Solution for sourcing products from China

Solution for sourcing products from China.

Purchasing products from China is appealing for several reasons:

Cost & Time Efficiency

Chinese manufacturers offer competitive pricing & are known for their large-scale production capacity and relatively quick turnaround times.

Diverse Manufacturing Base

China has a wide range of manufacturers capable of producing a vast array of products, allowing for a one-stop shopping experience.

Developed Supply Chain

China has a well-established and efficient supply chain network, which can simplify logistics and reduce shipping complexities.

Technological Advancements

Modern manufacturing technology, which can be advantageous for businesses looking for high-quality, innovative products.

However... Purchasing goods from China comes with several risks:

Quality Control Issues

Inconsistencies in quality, and ensuring consistent quality standards can be challenging.

Communication Barrier

Language and cultural differences can lead to misunderstandings or miscommunications, impacting product specifications and expectations.

Longer Lead Times

Due to the distance and shipping requirements, it can take longer to receive goods, impacting inventory management.

Customs and Import Regulations

Navigating the complexities of customs, tariffs, and import regulations can be challenging and sometimes costly.

So what are the options to resolve these issues?

Having a contact on the ground in China is the most effective way to combat the risks of exporting products from China. There are 2 options available for companies wishing to expand their team to China.

Option 1

Option 2

Register a Company in China

Register a legal entity in China in order to hire staff responsible for exports out of China.

Pros

Cons

Use an EOR in China

Use an Employer of Record to hire a sourcing manager in China without a local entity.

Pros

Cons

Our Sourcing Solution

Hire an experienced sourcing manager in China with HROne

HROne's recruitment + EOR (employer of record) service makes it possible to hire an experienced sourcing manager in China in your desired industry without setting up a company in China.

You have full control over the sourcing manager’s daily tasks, salary and non-mandatory benefits, etc. The sourcing manager will directly report to you. 

Recruitment

  • Sourcing candidate screening & shortlisting
  • Candidate background check
  • Candidate reference check

  • Employer of Record

  • HROne hires your new sourcing manager in China
  • Labor contract drafted & signed

  • Payroll Portal

  • Payroll & benefits set up in the HROne portal
  • Mandatory benefits & compliance fulfilled
  • You manage tasks and evaluate performance

  • Travel Expense Claim

  • Sourcing manager's travel & meeting expense claims documented on the HROne portal for you to review.

  • Employer of record in China diagram

    Our Process

    Our simple workflow takes the intricacies of doing sourcing and exporting out of China out of the equation. 

    The best EOR service provider in China

    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:

    BracketAnnual Taxable Income (RMB)Tax Rate (%)Quick Deduction
    1No more than 36,00030
    2Between 36,000 and 144,000102,520
    3Between 144,000 and 300,0002016,920
    4Between 300,000 and 420,0002531,920
    5Between 420,000 and 660,0003052,920
    6Between 660,000 and 960,0003585,920
    7More than 960,00045181,920

    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.
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