ICL_LANGUAGE_CODE: en

Mobileye

logo-mobileye

Customer profile:

Mobileye is a subsidiary of Intel that develops vision-based Advanced Driver Assist Systems (ADAS).

Customer size:

750 employees

Countries:

Japan, The Netherlands, Israel, USA, Germany, China

Industry:

Automotive, autonomous vehicles

Key services:

  • Company Formation & Business Establishment
  • Corporate Governance & Administration Services
  • Governance, Risk & Compliance
  • Cash, Bank & Payment Administration
  • Tax Services
  • Accounting & Financial Reporting
  • Payroll

Customer since:

2013

Asia Business Expansion

Improving road safety and shaping the future of mobility

COMPANY BACKGROUND
Mobileye is an Intel company and the leading supplier of software that develops and enables vision-based Advanced Driver Assist Systems (ADAS). Since 2007, Mobileye’s proprietary software algorithms and EyeQ chips have empowered vehicle manufacturers to improve road safety, reduce traffic congestion and save lives.

The technology works by performing detailed interpretations of the road ahead to anticipate potential collisions with cars, trucks, motorcycles, cyclists and pedestrians. The all-in-one system provides drivers with warnings for collision prevention and mitigation, and supplies critical time for drivers to take corrective action. Their vision for safety is fast becoming the recommended standard.

Mobileye’s unparalleled knowhow stems from 15 years of research and development. It operates its machine vision development centre in Jerusalem, Israel and is headquartered out of Amstelveen, the Netherlands. The company also has sales and marketing offices in the United States, Germany, Japan and China, feeding products to hundreds of distributors across the globe.

27 global automotive manufacturers rely on Mobileye to keep their vehicles safe, with nearly 15 million vehicles making use of the technology annually. This represents a market share of more than 70%. “By the end of 2019, we expect over 100,000 Level 3 cars with Mobileye installed,” says Mobileye’s Co-Founder and Chief Technology Officer, Amnon Shashua.

EXPANSION INTO ASIA
A giant in the automotive industry, Japan has consistently ranked in the top three global manufacturers since the 1960s. It has a highly developed and market-oriented economy. As a leader in technology and innovation, it is a popular choice for multinationals building research and development centres.

While Japan boasts the status of second largest developed economy and third largest by nominal GDP, it is only 34th for ease of doing business and as low as 106th for starting a business. It has a very complex tax system and indirect barriers to trade, with regulatory hurdles creating considerable direct and indirect costs if overlooked. A complete understanding of the required procedures stipulated by law is difficult, as the basis for Japanese laws are continually updated, both legislatively and judicially.

Setting up international operations presents many risks, which is why Mobileye engaged Tricor, Asia’s number one provider of business solutions, to ease the challenges of penetrating the Japanese market. “Tricor’s experience helped to bridge the communication gaps in our operations,” said Shotaro Kawahara, Mobileye’s CEO, Japan. “We were able to hand off a range of business process outsourcing (BPO) functions to Tricor’s dedicated team, and rest assured that they could handle each task – no matter how cumbersome – expertly and efficiently.”

COMPANY FORMATION
Tricor provided qualified nominee directors to facilitate the initial incorporation of Mobileye’s entity in Japan, and to meet ongoing needs. Because Japanese jurisdiction requires the declaration of the names and addresses of a company’s directors for public record, appointment of a Tricor nominee director strengthened Mobileye’s privacy by preventing the disclosure of their personal information.

The representative directors of a Japanese company are responsible for carrying out the decisions made by the board or the executive officers and have authority to represent the company. Mobileye turned to Tricor to be that trusted partner. The nominee director also served as an operational liaison, enabling Mobileye to rent an office, open a bank account and hire employees in Japan conveniently, and in record time.

CORPORATE GOVERNANCE
Even the largest, most organised foreign companies struggle to maintain good internal controls in Japan. Tricor’s expertise in corporate governance and local knowledge allowed them to assist Mobileye to establish effective policies and procedures, risk management and a healthy internal control structure.

TAX & ACCOUNTING
Tax in Japan is an onerous task that can easily exhaust hundreds of hours a year in management time, with 14 payments required annually. Tricor was able to provide advice and guidance to Mobileye regarding Japan’s tax system, on corporate tax structures and tax treaties in particular, as well as personal and consumption taxes
Structuring director compensation poses a significant problem for Japanese companies, as the payment of remuneration to directors has been subject to a stringent tax deductibility threshold. However, recent legislations have come into effect that allow remuneration paid to directors to be tax deductible so long as certain requirements are satisfied.

Tricor also provided the support to do Japanese language book-keeping and filing locally, but also provide monthly management reports to the team in the Netherlands to consolidate their books at the headquarter level and meet tight deadlines.

PAYROLL
The Japanese employment system has unique features, such as long-term employment and seniority-based wages. Hiring an internal team based in Japan to manage payroll would have carried significant costs and required in-depth local knowledge. Fully outsourcing payroll to Tricor allowed Mobileye to streamline their human resources efforts and focus more on local recruitment activities. Tricor’s payroll solution ensured full compliance. Every month, tax and social security were deducted at the source, staff were paid on time and comprehensive reports were delivered to management teams for insights.

CROSS-CULTURAL BUSINESS COMMUNICATIONS
A small fraction of local Japanese people are proficient in English at a business or professional level, less than 5%. More important than just language competency, another key challenge of doing business in Japan is the ability to understand the local communication style. A preference for indirect, high context communication means that a lot of information is implied or inferred. Non-verbal communication, such as body language, is of very high importance. These nuances can leave international organisations confused and frustrated, with friction and misunderstandings hindering the ability to effectively reach business objectives.

“The insights and expertise that Tricor has in Asia opens doors for our clients – especially in countries such as Japan, where the regulatory environment is complex, and business decisions are heavily influenced by cultural subtleties.” said Charles Ferguson, Tricor’s Global Chief Commercial Officer. “The success of every business relationships is dependent on effective communication. These exchanges are the bedrock for companies wishing to remain competitive at a global level. Tricor’s talented professionals are multi-lingual, have local insider knowledge and are experts in their fields. There is no firm better positioned to help with expansion in Asia,” he said.

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