Starting a driving-agency (daiko) business: the certification, offices and accompanying vehicles

In short: a driving-agency (daiko) business is started by receiving the certification of the prefectural public safety commission, not a transport licence (Act on Proper Operation of Automobile Driving Agency Business, Article 4). The premise is that none of the disqualifications in Article 3 (bankruptcy, imprisonment, organised-crime ties, lack of liability measures, inability to appoint a safety driving manager, etc.) apply. A person who drives the customer's car (a "driving-agency ordinary vehicle") needs an ordinary second-class licence (Road Traffic Act, Article 86), while driving an accompanying vehicle needs only a first-class licence. Operating without certification is punishable by a fine of up to 300,000 yen (Article 32). This article is general information; individual eligibility, documents and review times rest with the competent police (public safety commission) and a qualified professional. Preparing the certification documents is handled by Yotsuba Administrative Scrivener Office (administrative scrivener), obtaining the second-class licence by the driver in person, the content of the insurance (liability measures) by an insurance company, and the office property by Yotsuba Real Estate Co., Ltd., each as an independent business under a separate contract. Yotsuba Administrative Scrivener Office and Yotsuba Real Estate Co., Ltd. are separate businesses, and our office receives no referral fee.

How does a driving-agency certification differ from a transport licence?

General trucking and welfare taxis (passenger transport) carry cargo or passengers in "their own vehicles," so they need the licence of the Minister of Land, Infrastructure, Transport and Tourism (the regional transport bureau). By contrast, a driving-agency business is the service of driving the customer's own car home on their behalf when they cannot drive due to drinking and the like. The customer rides in their own car (the driving-agency vehicle), and the operator follows behind in an accompanying vehicle. The governing law and authority differ: a driving-agency business is started under the "Act on Proper Operation of Automobile Driving Agency Business" (Act No. 57 of 2001; promulgated 20 June 2001, in force 1 June 2002) by receiving the certification of the prefectural public safety commission (Article 4).

A point that is especially important in practice: you must not carry the customer in the accompanying vehicle. Carrying a customer in the accompanying vehicle amounts to a passenger transport business (a so-called "white taxi") and raises a separate licensing problem. In driving agency, the division "the customer rides in the customer's car" and "the accompanying vehicle only follows" is the premise of the system.

Business	What is carried	Whose vehicle	Procedure	Authority
General trucking	Cargo	Own vehicle	Licence	Minister (transport bureau)
Welfare taxi and other passenger transport	Passengers	Own vehicle	Licence	Minister (transport bureau)
Driving-agency business	The customer (driving their own car)	Customer's car + accompanying vehicle	Certification	Prefectural public safety commission

For the requirements of a transport licence, see General Trucking Licence and Office / Depot Requirements; for light-cargo transport, Light-Cargo Transport Notification; and for welfare transport, Welfare Taxi Licence and Depot Requirements. Driving agency is a separate system under a different governing law.

What disqualifications prevent certification?

The disqualifications that are the premise of certification are listed in each item of Article 3. If the applicant falls under any of them, they cannot be certified (Article 4). Representative ones include:

• a person who has received a decision to commence bankruptcy proceedings and has not been rehabilitated (Article 3, item 1)
• a person sentenced to imprisonment or more, or fined for violating this Act, and for whom two years have not passed since completion of the sentence (item 2)
• a person who has violated an order such as suspension or abolition of business within the last two years (item 3)
• a person with reasonable grounds to believe they may commit violent unlawful acts collectively or habitually (item 4)
• a person unable to properly perform the recognition, judgement and communication needed to run the business due to a mental disorder (item 5)
• a person who has not taken the liability measures (Article 12) or does not meet the standard
• a person for whom there is a reasonable ground to conclude that a safety driving manager cannot be appointed for each office
• a company any of whose officers falls under the above disqualifications

When applying as a company, the presence of disqualifications is checked not only for the representative but for all officers such as directors. Note that, following the Penal Code amendment, from 1 June 2025 "imprisonment without work" has been reorganised into "imprisonment." Which prior conviction or disposition falls under which item, and when the two years pass, is an individual judgement in light of the facts; an administrative scrivener supports preparing documents on rights, duties and factual certification, but avoids asserting eligibility itself—that rests with the competent police (public safety commission). Evaluation touching on the fate of a criminal case (such as when a conviction lapses) is an attorney's domain.

