Relocating Manufacturing out of China
Relocating manufacturing operations is a complex and resource-intensive process. HROne can easy the alignment of tasks and help streamline the operation.
Moving Manufacturing out of China
HROne offers specialized HR services for businesses looking to downsize their business in China and recruit and hire employees in new manufacturing hubs such as Vietnam, India, Mexico, Indonesia, and Bangladesh.
Our solutions streamline the company restructuring process, ensuring compliance with local regulations and minimizing administrative burdens. Trust HROne to efficiently manage your company’s deregistration with expertise and precision.
Closing or downsizing the company in China
Financial Obligations
Settle all outstanding debts, taxes, and employee wages to avoid legal complications.
- Apply for a tax clearance certificate from the local government.
- Following local laws regarding employee severance and notice periods.
Contractual Responsibilities
Review and properly terminate or transfer contracts with suppliers, customers, and partners.
This may signify that not all of the company’s employees can be terminated. You can retain essential employees on payroll after closing the Chinese entity by utilizing HROne’s Employer of Record service.
Retaining key operations in China after closure
In some cases, companies that close their entity in China still have business activity that needs to be managed in the country.
Employer of Record (EOR) services, also called employee leasing services, allows our clients to keep a team of employees in China after closing the local business. HROne will play the legal role of employer in China for your essential staff while you will retain full control of your team in China.
Engaging EOR service during company closure
- Contact us and give us a brief of your business needs.
- We will reach out to you within 1 business day.
- Determining which employees your will retain in China.
- HROne provides you with an EOR quote.
- EOR service to keep your desired employees hired in China.
- HROne drafts employment contracts for your employees and processes monthly payroll & mandatory benefits.
- You communicate and resume a normal work relationship with youur staff in China.
Moving manufacturing to other countries
HROne partners with NNRoad, a trusted global provider of Employer of Record and payroll services with a strong presence in Southeast Asia (SEA).
Companies wishing to move manufacturing operations out of China can utilize NNRoad’s services to recruit, run payroll, hire staff and relocate staff anywhere with or without a local entity.
Hire, Pay & Relocate Staff Overseas
If you do not have an entity in the relocation location, we can hire new employees and relocate your existing employees to the target country.
- Use NNRoad’s employer of Record service to hire and/or relocate employees.
Why HROne?
As a trusted provider of Employer of Record (EOR) services in China, we offer a comprehensive solution that simplifies the process of hiring and managing employees in compliance with local laws and regulations.
Local Presence and Knowledge:
With our strong presence in China, we have an in-depth understanding of the local market dynamics, cultural nuances, and business practices.
Comprehensive HR Support:
Beyond acting as your legal employer in China, we offer a wide range of HR support services, all in English.
China Payroll Portal
All of our clients have access to our in-house payroll portal for record keeping convenience.
Frequently Asked Questions
Payroll & mandatory benefits are included in our China Employer of Record and our PEO services.
In many countries, PEO and EOR are the same thing and can be interchanged. However in countries such as China and the USA, PEO and EOR refer to different services:
With Employer of Record (EOR), the service provider takes on the responsibility & liability of the employer since the client does not have a legal entity in the country of interest.
With Professional Employment Organization (PEO), the service provider manages hiring, employment and payroll, but does not take on the responsibility or liability of the employer since the client has a legal entity in the country of interest.
The 13th month bonus in China refers to a bonus equal to one month’s salary that is usually paid at the onset of Chinese New Year.
This 13th month bonus is not mandatory unless explicitly stated in the labor contract upon signing. A 13th month bonus depends on the company’s performance as well as the employee’s performance.
It is possible for employees to receive an even higher bonus (14th or even 15th month bonus) depending on these factors.
Employees in China are entitled to annual leave days based on their work experience.
After working for their employer for 1 year. Employees who have worked less than 10 years are entitled to 5 days paid annual leave.
Employees who have between 10 and 20 years of experience are entitled to 10 days paid annual leave.
Employees with over 20 years of experience are entitled to 15 days of paid annal leave.
Using an Employer of Record/PEO service is often regarded as the modern approach to expanding into China. As long as you do not need to invoice in China, this is a perfect solution for foreign SMEs that want to start their business here. With an employer of record, you can legally hire and manager your team in China, avoiding the time and money required to set up a company.
HROne, the Employer of Record, is legally responsible for your staff during their term of employment in China.
We can hire a local Chinese employee in as little as one day!
Your staff members can be employed and located anywhere in China. Their employment status will be recorded by the local bureau according to their location.
Not necessarily. Staff members can work remotely from home or another location. However, we offer office space rentals upon request.
Yes, our Employer of Record solution can be used to hire both local and foreign staff.
Individual income taxes In China are based on a progressive tax brackets rate:
| Bracket | Annual Taxable Income (RMB) | Tax Rate (%) | Quick Deduction |
| 1 | No more than 36,000 | 3 | 0 |
| 2 | Between 36,000 and 144,000 | 10 | 2,520 |
| 3 | Between 144,000 and 300,000 | 20 | 16,920 |
| 4 | Between 300,000 and 420,000 | 25 | 31,920 |
| 5 | Between 420,000 and 660,000 | 30 | 52,920 |
| 6 | Between 660,000 and 960,000 | 35 | 85,920 |
| 7 | More than 960,000 | 45 | 181,920 |
Social benefits in China are divided into two categories:
- Five mandatory social insurances – These include pension insurance, medical insurance, unemployment insurance, work-related injury insurance, and maternity insurance.
- Housing fund – The purpose of this is to allow employees to save money to buy a house in China.