It’s a common misconception that you need to establish a foreign entity to expand and operate in another country. Our PEO solution allows your company to enter and hire in Japan without setting up a foreign entity straight away. It’s the perfect solution if you’re thinking of taking your first steps into the Japanese market.
What Is a PEO?
PEO stands for Professional Employer Organization, but what does that really mean? A PEO provides services that pave the way for a company to expand into a foreign market, in this case Japan.
PEO companies act as the Employer of Record (or EOR) for Japanese workers. On the administrative side of things, they recruit employees, set up employee contracts, handle payroll and Human Resources, and perform the behind-the-scenes tasks that are essential to business operations in the new environment. On the compliance side of things, a PEO makes sure that all labor laws are met, all necessary permits are obtained, and any legal back-end issues are resolved successfully.
When companies expand into new markets, they need to get a facility up and running, hire to fill open roles, and understand the new labor market in which they operate. For instance, Japan adopted a new law in 2018 regarding overtime regulations. Now, all employers must limit overtime to 45 hours a month or 360 hours per year, with special exemptions for certain busy periods.
It would take a significant effort for an international company to learn these sorts of rules, but an EOR in Japan knows the country’s laws and can ensure total compliance to prevent any fines or penalties.
Business opportunity Japan
Known for being at the forefront of innovation and experimental, futuristic technology, Japan presents considerable opportunities to Western businesses in a wide variety of sectors. As the world’s biggest producer of cars, Japan is a particularly attractive option for those in the automotive industry, as well as retail, biotechnology and I.T. With the correct strategy and partner to work with, it’s possible for foreign businesses to reap the benefits of Japan’s thriving market.
Why use a PEO in Japan?
We can help you:
- Hire employees in record time: By hiring employees with help from an Employer of Record in Japan, you can get your business up and running quickly and efficiently.
- Focus on driving your company’s growth in a new market: Let us take care of establishing your business in Japan, so you can focus your attention on growth.
- Remain compliant with Japanese employment and tax law: As your PEO intermediary, you can rest assured that all applicable laws will be followed.
- Maintain compliance with immigration laws: We can take over visa and work permit applications to ensure that all immigration laws are respected, preventing legal trouble.
- Reduce time spent processing HR and administrative tasks: Outsourcing these functions can save time, so you focus on mission critical tasks.
- Avoid lengthy incorporation processes: Setting up a subsidiary can be expensive and labor-intensive; thus, many companies prefer the simplicity of our PEO approach.
- Streamline your global expansion: With many tasks taken off your plate, you can focus on your business goals and achieve them faster.
Key Points To Consider When Choosing a PEO
- Global: Does the PEO operate globally and are they able to cater to the specific needs of your company? Using a global PEO gives you access to more expertise over a number of regions.
- Size: PEOs do business with more than one company at a time. A larger PEO tends to receive better deals on HR services (insurance, etc.) due to economies of scale. You may see reduced overhead as a result.
- Stakeholders: Who owns the PEO? What other businesses do they represent? Knowing the stakeholders can help you get a bigger picture of the organization.
- Reputation: Are there lawsuits against the PEO? Have they gotten into trouble for flouting laws? Their mistakes could cost your business, so this is something to investigate.
Why use INS Global as your PEO in Japan?
- Full employment – Your employee is legally employed by INS Global in Japan exclusively on your behalf.
- Compliance – Your employee’s salary is processed through our payroll in Japan with tax deducted and paid to the relevant authorities.
- Peace of mind – We remain up to date with the latest changes to employment and tax law in Japan so you don’t have to.
- Ongoing support – We offer visa application support for your foreign employee as well as accompanying them through the onboarding process.
- Streamlined and transparent approach – We invoice you every month for our services including your employee’s wage, benefits and expense reimbursement.
Expanding into Japan doesn’t mean you need to set up a costly subsidiary. Give your business a truly competitive edge and take your brand to Japan with our PEO solution. Our service means that your talent can quickly and efficiently be in Japan’s exciting cities, working on your company’s expansion.