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Approach
Our approach
Rigorously efficient administration is achievable by any company.
It is the starting point that determines whether an overseas business succeeds.
Issue
The barrier to overseas expansion is a lack of talent
In many Japanese companies, employees with no knowledge of or experience in overseas business are put in charge of it and are struggling to find their way by trial and error, with little idea of where to start. Public surveys also point to a shortage of people to drive overseas expansion.
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85.2%
Companies whose staffing for overseas business is “insufficient or not secured”
JETRO (FY2025)1
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No. 1
53.1%
Reason for not having expanded overseas: “No suitable personnel”
Japan Finance Corporation Research Institute (2023)2
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Tied No. 1
32.9%
Challenge in overseas expansion: “No personnel able to handle overseas business”
SME SUPPORT JAPAN (2024)3
Sources
- JETRO (Japan External Trade Organization), FY2025 JETRO Survey on the International Operations of Japanese Firms, preliminary results (「2025年度 ジェトロ海外ビジネス調査（日本企業の海外事業展開に関するアンケート調査）」速報版; February 2026; 3,369 valid responses), p. 31. Total of “partly insufficient” (46.0%), “significantly insufficient” (20.3%) and “unable to secure / have not secured” (18.9%) among responses on the staffing level for overseas business (n=3,063). In Japanese:
https://www.jetro.go.jp/news/releases/2026/fb2468413e5d19f0.html - Japan Finance Corporation Research Institute, Survey on Overseas Expansion and Reshoring of SMEs (「中小企業の海外展開と国内回帰に関する調査」; June 2023; 3,790 valid responses), Figure 7. Multiple responses from companies planning or interested in overseas expansion (n=354). In Japanese:
https://www.jfc.go.jp/n/findings/pdf/tokubetu_230601_2.pdf - Organization for Small & Medium Enterprises and Regional Innovation, JAPAN (SME SUPPORT JAPAN), Survey on Overseas Expansion of SMEs (2024): Questionnaire Survey Report (「中小企業の海外展開に関する調査（2024年）アンケート調査報告書」; March 2024), Figure 13 (n=310, multiple responses; tied for first with “exchange rate risk”). In Japanese:
https://www.smrj.go.jp/research_case/questionnaire/fbrion0000002pjw-att/kaigaitenkai_202403_2_report_C1.pdf
Winning pattern
Winning patterns in overseas business
Companies that succeed overseas broadly excel in at least one of the following three areas.
administration
competitiveness
capital strength
Product & service competitiveness / Brand & capital strength
These take a long time and considerable cost to build. Gaps are hard to close quickly in overseas markets, and strengths built up in Japan may not carry over as they are.
Rigorously efficient administration
Achievable, in principle, by any company. With people and systems well versed in overseas business, this can be achieved reliably and at low cost, and it is the starting point that determines whether an overseas business succeeds.
Structure
Comparing administrative structures for overseas business
Who handles administration makes a large difference to the headcount, cost and risk involved.
| Area | Handled by each head-office department | Handled by a local administration department | Blanket delegation to the local head |
RecommendedEngaging an overseas administration specialist |
|---|---|---|---|---|
| Finance | 1 person | 1 person | 1 local head | 1 specialist |
| Accounting | 1 person | 1 person | ||
| Tax | 1 person | 1 person | ||
| Legal | 1 person | 1 person | ||
| General affairs | 1 person | 1 person | ||
| HR & labor | 1 person | 1 person | ||
| Headcount required | 6 people | 6 people | 1 person | 1 (outside expert) |
| Issues and features | Lacks knowledge of the country and struggles to cope. Tends to defer to whatever outside advisors say | Not enough work to justify hiring dedicated administrative staff | Few suitable candidates, and salaries are very high even when one can be hired. Fraud risk is also high | Covers overseas business across functions. Low-cost operation with limited fixed costs |
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Handled by each head-office department
- Staffing
- 1 person each for finance, accounting, tax, legal, general affairs and HR & labor
- Headcount required
- 6 people
Lacks knowledge of the country and struggles to cope. Tends to defer to whatever outside advisors say
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Handled by a local administration department
- Staffing
- 1 person each for finance, accounting, tax, legal, general affairs and HR & labor
- Headcount required
- 6 people
Not enough work to justify hiring dedicated administrative staff
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Blanket delegation to the local head
- Staffing
- 1 local head
- Headcount required
- 1 person
Few suitable candidates, and salaries are very high even when one can be hired. Fraud risk is also high
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Engaging an overseas administration specialistRecommended
- Staffing
- 1 specialist
- Headcount required
- 1 (outside expert)
Covers overseas business across functions. Low-cost operation with limited fixed costs
People
For overseas roles, using outside experts
makes more sense than full-time hiring
A dedicated full-time employee is often more than is needed when entering one or two countries, and using outside experts also suits the way overseas business works, which depends on close cooperation with local professionals and partners.
Not enough work for a dedicated position
Entering one or two countries does not generate enough work for a dedicated hire, so staffing tends to exceed what is needed
Delegate only what you need
The scope of involvement can be designed around the number of countries and the stage of the business, with no excess headcount
Internal staff alone cannot do it all
Overseas, outside professionals and partners are essential. Having an employee does not eliminate external spending
Makes full use of outside professionals and partners
A single point of coordination with local lawyers, accounting firms and partners, making the most of outside expertise
Employment is strongly protected under Japanese law
Dismissal requires objectively reasonable grounds and must be appropriate in light of socially accepted norms (Article 16 of Japan’s Labor Contract Act). Reducing headcount is difficult even on exit
Can be adjusted as circumstances change
The scope of the contract can be expanded, reduced or ended as the business progresses, and you can start small
Very few suitable candidates
Few people on the market can handle overseas business across functions, so recruitment itself often stalls
Access to a broad skill set
Draw on cross-functional expertise, from accounting, tax, legal and HR to sales, that is hard to secure through full-time hiring
High pay becomes a fixed cost
Competition for talent tends to drive pay up
Turns fixed costs into variable costs
Fees reflect workload and duration, with no ancillary costs such as social insurance contributions
Contact
Contact
Whether you are launching overseas operations, reviewing your administrative structure or considering an exit, please feel free to get in touch.
Contact us