Introduction: The Growing “White Cab” Problem in Hokkaido

In February 2026, Hokkaido Police conducted awareness campaigns at New Chitose Airport, warning foreign tourists against using illegal “white cabs.” Shintaro Sasamori, Chief of Traffic Division 1 at Chitose Police Station, stated: “Illegal ‘white cab’ operations are increasing year by year. We have a strong sense of urgency.”

In 2025, 7 people were arrested for white cab operations in Hokkaido, and police are heightening vigilance against illegal businesses targeting foreign tourists.

This issue is relevant not only to tourists but also to foreign residents in Japan and business owners/HR managers who employ foreign nationals.

In this article, as a certified immigration administrative scrivener and immigration procedures specialist, I will explain the legal risks of white cabs, impacts on residence status, measures companies should take, and how to legally start taxi operations.

1. What are “White Cabs”? What Legal Issues Do They Pose?

Definition of White Cabs

“White cabs” generally refer to unlicensed, for-hire passenger transport—driving passengers for payment without the permits required under Japan’s Road Transport Act. Legitimate taxi and hire-car operators are licensed and typically use green license plates.

Operating taxi or hired car services requires permission from the Minister of Land, Infrastructure, Transport and Tourism or Regional Transport Bureau Chief, and vehicles are issued green number plates (commercial vehicles). Operating without these constitutes a violation of the Road Transport Act.

Potential Penalties

Operators (Drivers):

  • Up to three years’ imprisonment or a fine of up to ¥3 million (Road Transport Act Article 78 violation)

Passengers:

  • Passengers may also face legal consequences if they knowingly use an illegal service, depending on the circumstances.

Why Are They Increasing?

  • Increase in foreign tourists
  • Easy solicitation via SNS and messaging apps
  • Sophisticated solicitation exploiting language barriers

2. Risks for Foreign Residents Using White Cabs

(1) Risk of Legal Trouble Involvement

If white cab users encounter police crackdowns, they may be questioned. If a case escalates—for example, if a person is questioned or formally linked to an illegal service—this may negatively affect future immigration procedures.

(2) Impact on Residence Status Examinations

Residence status permission and renewal examinations emphasize good-conduct considerations. Records of involvement in illegal activities may result in:

  • Denial of residence status renewal
  • Rejection of permanent residence applications
  • Disadvantage in naturalization applications

(3) No Compensation in Accidents or Troubles

White cabs often lack proper insurance, meaning victims may not receive appropriate compensation in accidents.

(4) Risk of Safety Incidents

There is also a heightened risk of disputes, overcharging, or other safety incidents.

3. Points Companies Employing Foreign Nationals Should Note

Why Should Companies Care?

If foreign employees get into trouble using white cabs during arrival or business trips, the following corporate risks may occur:

  • Delayed work start
  • Potential adverse effects on employee residence status
  • Doubts about company management systems
  • Damage to brand image

Measures Companies Should Take

(1) Pre-Arrival Orientation Information

Provide the following information before foreign employees arrive:

  • How to identify legitimate taxis (green license plates)
  • How to use reputable taxi apps and dispatch services (e.g., major taxi apps or approved ride-hailing platforms)
  • Public transportation guidance
  • Warnings about illegal white cabs

(2) Arranging Transportation Services

For important personnel arrivals, companies arranging transportation services is effective. Contracting with reliable transport companies protects both safety and corporate image.

(3) Internal Manual Development

Create manuals for foreign employees covering Japanese traffic rules and proper service usage. Multilingual support is desirable.

(4) Regular Warnings

Regularly issue warnings about illegal services via company emails or bulletin boards.

4. How to Identify Legitimate Taxis

Check Green License Plates

Licensed taxis typically have clear company markings and are registered as commercial vehicles (often with green plates).

Check Taxi Roof Signs

Licensed vehicles usually have taxi signs on the roof.

