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The succession of status of the business license and notification through a transfer is possible now
The Act Partially Amending the Hotel Business Act and Other Acts to Develop a Business Environment to Support the Continued Business Activities of Businesses with Operations Related to the Environmental Health Industry, etc. was issued on June 14, 2023, which has revised a part of the Food Sanitation Act.
From December 13, 2023 onwards, when a business operator transfers its entire business regarding license or notification relating to the Food Sanitation Act to a third party, the person succeeded (hereinafter “the assignee”) can change the business operator by submitting a notification of succession without applying for a new business license or making a notification.
Details of the revisions
Before the revisions, the Food Sanitation Act had no provision regarding the succession of status by a transfer. Therefore, when a business transfer was made, the person who succeeded (hereinafter “the assignor”) was required to submit a notification of discontinuation of the business, while the assignee was required to apply for a new business license or to submit a business notification to a local health center in advance.
However, because of the revisions made to the act, when a business transfer is made after December 13, 2023, the assignor is no longer necessary to submit the notification of discontinuation of the business. When the assignee submits a notification of the succession of status to the local health center after the business transfer is completed, the assignee can change the name of the business operator promptly without applying for a new business license or submitting a new business notification in advance.
Points to keep in mind during the procedures
Some points to keep in mind for the succession of status by a transfer are explained below.
Prior consultation with a local health center
When an assignor plans a business transfer, please consult with a local health center in advance. Through the assignor, the local health center checks the sanitary management policies of the assignee. It is advised that the both the assignor and the assignee collaborater to respond properly to the checking.
Date of the succession
The succession of status through a transfer is applied only when the business transfer is made after December 13, 2023. A business transfer made before December 12, 2023 is not applicable to the succession of status through a transfer. In that case, the assignor needs to submit a notification of discontinuation of the business while the assignee needs to apply for a new business license or to submit a business notification to a local health center in advance.
Partly succession of business
In the revisions of the act, the provisions for the succession of status through a transfer apply only when the entire business regarding the business license or notification is transferred. The provisions will not apply to cases where a part of the business is transferred.
(Ex. It is not applicable when a portion of multiple kitchen areas where a restaurant business license has been issued is transferred.)
Documents to prove the business was transferred
When an assignee submits a notification of the succession of status through a transfer, it is required to attach documents to prove that the business transfer has been made. Specifically, a document that enables to confirm the fact of the transfer and the intention of the transfer, such as a transfer agreement or memorandum, is required.
Sanitation management after the transfer
Though an assignee can operate the business after the business transfer, the responsibilities around sanitary management are also succeeded.
When the business is transferred, the assignee is required to pay attention to the business continuity by discussing with the assignor to ensure that the sanitary management is properly conducted continuously.
Notification of the succession of status
When a succession of status through a transfer is made, the assignee is required to submit a notification of the succession of status with documents to prove the fact without delay.
Investigation by a local health center after the succession of status
When a succession of status through a transfer is made, a local health center investigates the business status at the facility.
In principle, when a business license has been obtained, a local health center makes an on-site investigation to check the business status.
References
Leaflet regarding the business transfer by the Ministry of Health, Labor and Welfare
https://www.mhlw.go.jp/content/001176618.pdf (Japanese)
Applications and Inquiries
For inquiries, please contact the local health center (Tama area (Japanese)).