A real estate transaction business licence in Japan: the full-time licensed agent, office requirements and the guarantee association

In short: to broker the sale or lease of real estate as a business in Japan, you must obtain a licence from the Minister of Land, Infrastructure, Transport and Tourism or from a prefectural governor, under Article 3, paragraph 1 of the Real Estate Transaction Business Act. If your offices are only within one prefecture, it is a governor's licence; if they span two or more prefectures, a minister's licence. The licence is valid for five years, and to continue you must renew it (Article 3, paragraphs 2 and 3). You must place, at each office, a full-time licensed real estate transaction agent who is an adult, in a ratio of at least one for every five persons engaged in the business (Article 31-3, paragraph 1; the ratio is set at one-fifth by Article 15-5-3 of the Enforcement Regulation). Before you start trading you must also arrange a business guarantee deposit (10 million yen for the main office and 5 million yen for each additional office; joining the Real Estate Transaction Business Guarantee Association can replace the deposit) (Articles 25 and 64-9). This article is general information and does not judge or guarantee whether a particular operator meets the licence criteria or the full-time requirement. Support for preparing and filing the licence application is handled by the Yotsuba group's administrative scrivener as an independent business; securing the premises used as an office is handled by Yotsuba Real Estate Co., Ltd., a separate business; company incorporation and change-of-officer registration by a judicial scrivener; the lodging of the business guarantee deposit and the procedure to join the guarantee association by you and the association; and tax by a tax accountant — each contracted separately. Our office receives no referral fee.

When is a real estate transaction business licence required? (The difference between a governor's and a minister's licence)

The starting point is "what you do as a business." Article 2, item 2 of the Real Estate Transaction Business Act defines the real estate transaction business as the sale or exchange of land or buildings, or acting as agent or broker in the sale, exchange or lease of land or buildings, carried on as a business (repeatedly and continuously with an indefinite number of counterparties). To do these you need a licence under Article 3, paragraph 1. Note that leasing out property you yourself own ("leasing as the lessor yourself") is, as a rule, not a real estate transaction business, because it is not agency or brokerage. This line can shift with the individual facts, so confirming with the competent authority at the planning stage is essential.

The category of licence turns on where your offices are.

Item	Governor's licence	Minister's licence
Basis	Real Estate Transaction Business Act, Article 3, paragraph 1	Same paragraph
Criterion	Offices only within one prefecture	Offices span two or more prefectures
Filed with	That prefectural governor	The Minister (via the prefecture where the main office is located)
Validity	5 years (renewal licence required; Article 3, paragraphs 2 and 3)	5 years (same)

The licence is valid for five years from the date of the licence, and to continue after expiry you must obtain a renewal licence (Article 3, paragraphs 2 and 3). Many prefectures require the renewal application between 90 and 30 days before expiry. The grounds for refusal of a licence are set out in Article 5, paragraph 1, under which past dispositions and the situation of officers are examined.

How many "full-time licensed real estate transaction agents" are required, and who qualifies?

Article 31-3, paragraph 1 of the Real Estate Transaction Business Act requires that, at each office and at other places prescribed by the Ministry's regulation, you place a number of adult full-time licensed real estate transaction agents such that their ratio to the number of persons engaged in the business is at least the number prescribed by the regulation. That ratio is set at one-fifth by Article 15-5-3 of the Enforcement Regulation, so in practice it is explained as "at least one full-time licensed real estate transaction agent for every five persons engaged in the business."

Item	Content (basis)
Place of placement	Each office (separately for a sales venue etc. that handles contracts)
Number required	At least one per five persons engaged (Article 31-3, paragraph 1; Enforcement Regulation Article 15-5-3)
Qualification	An adult full-time licensed real estate transaction agent (who holds the agent's card)
Meaning of "full-time"	Working full-time at that office and engaged exclusively in the real estate transaction business; concurrent posts at other companies or non-full-time work are, as a rule, not allowed

"Full-time" means being constantly present at that office and engaged exclusively in that business. Where the person concurrently serves as an officer of another company, holds another occupation, or lives too far to commute, they are, as a rule, not recognised as full-time. If the number falls below the standard, there is a duty to take the necessary measures within two weeks (Article 31-3, paragraph 3). Whether the requirement is met is a judgment under the Real Estate Transaction Business Act, not something an administrative scrivener decides on your behalf as an exclusive service.

