A "liquor sales business license" is required to sell alcoholic beverages, including liquor sales at restaurants and retail stores, mail order sales through online stores, and wholesale for commercial use.
However, the types of licenses and requirements for obtaining them are complex, and the application process must be carefully followed. This article will explain in detail the types of liquor sales licenses, the requirements for obtaining one, the application process, and the fees. If you are planning to start selling alcoholic beverages, please refer to this article.
People who should read this article
People who want to sell alcohol but don't know where to start.
Anyone planning to open a liquor store
Anyone considering selling alcoholic beverages in the restaurants they manage.
People who want to sell imported wines by mail order.
People who have tried to apply for a license to sell alcoholic beverages on their own but have been frustrated by the difficulties.
How do I serve alcoholic beverages in restaurants and other establishments?
When serving alcoholic beverages in a restaurant, a "restaurant business license" is required, not a liquor sales license. However, an "alcohol sales business license" is required for "unopened alcoholic beverages," i.e., wine or sake that is served as food and beverages in a restaurant and sold over the counter for take-out.
Procedures required for serving alcoholic beverages in restaurants
1. "Restaurant Business License
First, in order to operate a restaurant, a "restaurant business permit" from the public health department is required.
This isPermission under the Food Sanitation Lawand is required for all restaurants that serve food and beverages.
2. "Notification of Liquor Serving (not liquor sales license)"
Restaurants and taverns,Provide alcoholic beverages for drinking in the restaurant.(i.e., served as part of a restaurant business), a "liquor sales business license" is not required in principle, but the following requirements must be met.
- Assumed to be consumed in the store (i.e., does not include take-out or to-go sales).
- The scope of offerings is only as an adjunct to food and beverage.
- It is advisable (not obligatory, but recommended) to submit a "Notification of the Start of Serving Alcoholic Beverages" to the tax office in your jurisdiction.
Note that there are strict requirements for selling take-out (unopened) alcoholic beverages in restaurants, including the need to clearly separate the restaurant area from the alcoholic beverage sales area and separate cash registers.
What is the purpose of the liquor sales license system?
The purpose of the liquor sales license is to properly manage the sale of alcoholic beverages, to ensure fair trade, and to properly collect liquor tax. Specifically, the objectives include the following
- Ensure collection of liquor tax
Since alcoholic beverages represent a large portion of tax revenues, it is important to prevent fraudulent sales and tax evasion and to collect taxes properly. - Ensuring fair trade
Excessive competition in the sale of alcoholic beverages may lead to unfair trading and dumping. The licensing system will maintain healthy market competition. - Consumer Protection and Security
Alcoholic beverages are to be consumed, and quality control is important. The purpose is to provide consumers with safe alcoholic beverages by allowing appropriate businesses to sell them. - Social Impact Management
Proper control of distributors is necessary to prevent underage drinking and to maintain order in the community. The licensing system holds distributors accountable.
Liquor sales licenses are strictly controlled by the National Tax Agency (Tax Office) in order to achieve these objectives.
What is a liquor sales license?
In order to sell alcoholic beverages, each store or company must obtain an "Alcoholic Beverage Sales Business License" from the district director with jurisdiction over the location where the alcoholic beverages are sold, in accordance with the provisions of the "Liquor Tax Law.
＜販売する場所ごとにとは？＞
For example, even if the head office is already licensed to sell alcoholic beverages, in order to sell alcoholic beverages at another location, such as a branch, it is necessary to obtain a new license from the district director with jurisdiction over the location of that branch.
