Testimonial
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
5/5
We operate as your Employer of Record in Japan. It’s thriving economy and reputation for innovation are a magnet for foreign companies.
However, navigating its complex legal system and labor regulations can be daunting for employers unfamiliar with the market.
To help, an Employer of Record (EOR) in Japan acts as your bridge to success, streamlining the entry process and ensuring compliance with all local labor laws.
Working with an Employer of Record in Japan simplifies the expansion process for businesses of all shapes and sizes. Here’s an in-depth look at how an Employer of Record in Japan works in 3 simple steps:
The journey begins with a consultation between you and an Employer of Record like INS Global. They’ll discuss your specific goals in Japan, including the number of employees you plan to hire, their roles, and your desired timeline.
This initial discussion ensures the Employer of Record understands your objectives and tailors their services accordingly.
Whether you’re building a new team in Japan or transferring existing staff, the Employer of Record handles all legal paperwork, visa and work permit applications, and ensures compliance with Japan’s labor laws.
Their expertise allows them to act as your legal employer in Japan from day one. This eliminates the need for establishing your own entity, saving you valuable time and resources.
Once your employees are operational in-country, the Employer of Record continues to support you and takes over all ongoing HR and payroll functions in Japan.
This includes processing salaries, managing employee benefits and social security contributions, and ensuring adherence to complex tax regulations.
The Employer of Record acts as your HR liaison between you and your Japan-based team, handling any administrative tasks or employee concerns that arise.
By outsourcing these tasks, you’re freed from the costly and time-consuming systems of Japan’s labor laws. Instead, you can focus your energy on strategic business development and managing your core operations with peace of mind.
Bypass the complexities of establishing a legal entity in Japan. An Employer of Record allows you to start operations and hire staff quickly, minimizing time to market.
Japan’s labor laws are known for their details and focus on harmony in the workplace. Employer of Records in Japan possess the expertise to navigate these complexities, ensuring your business remains compliant and avoids costly penalties.
An Employer of Record acts as your legal employer in Japan, shouldering your employees’ legal and financial responsibilities, minimizing your risks associated with employment regulations.
Offload HR and payroll tasks like onboarding, visa applications, and social security contributions to your Employer of Record. This allows you to focus on core business activities and strategic growth initiatives in Japan.
Employer of Record services can be more cost-efficient for smaller teams than setting up your own subsidiary as with expert support you avoid upfront incorporation costs and ongoing administrative burdens.
Testimonial
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
Due to the traditional desire for independent company structures and total control over HR functions, company incorporation in Japan has often been thought of as the default option for expanding in the region.
However, today it’s helpful to understand the massive benefits that come with instead choosing to use an Employer of Record in Japan, such as:
Japanese labor laws can seem intricate, but understanding key points is crucial before entering the market. Here’s a breakdown of some important aspects and how an Employer of Record in Japan can help you navigate them:
Selecting the right Employer of Record in Japan is essential for a smooth market entry. Here are 5 key factors to consider:
In Japan, the terms EOR (Employer of Record) and PEO (Professional Employer Organization) are often used interchangeably by clients and companies. Both handle employment responsibilities for a fee, but Employer of Records typically offer a wider range of HR and payroll functions while acting as your legal employer in Japan.
Costs vary depending on the services offered, your number of employees, and their location. With INS Global, the cost is set as a percentage of your payroll, allowing you to expand in a cost-effective and strategic way.
The national corporate tax rate in Japan is 23.2%, with a possibility of an additional local inhabitant tax of up to 12.3%, bringing the total effective tax rate to a maximum of 35.5%. However, there are various tax incentives and deductions available depending on your industry and location.
Faster market entry, reduced compliance burden, cost-effectiveness, access to local HR expertise, and minimized risk are all key advantages of partnering with an Employer of Record in Japan.
Yes, Employer of Records in Japan handle payroll processing and ensure adherence to tax and social security regulations. They can also manage employee benefits administration.
Absolutely. An Employer of Record streamlines the hiring process, eliminates the need to establish your own entity, and ensures you comply with complex Japanese labor laws with their local expertise. This allows you to focus on growing your business and reaching your target market in Japan faster while also minimizing non-compliance risk for your employees.
Level 39, Marina Bay Financial Centre Tower 2, 10 Marina Boulevard
Singapore 018983
