[Individual name] How to obtain a liquor sales license! Comparison with corporations

Updated: July 2026, 8

When trying to start a business by obtaining a liquor sales license (often abbreviated to liquor sales license), many people may wonder whether to obtain it in their personal name or in a corporate name.
　
This article explains how to obtain a liquor sales license for individuals and corporations.

What is a liquor sales license?

A liquor sales license is a permission given by the government to sell alcoholic beverages, and is issued by a tax office under the jurisdiction of the National Tax Agency in accordance with the Liquor Tax Act.

The definition of alcohol in this license is something that has an alcohol content of 1% or more and is intended for consumption.

If you are engaged in the continuous sale of alcoholic beverages, you are required to obtain this license, whether you are a sole proprietor or a corporation.
Continuously selling alcohol without a license is a violation of the Liquor Tax Act and is subject to penalties, so it is necessary to obtain one before starting business.

Liquor sales licenses are divided into several types depending on the sales format, such as general liquor retail licenses, mail order liquor retail licenses, and liquor wholesale licenses.

In addition, restaurants that operate during normal business hours and izakayas that do not operate late at night do not require a liquor sales license, but if alcohol is to be served late at night, a notification of the start of business for a restaurant that serves alcohol late at night is required.

Apply for the right license type for your business.

If there is a change in the contents of your license or if you cease or close your business, you are required to report this promptly to the tax office in your jurisdiction.

Liquor sales license applications for individuals and corporations

First of all, is it possible to obtain a liquor sales license under either an individual's name or a corporate name?

In conclusion,It can be obtained by both sole proprietors and corporations.
If you are unsure which is better, it is important to obtain a license in the appropriate name according to the "entity conducting the business."

So what is the difference between applying as an individual and applying as a company?

When obtaining a liquor sales license,The criteria for review differ between individual and corporate applications.
Among the main requirements for a liquor sales license, the personnel requirements and basic business requirements are subject to review by the applicant himself/herself in the case of an individual application, and by the corporation itself and all of its officers in the case of a corporate application.

Human requirements

Personal requirements verify that the applicant or corporation and its officers meet certain conditions.
Specifically, you are required to have not been subject to any disposition for unpaid taxes in the past two years, and not have had your liquor sales or manufacturing license revoked.
If your license has been cancelled, more than three years must have passed since the date of cancellation.

Business requirements

In terms of business requirements, the asset and liability status of the sole proprietor is reviewed in detail, and emphasis is placed on whether the business has the financial foundation to continue operating a stable alcohol sales business.

Sales Manager

Even if you are a sole proprietor, when you obtain a liquor sales license you are required to appoint a "sales manager" and submit a notification of appointment to the tax office.
The sales manager has knowledge and experience regarding alcohol sales operations and is responsible for ensuring strict compliance with laws regarding alcohol sales, including preventing underage drinking.
Liquor sales managers must have completed alcohol sales management training within the past three years.
It is possible for a sole proprietor to become a sales manager, but in that case he or she must meet the requirements for a sales manager (such as experience in alcohol sales and completion of training).

Attachment documents necessary for application

To obtain a liquor license, you will need to submit an application along with supporting documents.
Please note that with regard to personnel requirements and basic business requirements, the documents required for individual applications and corporate applications are different.

① Documents required only for individual applications

If you are applying as an individual,Documents showing personal income for the last three years (tax return, tax withholding slip) is required.
If you have filed a tax return, you will need to submit a tax return form, and if you have salary income, you will need to submit a withholding tax certificate.
If you fall under both categories, you will need to submit both your tax return and your withholding tax certificate.

② Documents required only for corporate applications

If you are applying as a corporation,Articles of IncorporationIs required to be submitted.

In addition, in the case of corporate applicationsResumes of all executivesis also required.
The officers referred to here are those listed in the certificate of registered matters, including outside directors and auditors.

When collecting supporting documents, make sure each one is accurate and up to date.

