China Payroll Services: What Do Offshore Companies Need to Know

Why Our China Payroll Services

Location

Offices in Beijing, Shanghai and Guangzhou

Experience

20+ Years in China in multiple industries

Staff

Providing full China corporate and compliance services

China Payroll Services: Outsource Your Chinese Payroll To Primasia

Before you can start thinking of the China payroll service, the first step is to register the company in China. At this early point, it is important to appreciate that the different regions, as provinces to cities in China have varying payroll rules. Some of the most preferred areas for business include the top industrial and financial centers of Guangzhou and Beijing. Once you pick a location, get a proof or lease to commence the process of company incorporation in China.

Then, pick the preferred business form. Representative offices (RO), Joint Ventures (JVs), and wholly foreign-owned enterprises (WFOEs) are some of the common business forms you might want to select. If you select a joint venture, it implies that you will require a Chinese partner who must hold a majority shareholding in the company. The Chinese administration is encouraging foreigners to opt for different formations instead of JVs.

Unlike a JV, a representative office (RO) is considered an extension of your company that is already established back home or another jurisdiction. Using an RO, you are only allowed to run non-commercial activities in China.

China Xero Accounting, WFOE and Shareholding

Setting up a WFOE is a pretty complex issue, but Chinese authorities have been working on simplifying it. For example, the administration introduced the “Five-In-One Business License” that has tried to combine some of the elements, such as business license, organisation code, statistical registration certificate, and tax registration certificate that are required during registration. Even with the effort, the Five-In-One Business License still does not include all components of registration. For example, VAT and import/export still require separate certificates.

Other requirements include a statement about the business scope, feasibility study, and proof of financial status. Once you are through with company registration and acquired a certificate of incorporation, it is time to get started. So, here is all that you need to know about China payroll service.

Payroll Services For Chinese Companies at Primasia

One of the mistakes that investors make with payroll in China is failing to comply with the country’s set guidelines. The underlying principle, just like with most jurisdictions across the globe, is that every staff should be accorded fair treatment irrespective of sex or race. In addition, all employees should be provided with the right to collective bargaining agreements, and children should not be employed. According to the Chinese labor laws, the employees you hire must sign an agreement. However, oral contracts are also allowed where part-time work is involved.

To hire staff in your company, they are required to provide proof of residence. Then, your company is required to file social insurance paperwork on the first day of the staff at work. In the contract, you must include the following: