Need People in Japan But Don’t Need a Local Entity?
JPS’s Japan PEO Solutions Are the Answer.
Foreign companies need people on the ground in Japan but don’t want to make the significant time and financial commitment involved in setting up a local entity. JPS can hire employees on your behalf in Japan via our Japan PEO Service.
How It Works
JPS’s Japan Professional Employer Service (‘PEO”) service is aimed at assisting foreign companies in Japan to operate in the most efficient way possible.
JPS 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 PEO service operates.
A Business Support Agreement is put in place between your company (outside Japan) and JPS. 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 permanent establishment (“PE”) risk.
JPS 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 JPS in Tokyo. JPS transfers visas from previous employers (if necessary) and moves these employees on to the JPS 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 hold a valid Japan work visa, JPS starts the Japan work visa application process – new approvals typically take six to eight weeks.
Sales are made directly between your company outside Japan and the Japanese customer.
The Japan based employees can now work to support your business in Japan. The activities are monitored to ensure they do not pose a tax risk to the foreign parent company. Sales occur direct between the foreign parent and the Japanese customer. This allows sales to be recognized in your foreign company rather than in Japan.