The period from review to approval

The period from applying for a liquor sales license to actually receiving permission varies depending on the content of the application and the situation at the tax office, but it generally takes several months.
This period can be broadly divided into:Preparation period for application documents""Tax office review period""Period until permission notice and license issuance" It can be divided into three phases:

First of all, the preparation period for application documents varies greatly depending on the applicant's situation and business activities, but it is not uncommon for it to take several weeks to a month or more to collect and prepare the necessary documents.
In particular, business plans and financial plans require careful preparation, so this stage often takes time.

Next, you submit the application documents to the tax office, which will then begin its review.
During this review period, the submitted documents are thoroughly checked to ensure they are complete and that the applicant meets all the requirements for a liquor license.
The tax office may request additional documents or conduct an on-site inspection.
If these additional steps are required, the review period will be extended accordingly.

Once the examination is complete and permission is granted, the tax office will send you a permission notice, and then after payment of the registration tax, the license will be issued.

Estimated time for review

The standard processing period for a liquor sales license is set by the National Tax Agency as the standard processing period from the submission of application documents to the tax office.2 monthsIt has been with.
However, this is only a guideline and the period may vary depending on individual circumstances.
For example, if there are any errors in the application documents or if the tax office requests additional documents or explanations, the review period will be extended by the time it takes to respond.
In addition, if the application is complicated or there is a history of problems with the Liquor Tax Act, the review will be conducted more carefully and the process will tend to take longer than usual.

If there is a large number of applications during busy periods at the tax office, this may also cause processing times to be delayed.
In particular, at the end and beginning of a fiscal year, when there are many other tasks to be completed, the review process may take longer than usual.

Procedures for incorporation and individual incorporation

Many people think, "I'm currently a sole proprietor, but once my business gets on track, I'd like to start a company."
In that case, you will need to go through the process of incorporation.
Liquor sales licenses can be transferred from individuals to corporations.
However, when incorporating, you will need to apply to cancel your personal license and obtain a new license as a corporation, so essentially the same procedures are required as for obtaining a new license.
The license conditions will basically remain the same.

On the other hand, if you are going back to being a sole proprietor from a corporation, you will need to go through the process of becoming an individual.
Your licence as a corporation will be revoked and you will need to obtain a new licence as a sole proprietor.
This will require the same procedures as a new application.

If you become a corporation or an individual, you will need to both apply to revoke your liquor sales license and apply for a new one.

By going through this procedure, you will be able to continue your liquor sales business without interruption, whether you become a corporation or an individual.

Cost of obtaining a liquor license

To obtain a liquor sales license, you will need to complete the procedure at the tax office that has jurisdiction over the area where you plan to open your business.

For a retail license, a registration tax of 1 yen is charged per application.
For a wholesale license, 1 yen is required per application.

Furthermore, if you have multiple stores or sales locations in different locations, you will need to apply for each store and pay registration tax each time.
For example, if you sell alcohol at three stores, the registration tax will be 3 yen (in the case of a retail license) for each store, for a total of 30,000 yen.

There are also other costs to consider when applying.
It takes a considerable amount of time and effort to prepare the application documents and necessary supporting documents.
If you are busy with other tasks or the procedures are complicated and not progressing as you would like, consider asking a professional such as a certified public scrivener for help.
　
It is important to know the costs of application in advance and prepare a budget for them.
Of course, in addition to registration and license taxes, it is important to make a comprehensive plan taking into consideration operating capital, store rent, capital investments, and other costs after starting your business.

How to sell alcohol according to type

Liquor sales licenses are classified into different categories depending on the sales method and target.
Here we will explain in detail about the main license categories: "Liquor Retail License" and "Liquor Wholesale License."

① Liquor retail license

A liquor retail license is a sales license aimed at general consumers and restaurants.
There are several types of this license.

General liquor retail license - for selling at a store -

This license is required for liquor stores and convenience stores to sell alcohol.
All alcoholic beverages can be sold at retail, whether you have a physical store or not (mail order).
However, if you conduct mail order sales using a general liquor retail license, sales are limited to one prefecture.
Due to this restriction, if you wish to conduct mail order sales nationwide, you will need a separate "Mail Order Liquor Retail License."

