Company Incorporation in China | INS Global
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Company Incorporation in China

Expand Globally. Hire Locally.

INS Global offers industry leading services to help global companies establish themselves in new markets. We help companies make the most of the Chinese market by providing in-depth local expertise and a range of potential options to help you create a legal entity in China.  

Company Incorporation in China - Summary

ADVANTAGES OF USING INS GLOBAL FOR COMPANY INCORPORATION

Reduced Time and Cost

Setting up a legal presence in China can be an onerous process, and often fraught with potential issues. INS Global can guide you through the difficulties and make the best suggestions for your needs. 

Local Expertise

By partnering with INS Global, you can make the most of 15+ years of experience in the Chinese market. Be up to date on new best practices and changing requirements, and don’t be 

One Point of Contact

Avoid confusing information overload and deal with one, expert, partner who can understand and work with your unique requirements. 

Assured Legal Compliance

Be confident of the safety of your employees and your business at every step of the way with INS Global’s expert legal knowledge 

Employee Onboarding

Make the most of INS Global’s extensive work of candidates and recruitment services to bring the best employees available to you, for whatever kind of company structure that you choose 

Types of Entities in China

There are a range of options for companies wishing to establish themselves with a separate legal entity in China. INS can help you at every step of the way with the following: 

WFOE  

A WFOE (Wholly Foreign Owned Enterprise) in China, put simply, is a limited liability company legally and fully owned by foreign investors. Setting up a WFOE requires you to go through all of the steps necessary to open and operate a business in China, but it gives you absolute control over all aspects of the company. While WFOEs are now the most common form of company opened by foreigners in China, it should be noted that legally closing one down can be a complicated and difficult process. 

Representative Office 

For those companies wishing to send individual employees to research the market and begin marketing activities in China without going through the process of setting up an entirely separate legal entity, a representative office can be a good first step. However, employees of representative offices are limited in the kind of activity they can perform, and are unable to engage in profit making.  

Sales Office 

Opening a sales office in China allows companies to directly work with invoice clients in China. It requires partnering with a local PEO like INS Global to act as the EOR for at least one employee acting as the local presence for the company. The PEO will typically handle HR activities for the employee, allowing them to focus on business growth. 

Joint Venture 

Joint ventures are companies in which foreign investors partner with local Chinese business interests to form a limited liability company. Typically, this allows the foreign partners to benefit from the connections, labor, and local knowledge of the local side, while at the same time bringing their technology, capital, and global knowledge. 

testimonial from Manuel Ramos

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 

5/5

LOCAL ENTITY OR PEO? WHAT’S BEST FOR YOUR BUSINESS?

Deciding on the best way to enter the Chinese market requires knowing the options available and considering which is the best for your specific needs. No one answer will be perfect for every business. 

Setting up a local entity would mean: 

  • Full control of and responsibility for every aspect of your business (in the case of a WFOE)
  • Intimate access to local expertise and organization (in the case of a Joint Venture)
  • A quick and easy way to gauge market potential (in the case of a Representative Office)

Partnering with INS Global as your local PEO would mean: 

  • The best of local expertise and experience without the complications of establishing a separate legal entity in China
  • One point of contact that can manage every aspect of HR services including payroll, recruitment, and invoicing
  • Prompt, professional service to take care of any and all complications while you focus on the best possible entry into the Chinese market

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.