Lyra Martin Tech 07.26.2022 08:Jul AM EDT

Google, Microsoft, 11 Other Companies Registered Their Global Headquarters in Japan to Avoid Penalties

Foreign companies operating in Japan must register their overseas centers, and Google, Meta Platforms, and Twitter are among the 31 companies ready to follow the rule.

Japan Requires International Corporations to Register their Overseas Centers

Google, Microsoft, and eleven other international corporations reportedly took steps to register their worldwide headquarters in compliance with Japanese legislation. Foreign businesses that conduct ongoing operations in Japan are required by law to register their overseas centers there for tax and consumer protection reasons.

However, many global IT companies only have registered branches in Japan. It was revealed in June that the Japanese Ministry of Justice had requested written submissions from 48 corporations in March.

A total of 31 businesses, including Google, Meta Platforms, and Twitter, have indicated that they are prepared to abide by the guideline. 13 firms, according to Japan's Justice Ministry, submitted registration requests prior to the deadline on Friday.

Six businesses finished the registration procedure on Monday (July 25) afternoon. Four other companies have informed the Japanese Ministry of Internal Affairs and Communications that they will stop doing business in Japan and are no longer required to register. The other remaining enterprises have not yet submitted their applications.

For failing to register as needed, the Japanese Ministry of Justice intends to punish businesses up to 1 million yen ($7,300). In late June, they informed the Tokyo District Court that seven corporations would be fined for disobeying or refusing to abide by the guidelines.

Tech Behemoths, Including Microsoft and Google, Halted their Employment

Many computer businesses are evaluating their employment requirements as recession worries grow and inflation, the crisis in Ukraine, and the lingering epidemic take a toll. Some of them have instituted hiring restrictions, withdrawn offers, and even begun layoffs.

The newest corporations to back off include Microsoft Corp., Google, and Lyft Inc. Microsoft said on Wednesday that it was closing numerous positions. While Lyft is closing a division and cutting workers, Google is postponing recruiting for the next two weeks.

Google's parent firm, Alphabet, has slowed hiring. Chief Executive Officer Sundar Pichai warned staff this month that Google would restrict recruiting for the remainder of the year and prioritize engineering and technical skills. "We're not immune to economic challenges," he remarked.

It announced a recruiting hold Wednesday (July 20) to let companies decide on positions and hiring for the remainder of the year. At the end of March, it employed close to 164,000 people.

As it prepares for economic uncertainty, Microsoft informed employees in May that it was reducing recruiting in the Windows, Office, and Teams areas. In 2021, the corporation employed 181,000 people.

More recently, the software developer reorganized and eliminated fewer positions, less than 1% of its overall workforce. The business said this week that it has started to freeze a number of employment listings.

Lyft limited hiring when its stock price dropped in May. On Monday (July 18), the company announced plans to liquidate its car-rental division and cut 60 jobs.

The firm employed 4,500 in 2021. Its CEO Dara Khosrowshahi told Bloomberg in June that his company is "recession-resistant" and won't eliminate personnel.