Leading PEO firms in China: Hire without an entity

PEO is a company that provides services under which the organization can delegate employee management tasks like worker’s compensation, employee benefits, and payroll.

Professional Employment Organization (PEO) legally employs the staff in China, when there is no legal entity established. 

Top PEO firms in China assist foreign Startups, small and medium-sized enterprises, and representative offices with HR outsourcing, employee dispatch services, employee benefits services, and payroll processing solutions. 

With the help of PEO services, a foreign company may launch a business quickly in China and minimize the risk by avoiding the expensive and lengthy process of an in-house hire.

How does PEO work?

The service agreement and the client business outline PEO's particular services. General services include

1.     Visa processing – PEO helps in the immigration process needed by the China authorities. It also helps in getting the resident permit, work permit, etc. 

2.     Payroll services – Companies use the procedure to pay salary to the employees. The PEO handles the process of payroll, which complies with the local jurisdiction. 

3.     Benefits administration – Benefits are essential in employee compensation; however, their administration process is not simple. The PEO handles it along with sick leave, vacation pay, allowances, etc.

4.     Sign employment contract – After the company of the client drafts the employee’s labor conditions, the human resource service provider formulates a bilingual employment contract in compliance with local labor law.   

5.     Human resource services - Leading PEO firms in China take charge of the entire HR aspect because they have expertise in regulations and local laws. 

Who should use PEO?

Organizations that want to expand their business abroad should use PEO. These services are used by small and medium-sized enterprises which do not have an internal dedicated HR team. 

These HR companies help to save cost and time using the services of PEO for handling payroll, HR aspects and focusing on growing business in China.

However, the services of PEO can also be used by large organizations looking to set up various branches and offices in China.

How can PEO help you to expand business in China?

The PEO services are built for organizations whose business operations require them to hire foreign or local employees in China. Generally, these services include

·         Expense claim

·         Medical insurance

·         Commissions and bonus

·         Allowances

·         Employee social benefits

·         Income tax compliance

·         Work visa processing

·         Monthly payroll

·         Labor contract signature

·         Candidate search

Conclusion 

Expanding organization in China represents the business with various challenges and opportunities. 

But partnering with the top employer of record firms in China will maximize expansion efficiency, speed and value. 

By permitting PEO to handle all necessary risk mitigation and compliance details, i.e. from onboarding and hiring to managing payroll and benefits, PEO ensure the business blooms in the new market.