Different Ways of Doing Business In China
HROne Solutions for Foreign Companies for China Market Entry
HROne is committed to providing the best customer experience for our clients and adding value in everything we do for them. Therefore, to bring more expediency to our clients, especially for foreign companies who want to enter China market and establish their business, HROne has launched a Total Service Solution for foreign Small and Medium-sized enterprises (SME’s). HROne is a one-stop solution provider for foreign companies who want to enter the China market, providing all the services that a foreign company might require before, during and after its set-up in China.
There are different ways of doing business in china – with or without a legal entity in China.
Doing Business WITHOUT A LEGAL ENTITY IN CHINA
1. Employee Leasing/Employment services
Did you know that you can hire an employee in China even before your business is setup in China? For testing the market, many companies prefer this option as it allows the foreign company to test the waters before they establish their legal entity in China.
Companies not having a legal entity in Mainland China, Taiwan and Hong Kong cannot hire employees directly. A common solution for these companies is to hire local employees though HROne. HROne has the capacity to provide PEO/Employment services in Mainland China, Taiwan and Hong Kong. With this service, HROne handles the local employment contract for the client’s employee, the employee’s monthly payroll, employee income tax deduction and contribution, mandatory benefits/social security deduction and contribution (social insurance and housing fund in Mainland China, Mandatory provident fund in Hong Kong, National health insurance in Taiwan etc.) for the client’s employee.
2. Invoicing/Fapiao Issue Service
Most of HROne client ’s are foreign entities, which means they don’t have a legal entity in Mainland China. Often our clients feel the need to invoice their clients based in China. Therefore, HROne has introduced the Invoicing/Fapiao Issue Service for the convenience of our clients by providing the Invoicing service for their financial transactions.
3. Office Space Leasing
HROne can assist its clients with providing fully serviced office space in Shanghai, the financial capital of China. The serviced offices provide top-class facilities and one-stop services. The office spaces are a perfect solution for small and medium size enterprises with a very low headcount in China. We focus on creating values along with extensive office and business solutions.
HROne Office Spaces in Shanghai offer:
- Office Spaces at a prime location in Shanghai
- All-inclusive infrastructure and facilities including broadband, security, meeting rooms, professional receptionist etc.
Doing Business WITH A LEGAL ENTITY IN CHINA
1. Company Formation Service
Once a foreign company has tested the China market and they are sure that they want to establish a legal entity in China, HROne can support its clients through our Company Formation Service. Registering a foreign company in China is complex as it involves approvals from multiple local authorities and bureaus. Our extensive network of local government bureaus contacts, experienced legal advisors, knowledge of local regulations and our experience make HROne the best option to accelerate your entry into China.
Foreign investors can set up four kinds of company types in mainland China – Joint Venture (JV), Representative Office (RO) or Wholly Foreign Owned Enterprise (WFOE). Depending on the purpose, goals and the duration (short term/long term) of business, investors can decide the suitability of structure for their business.
2. Payroll Processing and Individual Income Tax Management Service
Once our clients have fully established their legal entity in China, they need to setup the company accounts for social insurance and housing fund, tax account, bank accounts etc. HROne can set up all these HR-related accounts for our clients and also handle their employee’s monthly payroll, employee income tax deduction and contribution, Monthly salary calculation and delivering pay-slips to the employees. HROne also have their Employee online portal for the convenience of our client’s employees.
3. Mandatory Benefits: Social Insurance and Housing Fund Handling
Clients can choose to use Benefits Administration service in addition to HROne Payroll Services. The whole package is known as HROne Agency service, that is a combination of HROne Payroll Services and Benefits Administration service. With this service, HROne also handles the employee’s mandatory benefits/social security deduction and contribution along with the employee’s monthly payroll.
4. Employee Handbook and Employment Contract Template
Once our clients have fully established their legal entity in China, they need Employee Handbook and Employment Contract Template to directly hire employees in China.
HROne’s Bilingual Legal Documentation service helps our clients to make, verify, update and translate employment contracts, offer letter, various agreements, organizational policies, and documents related to arbitration and trial. For added convenience to our clients, HROne provides standard templates of these documents as well as provides tailormade documents to our clients.
5. Expats Work Visa Application
With the rapid economic changes brought on by economic globalization, more and more foreign talents have begun to enter the booming Chinese market. Keeping up with our clients’ needs, HROne has launched Work Visa Application services for the foreigner employees of its client companies registered in Shanghai & Beijing.
6. Employee Reference Check Service
Conducting employee reference checks has been proven to be one of the most significant steps for our clients for their candidate selection process. An employee’s previous work experience and performance are often considered the best indicators of their capability and performance in their future employment. This process is best performed by a third-party and therefore, HROne helps its clients to accomplish this objective. With the candidate’s consent, HROne checks the candidate’s citizenship, education information, the authenticity of the work experience, the reason for exit, performance, rewards and penalty records.
7. Commercial Insurance (Supplementary Health Insurance)
With medical expenses increasing faster than the cost of many other services, the potential drain on personal and family resources from health problems or medical emergencies can be worrying. Providing peace of mind to individuals and families, Supplementary Health Insurance Plans offered by HROne allow our client’s employees to choose any physician, clinic or hospital in the world. Our client’s expat employees can feel at ease working and living in China by choosing our global health advantage plans. The Global Heath Advantage plan include:
- Worldwide Coverage
- No co-payment
- Option to add Dental cover
- 24-hour emergency assistance
- Out-patient surgery and post-hospitalization
- Emergency medical evacuation and repatriation
- Full underwriting at application, not at claims stage
- Freedom to select any hospital or clinic in your selected area of coverage
- Choice of annual deductibles, so that you can change your coverage style.
8. Tax and Accounting Service
Tax and Accounting play a major role in any business for management and planning. Accounting systems, tax regulations and rules vary considerably in different countries, and it is no different for China. Whether our clients are a startup company, an established legal entity in China or foreign company having no legal entity in China, all companies need to spend more time in consideration of accounting and tax requirements and related consequences. With multinational companies and startups expanding their operations all around the world, it becomes a challenge to be compliant with local tax and accounting regulations. Taking this into consideration, HROne provides professional tax and accounting services for its clients including Corporate Taxation, Employee Taxation, Tax Information Reporting, Bookkeeping etc.
9. Expense Reimbursement/Expense Claim Service
Expense Reimbursement/Expense Claim is a process of reimbursing the employee expenses incurred during business travel or incurred for official business purpose. HROne helps to collect, validate and manage the expense receipts submitted by individual employees that need to be reimbursed by the employer after their approval.