Column/Risks of not registering as a commercial warehouse

Updated: July 2024, 3

We utilize our experience and know-how in applying for numerous warehouse business registrations to receive consultations regarding warehouse operations.

There are many cases where the business carried out in a company's warehouse may fall under the category of warehousing, but the business is left unregistered as a commercial warehouse.

Risks even in unregistered warehouses

The Warehousing Business Act provides that the Director-General of the Regional Transport Bureau, who has received authority from the Minister of Land, Infrastructure, Transport and Tourism, can enter and inspect warehouses.

There have been cases where this on-site inspection has resulted in administrative sanctions and the publication of a company's name due to consignment storage in an unregistered warehouse. For business operators, it can be said that there is a high risk of leaving the reality of operating warehousing operations in unregistered warehouses unaddressed.

We would like to introduce a case study in which a business operator concerned about such risks consulted us.

Your business status and the need for warehousing business registration

A business operator came to us for advice because he was concerned that his company's transactions might fall under the category of warehousing. After hearing about the actual situation of the business, we checked with the Transport Bureau, which has jurisdiction over warehousing, and the answer was that it was highly applicable to warehousing.

Concerns regarding business warehouse registration

In order to continue trading legally, you must first decide whether to apply for registration as a commercial warehouse or change the form of transaction to one that does not fall under the category of a commercial warehouse. Commercial warehouses have strict equipment standards, and proof of compliance with the standards is required, so it is often difficult to register.

In order to bring a warehouse that cannot be registered into a state where it can be registered, the preliminary steps are administrative procedures such as applying for building certification, costs to prove that the warehouse meets standards for commercial warehouses such as floor strength, and equipment standards. This can result in large costs such as construction costs.

Recognizing and organizing issues

Therefore, we proposed a survey to understand the possibility of registering as a commercial warehouse and the issues that need to be resolved before applying for registration. Through careful examination of documents and administrative investigations, we will determine whether there is a high possibility that the multiple target warehouses can be registered as commercial warehouses in their current state, and if the possibility is low, what measures will be required. Ta.

Issues identified through the survey

Among the warehouses we investigated, many were not constructed as commercial warehouses under the Building Standards Act, and many were of questionable legality. In order to proceed with an application for registration of such a warehouse, it is necessary to apply for confirmation of a change of use to a commercial warehouse and to receive certification from a first-class architect that the facility meets the same equipment standards as a commercial warehouse. These procedures and certifications are likely to take a long time and cost a lot of money.

Considering the time and cost involved in registering a commercial warehouse, it may be more cost-effective to transfer your business to a warehouse that can be used as a commercial warehouse or change your business format.

Benefits gained through research

By understanding the possibility of registering as a commercial warehouse and the necessary measures, we can support important decision-making for business operators.

If the decision is to proceed with the registration of a commercial warehouse, we will provide continuous support, including advice on necessary measures and assistance with registration application procedures.

For applications for warehousing business, please contact Support Administrative Scrivener Corporation

Support Administrative Scrivener Corporation provides application support and consulting services related to the Warehouse Business Act to both those newly registering for warehouse businesses and those who are already registered.

Our staff has a track record of applying in all prefectures across the country. Please contact us by all means.