A person who intends to engage in the sale of alcoholic beverages or the agency or intermediary business of sale (hereinafter collectively referred to as "sales business") shall follow the procedures specified by a Cabinet Order. A person who intends to engage in the sale of alcoholic beverages or sales agency or intermediary business (hereinafter collectively referred to as "sales business") shall, through procedures specified by a Cabinet Order, establish a sales floor (meaning a place where sales business is continuously conducted. The same shall apply hereinafter.) (2) A manufacturer of alcoholic beverages shall obtain a sales business license from the competent district director of the district where the alcoholic beverages are sold. (2) A person who has obtained a license for the sale of alcoholic beverages (limited to alcoholic beverages of the same category as those for which he/she has obtained a manufacturing license pursuant to the provision of Article 7(1) and alcoholic beverages for which he/she has obtained approval under Article 44(1)) at the place of production licensed by the alcoholic beverage producer shall not sell alcoholic beverages at his/her place of production. The same shall not apply to the sale of alcoholic beverages (limited to alcoholic beverages of the same items as those for which the manufacturing license has been obtained pursuant to the provisions of Article 7, paragraph (1) with respect to the place of production), and to bars, restaurants, and other businesses that serve alcoholic beverages exclusively for consumption at their places of business.
The business of selling alcoholic beverages is the repeated and continuous sale of alcoholic beverages, regardless of whether the act is for profit or not, and regardless of whether the recipient of the sale is a specific person or an unspecified number of people.
Classification of Liquor Sales License
Liquor sales licenses are classified into the following two categories, depending on the parties (clients) to whom alcoholic beverages are sold.
1. liquor retailer license
This license allows the "continuous sale" of alcoholic beverages to consumers and restaurant operators. This license is also required when selling alcoholic beverages to confectionery manufacturers who produce chocolates containing alcohol.
Liquor retail licenses are classified into the following three categories based on the method of sale.
(1) General liquor retailer license
In principle, this license allows retail sales of all alcoholic beverages in stores and other establishments.
Specifically, this license applies to the "liquor department" in convenience stores, supermarkets, liquor stores, mass merchandisers, and department stores.
There are no restrictions on the types of alcoholic beverages sold, so any alcoholic beverage can be sold, but mail order sales are not allowed.
This license is also required to sell alcoholic beverages to restaurants, taverns, and other eating establishments. However, if you wish to serve alcoholic beverages in a restaurant or tavern, you must obtain a "Restaurant Business License". The "Alcoholic Beverage Dealer License" is a license to "sell alcoholic beverages" and is based on the premise that the alcoholic beverages are sold to be taken home by consumers or customers.
Liquor sales license: A license to sell alcoholic beverages, and sales to be taken home by consumers and suppliers.
Restaurant business license: For serving alcoholic beverages on site (take-out sales are not allowed).
In other words, if a restaurant is offering alcoholic beverages for takeout or online, it must obtain a separate "liquor retailer's license".
In addition, if alcoholic beverages are served after midnight, a "Late-Night Alcoholic Beverage Service Business Notification" is required.
(2) Mail order liquor retailer license
This license allows the sale of alcoholic beverages by mail order.
Mail order is,More than 2 prefecturesThe term "sales" refers to the sale of products to consumers, etc. of Japan, by presenting product details, sales prices, and other conditions via the Internet or catalogs, and receiving offers for sales contracts via e-mail, telephone, mail, or other means of communication.
If you sell alcoholic beverages by mail order only in one prefecture, your license is not a mail order license, but a general liquor retailer license.
The license allows the sale of any imported alcoholic beverages, but there are restrictions on domestically produced alcoholic beverages, and alcoholic beverages produced by major alcoholic beverage manufacturers cannot be sold. In addition, retailing (the act of accepting a sales contract or delivering alcoholic beverages over the counter) is not allowed.
<Alcoholic beverages that can be sold under a mail order liquor retailer license
(1) Imported Alcoholic Beverages
(ii) Domestic alcoholic beverages manufactured and sold by liquor producers, all of which have a taxable transfer volume of less than 3,000 kl for each item in the previous fiscal year.
(iii) Alcoholic beverages of domestic types made from local specialties, etc., with a total production volume of less than 3,000 kl per manufacturer (craft beer, etc.).
(3) Specialty liquor retailer license
This license does not fall under the general liquor retailer license or the mail order liquor retailer license, and is authorized to sell alcoholic beverages to meet the special needs of consumers.
For example, a distributor with a wholesale liquor license, as described below, may sell liquor to its own employees. Conditions can be attached to the scope of alcoholic beverages that can be sold and to whom they can be sold.
Wholesale liquor license
The following eight categories are used to classify alcoholic beverages according to the type of alcoholic beverages that can be sold, the destination of the sale, and other factors.
