How to employ staff without an entity set up in China

How to employ staff without an entity set up in China

Expanding your business into a new country is tough at the best of times – with unfamiliar cultures, languages, laws and business practices being just some of the barriers to a successful and smooth market entry.

The restriction on international travel due to Covid-19 has made this challenge even greater, but this doesn’t mean that you have to put your plans for expansion on hold indefinitely.

It is possible to build a team of local staff on the ground in China whilst your business goes through the process of setting up a legal entity. This can be done by partnering with a local Professional Employment Organisation (PEO) to employ staff on your behalf on a project basis to help get things going without further delays.

There are many benefits to working with a company such as Gemini to employ staff on your behalf, as we can:

  • Help to find and recruit the best candidates for your team
  • Act as the Employer of Record (EOR) for your China-based staff
  • Support your company with all HR services including labor contracts and employee handbooks
  • Pay all mandatory government contributions such as Individual Income Tax (IIT), Social Insurance and Housing Fund costs
  • Advise on local policy rules and regulations and ensure compliance
  • Pay employee salary, bonus and commissions
  • Provide China Visa service for any foreign staff you wish to hire
  • Handle all administration and paperwork, including employee termination per legal procedure

Understanding the China employment market and the risks

For many international businesses, they struggle to understand the complexity of the labour laws in China, including policies regarding the hiring and termination of employees (which can vary from city to city and province to province).

Working with an organisation such as Gemini can help to reduce these risks, as our team of experts have a long history and understanding of advising businesses on how to navigate these potentially tricky issues.

If you are looking for support on hiring of employees in China, then please contact our Staffing Consultant, Sylvia Shen for a confidential chat.