Leave Your Minpaku Management to the Experts
Completely Free Online ConsultationClosing down a minpaku business requires filing a formal notification in accordance with the law, just as opening one did. Simply “quietly stopping operations” isn’t good enough — failing to file the proper paperwork can leave you exposed to administrative guidance or even penalties. This article walks you through the process and filing destinations for minpaku business closure notifications, along with a handy checklist of tasks that are easy to overlook when winding things down.
People shut down their minpaku (home-sharing) businesses for all sorts of reasons — declining profits, selling the property, a change in lifestyle — but no matter the reason, completing the proper legal procedures is essential. From filing the notification itself to contacting related vendors and shutting down your listings on booking platforms, there’s actually a surprising amount to take care of.
Below, we’ll walk you through the closure notification process under the Private Lodging Business Act (the “new minpaku law”), covering the practical steps and key points to watch out for. Whether you’re currently considering closing your business or simply reading up for future reference, we hope you’ll read through to the end.
Minpaku Business Closure Notification Procedures: The Basic Framework and Legal Basis
If you’re operating a minpaku business under the Private Lodging Business Act, Article 10 of that law requires you to file a “notification of business closure, etc.” when you close your business. This notification must be submitted within 10 days of the closure taking effect, and failure to do so can result in a fine of up to 1 million yen. It’s worth stating clearly upfront: this isn’t optional — it’s a legal obligation.
There are four main scenarios that require this notification: (1) “closure” (when you stop the private lodging business entirely), (2) “death” (if the registered operator passes away, their heir must file the notification), (3) “dissolution through corporate merger,” and (4) “commencement of bankruptcy proceedings.” For sole proprietors who registered as individuals, filing under the “closure” category is the most common scenario when winding down.
Where and How to File Your Closure Notification
Filing Destination: The Prefectural Governor (or the Head of a Designated/Core City)
Closure notifications for private lodging businesses are submitted to the prefectural governor (or, in the case of designated cities or core cities, the mayor) — in other words, the same authority you originally registered your business with. For example, if you registered in Osaka City, you’d file with the relevant Osaka City department; if you registered with the Tokyo Metropolitan Government, you’d file with them. Note that in designated cities and core cities, the city itself — rather than the prefecture — handles this, so make sure you’re contacting the right authority.
The department name varies by municipality — it might be called the “Bureau of Health,” “Bureau of Environment,” “Public Health Division,” or something similar — but the contact details should be listed on the documents you received when you originally registered your business. If you’re unsure, the safest bet is to call the municipality’s main line or check their official website.
Filing Online via minpaku.mlit.go.jp
You can file both initial registrations and closure notifications online through the Private Lodging Business Act notification system (minpaku.mlit.go.jp), operated by the Ministry of Land, Infrastructure, Transport and Tourism. If you originally registered online, you can submit your closure notification through the same electronic system — no need to visit a government office in person.
The online system requires identity verification, either through electronic authentication using a My Number card or via an ID and password. Once logged in, select “Notification of Business Closure, etc.,” enter the closure date and other required details, and submit. If you’d rather file on paper, use the format specified by your local municipality (or the national standard format) and either bring it in person or mail it to the appropriate office.
What to Include in Your Filing
Your closure notification needs to include your name (or business name), address, registration number, reason for closure, and closure date. Individual operators may be asked to attach a copy of identification, while corporations will need to provide their corporate number and representative’s information.
Since the exact format can vary by municipality, it’s a good idea to check with your local authority beforehand. Incomplete paperwork can delay processing — leaving you in a state of ongoing non-compliance in the meantime — so a quick confirmation call to the office before submitting can save you a lot of hassle later.
Your Business Closure Checklist
Removing Your Listing from Booking Platforms and Handling Cancellations
Once you’ve decided to close, the first step is to take down your listings on booking platforms like Airbnb, Japan Travel, and Rakuten Travel, and stop accepting new reservations. If you have guests booked to stay after your closure date, cancel those bookings promptly and either issue a full refund or help arrange alternative accommodation. Depending on the cancellation policy, fees may apply, but handling operator-initiated cancellations with care and honesty matters a great deal for maintaining your reputation.
Each platform has its own host deregistration and account deletion process. Beyond simply removing your listing, don’t forget to delete your account and clean up your management information as well. Airbnb in particular can impose cancellation penalties, so it’s worth checking your upcoming reservations carefully before timing your delisting.
Terminating Your Contract with Your Property Management Company
If you outsourced management of your minpaku to a property management or operations company, you’ll need to formally terminate that contract as part of the closure process. Follow the notice period specified in your contract (typically one to three months) and submit your cancellation in writing or through whatever method your agreement specifies. Verbal notice alone can lead to disputes down the line, so always keep a written record via email or letter.
