each a separate business, and every field is on the premise that you contract separately with each as an independent business. Our office receives no referral fee.

FAQ

Q. By when must I notify an unlicensed childcare facility?
A. Within one month of the day the business starts, you notify the prefectural governor of the facility's location (the mayor in a designated or core city) (Child Welfare Act Article 59-2, paragraph 1). You do not notify first and then open — you start, then notify within one month. A change of particulars, or a suspension or closure, is also notified within one month each.

Q. What happens if I do not meet the supervision standards?
A. The governor demands reports and conducts on-site inspections (Child Welfare Act Article 59, paragraph 1), and where there is a problem, issues a written recommendation, publishes the fact if it is not followed, and, where necessary, orders suspension or closure (paragraphs 3 to 5 of the same Article). A facility that meets the standards can receive a certificate that it meets the supervision standards.

Q. Does company-led daycare also need to notify?
A. A facility covered by the company-led daycare programme is legally positioned as an unlicensed childcare facility, so the Article 59-2 notification is required. It is unlicensed yet held to standards close to a licensed facility, and while it can be set up without going through the municipality, it is subject to notification and supervision.

Q. What happens if I run one without notifying?
A. Whoever fails to notify, or files a false notification, is subject to a non-penal fine of up to 500,000 yen (Child Welfare Act Article 62-4). This is an administrative order-maintenance fine, imposed through non-contentious case procedure. Not notifying also drops you out of the supervision picture, hampering the certificate and the confirmation of free childcare for users.

Sources (Primary Information)

• e-Gov Law Search, "Child Welfare Act" (Act No. 164 of 1947), Articles 34-15, 35, 59, 59-2, 59-2-2, 59-2-3 and 62-4 (accessed 2026-09-08)
• e-Gov Law Search, "Standards for the facilities and operation of child welfare institutions" (Order of the Ministry of Health and Welfare No. 63 of 1948) (provisions on childcare-worker ratios and playroom area; accessed 2026-09-08)
• Children and Families Agency, "Implementation of supervision of unlicensed childcare facilities" (Notice Ko-sei-ho No. 206 of 29 March 2024), appended "Supervision standards for unlicensed childcare facilities" (predecessor: Notice Ko-ji-hatsu No. 177 of 29 March 2001; accessed 2026-09-08)
• Children and Families Agency and municipalities, "About unlicensed childcare facilities" (position of baby hotels and the company-led daycare programme; notification forms and where to file; accessed 2026-09-08)

This article is general information and does not make the final judgement on whether the supervision standards are met, nor give advice on contentious individual matters such as objecting to an administrative disposition. Figures and forms may be revised and differ by municipality, so check the latest guidance of the ward or city where you are opening. Checking the zoning and floor area of the premises is handled by a real estate broker, labour and staffing of childcare workers by a labour and social security attorney, and building confirmation and change of use by an architect, each as an independent business under a separate contract. Consultation on premises usable for a nursery is handled by Yotsuba Real Estate Co., Ltd., a separate business, and 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.