(1) Wholesale license for all types
This license allows wholesale of all items of alcoholic beverages.
The number of licenses available for each wholesale sales area is determined each year, and licenses are granted within that number. Applications for licenses are reviewed by an open lottery to determine the order of review for applications submitted within a certain application period, and licenses are granted according to the order of review.
(2) Beer wholesaler license
This license allows the wholesale of beer.
As with all types of wholesale licenses, the number of licenses available is determined for each wholesale sales area, and the order of examination is determined by a public lottery.
(3) Western liquor wholesale license
This license allows the wholesale of all fruit wine, whiskey, brandy, liqueurs, powdered liquor, sparkling wine, brewed liquor and miscellaneous liquors, or one or more of these liquor items. There is no limit on the number of 10,000 licensed brains.
(4) Import/export liquor wholesaler license
This license allows the wholesale of alcoholic beverages that you export, import, or import/export. Wholesale of alcoholic beverages imported by others is not allowed. In such cases, it is necessary to obtain a wholesaler's license for the alcoholic beverages to be sold.
(5) Wholesale license for over-the-counter alcoholic beverages
This license allows the wholesale of alcoholic beverages to its member liquor distributors by directly delivering alcoholic beverages to them at the storefront and allowing them to take them home with them.
Sales under this license are limited to alcohol beverage distributors who are managed as members and whose address, name, and identity as an alcohol beverage distributor have been verified with a license notice or other documentation. Wholesale sales are not permitted to alcohol distributors who are not registered as members. In addition, sales are limited to over-the-counter delivery, and the liquor sold cannot be delivered.
(6) Wholesale license for alcoholic beverages among cooperative members
This license allows the wholesale of alcoholic beverages to liquor retailers who are members of a business cooperative of which you are a member.
Wholesale sales under this license are limited to members of the business cooperative in which you are a member and who hold an alcoholic beverage sales license. Wholesaling to members of other business cooperatives is not allowed.
(7) Self-Trademarked Liquor Wholesaler License
This license allows the wholesale of alcoholic beverages under a trademark or brand name developed by the company.
(8) Specialty liquor wholesaler license
This license permits the wholesaling of alcoholic beverages to meet the special needs of alcoholic beverage businesses.
Wholesale of alcoholic beverages manufactured by a liquor manufacturer to the head office or branch office of the manufacturer falls under this category.
Application for a license to sell alcoholic beverages
In order to obtain a license to sell alcoholic beverages, there are requirements regarding the applicant or his/her legal representative, officers of the corporation applying for the license, and the manager of the sales outlet (personnel requirements), requirements regarding the location of the sales outlet (location requirements), requirements regarding the foundation of management (basic management requirements), and requirements to adjust supply and demand.
About the Applicant (Personnel Requirements)
The following six requirements must be met in order to receive a license to sell alcoholic beverages.
(1) If the applicant is a person whose license for the manufacture or sale of alcoholic beverages, etc., or license under the Alcohol Business Law has been revoked, three years must have passed since the date of the revocation.
(ii) If the applicant is an officer of a corporation that has had its license for the manufacture or sale of alcoholic beverages, or its license under the Alcohol Business Law revoked (an officer who executes the business of the corporation within one year before the cause of the revocation), three years must have passed since the date the corporation received the revocation.
(iii) The applicant has not been in arrears of national or local taxes within two years prior to the application.
(iv) If the applicant is a person who has been sentenced to a fine or has received a notice of penalty for violation of laws and regulations concerning national or local taxes, three years must have passed from the date on which the execution of the sentence has been completed or has ceased to be executed or the notice of penalty has been fulfilled, respectively.
(v) If the applicant has been sentenced to a fine under the provisions of the Act on Prohibition of Drinking of Alcohol by Persons Under 20 Years of Age, the Act on Control and Improvement of Amusement and Entertainment Businesses (limited to the part related to serving alcoholic beverages), the Act on Prevention of Unjust Acts by Organized Crime Groups, the Penal Code (crimes of assault, assisting at the scene, assault, assembly and assembly of weapons, threat, and breach of trust) or "Act on Punishment of Violent Acts, etc.", three years must have passed since the execution of the sentence was completed or the sentence is no longer applicable.
