/Why use Staff Management in China?

Why use Staff Management in China?

The Benefits of using Staff Management in China

The strong economic growth of China is attracting more and more foreign companies on the territory. However, the administrative procedures to be implemented to achieve can be long and complicated. Often factors such as obtaining a working visa or a business fees relevant economic activity abroad is additional difficulties.

Firstly, it is an effective aid, which enables companies to set up a project has 100% flexible abroad. The customer can freely work a representative in another country without having to worry about the various legal and administrative procedures. The Staff management company fully supports the consultant. It is an intermediary, and provided to the consultant the employee’s status.

This Allows:

– The client company to identify industry’s opportunities, to negotiate and operate freely with its clients.

– The consultant can be focus on the development of the company’s business, while enjoying the structure and the organizational framework of the umbrella company.

It is an organization composed by three different parties, between a consultant, a client company (the company that wants to establish itself in China), and a company in charge of “Staff management “(consulting company).

The client company pays the consultant’s fees to the staff management company. This one is in charge of pay back wages that corresponds to the activity it produces, after all management fees and contributions have been deducted.

The services that a Staff management company offers are usually divided into four main categories:

– Administrative and legal: The management of all the steps for obtaining a working visa, salary payments, the realization of tax return, or the choice of medical insurance.

– Physically: The ability to find and make available workplaces.

– Expertise:  the umbrella company’s experience of the country can provide to the customer a personalized assistance in launching their business.

– From a tax point of view: The tax structure of the umbrella company optimizes tax either in the country where the consultant is located, as in the country where the client company is located.

The advantages of use the Staff management in China:

-No social declaration to be made

-No tax return or any accounting documents to handle

-No structure to create

-No wasted time on any administrative tasks/processes in China

-No requirements in the choice of medical insurance and/or Social Security

-No records to be kept

-No risk of bankruptcy

Therefore, staff management in China can enable companies to set up a project that has 100% flexibility and will bring many benefits and advantages to foreign companies.

See also: China Market Entry Guide

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2017-01-05T15:32:05+00:00 January 5th, 2017|

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