What are the requirements for premises accepted as an office? (Independence and continuity)

An office is both the premise for obtaining a licence and the unit that determines the business guarantee deposit and the number of full-time agents. The Ministry's "Interpretation and Operation of the Real Estate Transaction Business Act" and each prefecture's guide state that an office must be a facility where business can be carried on continuously and that is physically independent of the living space of any other corporation or individual.

Point examined	Example
Independence	Clearly partitioned from other companies or living space by walls and the like, with an independent entrance
Continuity	A form in which business can be carried on continuously, not a temporary structure
Right to use	A right to use the place as an office, by ownership or a lease agreement
Full-time agent on site	A full-time licensed real estate transaction agent working full-time at that office

If you make one room of your home the office, whether it can be clearly separated from the living space and whether the entrance and traffic line are independent are examined. For a rented property, whether the lease permits use as an office, and whether it conflicts with the rules of the sectional ownership, must also be checked. Because the fine acceptability of premises is judged by the competent authority, consulting before you sign makes it easier to avoid a bounce-back just before filing. Selecting the office premises, brokering the lease and giving the important-matters explanation are handled by Yotsuba Real Estate Co., Ltd., a separate business, as an independent business. If you also manage leases, registration as a rental housing management business and sublease is a separate issue.

A business guarantee deposit or the guarantee association (the deposit contribution) — which do you choose?

Even with a licence, you cannot start trading on that alone. As a financial safeguard to protect the counterparty, you must either lodge a business guarantee deposit or join the Real Estate Transaction Business Guarantee Association.

Item	Business guarantee deposit (Article 25)	Joining the guarantee association (Article 64-9)
Main office	10 million yen (Enforcement Order Article 2-4)	Deposit contribution of 600,000 yen
Each additional office	5 million yen	300,000 yen
Paid/lodged with	Lodged at the deposit office nearest the main office	Paid in money to the association
Timing	Lodge and notify the licensing authority before starting (Article 25, paragraphs 4 and 5)	Pay by the day you intend to join (Article 64-9, paragraph 1)

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You cannot begin business until you have lodged the business guarantee deposit and notified the licensing authority (Article 25, paragraphs 4 and 5). If you do not notify of the lodging within three months of the date of the licence, the authority may demand it, and if there is still no notification it may revoke the licence (Article 25, paragraphs 6 and 7). If instead you join the Real Estate Transaction Business Guarantee Association, paying the deposit contribution in money (600,000 yen for the main office and 300,000 yen for each additional office) exempts you from lodging the business guarantee deposit (Article 64-9). Because it is easier on the initial outlay, many new entrants join the association. Which suits you depends on your funding plan and scale. Lodging the deposit or the procedure to join the association is done by you with the deposit office and the association; an administrative scrivener does not lodge or pay on your behalf.

Who handles incorporation, securing the office and the licence application?

Because the relevant professionals are divided, the basic rule is that you contract with each separately as an independent business. The Yotsuba group's administrative scrivener handles, as an independent business, preparing and filing the licence application and guiding prior consultation with the competent prefecture or regional bureau.

Who	Main role
Administrative scrivener (our office)	Preparing and filing the real estate transaction business licence application, and support for renewal and change notifications
Real estate broker (Yotsuba Real Estate Co., Ltd., a separate business)	Selecting the office premises, brokering the lease, and the important-matters explanation
Judicial scrivener	Commercial registration such as incorporation and change of officers
You / the guarantee association / the deposit office	Lodging the business guarantee deposit, joining the association and paying the deposit contribution
Tax accountant	Tax and accounting after opening

See also our services, engagement flow and fee schedule. We contract with each professional as an independent business and receive no referral fee from one another. The licence is only the entry point to carrying on the real estate transaction business; judgments about the transactions themselves are made by the licensed operator and its licensed agents. If you also undertake construction work, the requirements for a construction business permit are a further, separate matter.

