Japan's tourism industry has a history of more than 100 years. The first law related to tourism in Japan was the Tourism Mediation Law (now renamed Tourism Law) promulgated and implemented in Showa 27 (1952), which shows that the laws related to tourism industry in Japan have been highly mature.At the same time, the Japanese government established the policy of "building the country through tourism" and paid increasing attention to the development of tourism.Under this policy, the number of Japanese outbound tourists has maintained a steady growth, while the number of inbound tourists has shown an explosive growth trend since 2011.According to data from the Japan Tourism Bureau, in 2019, the number of outbound tourists from Japan reached 2,008 million, and the number of inbound tourists reached 31.88 million, which is quite impressive.

In this guideline, Kaiyuan will summarize and sort out the procedures and required materials for the registration of tourism industry in Japan according to the Tourism Law of Japan and other relevant laws, and provide them to the existing and potential customers of Kaiyuan for reference.We can provide assistance in registering a Japanese company. Please contact our professional consultants if necessary.

I.       Tourism Definition

According to Japan's tourism law (Japanese "travel industry") as the second, tourism refers to paid for the tourists to provide travel services and sign related contract of the business, the tourism service for the tourists travel plan, directly or indirectly provide transportation means, directly or indirectly provide accommodation, directly or indirectly provide transportation service or accommodation, visa and travel agency consultation, etc.The travel agency business refers to the business of providing, for a fee, the aforesaid travel services, other than tourism consulting, to tourists and signing relevant contracts.

II.      Definition of tourism products

The types of tourism products offered by Japanese tour operators and travel agents (hereinafter referred to as "tour operators, etc.") fall into the following four categories:

1. Recruiting plan tourism (Japanese for "raise prices painting trip") : the travel company make travel plans, plan including travel routes, means of transportation, accommodations, travel services, fees, etc., in the process of then through brochures or way to attract tourists, such as the Internet, final implementation of the plan.
   
   
2. Order-based planned travel (Japanese for "note type enterprise travel") : travel companies make travel plans according to the authorization of tourists, including itinerary, means of transportation, accommodation, various services during the travel, service charges, etc.In the process of making the plan, the travel company will consult with the tourists, modify the plan according to the requirements of the tourists, and put forward professional advice, and finally determine and implement the plan.
   
   
3. Planned tourism (" hand-travel "in Japanese) : the travel company arranges the means of transportation and accommodation for the tourists according to their authorization, including purchasing air tickets, booking hotels and applying for visas on behalf of the tourists, which is similar to the" free travel "in Chinese.
   
   
4. The recruitment and planned tourism product sale of other travel companies (" corporate travel agent raised by other travel companies "in Japanese) : travel companies sell the recruitment and planned tourism products formulated by other travel companies on behalf of them, and attract tourists for the products through brochures or the Internet and other means.

III.     Travel operators

The business categories of tour operators and their areas of business are as follows:

1. The first type of tourism industry (" the first type of tourism industry "in Japanese) : it can handle all the tourism business of recruiting planned tourism, receiving planned tourism, planning tourism and selling the recruiting planned tourism products of other travel companies in and out of Japan.
   
   
2. The second type of tourism (" the second type of tourism industry "in Japanese) : it can handle the recruitment planned tourism in Japan, the take-orders planned tourism in Japan and abroad, the planned tourism and the recruitment planned tourism products of other travel companies.
   
   
3. The third type of tourism industry (" the third type of tourism industry "in Japanese) : it can handle the tourism business of taking orders and planning Tours at home and abroad in Japan, as well as the recruitment planning tour products of other travel agencies.If a tour company is located in or adjacent to the place of departure, destination, lodging and return of the tour, domestic recruitment planning Tours can also be carried out.
   
   
4. Geographically limited tourism (" geographically limited travel industry "in Japanese) : if there are travel agencies operating in or adjacent cities where the origin, destination, lodging and return places of the tour are located, the tourism business of recruiting planned Tours, receiving planned Tours and planned Tours can be handled in Japan.
   
   
5. Travel agency business (" travel agent business "in Japanese) : to sign an agency contract with the first type of travel agent to sell their travel products.However, they may only sign a contract with one travel agent at the same time and may not carry out their own travel plans.

IV.      Travel Industry Association

In order to save start-up costs and get more priority tourism business resources, most of the new tourism companies in Japan will choose to join the tourism industry association before applying for tourism registration.

Tourism association's main job is to mediate the tourists, transportation services and accommodation facility operator (hereinafter referred to as "tourists") with tour operators and other differences, training tourism practitioners, repay the debt caused by its members as the tour business transactions, to guide the management of tourism industry, in order to ensure the sound development of the tourism business of fair trade and investigate, research, or advertising, etc.

Association for tourists to repay the debt caused by its members as the tour business transactions, so choose membership of travel companies in a registered letter (after Japanese as "login"), without the deposit according to the requirement of the relevant government departments operating margin, but open to the society pay one 5 of the guarantee amount payment guarantee to share the gold.

The Travel Industry Association is an association defined by Chapter 3 of the Travel Industry Act and currently has:

1. Japan Travel Industry Association: English for Japan Association of Travel Agent, referred to as JATA, is currently under the jurisdiction of the general Association legal person (previously under the jurisdiction of the Japanese Ministry of Land, Infrastructure and Transport), the entry fee is expensive, so its members are generally large Travel companies;
   
   
2. National Travel Agents Association: English for All Nippon Travel Agents Association, abbreviated as ANTA, is currently under the jurisdiction of the Tourism Department of the Ministry of Land, Infrastructure and Transport of Japan. The entry fee is relatively low, so its members are generally small Travel companies.