Presence of Fare Meters

Legitimate taxis are equipped with in-car meters. Be cautious of advance negotiations offering “flat rates” (excluding some airport flat-rate taxis).

Use Reputable Ride-Hailing Apps

Using approved ride-hailing platforms ensures safe arrangement of legitimate taxis.

5. How to Legally Launch a Taxi/Hire-Car Business in Japan

This section explains the licensing process for those wanting to legally start taxi operations.

Required Licenses for Taxi Operations

To start taxi business (general passenger automobile transport business), the following licenses are required:

  • General passenger automobile transport business license (Minister of Land, Infrastructure, Transport and Tourism or Regional Transport Bureau Chief)
  • Green license plate (commercial vehicle) registration

License Requirements

  1. Securing Office and Garage
  • Establishment of office and garage (compliant with City Planning Act, Building Standards Act, etc.)
  1. Securing Vehicles
  • Minimum number of vehicles (varies by region, generally 5 or more)
  1. Financial Requirements
  • Own capital of 50% or more of required funds
  • Securing operating funds (2 months)
  1. Operations Management System
  • Appointment of operations manager
  • Appointment of maintenance manager
  1. Liability Compensation Capacity
  • Enrollment in compulsory automobile liability insurance and voluntary insurance

Licensing Overview for Taxi and Hire-Car Operations

  1. Preliminary consultation (Transport Bureau)
  2. Application document preparation
  3. Application submission
  4. Examination (including legal exam)
  5. License issuance
  6. Pre-operation preparations (vehicle registration, insurance enrollment, etc.)
  7. Operation commencement notification submission
  8. Business start

Employment of Foreign Drivers

To employ foreigners as taxi drivers, the following residence statuses are required:

  • Status-based residence statuses such as Permanent Resident, Spouse of Japanese National, Spouse of Permanent Resident, Long-term Resident
  • Specified Skilled Worker (Automobile Transport Industry)

Most work-authorized statuses (e.g., Engineer/Specialist in Humanities/International Services) do not cover taxi driving, so eligibility must be checked carefully.

6. Support Services of Niseko Visa Application Support Center

Niseko Visa Application Support Center provides the following support:

(1) Residence Status/Visa Application Support

  • Certificate of Eligibility application
  • Change of residence status application
  • Extension of period of stay application
  • Permanent residence application
  • Naturalization application support

(2) Corporate Foreign Employment Consulting

  • Diagnosis of employable residence statuses
  • Employment contract/employment condition document preparation support
  • Orientation material creation for foreign employees

(3) Taxi Business Licensing Application Support

  • General passenger automobile transport business license application
  • Office/garage requirement verification
  • Application document preparation and submission agency
  • Legal exam preparation support
  • Residence status consultation for foreign driver employment

(4) Other License/Permit Applications

  • Construction business license
  • Real estate transaction business license
  • Entertainment business license
  • And more

7. Conclusion: Legal Compliance Protects Safety and Trust

The white cab crackdown at New Chitose Airport extends beyond tourist warnings.

For foreign residents, it’s a risk that could negatively affect residence status procedures.

For companies employing foreigners, it’s a risk management issue protecting employee safety and corporate credibility.

For those starting taxi businesses, it’s essential knowledge for lawful operations.

From each perspective, proper understanding and appropriate action regarding laws are required.

If you:

  • Have concerns about residence status
  • Face difficulties with foreign employment procedures
  • Are considering taxi business license acquisition
  • Are thinking about employing foreign drivers

Please consult Niseko Visa Application Support Center.

As immigration procedures specialists, we support your business and life through compliant immigration and licensing procedures.

Feel free to contact us about even small matters.

Reference Article:
HBC News Hokkaido “【New Chitose Airport】Warning Foreign Tourists Against Illegal ‘White Cab’ Use – 7 Arrested in Hokkaido Last Year”
https://news.yahoo.co.jp/articles/68077fb979d0d266f23401e42c96505cbc6f4368

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