(6) Three years must have passed since the applicant was sentenced to imprisonment without work or severer punishment and the execution of the sentence has been completed or the sentence has become no longer applicable.
2. the place where alcoholic beverages are sold (locational requirements)
Places where alcoholic beverages are sold must meet the following requirements
(i) The manufacturer or seller does not intend to establish a manufacturing or sales site in a location that is deemed inappropriate for control without justifiable reason.
The sales office is not located in the same place as the production site of alcoholic beverages for which the license is obtained, the sales site of alcoholic beverages for which the license is obtained, a bar, or a restaurant, etc.
(2) The sales activities of the applicant's sales space must be clearly separated from those of other sales entities in terms of the division of the sales space, the presence or absence of exclusive sales personnel, the independence of payment settlement, and other sales activities.
You may not apply to rent some of the display shelves in a store and use them as a sales area.
*Selling alcoholic beverages (taking unopened alcoholic beverages home to sell) is not allowed in restaurants that serve alcoholic beverages. (This can be done by securing a location physically separate from the restaurant space)
Liquor cannot be sold at the same cash register as other merchandise or meals. (This can be done by securing a separate cash register)
3. the foundation of management (basic management requirements)
The applicant does not fall under the case where the applicant has received a decision of commencement of bankruptcy proceedings and has not been reinstated, or other cases where the foundation of the applicant's management is deemed to be weak.
Specifically, the applicant (including a director or principal investor with representative rights if the applicant is a corporation) must not fall under any of the following
(1) If you are currently in arrears of national or local taxes
(2) If the applicant has had bank transactions suspended within one year prior to the application
(iii) When the loss carried forward on the balance sheet based on the finalized accounts for the last fiscal year exceeds the amount of capital, etc.
(iv) If the company has incurred a loss in excess of 20% of its paid-in capital for all three fiscal years preceding the last fiscal year.
(5) If you have violated laws related to liquor tax and have received a notice and have not fulfilled it, or if you have been accused of such violation
(vi) If the establishment of the sales floor at the application site violates the provisions of the Building Standards Law, the Urban Planning Law, the Agricultural Land Law, the Law Concerning the Development of Urban Areas for Distribution Business, or other laws or local government ordinances, and the store is ordered to be removed or relocated.
(vii) When it is clear that an appropriate sales management system for alcoholic beverages is not expected to be established at the applied-for sales place.
In addition, the applicant must meet the following requirements
(1) A person who is recognized as having sufficient knowledge and ability to properly manage the retail business of alcoholic beverages judging from experience and other factors, or a juridical person organized mainly by such a person.
(2) The applicant must have the necessary funds, sales facilities and equipment to sell alcoholic beverages on a continuous basis, or must have the necessary funds and be certain to have sales facilities and equipment by the time the license is granted.
An application for a liquor retailer's license will be approved only if the applicant has the following background and is deemed to have sufficient knowledge and ability to manage a liquor retail business, including knowledge of alcoholic beverages and bookkeeping skills, and to be able to operate the business independently.
(1) Those who have been directly engaged in the business of a licensed manufacturer or distributor of alcoholic beverages for at least three years, those who have continuously operated a business of selling seasoned foods for at least three years, or those who have been engaged in these businesses for at least three years in the aggregate, mutually.
(2) Those who have worked for a considerable period of time as an officer or employee of a liquor industry organization, or those who have directly engaged in business as a manager of a liquor manufacturing or sales business, etc., and are deemed to be sufficiently familiar with the business related to alcoholic beverages and the actual conditions of the alcoholic beverage industry.
However, if the applicant does not have such experience, he/she will be examined to determine whether or not he/she has sufficient knowledge and ability to manage an alcoholic beverage retail business, based on whether or not he/she has attended the "Liquor Sales Management Training" in addition to management experience in other businesses.
4. supply and demand adjustment requirements
A license will not be granted if it is deemed inappropriate to grant a license for the sale of alcoholic beverages due to the need to maintain a balance between supply and demand of alcoholic beverages for the preservation of liquor tax.
