Dealing with Construction Permits in
Japan
Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.
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Building a warehouse
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Estimated Warehouse Value:
JPY 227,605,000
- City: Tokyo
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Initial consultation with local authority
BuildCo must have clearance at the initial consultation phase with at least 14 different departments at the prefecture level. The process due to stricter requirements of compliance with construction regulations takes now around 24 days. The purpose of this consultation is to avoid the risk of resubmitting the application for the actual building permit which if submitted wrongly, or some parts require alteration, will take another 2-3 months. Closer scrutiny is paid to the structural component of the drawings and plans. The rules require an engineer to resubmit an entire construction plan even to change a peg or location of windows.
Agency: Local Authority
|
24 days
|
no charge
|
| * 2 |
Obtain consent of neighborhood
Obtaining neighborhood consent can be carried out simultaneously with the previous procedures. The initial step is to post a sign with specific information about the planned construction on the plot. Thereafter, BuildCo must obtain the endorsement of all neighbors (companies) stating that they do not object to the construction of the warehouse.
|
30 days
|
no charge
|
| 3 |
Obtain building permit from Building Department of Government of Tokyo
After the initial consultation with the local authority, the company must submit a building permit application. The local authority examines the application and issues the building permit.
Normally, architects submit the application on behalf of their clients. The Fire Office is also involved in the permit examination process. The application must be amended when any changes are made after the building permit is obtained. In addition, a change permit must be obtained prior to final inspection by local authorities.
After the falsification of structural calculation of buildings by former Architect Aneha became public knowledge in November 2005, many Japanese local authorities and private inspection companies have had to spend extra time checking structural design documents in new applications. This situation is still very much true in many parts of Japan. The is also a spill-over effect on site inspections by privatized control institutions, and it is likely that the Japanese government will introduce more frequent and thorough inspection procedures in building construction in the near future. Building permit review and approval procedure became very stringent since the new Building regulation as of June 20, 2007. As of June 2007 any projects exceeding 1,000 sq.m. will require a peer review process by independent authorized structural engineers/agency. The engineers are generally hired by the Building Department to undertake this review. However, the amount of work and backlog on one hand and the number of available professionals on the other hand willing to work extra hours on the weekends has caused delays. The peer review may take about 30 days in addition to 50 days of building permit review period. In simpler case the case may take on average 70 days.
Agency: Building Department of Government of Tokyo
|
70 days
|
JPY 144,000
|
| * 4 |
Request and obtain Workmen’s Compensation Insurance Proof from Labor Control Office
The Labor Control Office verifies worker compensation insurance for all companies annually. No cost is incurred for obtaining confirmation. Once a contractor obtains confirmation and insurance, it is valid for a year for any project of the contractor’s company. Application for worker compensation insurance is made with the local labor control office. The applicant must comply with the registration criteria. A worker compensation insurance fee must be paid within 50 days after the application is filed. Worker compensation insurance is valid for a year, and it must be extended every year between April 1 and May 20. The insurance cost is 2.05% of the company's total personnel costs (1.25% paid by employer, 0.8% paid by employee).
Agency: Labor Control Office
|
60 days
|
no charge
|
| 5 |
Erect statutory construction notice sign board site
The construction notice signboard should include the following information: (a) construction company registry certificate number; (b) proof of worker compensation insurance; (c) building permit number; (d) name of client, designer, contractor, project name, address, the person in charge, and the like.
|
1 day
|
JPY 50,000
|
| 6 |
Submit construction method plan to local authority and obtain approval
The construction method plan is submitted to the local authority for a crosscheck with the project drawings and to fill out the necessary application form.
Agency: Local Authority
|
7 days
|
no charge
|
| 7 |
Submit project safety and health, and resources recycling plan to local authority, and obtain approval
Design drawings, construction schedule, method statement, and building permit are required for this application. The application must be submitted 7 days before construction work starts.
Agency: Local Authority
|
7 days
|
no charge
|
| 8 |
Receive intermediate inspection by Japan Building center and obtain permit
The Japan Building Center (a privatized building control institution) and the Fire Office inspect structural conditions and conduct new building position surveys when the construction is half-completed. Inspection usually takes a day, and construction work can continue if there are no serious irregularities. However, if there are any mistakes, the construction work is suspended until proper measures are taken. An intermediate building permit is issued within 2 to 3 weeks.
Agency: Japan Building Center
|
24 days
|
JPY 211,000
|
| 9 |
Request and receive connection to water and sewage services
The installation cost is included in water and sewerage charges.
Agency: Tokyo Water Company
|
21 days
|
no charge
|
| * 10 |
Request and receive connection to fixed telephone line
The installation cost is included in telephone charges.
Agency: Nippon Telegraph and Telephone Corp. (NTT)
|
14 days
|
no charge
|
| 11 |
Request final inspection from local authority
BuildCo requests the inspection. After the completion of the inspection, the certificate is issued within 3 business days. If there are any outstanding issues pointed out by inspectors, remedial work must be completed and the building re-inspected before the completion certificate is issued.
The completion certificate is required to start occupying and using the building. This certificate is distinct from the land and building registration with the local authorities, and can be issued by the local authorities or by any of the authorized institutions at a very similar cost.
Agency: Local Authority
|
1 day
|
JPY 220,000
|
| 12 |
Receive final inspection from local authority
BuildCo receives an inspection (after requesting one), and this inspection takes no more than a day.
Agency: Local Authority
|
1 day
|
no charge
|
| 13 |
Obtain completion certificate
The overall time it takes in practice to obtain the completion certificate is around 2.5 weeks.
|
18 days
|
no charge
|
| 14 |
Register the building with the land and building registry
The building registration has two parts. First, the description of the building should be registered (usually through a notary public). This part cannot be done by BuildCo or its lawyer. No formal registration cost is required. Second, proof of building ownership should be registered. It takes about 10 to 14 days for the registration to be completed. The cost of proof of building ownership registration varies depending on the value of the building (0.2% of the building’s taxable value).
Agency: Land and Building Registry
|
12 days
|
JPY 455,210
|
* Takes place simultaneously with another procedure.