Despite an ongoing economic slump, the Japanese market still lures multinationals from around the world. Sorting through the paperwork is the first challenge. Elise Krentzel reports.

• Social Security
• Taxes
• Alien Registration Card
• Visas
• Self-employment
• Driving licence

Located in eastern Asia, Japan is an island chain between the North Pacific Ocean and the Sea of Japan, east of the Korean Peninsula.

While retaining its time-honored culture, Japan rapidly absorbed Western technology during the late 19th and early 20th centuries. After its devastating defeat in World War II, Japan recovered to become the second most powerful economy in the world and a staunch ally of the US.

While the emperor retains his throne as a symbol of national unity, actual power rests in networks of powerful politicians, bureaucrats, and business executives. The economy experienced a major slowdown in the 1990s following three decades of unprecedented growth.

Social security programs in Japan include health insurance, nursing care insurance (for employees 40-64 years of age) welfare pension insurance, unemployment insurance and workers accident compensation insurance.   

International Social Security agreements

The USA has international social security agreements with 19 nations mostly European. Japan, on the other hand, has thus far concluded social security agreements with only two countries: Germany (agreement entered into force in 2000) and the United Kingdom (agreement entered into force in 2001).

This does not bode well for Japan whose largest amount of expats are based in the USA of which over 20,000 are long-term employees and 50,000 are salaried employees. Japan is currently in discussions with France, South Korea and Belgium for international agreements.