Japan Employer of Record & PEO Solutions - Benefits

Overview

Our Japan Employer of Record (“EOR”) and Japan Professional Employer Service (‘PEO”) services help foreign companies in Japan to operate in the most efficient way possible.

JAPAN VISA™ hires the employees that you need for your business in Japan and fully supports them. We arrange Japan work visas for foreign employees and handle the Japan payroll (including compliance with Japanese social insurance, labor insurance, and other benefits.) 

The following diagram shows how our basic Japan Employer of Record and Japan PEO services operate.

  • Business Support Agreement
     A Business Support Agreement is put in place between your company (outside Japan) and JAPAN VISA™. This agreement is carefully drafted to ensure that your company receives the dedicated support that it requires in Japan while minimizing tax risk – including Japan transfer pricing and permanent establishment (“PE”) risk.

  • Employee Onboarding
    JAPAN VISA™ takes on the responsibility of Japan work visas, Japan payroll, and associated HR functions for your designated employees. Japanese nationals and foreigners with existing Japan work visas can be immediately brought on board by our company in Japan. JAPAN VISA™ can also transfer Japan work visas from previous employers and move these employees on to a Japan payroll. We pay particular attention to Japanese social security (especially statutory health insurance) since uninterrupted coverage is the number one concern for Japanese employees. For foreigners who do not currently hold a valid Japan work visa, our team starts the Japan work visa application process – new approvals typically take six to eight weeks.

  • JAPAN VISA™ Supports Your Business in Japan.
    The Japan based employees can now work to support your business in Japan. The activities are monitored to minimize tax risk to the foreign parent company. If your company decides to open a stand-alone Japan subsidiary in the future, we are able to assist with the incorporation and compliance support. We also assist to transfer employees to the new entity.

  • Sales to Japanese Customers
    Sales occur directly between the foreign parent and the Japanese customer. This allows sales to be recognized in your foreign company rather than in Japan.

Low Establishment Cost

The significant monetary expense and time associated with establishing a new Japan entity is eliminated.

No Compliance Costs

The headache of Japan compliance is transferred to JAPAN VISA™ including accounting, corporate tax, HR, and payroll.

Time Savings

The time that the home country management team spends on non-core tasks is greatly reduced.

Flexible Structures

Our Team grows with you. If you decide to establish a subsidiary in the future we fully support the set-up and transition.

Management of International Tax Risk for Japan Employer or Record and Japan PEO

A major issue associated with many employer of record and PEO providers is their failure to consider international tax risk. 

International tax is becoming a significant focus of many tax authorities and the Japanese tax authorities are no exception. 

In particular, the issues Transfer Pricing and Permanent Establishment (“PE”) need to be considered. In simple terms, if the activities undertaken by a PEO service are not carefully managed AND properly documented, the activities in Japan may be deemed a PE of the foreign parent company.

Contact JAPAN VISA™ to learn more about our Japan PEO services.

The above is provided for general information purposes only and does not constitute advice to undertake or refrain from undertaking any action. Only qualified Japanese professionals are able to advise on Japan immigration, legal, and tax matters.