Cost-effective market entry at low risk
The creation of a sales office involves three parties. The foreign company, the company’s representative and the local partner or also known as PEO (Professional Employment Organization). The PEO act as a subsidiary, and, therefore, enables the foreign company to perform business activities in China. Furthermore, the foreign company must decide where to locate its office.
The foreign company decides what type of rental is best to establish the sales office, the geographical location and the size of the office, but these aspects do not alter the employee’s legal or administrative situation. This type of local structure requires an in-country presence of at least one employee. The main objective of a sales office is settling an enterprise in China via its representative without any financial or legal hurdles.
It is the foreign enterprise’s role to install its employees in China in the best conditions in order to facilitate the company’s growth and satisfy the local needs (client proximity, suppliers and partners, local team diversification, etc…)