Closing a business entity in China doesn’t always signify the complete cessation of operations!
Closing a Business:
What does it involve?
Unresolved matters, on-going projects, or the need for institutional knowledge might necessitate retaining some employees.
Certified Employer of Record (EOR) providers, HROne, present an effective solution for businesses to manage these transitions while ensuring compliance with local labor laws.
HROne offers Customizable Service Plans for your every business need!
Why Retain Employees During a Company Closure?
Operational Needs, Client & Supplier Relationships, Legal & Financial Obligations
Operational Needs:
Project Continuity: Critical projects may still be in progress that require local oversight or specialized skills
Knowledge Transfer: Retaining key personnel ensures that valuable institutional knowledge is preserved for on-going or future operations
Relationship Needs:
Client and Supplier Relationships: Maintaining employees to fulfill relationship obligations is once reason many companies use EOR service
Maintaining relationships: Ensures that smooth handover of client services is taken care of and a continuity of business services
Compliance Needs:
Legal & Financial obligations: Addressing unresolved compliance issues are necessary
Compliance needs vary: Audits, financial reporting, and contract fulfillment require local staff
Frequently Asked Questions
Most frequent questions and answers
What challenges will my company face?
There are several common challenges that companies face during the employee retention phase (without an entity). Some include: regulatory compliance, adherence to Chinese labor laws, employment contracts social insurance, and tax obligations
What are the risks involved for my company?
Yes, there are risks involved. Improper handling of employee contracts or benefits can results in legal disputes and financial penalties. HROne will help you to navigate through all the risks with ease!
Are the administrative task complicated? What is needed?
Yes, starting or closing an entity always involve a variety of administrative tasks, but that is why HROne is here to help! We take care of: managing payroll and benefits, and statutory obligations for you!
What do I need to do to have HROne work with my company?
Contact us today, and one of our representatives will connect with you! We will ask some questions about your company and range of service needs, once confirmed, HROne can help you through these procedures!
Let HROne Take Care Of Your Business Needs
- Adhering to Labor Laws: HROne ensures full compliance with China’s Labor Laws, avoiding risks of fines or employee disputes
- Taxation Management: HROne streamlines the management of individual income tax filings and other statutory requirements, reducing administrative overhead costs for clients
- Social Insurance Obligations: Contributions to pensions, medical insurance, and housing funds are meticulously handled, ensuring both employee benefits and client compliance
What's the Process?
Step-by-Step: Dissolution of a Company & Retention of Employees
1. Engagement & Agreement:
HROne collaborates with the client to design a customized service agreement that outlines the scope of work, employee details, and compliance requirements.
2. Employee Transition:
The client transfers the employment relationship to HROne, making the employees officially employed by HROne while they continue working on the client’s projects.
3. Employment Management:
HROne takes full responsibility for all employer-related obligations: Payroll processing, accurate salary disbursement, social insurance, housing fund contributions, and income tax obligations
4. Employee Replacement:
Should a client need to replace an employee, HROne manages the process seamlessly with legal compliance.
5. Service Termination:
When the client’s business needs conclude, HRONE, ensures an orderly termination of the employment relationship, including legal settlements and contract closure.
**HROne facilitates and advises companies from all over the world, assisting them to meet their China market goals and guide them every step of the way
Close your Company with Ease!
Manage your Business Smoothly Through HROne's
Comprehensive Services, Local Expertise, and Scalable Solutions!
