Representative Office In Japan (Liaison Office)

There are questions on social insurance and labor insurance when a representative office in Japan is opened to establish an affiliated company. In addition to that, there are questions on social insurance and labor insurance for a representative if Japanese is appointed as a representative of the office in Japan. Followings are answers to those questions.

Social Insurance
1.Social insurance is applicable if the office is incorporated or registered.
2. A representative of registered office like K.K., Y.K. or branch is allowed to join social insurance.
3. Employees of unincorporated companies like representative office who have over five employees have to join social insurance compulsory.
4. Employees of unincorporated companies like representative office who have fewer than five employees are allowed to join the insurance at their discretions.
5. Required documents to join at discretions.
Agreements of employees, certificate of residence, taxation certificate, enrollment certificate to tax agency, lease agreement, bank account number of representative etc.

Labor Insurance
1. Enrollment
Labor insurance including workers' accident insurance and employment insurance is applicable for all employees regardless of the forms of the office, such as corporations, individuals and representative offices etc.
Once the company employs workers, the company has to apply labor insurance.
2.A representative of representative offices
He is not allowed to join labor insurance basically. A representative is construed as a sole proprietor.
( Jan1, 2004 )

Insurance Enrollment (PDF)

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The contents of Core Issues should not be construed as legal advice. Individual problems for information should be referred to legal counsel .