Payroll Guide: Japan

OS HRS takes care of your multi-country payroll with local regulatory expertise. From Japan, across Asia Pacific and beyond, we are the payroll partner of global leaders. Not sure where to start when it comes to multi-country payroll? Here’s our quick payroll guide for your Japan business operations.

Overview of payroll in Japan

What are the steps to set up payroll in Japan?

Firstly, how payroll is setup in Japan depends on what corporate structure you have in place. Japan has four types of corporate structures, which are:

• Godo-Kaisha (合同会社): A limited liability company

• Goshi-Kaisha (合資会社): A limited partnership company

• Gomei-Kaisha (合名会社): A general partnership company

• Kabushiki-Kaisha (株式会社): The Japanese version of incorporation

Once your corporate structure has been determined, companies need to go through various legal procedures in order to set up their Japan payroll. Some legal items that must be addressed are:

• A Japanese resident must be appointed as either the incorporator or managing member.

• Paid-up capital is to be deposited into the company's bank account before it is incorporated into the operating entity.

• Include details of employees and other company details in the Articles of Incorporation.

• Subsidiary name(s) are to be submitted to the Trade Registrar. If it is in English, the name should be submitted as is but contain its Japanese kanji translation.

• The Legal Affairs Department must have all the certified documents for the incorporated entity.

After the above, you will be ready to hire employees, which means you will need to set up payroll process. You will need to register with the following Japanese government agencies:

• Labor Standards Inspection Office

• Social Insurance Office

• National Tax Agency

What do you need to know about Japan Payroll?

Employer Contributions in Japan

What do you as an employer need to make in employer contributions?

* Approximate figure, therefore, not included in employment cost

Employee Contributions in Japan

What do your employees need to set aside in contributions?

Employee Income Taxes in Japan

What are the income tax rates?

Why trust OS HRS with your Japan payroll?

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Last updated September 2024