How to Legally Build a Car Export Business from Japan to Pakistan (Step by Step)

How to Legally Build a Car Export Business from Japan to Pakistan (Step by Step)

If you've read our other two guides, you know the informal "buy and flip" model is over, and you understand why. This guide is for the smaller number of people who want to do this properly — as a real, legal, long-term business. Here is the actual sequence, in order, with realistic timelines and costs.

The Full Picture First

You need approvals on two sides at the same time — Japan lets you buy and export; Pakistan lets your company import and sell. Missing either side leaves you stuck.

Japan side: 1. Choose/confirm visa status → 2. Incorporate (if needed) → 3. Apply for 古物商 license → 4. Set up yard/storage (if needed)

Pakistan side: 1. Register a company → 2. Meet MOIP/EDB import criteria → 3. Set up authorized banking channel → 4. Register for commercial import duty

Step 1: Confirm Your Visa Qualifies

Before spending a single yen, check your status of residence against this list. Only these can legally hold a 古物商 (secondhand dealer) license and run a business in Japan without restriction:

• Permanent Resident (永住者)
• Spouse or Child of Japanese National
• Spouse or Child of Permanent Resident
• Long-Term Resident (定住者)
• Business Manager (経営・管理)
• Highly Skilled Professional (高度専門職)

If you're on none of these — SSW, TITP, standard Engineer/Specialist visa, Student, or Dependent — your realistic path is the Business Manager visa, which means incorporating a company as your first step, not a side effect.

Step 2: Incorporate in Japan (If You Need To)

Most people in this position use a Godo Kaisha (GK) — Japan's version of an LLC, and the same structure covered in our GK Wizard content.

• Minimum capital typically around ¥5,000,000 to satisfy Business Manager visa requirements
• Critical detail specific to this business: your articles of incorporation (定款) must explicitly state your business purpose includes buying and selling used automobiles. If this line is missing, your 古物商 application will be rejected later — even if the company itself is approved.

Realistic timeline: 2–4 weeks for incorporation, assuming documents are ready.

Step 3: Apply for the 古物商 License

Once incorporated (or if you already qualify individually), apply to the Safety Division (生活安全課) of the police station covering your registered business address.

Documents you'll need

• Application form
• Articles of incorporation (showing used-car business purpose)
• Personal record covering the past 5 years, for every director
• Written oath (declaring no disqualifying history under the law)
• Proof of identity
• Certificate of residence for each director
• Proof of a parking/storage space contract, unless your business model sends cars directly from auction to a large exporter's yard without you ever storing them — ask your local police department whether this exception applies to your setup

Cost and timeline

• Government examination fee: ¥19,000 — paid regardless of outcome, not refunded if rejected
• Processing time: typically 40 days from a complete application
• Once approved: you receive a license card you must carry when trading, and you must maintain a transaction registry for 3 years

Step 4: Register Your Import Company in Pakistan

This runs in parallel, not after. Since September 2025, Pakistan allows incorporated companies to import used vehicles commercially — a separate track from the personal Gift/TR schemes.

• Register your company to meet criteria set by the Ministry of Industries and Production (MOIP) or Engineering Development Board (EDB)
• Set up an authorized banking channel for all payments — this is now strictly enforced; informal transfers or cash arrangements will trigger anti-money-laundering holds at customs
• Understand the current duty structure: 40% Regulatory Duty through the 2026 fiscal year, stepping down roughly 10 percentage points per year toward 0% by FY2030
• From July 2026, the 3-year age limit that applies to personal schemes is fully lifted for this commercial category — a real advantage over Gift/TR imports

Step 5: Connect the Two Sides Operationally

With both approvals in place:

Realistic Cost Summary

Is This Worth It Compared to the Old Way?

The old informal model had near-zero setup cost and no license requirement — which is exactly why it's gone; that lack of structure is what the 2026 reforms targeted. The formal route has real upfront cost and paperwork, but it also has something the old way never did: legal certainty and a path that scales. A properly licensed 古物商 holder can buy at auction under their own name with full access, and a properly registered Pakistani import company can bring in multiple vehicles per shipment, not one every 850 days.

For someone planning a real, ongoing business — not just sending one car home — this is now the only road that actually leads somewhere.

FAQ

Q: Can I get the 古物商 license before incorporating?

Yes, if you personally already hold a qualifying visa (PR, spouse visa, Long-Term Resident, existing Business Manager, or HSP). If you don't, incorporation via the Business Manager visa route usually has to come first.

Q: Do I need a physical shop or office in Japan?

Not necessarily a retail shop, but you generally need a registered business address, and in most cases proof of a storage/parking arrangement unless you qualify for the direct-to-exporter-yard exception.

Q: How long does the whole setup realistically take, start to finish?

Budget 3–4 months: incorporation (2–4 weeks) plus 古物商 processing (around 40 days) running partly in parallel with Pakistan company registration.

Q: Is the 40% Regulatory Duty going to make this unprofitable?

It compresses margins compared to the old informal scheme, but it's a declining rate by design, heading toward 0% by FY2030. Model your numbers against today's rate, not the future one, and treat the declining duty as a bonus, not the basis of your plan.

Q: What happens if I skip the 古物商 license and just do it informally through a relative with PR status?

This is common in the community, but it puts all legal and financial risk on that relative's name and license, with no formal protection for your side of the arrangement. Treat it as a real business partnership requiring a real written agreement, not an informal favor.

*This guide reflects the regulatory environment as of mid-2026 on both the Japan and Pakistan sides. Both jurisdictions' rules for this specific business change relatively often — confirm current requirements with your local police department (Japan) and a licensed Pakistani corporate advisor before committing capital.*