Can an amusement business licence be inherited? The 60-day succession approval and deemed operation

In short: an amusement business licence does not pass automatically to the heirs when the operator dies. To keep the business going, an heir must obtain the approval of the prefectural public safety commission (approval of succession to the status by inheritance) within 60 days of the death (Act on Control and Improvement of Amusement Business, Article 7, paragraph 1). Once the application is filed, the licence granted to the deceased is deemed to have been granted to the heir from the day of death until approval or refusal is notified, so the business can continue (Article 7, paragraph 2 = deemed operation). However, approval is conditional on the heir not falling under the grounds for disqualification in Article 4, paragraph 1 (applied via Article 7, paragraph 3); if the heir falls under a risk of violent unlawful acts or certain criminal records, approval is not granted. This article is general information organising the succession procedure and the deadline; it does not judge the outcome of any individual approval.

Does the amusement business licence pass straight to the heirs?

No. An amusement business licence is granted to the operator, and it does not pass to the heirs automatically like a bank deposit or real estate when the operator dies. If an heir wants to keep operating at the same premises, the heir must obtain the approval of the prefectural public safety commission again and succeed to the "status of amusement business operator" that the deceased held. The basis is the Act on Control and Improvement of Amusement Business (the Entertainment Business Act), Article 7. Article 7, paragraph 4 provides that the heir who receives the approval succeeds to the status of the amusement business operator of the deceased.

Even the same "handover" differs between transferring the business during life and inheritance on death. Where a company passes it on by merger or division during life, prior approval is needed under Article 7-2 (merger) or Article 7-3 (division); where the business is transferred to another person during life, as a rule a new licence must be obtained afresh. The general picture of how licences are treated in a living business succession is organised in Does a living business succession require re-obtaining the licence?. This article focuses on the "inheritance" scene, where the operator has died.

By when must the application for approval of succession by inheritance be filed?

Article 7, paragraph 1 provides that the heir must apply to the public safety commission and obtain its approval within 60 days of the death of the deceased. This 60 days is the deadline where the heir intends to keep operating.

Item	Content	Basis
Application deadline	Within 60 days of the death of the deceased	Act Art. 7(1)
Where to apply	The prefectural public safety commission with jurisdiction over the premises (the counter is the community safety division of the police station with jurisdiction)	Act Art. 7(1)
Approval standard	Not falling under the grounds for disqualification in Article 4, paragraph 1	Act Art. 7(3) (applying Art. 4(1))
Standard processing period	Differs by prefecture (check each commission's examination standards and standard processing period)	Each prefecture's examination standards

Because the standard processing period and the forms of the required documents differ by prefecture, always check with the public safety commission and the police station with jurisdiction over the premises.

Can the business keep operating until approval comes through? (deemed operation)

Yes. Article 7, paragraph 2 provides that, where the application for approval is filed, from the day of the death of the deceased until the day approval is received (or the day a notice of refusal is received), the licence granted to the deceased is deemed to have been granted to the heir. This is "deemed operation." As long as the application is filed within the deadline, the business will not become unlicensed during the examination period.

Conversely, if the business keeps operating without applying within 60 days, there is no basis for deemed operation, and it may be assessed as unlicensed operation (a breach of Article 3, paragraph 1). Once approval is received, the licence certificate must be rewritten without delay (Article 7, paragraph 5); if a notice of refusal is received, the licence certificate must be returned (Article 7, paragraph 6).

When there are several heirs, who succeeds?

Where there are two or more heirs, if they determine by consultation the heir who is to succeed to the amusement business, that person becomes the applicant (Article 7, paragraph 1). That is, not everyone becomes the operator; the heirs decide by consultation who will take over the business, and that one person applies for approval.

Situation of heirs	Who applies for the succession approval
One heir	That heir
Several heirs; a successor is set by consultation	The heir set by consultation
Consultation does not settle	The successor is not fixed, making application difficult (*)

(*) While the consultation does not settle, the applicant is not fixed, and continuing the business becomes unstable in relation to the 60-day deadline. Adjusting the estate division itself and disputes among heirs are the field of lawyers, with whom you contract separately as an independent business from our office.

In what cases can succession not take place? (grounds for disqualification)

Approval is conditional on the succeeding heir not falling under the grounds for disqualification in Article 4, paragraph 1 (Article 7, paragraph 3 applies Article 4, paragraph 1). The typical grounds for disqualification are as follows.

