Making Deals with a Japanese Company 


The GDP per person in Japan is US$40,193.3, making it the world’s third biggest economy. Due to the country’s advanced economy, there are a plethora of prospects for companies looking to broaden their horizons. Japan is a leading choice for international corporate development because of its emphasis on quality, creativity, and openness to new ideas.

While many foreigners dream of living and working in Japan, the reality is that doing so is not without its difficulties. The local customs and culture of Japan offer an extra level of difficulty, particularly for international trade. It is important to be aware of Japanese labor regulations, employee contracts, payroll, benefits, etc. even after setting up a company in the country.

To lessen the blow of any potential issues, teaming up with an EOR/PEO based in Japan is a sensible plan. The EOR and PEO services offered by INS Global may ease the burden of managing a global workforce in Japan. From new hire paperwork to managing payroll to reimbursing employees for taxes and benefits, we handle it all.

Why Employ a PEO in Japan

Professional employer organizations, or PEOs, are businesses that collaborate with other businesses to handle HR tasks including hiring and managing employees, processing payroll and taxes, and more. Therefore, the PEO and the business act as co-employers, with the PEO sharing in HR duties. Thus, outsourcing to a PEO frees you up from HR administrative burdens so that you can concentrate on expanding your firm.

These merits highlight the ingenuity of a Japan PEO:

Legal observance

In Japan, a PEO can manage your HR processes while keeping abreast of the country’s ever-changing legal and tax landscape. This means you won’t have to worry about breaking any rules and can keep doing business as usual.


It takes a lot of time to manage a company’s employees, but if you deal with a Japanese PEO, they’ll take care of all of your foreign human resources demands. So, while the PEO takes care of HR for you, you can focus on expanding your company.

Organized preservation of records

All of the HR documentation in Japan is taken care of by a reliable PEO. The data records will supply HR management data in real time and guarantee the highest level of openness possible.

Promptness and precision

The foundations of a Japanese PEO are reliable data and high output rates. All responsibilities and regulations are laid out clearly for clients of PEO services.

PEO Expenses in Japan

Professional employer organizations (PEOs) often use one of two pricing models: fixed and variable. The annual fee for a competent PEO using the fixed price approach might range from $500 to $1,500 per worker. In every case, the ultimate sum depends on a number of variables. A PEO’s cost might be based on a set rate per worker or a share of your total yearly payroll.

International payroll, multilingual contracts, benefits administration, expenditure and leave management are all included in our transparent and flat PEO pricing starting at $300 per employee per month. Depending on the employee’s location and the employment rules there, the ultimate price might be more or lower.

We want to make sure that processing payroll and benefits for your overseas staff is as easy as possible, which is why we provide Japan EOR services that are both comprehensive and uncomplicated. 

What Are the Steps to Hiring in Japan? Global PEO

The Japanese government places a premium on employee safety and privacy when it comes to labor legislation. These regulations must be taken into account throughout the recruiting and onboarding processes. Teaming up with a Japan EOR would guarantee a smooth recruiting and management procedure devoid of danger.

Here are some suggestions for ensuring a seamless expansion into Japan if you like to handle the recruiting process on your own.

A company based in Japan

If you want to conduct business in Japan with a Japanese company, you may choose from the following:

Godo Kaisha, or limited liability corporation, is the Japanese equivalent. A Japanese limited liability corporation may only be formed with a single shareholder. There must be at least one director who is a Japanese resident if the shareholder is a foreign national.

The Kabushiki Kaisha is the Japanese equivalent of a limited liability company. Both must have the same amount of paid-up capital and be constituted by at least one foreign shareholder in addition to a domestic director.

Business in a Free Zone: A firm based in one of Japan’s free trade zones is generally a manufacturing operation with an eye toward export.

Joint Stock Company: A limited liability partnership may be formed by an overseas company owner. Although there is no set minimum amount of capital required, at least one of the partners must be a Japanese national.

Labor agreements in Japan

The tax system in Japan is progressive, meaning that tax rates increase with income. Taxes exist in many forms, including sales taxes, property taxes, and income taxes, just to name a few. All prefectural and municipal governments in Japan charge residents a one-time income tax of 10%, regardless of how much money they made the year before.