Current Status of Type Sales in Japan
Sales of alcoholic beverages in Japan continue to show vigorous growth and diversification, despite the shrinking domestic market. Here are some of the major trends in an organized manner.
Domestic Consumption Trends
- Overall shrinking trendHowever, there are signs of recovery thanks to new drinking styles and value-added products such as beer and shochu.
‣ Sake shipments in 2024 were slightly lower than the previous year at approximately 96.61 TP3T.
(Source: Nippon Keizai Tsushinsha)Prospects for the Alcoholic Beverage and Food Industry in 2025)
- Rise of New TrendsThe market for non-alcoholic and low-alcoholic beverages, carbonated beverages, and craft beer is expanding rapidly. In particular, non-alcoholic beverages are favored by the elderly and health-conscious younger consumers. The overall beer market is expected to reach US$20 billion by 2024, with a CAGR of 4.31 TP3T during 2025-2033.
(Source: NEWSCAST) Japanese Beer Market Expected to Reach US$29 Billion by 2033｜Steady at a CAGR of 4.31 TP3T | NEWSCAST)
Recovery of food service and commercial channels
- Demand for alcoholic beverages for food service and commercial use recovered with the easing of infectious disease restrictions. Overall restaurant industry sales are on an increasing trend with May 2024 sales +6.31 TP3T YoY.
(Source: Japan Food Journal)Exploring the Future of Alcoholic Beverage Distribution 2024 - The Japan Food Journal, Electronic Edition)
However, while recovery is progressing at large chain stores, many small and medium-sized izakayas have not yet returned to pre-Corona levels, and the degree of recovery varies by region.
Expansion of EC and cross-border EC (mail order) market
- Domestic ECThe trend toward "home drinking" and rising demand for gifts are accelerating sales of alcoholic beverages through e-commerce. A variety of strategies are being deployed, such as seasonal sales, set sales, and regular delivery.
- cross-border e-commerceSake, shochu, craft beer, etc. are popular overseas. (An "Import/Export Liquor Wholesaler License" is required for export, and a "Mail Order Liquor Retailer License" is required for domestic mail order.
(Source: HandsUP) Can you sell sake through cross-border EC? Explanation of required licenses, recommended platforms, and success stories - HandsUP)
- OMO StrategyFor example, "Imadeya" has been working to create repeat customers by linking online orders with special offers through its members' app. For example, Imadeya is linking online orders with purchase privileges at brick-and-mortar stores through its member app.
(Source: Japan Net Economy Newspaper)Sake Seller "Imadeya" Strengthens Mutual Sales between Bricks-and-Mortar Stores and EC with App as Hub, Promoting "Appeal of Sake" with Contents｜Japan Net Economy Daily｜Leading the Digitalization of EC & Distribution through Newspaper × Web)
Overseas Expansion and Export Support
- Rapid increase in exports: In 2023, exports of Japanese alcoholic beverages will grow to about 134.4 billion yen, nearly double the 2019 value, and a continuous upward trend.
Sake, whiskey, shochu, and awamori are also priority export items for the government, and export coordinators are assigned and exhibitions are supported.
(Source: Imperial Data Bank)Latest Business Conditions Report of the Alcoholic Beverages Industry (July 2024)｜Teikoku Databank [TDB] Ltd.)
Overseas market growthExports to South Korea and the U.S. are firm. China, Hong Kong, and Taiwan are in an adjustment phase, and regional strategies are needed.
Liquor Tax Status
(Source:IRS Statistics Yearbook(Prepared by the author from)
summary
How was it?
As mentioned above, there are various types of liquor sales licenses, and each license must meet the requirements set forth by law.
If you are planning to sell alcoholic beverages, make the appropriate preparations early to ensure a smooth licensing process.
Whether or not you can obtain a liquor license is a very important issue for starting a new business. While it is possible to go through the process on your own, it can take time to prepare and sometimes the application may not be approved due to incomplete documentation.
We recommend that you apply with the help of a professional administrative scrivener who is a professional in permit applications.
The following article describes the application process for a liquor license.
EN 
JA 
ZH