Contractor Solutions in Japan

Both independent contractors and hiring companies face complex cross border rules if they are located in different countries. Whilst there is a lot of information on the web about companies and their services, there aren’t many places to see the actual questions asked by contractors and remote employers. So we created our ‘Contractor Solutions’ series where Campbell Curtis, the CT Solutions Expert uses his vast experience with international umbrella companies to answer your questions. – We’re always happy to jump on a call if that works best for you. – To safeguard our client’s privacy we have removed information like phone numbers, names of people or companies. – We also don’t publish salary rates, net earnings calculations or umbrella company fees. We have experimented with this in the past – it is arguably the most important piece of information when choosing an umbrella company. Unfortunately the calculations are often highly contextual (e.g. they can be influenced by factors like nationality, duration of assignment, region, marital status, industry, etc). So putting figures online could be misleading. Instead we’d rather you get a financial quote tailored to your specific circumstances. – Some of the question and answers might appear repetitive or basic. They are all enquiries we’ve received. We get asked some things a lot – that’s one of the reasons we are putting the questions and answers online. We also deal with a really broad range of contracting experience, from people thinking about their first contract all the way to industry veterans. And on that note if you came to this page because you want a company in Japan that sells Umbrellas (傘)… sorry we can’t help you! – Lastly if you don’t what you’re looking for on this page, we’d still love to help – just get in touch.

Spanish national needs Japanese Umbrella Company for Work Visa

“Dear Team, I’m an industrial designer located in Japan, operating as a sole proprietor for the past three years. I came across your article: https://contractortaxation.com/japan-old/umbrella-company-japan/ I am interested in exploring potential collaboration opportunities to renew my visa, which is set to expire this year. Looking forward to hearing from you. Best regards,.“

Campbell: Thanks for reaching out. It sounds like you’re doing some great work with your contract in Japan. I’m glad you found our article helpful and are considering collaborating with us to renew your visa.
Here’s how partnering with our Japanese umbrella company can assist you:
Visa Sponsorship: An umbrella company can sponsor your work visa, which is crucial for continuing your work legally in Japan. They will act as your employer on paper, handling all the necessary legalities and compliance issues.
Simplified Administration: By partnering with an umbrella company, you can focus more on your design work while they manage your paperwork, invoicing, tax calculations, payroll and compliance requirements.
Comprehensive Support: Umbrella companies offer a range of services, including payroll management and local support, to ensure that you meet all fiscal and regulatory obligations in Japan.
To start the process, we can discuss your specific needs and ensure that everything is in place for a smooth transition. Given that your visa is set to expire this year, it’s a good idea to begin this process as soon as possible to avoid any last-minute issues.
I’m looking forward to discussing this further and exploring how we can best support you in renewing your visa and continuing your successful career in Japan.

French company needs Umbrella Company to sponsor and payroll French contractor in Japan

The second set of questions are from a UK citizen who is looking to contract from Spain with a UK company.

“Hello, Due to personal ambitions and potential business opportunities, my company and I are looking for ways for me to relocate to Japan with my spouse. As such, we are interested in any options that can provide me with a sponsorship, good healthcare insurance and assistance with any fiscal regulations. Regards“

Thanks for getting in touch! It sounds like you have some exciting plans with your move to Japan. Let’s explore how we can assist you and your spouse in making this transition smooth and hassle-free.
Given your situation, partnering with our Japanese umbrella company could be a great solution. Here’s how it can help:
Visa Sponsorship: The umbrella company can sponsor your work visa, which is essential for legally working in Japan. They act as your employer on paper, handling all the necessary legalities and compliance issues.
Healthcare Insurance: Most umbrella companies provide comprehensive healthcare insurance as part of their services. This ensures that you and your spouse are covered, giving you peace of mind as you settle into your new life in Japan.
Fiscal Regulations Assistance: Navigating fiscal regulations in a new country can be challenging. Umbrella companies offer expertise in local tax laws and can help you manage your payroll and taxes, ensuring you stay compliant and avoid any fiscal pitfalls.
For your specific case of a French company needing an umbrella company to sponsor and payroll a French contractor in Japan, it’s crucial to meet the Japanese requirements for work permits. Typically, our umbrella company partners will handle all the necessary paperwork and ensure that your contract meets the income threshold required for visa approval.
Starting the process early and engaging with a reliable umbrella company can make all the difference. They can provide the necessary support for visa sponsorship, insurance, and fiscal management, allowing you to focus on your personal and work ambitions without worrying about administrative hassles.
I hope this gives you a clearer picture of your options. Feel free to reach out and i will be happy to bridge you with our Japan umbrella partners to take the next steps

American software engineer needs Umbrella Company for visa sponsorship and payroll whilst working remotely for US company

