NNRoad's market entry package is a one-stop solution to conducting business prior to having a legal entity in the new market. Refer to below steps to start conducting business in China.
Phase 1. Start your business before your local legal entity is officially setup:
- Employment Outsourcing service
- Invoicing service (dependent on the industry)
- Company Secretary service
- Entity Setup service
Phase 2. Continue your business after your local legal entity setup:
- Provide a template for an employment contract(s)
- Transfer the employment relationship to the client
- Recommend physical office location
- Provide 1st 12-months’ Payroll & Mandatory Contribution service
- Provide 1st 12-months’ Accounting service
- Provide year-end renewals for the 1st calendar year
Set-up Your Company in China
China’s massive economy is appealing to companies all over the world interested in entering a new market. With the ongoing trade war, legal difficulties in establishing a company, and language and cultural barriers, expansion into China can seem daunting. Fortunately, NNRoad’s experienced team is guiding firms through the entire process, ensuring smooth growth to the world’s second-largest economy.
Business entities you can open in China
Standing for Wholly Foreign-Owned Enterprise, it allows a foreign company to operate in the Chinese market while still being completely owned by foreign investors. This legal structure is the most common and effective at taking advantage of the vast consumer base in China.
Some characteristics of a WFOEs are:
- Can perform profit-making operations and send funds overseas (trading, consulting, manufacturing, etc);
- Most independent foreign-owned structure with long-term licensing;
- Can hire foreign and local employees.
2) Representative Office
A Representative Office, known as an RO for short, is a popular method for foreign companies to explore and test the Chinese market. This structure has various operational limitations such as conducting profit-making activities or hiring local Chinese.
A few characteristics of an RO are:
- Gives foreign firms a platform to perform market research, publicity, and marketing activities;
- Firms operating under this structure are not permitted to invoice clients or make a profit, and cannot directly hire local staff, they must instead go through a local agency PEO in China;
- Especially suitable for manufacturing-related activities, such as liaising with suppliers and quality assurance.
Our Company Formation Service Includes:
- Help you to select a proper entity type.
- Recommend capital amount.
- Recommend the Chinese name.
- Translate related documents (for foreign language materials).
- Apply for foreign investment approval (foreign investors only).
- Recommend the registration address.
- Recommend business scopes.
- Recommend a template of the association article.
- Assist in applying for a business license, organization code, company chop.
- Assist in applying for a special certificate (depends on the industry).
- Apply for tax registration and foreign currency registration (foreign investors only).
- Assistance in bank account opening.
- Apply for trademark registration (if needed).
PEO/Employer of Record in China
Hire your employees in China while NNRoad handles all employer liabilities. No local entity needed.
In China, Employment Outsourcing means the individual is selected by, managed by, and works for the client, but the employment relationship is created by a licensed 3rd party; the 3rd party must have clearance from the Chinese government in order to hire legally in China. If the service provider does not have this clearance, the legal risk may fall on to the client. NNRoad solely works with partners in China that have this clearance.
For companies with no legal entity in China, Employment Outsourcing is a good option to start its business in China.
For a representative office, Employment Outsourcing is a mandatory requirement in order to employ Chinese employees.
NNRoad offers two types of Employment Outsourcing services:
Standard - As described by the applicable laws, the client shall bear the full employer liabilities unless the liability is resulted from or caused by NNRoad’s faults or mistakes.
Premium - NNRoad will bear the full employer liabilities unless the liability is resulted from or caused by the client's faults or mistakes.
Please note that not all individuals are entitled to be engaged in the Standard Employment Outsourcing service. Refer to the following matrix for details.
|Full-time employment for Chinese with fixed-term relationship
|Full-time employment with project-based term relationship
|Full-time employment for foreigner
NNRoad's Employment Outsourcing in China Includes:
- Provide nominal employer to hire employees who are selected by the client.
- Apply for a work permit for foreign employees.
- Provide office space for employees.
- Handle the onboarding and off-boarding formalities.
- Provide Payroll & Mandatory Contribution service.
- Manage expense claim.
- Handle labor dispute cases.
China’s payroll system includes various regulations and failure to comply with payroll regulations may lead to costly penalties. Regulations are issued from over 600 city-level government offices. Every year, all city-level governments update and/or change the mandatory insurance and related funds (social insurance, housing fund rates, and bases, etc.) and policies.
Mandatory benefits are dependent on the city but typically refer to “5 insurances and 1 fund” (5 insurances: pension, medical, unemployment, maternity, work-related injury. 1 fund: accumulated housing fund). Benefits vary by city and policies for foreigners are often different than policies for locals.
- Apply for the transferring or registering social insurance account and accumulated housing fund account for both employer and employees.
- Setup and maintain payroll policies and templates.
- Collect and review raw information.
- Proceed payroll from gross to net.
- Disburse payments.
- Proceed online and offline formalities of mandatory benefits and employee tax (individual income tax) contribution.
- Handle onboarding and off-boarding formalities for new hires and exit employees.
- Prepare and submit mandatory reports.
- Handle employee tax annual filing formalities.
- Keep and maintain the record upon the requirements by the local government.
- Provide employee portal.
NNRoad offers comprehensive accounting services in China.
- Initialization in the accounting system and set up the company account in the system.
- Assist in capital amount bank in, foreign exchange registration.
- Conduct monthly bookkeeping: Subsidiary ledger clarification includes fixed assets/inventories.
- Accounts receivable/accounts payable.
- Prepare client invoice and VAT invoice issue.
- Prepare financial statements (PRC accounting standards).
- Export VAT rebate processing.
- Monthly and Quarterly tax filing.
- Prepare annual examination documents.
- On-line submit an annual report and annual tax filing.
- File forms required by the government authorities.
- Audit assistance.