Outsourcing services for a Japan Representative office
The accounting and finance department in the home country requires detailed information on payments (i.e., payroll calculations, social insurance rates, etc.) and will request monthly reports of these details and payment records in English.
The representative and other staff should focus on their core business of information gathering and market research in Japan. Therefore, it is more efficient to outsource unnecessary administrative tasks such as payments and related work to another company.
Our firm will act as your company's accounting and finance department in
Japan, providing monthly support for the representative office's necessary
tasks in coordination with the relevant department in the home country.
Regular reports are submitted in English using a designated format (your
company's format is also acceptable), but when necessary, we conduct business
while directly discussing with the head office via web conferencing.
Payroll outsourcing
①Monthly salary payroll
Explanation of payroll calculations that can be understood by the relevant department in the home country
(The total salary, including overtime pay, commuting allowance, and details
of deductions for social insurance, employment insurance, withholding income
tax, and special collection of resident tax, will be written in English.)
② Filing and payment of withholding income tax, and filing and payment of special collection of resident tax
③ Bonus payroll
*If you are using the same benefit plan as the foreign company, the calculation will be complicated. In particular, tax calculations will be complex for expatriate employees from the head office.
Compliance work related to salary payments
① If social insurance filing is required due to salary increases or bonuses,
our partner social insurance labour consultant (who can handle English)
will handle everything from document preparation to filing. Representative office does not have a "company status" so a Bank
account of a Japanese bank cannot open for them. Note: Although a foreign company can open a Non-Resident bank account at some
bank, but it is treated like a foreign bank account and bank
charges are very expensive so it is not appropriate to use for a routing
cash management for a Japan Rep office. This is the case, the cash management can be handled by a bank account
of the head-office or a personal bank account of a Representative of the
Japan Rep Office. However, due to avoid expensive bank fee and an internal
control purposes, it should be not realistic.
Payroll is complicated as this is necessary Japan withholding tax and
social insurance deduction. I addition to the above, monthly payment of local
resident tax of staff is mandatory.
Such a timer consuming jobs should be outsourced as Rep staff should be concentrated into Japan market development without wasting time matters.
In case your Japan Rep office hire a specialist for administration jobs
who execute routine works in English, whose annual salary would be JPY
4-5M. Again, outsourcing would be cost saving option for a small
entity of a Japan rep office. 【We can provide such a service as your Japan admin department.】
We are doing such jobs and are reporting to your controller/CFO directly in
English. Your head-office's reporting format is usable for a monthly report
depending on your requirement.
② We will submit the necessary statutory reports (reporting obligations regarding salaries and compensation, etc.) to the tax office every year.
③ We will prepare and submit the salary payment report (necessary for calculating
resident tax) that must be submitted to each municipality where employees
reside at the beginning of each year.
Cash management and payment service.
１.Rep office cannot open a bank account.
２. Payment service for your Japan Rep office.