Mail Order Liquor Retail License -Online Sales-

This license is required if you plan to sell alcoholic beverages via the internet or catalogues.
Obtaining this license allows you to sell alcoholic beverages over a wide area of ​​two or more prefectures.
However, they cannot be sold in stores or to other alcohol retailers.
There are restrictions on the alcoholic beverages that can be sold, and domestically produced alcoholic beverages are limited to those produced by manufacturers with annual sales of less than 3,000 kiloliters.

Special liquor retail license - for in-house sales -

This license is required for internal sales to company officers and employees.
This is a license used in very specific cases and has little to do with general alcohol sales.

② Liquor wholesale license

A liquor wholesale license is a license to sell alcohol wholesale to other liquor retailers and manufacturers.
Below are the main types of wholesale licenses:

Summary: Obtain a license that suits your business

Liquor sales licenses can be obtained by both individuals and corporations.
There is no difference in the content or cost of the license, so it doesn't matter which one you apply for.
However, an alcohol sales business must be conducted under the name of a person who holds a liquor sales license.

For example, an individual who has obtained a liquor sales license cannot sell alcohol purchased by a corporation that he or she operates.
When a corporation purchases and sells, it must obtain a license as a corporation. When a corporation purchases and an individual sells, these are businesses conducted as separate entities, so both the corporation and the individual must each obtain a license.

If you operate the alcohol sales business as a corporate business, you will need to obtain the license as a corporation. If you operate it as an individual business, you will need to obtain the license as an individual.
The decision should be made based on "who will be selling alcohol," not on how easy it is to obtain a license.

General advantages and disadvantages for individuals and corporations

There is not much difference in the difficulty of obtaining a liquor sales license between sole proprietors and corporations, but in general, there are advantages and disadvantages to be considered, such as the following:

Benefits of being a sole proprietor

① Easy start-up procedures
② Running costs can be kept low
3. Settlement and tax returns are relatively easy

The appeal of being a sole proprietor is how easy it is to start up.
The opening procedures are simple, and initial and operational costs can be kept low.
In addition, since financial statements and tax returns are easier than for a corporation, the burden of accounting work is also reduced.

Disadvantages of being a sole proprietor

① Social credibility is less than that of corporations
② All the responsibility falls on you
3) It is difficult to raise funds

The disadvantage of being a sole proprietor is that they have less social credibility than corporations.
It may be difficult to gain the trust of business partners and customers, and it may also be difficult to raise funds when expanding the business.
In addition, since all responsibility in business falls on individuals, risk management is important.

Benefits for corporations

① Strong social credibility
② It is easy to raise funds
3) Since responsibility is vested in the corporation, individual risk is reduced.

Corporations have a high level of social credibility and are easier to gain the trust of business partners and customers.
Also, fund raising is easy from banks and investors.
Since corporate liability does not extend to individuals, there is peace of mind in terms of risk management.

Disadvantages of a corporation

① Establishment costs are incurred
② Running costs are high
3. Complicated accounting and tax returns

To set up a corporation, registration fees and incorporation procedure costs are incurred.
In addition, running costs will increase as support from tax accountants and accountants is required for operation.
Financial statements and tax returns are also complex and require specialized knowledge.

For inquiries regarding liquor sales licenses, please contact Support Administrative Scrivener Corporation

The sale of alcoholic beverages is based on a licensing system, and in order to operate an alcoholic beverage sales business, it is necessary to obtain an alcoholic beverage sales business license.

Our company provides consulting services for those starting out to obtain a new liquor sales license, as well as for those who already hold a liquor sales license, offering support that includes easing requirements and obtaining other licenses and permits.
We provide legal services related to liquor sales licenses based on the know-how and track record that we can accumulate because we are administrative scriveners who handle applications and negotiations with administrative agencies on behalf of business operators on a daily basis.
　
We have experience in applying to prefectures across the country. Please feel free to contact us.

　　　　　Person in charge: Haruka Sudo