If your management company was handling key management, smart lock settings, or coordination with a cleaning company, you’ll need to arrange for these to be handed back or cancelled as well. We recommend scheduling a final wrap-up meeting with your management company to cover everything — including resetting smart locks and deleting check-in information.
Notifying Cleaning and Linen Companies to End Their Services
If you had contracts with cleaning companies, linen/towel and bedding suppliers, or waste collection services related to your minpaku operation, coordinate the termination of each of these contracts to align with your closure timeline. Some contracts include minimum usage periods, and early termination may incur penalty fees, so check the terms of each contract in advance.
Disposing of and properly restoring supplies and consumables after your final cleaning is also an important part of closing up shop. Guest amenities, towels, and bedding can be disposed of, sold, or donated. If you have a large volume of items, hiring a junk removal company is also an option worth considering.
Restoring the Property and Coordinating with the Landlord/Owner
If you were operating your minpaku out of a rented property, you’ll need to notify the landlord (or property management company) of your closure and handle restoring the property to its original condition. Even if you had the landlord’s consent to run a minpaku there, be sure to let them know early about the change in how the property will be used going forward, or your plans to move out. Follow the notice period stipulated in your lease agreement (typically one to two months).
Any equipment you installed specifically for the minpaku business — smart locks, Wi-Fi routers, extra furniture, and so on — should be removed and any necessary repairs made before returning the property. Disputes over wear and tear caused by minpaku use sometimes arise during the security deposit settlement process, so it’s a good idea to have the landlord inspect the property with you before you move out.
Tax and Accounting Procedures for Closing the Business
If you registered your minpaku as a sole proprietorship, you’ll need to submit a “Notification of Discontinuance of Individual Business” to the tax office when closing down, within one month of the closure. If you were registered as a taxable business for consumption tax purposes, you’ll also need to file a “Notification of Discontinuance of Business for Consumption Tax.” Both can be submitted at your local tax office or through e-Tax.
You’ll also need to file a final tax return for the year your business closed, covering your business income from January 1st of that year through your closure date, during the following year’s filing period (typically February 16th to March 15th). Keep in mind that proceeds from selling equipment or the remaining value of inventory may need to be reported as income, so it’s worth consulting a tax accountant.
Cancelling or Modifying Fire and Minpaku-Specific Insurance
Fire insurance or minpaku-specific liability insurance policies you took out while operating don’t automatically end when your business closes — they’ll keep renewing unless you take action. Unless you review and either modify or cancel these policies at closure, you’ll end up paying for coverage you no longer need. Contact your insurer or agent to let them know about the closure and reassess your coverage.
If you plan to keep using the property yourself or for a different purpose after closing, you’ll want to switch to a policy that matches that new use. Moving from a minpaku-specific policy to a standard residential or rental property policy can often save you money on premiums as well.
Key Points to Watch Out for When Filing Your Closure Notification
Since the law sets a strict 10-day deadline from the date your closure takes effect, it’s important to start preparing your filing as soon as you decide to close. It’s not uncommon for operators to think “we’ll just pause for a while” and put off filing, only to realize later that the 10-day window has already passed. Even if you’re planning an extended pause, if you have no realistic plans to resume operations, filing a closure notification is the appropriate course of action.
Also keep in mind that the closure notification for private lodging businesses is separate from any procedures related to permits under the Hotel Business Act. If you were operating under a Hotel Business Act permit, you’ll need to file a separate closure notification with your local health center or relevant authority. If you hold registrations or permits under multiple laws, make sure you don’t overlook the fact that each one requires its own separate closure procedure.
Free Consultation with Stay Buddy: Get Expert Advice on Closing or Managing Your Business
Closing a minpaku business involves far more steps than you might expect — from preparing filing documents to terminating various contracts and handling tax obligations. If you’re not sure where to start, or you’re torn between closing down and simply rethinking your management approach, we recommend talking to a minpaku management professional first.
Stay Buddy Inc., a full-service minpaku management company, welcomes a wide range of inquiries related to private lodging. Whether you’re considering closing your business or simply struggling with disappointing returns or the burden of day-to-day management, we’ll analyze your current situation and offer concrete, practical advice. We can even help you think through whether closing is truly your best option.
Stay Buddy offers one-stop support for everything a minpaku business needs — from improving guest acquisition and optimizing pricing to cleaning and guest communication. In some cases, operators who reached out to us before closing discovered untapped potential for improving their returns and were able to avoid shutting down altogether.
Consultations are completely free. Please feel free to reach out through the Stay Buddy Inc. contact page. Our experienced team is happy to carefully answer any questions or concerns you may have about your minpaku business.