What is required of the office and accompanying vehicle?

The application is filed with the prefectural public safety commission having jurisdiction over the location of the principal office (the counter is the competent police station), by submitting an application form and attachments (Article 5(1)). The office needs the following structure:

• Appointing a safety driving manager: for each office, a safety driving manager under the Road Traffic Act must be appointed (a deputy safety driving manager may be needed depending on the number of accompanying vehicles). If a safety driving manager cannot be appointed, it constitutes a disqualification.
• Displays on the accompanying vehicle, etc.: the accompanying vehicle is subject to consumer-protection rules such as the statutory display (a sign showing it is driving agency), display of fares and delivery of an undertaking document.
• The driver's licence for the driving-agency vehicle: a person who drives the customer's car (a driving-agency ordinary vehicle) needs an ordinary second-class licence (a large or medium second-class licence is also acceptable) (Road Traffic Act, Article 86). A person who only drives the accompanying vehicle needs only a first-class licence.

The second-class licence is obtained by the driver in person; an office or operator cannot obtain it on their behalf. Confirming, before opening, that a hired driver holds the required licence is a linchpin in practice. Confirming the right to use the office property (the lease and the permitted use) is handled by Yotsuba Real Estate Co., Ltd., a real estate broker, under a separate contract.

How far is insurance needed for the accompanying vehicle and the driving-agency vehicle? (content to the insurer)

A driving-agency operator must take liability measures that meet the standard set by Ministry of Land, Infrastructure, Transport and Tourism ordinance, to compensate for damage to the life, body or property of users and others caused by the operation of the driving-agency vehicle (while driving the customer's car) (Article 12). Failing to take this measure is a disqualification, and you cannot operate.

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The standard amounts for the liability measure set by ordinance and public notice are generally stated as at least 80 million yen for bodily injury, at least 2 million yen for property, and at least 2 million yen for the vehicle (confirm the latest amounts with the guidance of the Ministry and the competent authority just before writing). In addition, because the accompanying vehicle is your "own vehicle," it is common to carry ordinary voluntary insurance as with any car.

However, which insurance product meets this standard, what cover to attach to the driving-agency vehicle and the accompanying vehicle respectively, and how much the premium is—the content of the insurance is the insurer's domain. Our office supports assembling documents evidencing the liability measures for the certification application (such as a copy of the insurance policy), but does not step into selecting an insurance product or the eligibility to enrol.

What is the flow from certification application to opening?

The general flow to start a driving-agency business is as follows, with roles divided by stage:

1. Organise the business plan, office, accompanying vehicles and drivers (whether they hold a second-class licence)
2. Arrange the liability measures (insurance) in consultation with the insurer → an insurance company
3. Appoint a safety driving manager
4. Prepare the certification application and attachments and submit them to the competent police (public safety commission) → Yotsuba Administrative Scrivener Office (administrative scrivener)
5. Receive the review and the notice of certification
6. Start the business after receiving the certification

Operating without certification, or before receiving the notice of certification, is punishable by a fine of up to 300,000 yen (Article 32). Name-lending (a violation of Article 10) and a defect in the liability measures (a violation of Article 12) are subject to the same penalty. "Do not start work before receiving the notice of certification" is, in practice, the first fork in the road.

When starting by setting up a company, the roles divide as follows. Preparing and acting for the certification application and various notifications is handled by Yotsuba Administrative Scrivener Office (administrative scrivener) as an independent business. Obtaining the second-class licence is by the driver in person; the content of the liability measures (insurance) by an insurance company; working hours after hiring (such as night-work premiums) and social-insurance procedures by a certified social insurance labour consultant; finding and leasing the office by Yotsuba Real Estate Co., Ltd. (a real estate broker); incorporation and officer-change registration by a judicial scrivener; tax matters by a tax accountant; and disputes with employees and individual legal judgement touching on criminal cases by an attorney. Yotsuba Administrative Scrivener Office and Yotsuba Real Estate Co., Ltd. are separate businesses. Each field is on the premise that you contract separately with each qualified professional or operator as an independent business, and our office receives no referral fee. For the flow of engagement, see Engagement Flow; for fees, Fee Schedule; and for the whole picture of our services, Permits and Applications Services. The final judgement on individual eligibility and required documents is made by a qualified professional and the competent police (public safety commission) in light of the circumstances.