“Hello, I’m currently based in the United States and am trying to plan a move to Japan in about one year from now. I’m a software engineer. My ideal situation would be to find employment as a software engineer in the USA, then switch employers to a Japanese umbrella company and be “re-hired” by my original employer through the umbrella company, when the time comes to move. I’ve got theoretical buy-in from a couple American companies on this plan already, but before I make any serious commitments, I want to seek some advice about how/if this would work Japan-side. Some of the major questions I have at this point are: 1. Is what I’m suggesting even possible? I.e. having a Japanese umbrella company sponsor a visa for me, and be re-hired by an American company via the Japanese umbrella company? 2. What kind of options are there for Japanese umbrella companies who would do this? What considerations are there when selecting one? 3. About how far out from a potential move date would I need to start the process when an umbrella company? Thank you so much for your advice.”

Campbell: Moving to Japan and continuing your work as a software engineer through a Japanese umbrella company is definitely an something we can assist with. Let’s dive into your questions one by one. See below responses to you questions:

1. Is what I’m suggesting even possible?
   Yes, it is possible to have a Japanese umbrella company sponsor your visa and essentially act as a bridge between you and your original American employer. The umbrella company would technically be your employer in Japan, handling things like visa sponsorship (work permit support), invoicing your American based company, managing all payroll, taxes, and compliance in Japan. This setup is quite common for contractors and remote workers who need to navigate complex international employment laws and visa requirements
2. What kind of options are there for Japanese umbrella companies who would do this? What considerations are there when selecting one?
   There are several reputable Japanese umbrella companies that could facilitate this kind of arrangement. When choosing one, you’ll want to consider a few key factors:
   • Reputation and Reviews: Look for companies with strong reputations and positive client reviews.
   • Services Offered: Ensure they offer comprehensive services, including visa sponsorship, payroll management, tax compliance, and legal support.
   • Experience with Foreign Workers: It’s crucial that the umbrella company has experience handling cases similar to yours, involving foreign workers and international employers.
   • Cost: Understand their fee structure and make sure it fits within your budget.
   • Support and Communication: Good communication and support are essential, especially when dealing with international employment.
3. About how far out from a potential move date would I need to start the process with an umbrella company? You should start the process about 6-8 weeks before your planned move date. This gives our umbrella partner ample time to handle all the paperwork, secure a visa, and ensure everything is in place for a smooth transition. Visa processing times can vary, and starting early helps mitigate any unexpected delays.

I hope this helps! Moving to Japan is a big step, and it sounds like you’re doing all the right things to prepare. If you have any more questions or need further advice, feel free to ask. Good luck with your move!

UK national with Japanese spouse relocating to Japan to work remotely as a contractor for UK employer

“Hi I currently work for a UK firm on a permanent contract, but I am moving to Japan on a spouse visa. Please can you advise me on how I can continue to work for this UK company but as a contractor from Japan? Am I correct in thinking that as a spouse of a Japanese national my visa situation is covered, or would I still need to obtain a work permit? In terms of tax, would I need to declare any income as soon as I relocate and start working from Japan? I see that the 183 day does not apply- in the interim between agreeing a new contract with me would the UK firm (or myself) be liable for paying tax to both Japan and the UK? Would working with an umbrella company benefit me here? I also have no experience of contracting- people could you advise on how I negotiate terms and salary etc? Thank you”

Campbell: Thanks for reaching out, and congrats on your upcoming move to Japan. I’m happy to help you navigate this transition.
As a spouse of a Japanese national, your spouse visa does indeed allow you to live and work in Japan without needing a separate work permit. So you’re covered on that front. You can transition from being a permanent employee to a contractor for your UK employer while in Japan. This typically involves setting up an arrangement with our umbrella company in Japan, which can handle the contracts with your UK Employer and all the other administrative aspects for you.
There are some Tax Considerations; you will need to declare any income earned from the moment you start working in Japan. The 183-day rule typically applies to short-term stays, so as a resident, your worldwide income becomes taxable in Japan.
Japan and the UK have a tax treaty that aims to avoid double taxation. This means you won’t be taxed twice on the same income. However, you might need to file tax returns in both countries. An umbrella company can assist with this, ensuring compliance with both Japanese and UK tax laws.
Our in-country umbrella company can handle all your tax filings, invoicing & payroll, and compliance issues, making your transition smoother. They can also help with negotiating terms and setting up your contract in a way that’s beneficial for both you and your UK employer.
Some points below when negotiating terms and salary:
Market Rates: Research the going rates for contractors in your field. Websites like Glassdoor and LinkedIn can provide insights.
Contract Terms: Ensure your contract covers key aspects like payment terms, project scope, and duration. An umbrella company can help you draft a robust contract.
From here I will introduce you to 3 umbrella company partners that can assist you further in Japan. Let me know how you get on.

Independent contractor needs visa and umbrella company to work remotely from Japan for Dubai based client.

