Hiring a Chinese Employee without a China Company
Outsourcing services from employees around the globe has its ups and downs. For certain companies, there are some tasks that can be completed and accomplished only if they would outsource workers and employees from other countries who specializes in specific set of skills they need. With the advancement of technology and the internet over the past years it is indeed much easier to find the kind of employees and workers you need for your company all over the world with a few taps and clicks on your computer. However, despite all these advancements in technology there are rules and regulations that still applies whenever a company would outsource workers and employees from across the globe. In this aspect, it can get a little tricky.
Due to the limitations and possible complications that laws of every country has it can become challenging to hire someone from overseas to do the job for a company. This is especially true if you’re looking to employ someone located in China.
What are the rules when hiring a local in China?
In general, the Chinese government has strict rules when it comes to foreign companies employing workers based in China. For a little bit of background information here’s how it works. If you’re a foreign company who wants to hire people in China say for certain projects or even as a regular employee for your company it is illegal to directly hire the employee. As per Chinese law, only companies based in China are allowed to employ locals or are based in China. In the eyes of the Chinese law, when a person provides professional services for you or your company and performs employment-like services that would mean that person is your employee thus you must comply with everything that they require to go along with that employment relationship.
Are there any workarounds to these laws?
There are a few options available to be able to work around the legalities but they all come with their pros and cons as well. Here are some of the options:
- If you already have an employee in China but your employee relationship is not legally recognized by the government one option is to have the employee hired by a Chinese company. Your company can pay the Chinese company that is equivalent to the Chinese employee’s wages, taxes and administrative fees.Cons: There can still be a problem in the legality of this method because if the employee isn’t actually doing any work for the Chinese employer that can still come into question in the Chinese government. Many of those who have used this method have failed in the long run and it is deemed to be too risky in the side of the Chinese employer as this can put their own company’s reputation and legalities in question as well.
- One common practice that many do from a few years ago is that they hire someone who is already tied to a local company in China. However, this practice is becoming less popular these days as it still has its loopholes.Cons: One problem of this method is that when the foreign employer makes its payments to the local Chinese employer the government might question why the Chinese employer is receiving monthly deposits in foreign currency in their bank account and why no taxes are being paid in relation to this.
- This third option is one of the best options on the list on a legal standpoint. Have your potential employee or employees form their own domestic Chinese company. Once created, you can just simply contract the company they created for the services that you need.Cons: This option requires a lot of work on the employee’s side. This is why despite it being a very good option in terms of legality it is not a very popular method either. Also, another downside to this is that after everything there is an independent Chinese company out there who can directly offer business to your business’s client instead of going through you.
- The last and best option on our list is to hire your employee from a China-based staffing agency. There are companies based in China that can provide employee leasing services to foreign companies in need of employees for specific types of projects, tasks and jobs. One example for these companies is HROne. We are a company that provides employee leasing services such as HR and accounting related services to clients with no legal entities in China. Companies like ours are licensed to provide employment services or employee leasing service in China, Hong Kong and Taiwan. As of today, imploring the assistance of companies such as HROne is the best option in hiring a Chinese employee without a China company whether it be in terms of legality, convenience and financial aspect.
What is HROne?
HROne is a non-state owned foreign enterprises Service Company located in China. The company was established in 2005 with the goal to provide international and local clients with professional services that they might need. HROne enables established and start-up companies with professional and employee solutions that would allow them to take their business into further heights in China. We are the one-stop shop for Human Resource Solution for companies and businesses looking to establish and operate in China with the help of the services we are able to provide. Throughout the years, we have not limited our services to China alone but have expanded our reach and services with branches in Hong Kong, Jiangsu, USA and Canada. It is HROne’s mission to give clients from all around the globe professional service when it comes to employee leasing, payroll, and invoicing services. We also provide expatriate services as well as legal services to clients eyeing to broaden the scope of their business in China. In providing these key services to clients we aim to help companies flourish in their vision to cross over into different markets without all the hassle that comes along with the process. With our services, clients can focus on innovating ideas for the improvement of their business and companies instead of wasting time and energy on trivial things such as paper works.
Although China is indeed a haven for great sources of talented and skilled employees that can work for clients across the globe, it can be quite tricky working on the legalities and even more confusing working on the paper works. We at HROne understand this challenge best and we take pride in having vast knowledge on how to solve these challenges as well as having the right resources to provide for our clients. We see it as our mission to give our foreign clients professional services to help them succeed in their own industries as well. It is part of our mission to help our clients flourish overseas. For the last 12 years since the conception of HROne we have proven time and again that we are a company of the highest ethical and compliance standards that always results in excellent customer experience to our clients without having to pay for unreasonable and excessive fees. As a company, we treat clients of equal importance and value regardless of the scale of their business. We cater to multinational companies who have established their roots and reputation in their industry as well as we cater to start-up companies who hope to take their business ideas to greater heights by employing talented workers in China. We at HROne believe that small businesses deserve expert services to be able to compete in the modern economy that we have today.
Upholding our reputation and working within our set of values is important for us at HROne. HROne live by the following values that have established our good reputation in this industry:
- Customer Orientation
- Reliability and Professionalism
- Integrity and Compliance
- Guaranteed Accuracy
With these values shared by all the members within the company we continue to work for clients to bring about positive results for them as well as continue to strive to be better in providing services for clients all around the globe. With these values that our company lives by we aim to continue and improve as we not only provide employee solutions to foreign clients but in helping the locals from China and other countries put their talents into good sources of income.
In the coming years, HROne will continue to aim for excellence in providing clients from different companies of businesses payroll and employment solutions in greater China. We will continue to meet and surpass expectations so that we can continue to help foreign and local businesses expand their ventures as well as provide employment opportunities for talents in China. We will uphold the name of being one of the most in demand name in this industry and will continue to prove why we are the reliable experts in our field. So if you’re a business located outside of China hoping to expand your ventures in China, we at HROne will be glad to be of service. We can help you hire a Chinese employee with a China company.
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