As part of your business project, our firm offers you a payroll outsourcing service in China. This involves entering into a service agreement with one of our payroll outsourcing companies. The company handles the administrative management of hiring and employing your staff. Our payroll outsourcing company pays your employees and takes care of invoicing the local social security contributions for your company in Hong Kong.
This opportunity to delegate tasks to a payroll outsourcing company allows entrepreneurs to establish their business in China while benefiting from staff without having to worry about complex formalities such as recruitment, employment contracts, invoicing, or payments. This way, you can start setting up your business in China and work with staff with ease.
Why use umbrella employment in China?
Avoid creating a local structure
This solution saves you from having to set up a representative office (Rep Office) or a local company such as a WOFE / FICE. This low-cost service gives you the opportunity to hire staff in China, whether Chinese or foreign. Available throughout China, payroll outsourcing is perfectly legal. In addition, the payroll outsourcing company offers you optimized advisory services on request. This allows you to increase the effectiveness of your company's expansion into the Chinese labor market.
Reduce ancillary costs
An entrepreneur who turns to an umbrella employment company can also increase their revenue by reducing ancillary costs. Indeed, as a partner, no startup capital is required, unlike the option of opening an employee representative office. In addition, by using an umbrella employment agency, it is possible to rent shared premises with other business owners. Thus, the costs of renting the premises are shared.
Delegate administrative management
Our firm handles the administrative tasks related to employment expenses. We prepare monthly and annual tax returns and pay social security contributions. When hiring a foreign employee, we are also authorized to undertake the necessary procedures to obtain a work visa.
The cost of umbrella employment
The cost is as follows:
Chinese employee
Gross salary < RMB 10,000/month: RMB 1,650/month
Gross salary > RMB 10,000/month: RMB 2,200/month
Non-Chinese employee
Gross salary < RMB 10,000/month: RMB 3,750/month
Gross salary > RMB 10,000/month: RMB 5,000/month
Residence and work visa (adult)
RMB 5,000/year
Residence visa (child)
RMB 2,000/year
Notes
3% tax and “Fapiao” invoice
The 3% tax is not included in this cost. This tax is payable only if you request an official "Fapiao" invoice (required only for Chinese companies for their accounting, so if our invoice is paid by a non-Chinese company, this tax is not due).
RMB payment and currency exchange fees
Our invoice is issued in RMB. If payment is made in another currency, we use the Bank of China exchange rate + 3% for currency exchange fees. If you have a bank account in Hong Kong, you can pay us directly in RMB.
As the number of employees available for this service is limited, it is primarily reserved for our clients who have registered a company in Hong Kong through our services.
We invite you to contact us for further details, including a quotation showing the calculation of social security contributions based on the desired salary.