Item	Ground for disqualification (summary)
Art. 4(1)(i)	A person who has received a decision commencing bankruptcy proceedings and has not been restored to rights
Art. 4(1)(ii)	A person sentenced to imprisonment of one year or more, or to a punishment for an enumerated offence such as a breach of the Act, and for whom 5 years have not passed since completion of execution, etc.
Art. 4(1)(iii)	A person with reasonable grounds to recognise a risk of committing violent unlawful acts collectively or habitually (the category relating to organised-crime-group members)
Art. 4(1)(v)	A person who, due to a mental or physical disorder, cannot properly conduct the business of the amusement business (as prescribed by National Public Safety Commission rules)
Art. 4(1)(xi)	A minor who does not have the same capacity to act as an adult with respect to the business (except in certain cases)

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"Imprisonment without distinction" came into force on 1 June 2025 through amendment of the Penal Code, unifying the former imprisonment with and without work. If the succeeding heir falls under these, approval is not given and the business cannot continue. The final confirmation of whether a person applies is by the person's own declaration and a police investigation. Note that for a minor heir, there is treatment allowing succession where the statutory agent does not fall under the grounds for disqualification (the proviso to Article 4, paragraph 1, item 11).

Who handles the approval application, the inheritance procedure, the registration and the tax?

The inheritance of an amusement business spans several specialist fields. The roles are as follows.

• The application for approval of succession to the status by inheritance, preparation of various notifications and acting as agent for the application to the public safety commission, and determining the heirs and preparing the estate division agreement → Yotsuba Administrative Scrivener Office (administrative scrivener)
• The lease or sale of the business property (shop) after inheritance and confirming the title → Yotsuba Real Estate Co., Ltd. (licensed real estate broker)
• Registration of real estate and the company (inheritance registration, change of director registration, etc.) → judicial scriveners
• Inheritance tax filing and business tax → tax accountants
• Disputes over estate division among heirs and objections to adverse dispositions such as a refusal → lawyers

Yotsuba Real Estate Co., Ltd., a separate business from Yotsuba Administrative Scrivener Office, handles the lease or sale of the shop property and the title check under a separate contract as an independent business. Registration is for judicial scriveners, tax for tax accountants, and disputes and objections for lawyers, each contracting separately as an independent business. Each field is on the premise that you contract separately with each counter or qualified professional, and our office receives no referral fee. For advice on using inherited real estate, see About inherited real estate; 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. For the licence requirements of the amusement business itself, see also A restaurant with hostess-style service (Entertainment Business Act, type 1) for the case with hostess-style service, and Low-light and partitioned-seat restaurants (Entertainment Business Act, types 2 and 3) for the low-light or partitioned-seat case.

FAQ

Q. After a parent dies, can I keep the shop open without doing anything?
A. No. The amusement business licence does not pass to the heirs automatically. To continue, you must apply to the prefectural public safety commission for approval of succession by inheritance within 60 days of the death (Act Article 7, paragraph 1). If you file the application, you can continue as deemed operation from the day of death until approval or refusal is notified (same Article, paragraph 2). Operating without applying may be assessed as unlicensed operation.

Q. Must the shop close during the examination of approval?
A. There is no need to close. Thanks to the deemed operation in Article 7, paragraph 2, you can keep operating during the examination period if you have applied within the deadline. This, however, presupposes that you applied within 60 days. After approval, the licence certificate must be rewritten; on refusal, it must be returned (same Article, paragraphs 5 and 6).

Q. If there are three siblings as heirs, do they all become operators?
A. No. Where there are two or more heirs, by consultation one heir who will succeed to the business is determined, and that person applies for approval (Article 7, paragraph 1). Not everyone becomes the operator. Where there is a dispute over who takes over, the adjustment of estate division is the field of lawyers, with whom you contract separately as an independent business from our office.

Q. Can succession not take place if an heir has a criminal record or personal bankruptcy?
A. Succession is conditional on not falling under the grounds for disqualification in Article 4, paragraph 1 (applied via Article 7, paragraph 3). Approval is not given where a person is bankrupt and not restored to rights, has not passed 5 years since imprisonment of one year or more or a punishment for a breach of the Act, or presents a risk of violent unlawful acts. Whether a person applies is confirmed by the person's own declaration and a police investigation, and the final judgement is made by the prefectural public safety commission.

Sources (Primary Information)

• e-Gov Law Search, "Act on Control and Improvement of Amusement Business" (Act No. 122 of 1948), Article 3, paragraph 1; Article 4, paragraph 1; Article 7 (inheritance), paragraphs 1 to 6; Article 7-2 (merger); Article 7-3 (division) (accessed 2026-11-05)
• Each prefectural public safety commission, examination standards and standard processing period for "approval of succession to the status of an amusement business by inheritance" (accessed 2026-11-05)
• Creation of imprisonment without distinction by the Act partially amending the Penal Code (in force 1 June 2025)

This article is general information and does not guarantee the outcome of any individual approval, the applicability of grounds for disqualification, the required documents, the examination period, or the reckoning of the application deadline. The outcome and examination of the approval are decided by the prefectural public safety commission (police station with jurisdiction). Because forms and the standard processing period differ by prefecture, always check the official guidance of the public safety commission and the police station with jurisdiction over the premises. The lease or sale of the business property is handled by Yotsuba Real Estate Co., Ltd. (licensed real estate broker), registration by judicial scriveners, tax by tax accountants, and disputes over estate division and objections by lawyers, each as an independent business under separate contracts. 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.