V.       Business margin and payment of business margin

Business Margins and Payment Business Margins referred to in Paragraph 4 above are defined as follows:

1. Business deposit (in Japanese, it is called "business deposit") : if a tour operator that has not joined the tourism industry association does not fulfill the contractual obligations to tourists and so on and has corresponding debts, it shall deduct a certain amount from the business insurance money deposited by the tour operator and reimburse the tourists and so on.The amount of business guarantee shall be determined by the Ministry of Land, Communications and Land;
   
   
2. Payment guarantee to share the gold (Japanese as "chemical 済 business margin share the gold"), has joined the tourism association of tour operators should pay the payment guarantee when members share such as gold, tourism association will receive payment services to ensure that share the gold deposit, such as the tour operators for will not perform its obligations under a contract etc for tourists and accordingly, the debt is deducted from the deposit payment of deposit, a certain amount of compensation to the tourists, etc.
   
   

VI.      Tourism industry registration process

Travel operators are required to apply for tourism registration (" tourism industry registration "in Japanese) with the appropriate government department before they officially start their business.The first type of tour operators should apply for registration with the Tourism Department of the Ministry of Land, Land and Transport. The second type of tour operators, the third type of tour operators, the restricted tour operators and the tour agents should apply for registration with the Tourism Department of the local prefectures and counties.The registration is valid for 5 years from the date of registration, and renewal is required before the expiration date.The specific application process for tourism registration is as follows:

1. Select a Travel Industry Association and apply for membership (or opt out);
2. To prepare the application materials required for tourism registration;
3. Travel companies that choose to join the association need to obtain a confirmation of membership from the Travel Industry Association;
4. Visit the tourist offices of the corresponding government departments and attend hearings on tourism registration;
5. Submit application materials to the local transport bureau;
6. The local transport bureau will send the application materials to the tourism department of the corresponding government department, which will examine the application materials;
7. After passing the examination, the Department of Tourism issues the notice of registration to the local transport bureau;
8. Collect the notification of registration from the local transport bureau;
9. Deposit a business security deposit (if electing not to join the ITA) or make payment of Business Guarantee Contribution, Membership Payment and Annual Meeting Payment (if electing to join the ITA);
10. Within 14 days of the receipt of the notification of registration, obtain the deposit certificate for the business bond or the payment certificate for the payment of the business guarantee contribution and submit it to the Tourism Department of the appropriate government department;
11. Publicize the tour operator number specified on the notice of registration on the company website or in the company's printed brochure and at the company's outlets;
12. Open for business.

VII.     Application materials for registration of tourism industry

When applying for travel industry registration, travel companies other than those engaged in travel agency business should prepare handling charges and the following materials (including but not limited to) :

1. Certificate of Inhabitants (if the applicant is a Japanese resident) or Certificate of Registered Particulars and Articles of Association of Legal Person (if the applicant is a legal person);
2. Applicant's affidavit of complying with the relevant provisions of the Tourism Industry Act; If the applicant is a legal person, the affidavit of the directors, supervisors, directors, accountants and liquidators of the legal person in compliance with the relevant provisions of the Tourism Industry Act;
3. Tourism business related business plan;
4. The names and addresses of all business outlets of the travel company;
5. Brief organization structure of tourism business;
6. A copy of the tax return (if the applicant is a Japanese resident) or relevant supporting documents approved by a notarized accountant or accounting firm (if the applicant is a legal person);
7. Confirmation of membership issued by the Travel Industry Association (e.g. electing to join the Travel Industry Association);
8. Emergency handling system related materials;
9. Tourism clause;
10. Information relating to the Tourism Operations Manager * (including a list of appointments for the Tourism Operations Manager, certificates of competency of the appointed Tourism Operations Manager, biographies of the appointed Tourism Operations Manager, and affidavits of compliance with the relevant requirements of the Tourism Operations Manager).

* note: tourism law, in order to ensure the tourism business trade fair, ensure security and promote the tourists convenient etc., all the travel company's business point must appoint at least one by the qualification examination of tourism business for managers (Japanese for "travel business take Cha manager"), used in the operating point of tourism business management and supervision, tourism companies all operating points should be appointed the tourism business to deal with the manager's name and registration notice were revealed in the corresponding operating point.

Is engaged in the travel agency travel companies need to submit the above (1) to (5) and (10) of the application materials, in addition, also need to submit signed with other tour operators of tourism business entrusted agent a copy of the contract, the tourism industry operator's name and address (such as operator) for the individual or entity name and login address (e.g., operator is a legal person).

VIII.    Tourism Standard Assets

Travel companies need to have certain standard assets (" benchmark assets "in Japanese) when they apply for registration or renewal of the tourism industry, otherwise they will not be able to pass the review of the relevant government departments.The amount of standard assets is the balance of the total assets of the company excluding depreciation assets such as start-up expenses, intangible assets of the company, non-performing creditor's rights, total liabilities and the deposit of business deposit or payment guarantee contribution. According to the current requirements of the Tourism Agency of the Ministry of Land, Infrastructure, Transport and Tourism of Japan, the amount of standard assets that tourism operators and others need to meet is shown in the table below:

The serial number	classification	Amount (Japanese yen)
1	The first type of tourism	30 million
2	The second type of tourism	7 million
3	The third kind of tourism	3 million
4	Geographically restricted tourism	1 million
5	Travel Agents	No request

KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.

References:

1. Introduction of Japanese Business License

2. Registration procedures and fees of Japan Corporation