In principle registration of a corporation is required for reasons such as ensuring tax compliance. A foreign employer should be associated with an 'establishment registered corporation' to obtain a corporate number as described in 5.3. Without the number the foreign employer cannot open a payroll in Japan.
The tax administration places a sweeping requirement on all individuals to file a tax return if they receive salaries and wages from those who are not obliged to withhold income tax at source (NTA.go.jp). However, whether the obligation to withhold is imposed upon non-resident employers is not explicitly discussed.
There are visa and tax compliance practicalities which will ultimately require a foreign employer to establish a presence in Japan if they wish to send an employee
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