“Looking to become an independent contractor working from Japan. I would be entering in a contract with a entity based in Dubai. I am looking to get a working visa and setup my legal tax residence in Japan”

Campbell: Congratulations on your contract opportunity in Japan.
Our Umbrella Company partners in Japan can sponsor your work visa and handle all the administrative tasks, such as payroll, taxes, and compliance, allowing you to focus on your work.
Once in Japan, they will ensure that you comply with Japanese tax laws, helping you set up your legal tax residence. They’ll manage your tax filings and ensure that everything is in order, so you don’t have to worry about that.
The umbrella company would need to invoice your Dubai company for your income so there would require a service agreement with between the 2 companies.
Please let me know if you need more information or if you’d like to set up a call to discuss this further or take the next steps for a direct introduction to the umbrella company.

American national working remotely from Japan for a US company

“Hi, I am interested to know what Umbrella Companies I can work for in Japan and keep my existing contract, working remotely for a US company from within Japan. I am also interested to know what details about my existing contract needs to change, if any.”

Campbell: Thanks for reaching out. It’s great to hear you’re interested in working through our umbrella company partners in Japan.
Here’s how it works:
The umbrella company will act as your employer on paper, handling all administrative tasks like invoicing, payroll, taxes, and in-country compliance. You can continue working remotely for your US company, and the umbrella company will take care of everything else . There would need to be a an service agreement held by the umbrella company with your US company and in turn an employment contract with you. Typically, your existing contract might need some adjustments to align with Japanese regulations. This could include:
Payment Terms: The way you get paid might change, as the umbrella company will handle your payroll.
Tax Obligations: Ensure compliance with Japanese tax laws, which the umbrella company will manage.
Employment Terms: Some details might need to reflect the umbrella company’s role as your employer in Japan.
I am not sure of you right to work in Japan but if you do not have a work visa we can assist with that too via sponsorship etc.
To get started, I can connect you with reputable umbrella company that can assist with this further. They will provide a detailed quote and scope of services.
Let me know how you get on.

British lawyer wants to work remotely from Japan for their current employer in the UK

“I am an experienced lawyer working for a law firm in England. My ambition is to live and work in Japan. Finding work as a lawyer in Japan is possible, but difficult (at the moment, very difficult). My current employer would be happy to continue to give me work and pay me working in Japan – either as a contractor or employee. Our firm tend to work remotely, so this would not be a problem. There are two problems (1) I would need someone to sponsor a work visa and my employer can’t do that (2) organising how to pay Japanese tax might be difficult, though that is a lesser problem. NB: I am not trying to avoid paying tax that is due, but I know that sometimes there are legal complexities. Is this even possible? If it is, are there companies that could help me?”

Campbell: Hi there,

Thank you for your web inquiry and I am happy to assist you with your employment requirements in Japan. We have assisted many workers including lawyers in this country.

Our specialist umbrella partner in Japan can provide sponsorship a on behalf of you UK company. You would need a confirmed offer from your UK company and they would need to sign an MSA.

Our umbrella company partners will invoice your UK company for your gross salary/earning rate and pay you in-country net income whilst managing and contributing your income taxes to the Japanese authorities. This is a fully compliant solution.

Let me take a moment an bridge you with our partners directly so we can get the ball rolling w with a proposal and projections of earnings.

We look forward to assisting you further.

Regards,
Campbell

EU national in Japan wants to get their visa sponsored by an umbrella company so they can continue contracting remotely for a Singaporean client

“Hi, I am interested to know more about Japanese Umbrella companies. I currently live in Tokyo and am currently a long-term contractor for a Fintech company in Singapore. My visa in Japan is ending this October. Is it possible to get sponsored by an umbrella company in Japan and continue working and paying tax in Japan? Looking forward to your reply! Best regards,”

Campbell: Hi,

You have come to the right place. We have a specialist umbrella company partner that can can sponsor you in Japan on behalf of your Singaporean company.

The umbrella company will also manage all your income and tax distributions accordingly in Japan. Let me introduce you to our partner umbrella company in a separate email. They will provide a detailed quote and projection of earnings.

We look forward to assisting you further.

Regards,
Campbell

US citizen needs tax solution for a contract delivering training in Japan

“I run classes in Japan and am looking for an umbrella company to take invoice payments. I want to understand their fee structure. And also am looking for someone to do the taxes if we need it.,”

Campbell:

We have 3 vetted umbrella companies that can provide such services. Their average fees are circa USD 500-600 per month excluding work permit costs. They can invoice on your behalf and handle your taxes and contributions within Japan. I can connect you directly with these partners so you have a choice and comparison.

Other resources for Contracting in Japan

• Japan
• Tax in Spain
• Contracting in Japan: A Guide for International Contractors
• Umbrella Company Japan