FAQ

Q. Is a driving-agency business a "licence" or a "certification"?
A. A "certification." A person who intends to run a driving-agency business must receive the certification of the prefectural public safety commission, confirming they do not fall under a disqualification (Article 3 items) (Act on Proper Operation of Automobile Driving Agency Business, Article 4). The application is made to the public safety commission having jurisdiction over the principal office (the counter is the competent police station) (Article 5(1)). The governing law and authority differ from a transport licence (the Minister).

Q. May I carry the customer in the accompanying vehicle?
A. No. Driving agency is the service of driving the customer's own car (the driving-agency vehicle) home, and the accompanying vehicle only follows. Carrying a customer in the accompanying vehicle raises the problem of a passenger transport business (a "white taxi"). "The customer rides in the customer's car" is the basic premise of the system.

Q. Can a company obtain the second-class licence collectively?
A. No. A second-class licence is a driving qualification obtained by the driver in person. A person who drives the customer's car (a driving-agency ordinary vehicle) needs an ordinary second-class licence (Road Traffic Act, Article 86), while a person who only drives the accompanying vehicle needs a first-class licence. Confirming the required licence at the time of hiring is safe.

Q. How far do I need insurance?
A. You have a duty to take liability measures (meeting the standard set by ordinance) to compensate for damage from the operation of the driving-agency vehicle (Article 12). The standard amounts are stated as at least 80 million yen for bodily injury and at least 2 million yen each for property and the vehicle, but which product meets it and how to arrange voluntary insurance for the accompanying vehicle should be confirmed with an insurance company. Our office supports assembling the documents, but does not step into the eligibility or content of insurance.

Sources (Primary Information)

• e-Gov Law Search, "Act on Proper Operation of Automobile Driving Agency Business" (Act No. 57 of 2001), Article 2 (definitions), Article 3 (disqualifications), Article 4 (certification), Article 5 (application and place of filing), Article 12 (duty to take liability measures), Article 32 (penalties) (accessed 2026-09-27)
• e-Gov Law Search, "Road Traffic Act," Article 86 (ordinary second-class licence and others; driving a driving-agency ordinary vehicle) (accessed 2026-09-27)
• Ministry of Land, Infrastructure, Transport and Tourism, "About the automobile driving-agency business" (mlit.go.jp; standard amounts of the liability measures, second-class licence, accompanying vehicle) (accessed 2026-09-27)
• Kanagawa Prefectural Police, "Outline of the Act on Proper Operation of Automobile Driving Agency Business" (police.pref.kanagawa.jp; certification, disqualifications, liability measures) (accessed 2026-09-27)

This article is general information and does not guarantee the certification eligibility, required documents or review time of a particular application. Whether a disqualification applies, the standard amounts of the liability measures, and the details of licences and insurance may differ by the competent police's (public safety commission's) or the Ministry's practice and by legal amendment, so confirm with the latest guidance before applying. Preparing and acting for the certification application and notifications is by Yotsuba Administrative Scrivener Office (administrative scrivener); obtaining the second-class licence by the driver in person; the content of the liability measures (insurance) by an insurance company; labour management after hiring by a certified social insurance labour consultant; finding and leasing the office by Yotsuba Real Estate Co., Ltd. (a real estate broker); incorporation and officer-change registration by a judicial scrivener; tax matters by a tax accountant; and individual legal judgement touching on employee disputes and criminal cases by an attorney, each as an independent business under a separate contract. Yotsuba Administrative Scrivener Office and Yotsuba Real Estate Co., Ltd. are separate businesses. 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.