It can be exciting to expand your business into China, but it can also be overwhelming to navigate the legal and administrative hurdles of hiring staff. This is when you need professional employer organization services (PEOS) to make it possible for you to employ talent without setting up a legal entity. This can actually save you time, money, and the headache of complex local regulations.
How PEOS Works for Your Business
- Choose the Talent
You will select the candidate you are going to hire, which is just like doing it for your own company. But you don’t need to set up a local company to do this. Hiring employees in China can take months and cost thousands if you do it personally.
- PEO Hires Them Legally
What the PEO does is to hire them legally under their own local entity. However, they will assign them to work for you. So, there is no need to open a foreign subsidiary, rent an office, or hire in-house HR/legal teams, which is an efficient way to operate internationally.
- Handle Admin and Compliance
They will be the one to manage the payroll and taxes, as well as the social insurance contributions. They can even manage work permits if needed, including localized employment contracts.
- Direct the Work
It will be your responsibility to supervise the employee’s tasks, schedule, and performance, which is just like a regular team member.
- Monthly Invoicing
You will pay the PEO a monthly fee, including the salary, benefits, and admin fee. But they will disburse everything locally. Thus, you can focus on the core operations of the business.
All this will mean that you will not be required to register for a local business registration. That said, you will have lower legal risk with faster time to market. Most of all, you can rest assured that you have fully compliant HR operations.
How to Hire PEO Services in China
- Choose a Trusted Provider
You can trust a reputable company like Acclime China to guide you when hiring people that are in compliance with local manpower regulations.
- Discuss Your Hiring Goals
It is important to share the details of your preferences, such as the number of employees you need, as well as their job roles and salary expectations. You may also have the freedom to choose Chinese or foreign staff to hire, including the timeline for onboarding.
- Review Service Agreement
A contract will be presented to you about their responsibilities, monthly fees, employee benefits provided, and the payroll structure and taxes.
- Select Your Candidate
You will be the one to find the talent yourself or get recruitment support from the PEO.
- Let the PEO Onboard Legally
What the PEO does is to act as the legal employer on your behalf. Thus, they will handle the contracts, mandatory insurance, and tax deductions. They can also cover the visa or work permit if necessary.
Get ready to build your team in China in a smart way by connecting with Acclime China and start hiring compliantly today. Call us if you want to book a free consultation to explore how PEO can simplify your China expansion.