FAQ

Q. Even if I only lease out an apartment I own myself, do I need a real estate transaction business licence?
A. As a rule, no. The real estate transaction business (Article 2, item 2 of the Act) means the sale or exchange, or the agency or brokerage of sale, exchange or lease, carried on as a business; leasing out your own property as the lessor yourself is not agency or brokerage, so it is, as a rule, not the business. However, repeated sales and the like may require a licence, and the line shifts with the individual facts. Confirm with the competent authority at the planning stage.

Q. Is a minister's licence "higher ranked" than a governor's? Does the area in which I can operate differ?
A. It is not a difference in rank but a category based on where your offices are. If your offices are only within one prefecture it is a governor's licence; if they span two or more prefectures, a minister's licence (Article 3, paragraph 1). Even with a governor's licence, the location of the properties you can handle is not limited to that prefecture — you can handle properties in other prefectures too. The validity is five years for both.

Q. May a full-time licensed real estate transaction agent also serve as an officer of another company?
A. As a rule, no. "Full-time" means being constantly present at that office and engaged exclusively in the real estate transaction business. Serving as a full-time officer of another company, holding another occupation, or living where you cannot commute may negate the full-time status. When the ratio of at least one per five persons engaged (Article 31-3, paragraph 1; Enforcement Regulation Article 15-5-3) falls short, there is a duty to take the necessary measures within two weeks.

Q. I cannot raise the 10 million yen business guarantee deposit. Must I give up opening?
A. There is the option of joining the Real Estate Transaction Business Guarantee Association. On joining, paying a deposit contribution of 600,000 yen for the main office and 300,000 yen for each additional office exempts you from lodging the business guarantee deposit (Article 64-9). Because it is easier on the initial outlay, it is often chosen by new entrants. Which suits you depends on your funding plan and scale, so confirm the joining procedure with the association.

Sources (Primary Information)

• e-Gov Law Search, Ministry of Land, Infrastructure, Transport and Tourism, "Real Estate Transaction Business Act" (Act No. 176 of 1952), Article 2, item 2 (definition of the real estate transaction business), Article 3, paragraph 1 (licence; the governor/minister distinction), Article 3, paragraphs 2 and 3 (five-year validity and renewal), Article 5, paragraph 1 (grounds for refusal), Article 25 (business guarantee deposit; paragraphs 4 and 5 — no business before notification of lodging, paragraphs 6 and 7 — demand and revocation if no notification within three months of the licence), Article 31-3, paragraphs 1 and 3 (placement of full-time licensed real estate transaction agents at each office; measures within two weeks on shortfall), and Article 64-9 (payment of the deposit contribution) (accessed 2026-11-02)
• e-Gov Law Search, "Enforcement Order of the Real Estate Transaction Business Act," Article 2-4 (amount of the business guarantee deposit — 10 million yen for the main office and 5 million yen for each additional office) (accessed 2026-11-02)
• e-Gov Law Search, "Enforcement Regulation of the Real Estate Transaction Business Act," Article 15-5-3 (ratio of full-time licensed real estate transaction agents — one-fifth) (accessed 2026-11-02)
• Ministry of Land, Infrastructure, Transport and Tourism, "Interpretation and Operation of the Real Estate Transaction Business Act," and each prefecture's/regional bureau's guide to the real estate transaction business licence application (the independence and continuity of an office, the judgment of full-time status, documents and fees; the specific forms, attachments and filing destination differ by authority) (accessed 2026-11-02)

This article is general information and does not judge or guarantee whether a particular operator meets the real estate transaction business licence criteria, the full-time licensed real estate transaction agent requirement or the office requirements, nor the need for or timing of renewal and change notifications. The examination and grant of the licence are by the Minister or the prefectural governor, and the specific forms, fees and attachments are set by the competent authority. Preparing and filing the licence application and guiding prior consultation are handled by the Yotsuba group's administrative scrivener as an independent business; selecting the office premises, brokering the lease and the important-matters explanation by Yotsuba Real Estate Co., Ltd., a separate business; commercial registration for incorporation and change of officers by a judicial scrivener; lodging the business guarantee deposit and joining the association and paying the deposit contribution by you with the deposit office and the association; and tax after opening by a tax accountant — each contracted separately. Our office receives no referral fee. Individual judgments are made, after a meeting, by a qualified professional. Written by Joji Uramatsu, administrative scrivener and licensed real estate broker.