Start a business in China for foreign investors is challenge, it is very important for foreign investors to get in touch with the local resources, knowledge, connection in order to quickly and legally start doing business in China.
Open a Company in China
Brief: Official website, THE STATE COUNCIL, THE PEOPLE’S REPUBLIC OF CHINA
Website: http://english.www.gov.cn/services
Due to the complexity of China’s polices and regulations, it is very essential for foreign investors to understand the China company registration details, process, required documents in advance.
The state council of China’s official website has a very complete English guide of policies, process, requirements related to registering a company in China to give foreign investors a basic knowledge and guide regarding opening a company in China. However, foreign investors still need to aware that different cities in China might have slightly different of the required documents, especially for the business that need special license. It is highly suggested for foreign investors to engage a professional company formation firm to do the establishment.
Search Candidates in China
Brief: Most popular Chinese job portals
Website: www.51job.com
51job is one of the biggest and most popular job portals in China among employers and employees. In September 2004, 51job became the first Chinese human service company listed on NASDAQ, and is one of the most influential HR service providers in China.
Founded in 1999, 51job is an online recruitment service provider with two main objectives: to provide better career development opportunities for people who are looking for a job in China. At the same time, the website is dedicated to search for and recruit the best talent for companies.
51job is now covering most of the cities in China, and covering most of different types of positions in China. Since the platform now also have the English version, it is easier for foreign enterprises to use for hiring employees in China.
To start on hire employee in China through 51job, the basic requirement is to have a registered company in China. If you have no legal entity in China, the easiest way is to engage a China PEO and employment service provider to help you search and hire employees in China.
Here are two helpful articles help you to understand how to hire employee through China PEO and steps to engage a PEO in China.
Understanding China Business Information
Brief: official business magazine of the US-China Business Council
Website: https://www.chinabusinessreview.com/
China Business Review is one of the official magazine created by US-China Business Council. It is a non-profit organization that represents around 240 US companies doing business in China.
Since 1974, China Business Review start on publishing China trade and investment related news and information. The magazine contents covering information and advice of doing business in China, China market entry strategies, opportunities in specific industries, newest technologies, analysis of new laws and regulations, government and political news, and China operation knowledge like China payroll, employment.
Search Engine
Brief: World’s largest Chinese-language search engine
Website: Baidu.com
Although Google is the world’s most popular search engine, most of foreigners are get used to using Google search engine in their daily work life. However, because of the China internet great wall protection, Google is not allowed to being visited in China. The way to visit Google in China is through VPN, however, due to the unstable and compliance issue of the VPN, it is still a big concern for foreigners working in China to using Google.
Baidu search engine is the largest Chinese language search engine in the world. The way to use Baidu is almost the same of using Google. Foreigners and foreign entrepreneurs can easily search and find the information they want in different area, languages.
Like Google ads, Baidu also have the similar function called Baidu ads for companies to promote their business and products through paid search engine modes. Baidu ads is one of the most efficient advertising method for start ups or small companies whose target clients are Chinese companies or individuals. For start on advertising in Baidu, one of the basic requirement is to have a legal entity in China.
Most Updated China News
Brief: Largest English portal in China
Website: http://www.chinadaily.com.cn/
Chinadaily.com.cn is the largest English portal in China, providing news, business information, BBS, learning materials for foreigners and foreign investors in China. Chinadaily provide the most updated news and information covering China, global, business, lifestyle, culture, travel, sports, hotspots etc.
Foreigners can easily get the most updated news like Covid in China from it’s official website, mobile tablet app, or wechat, weibo official accounts.
Online Shopping
Brief: Most popular online retail platform in China
Website: Taobao.com
Taobao, founded by Alibaba Group in May 2003, is one of the largest online retail platforms in the Asia-Pacific region, with nearly 500 million registered users, more than 60 million regular visitors per day, and more than 800 million online products per day, with an average of 48,000 products sold per minute.
Taobao indeed is the most popular online shopping platform in China. You can get most of the things you need in Taobao, including but not limited to clothes, shoes, foods, beauty products, household facilities & products, digital electrics, medicine etc. Because of the advanced logistics in China, the delivery speed is also super quick in China. Usually, you can receive the products you purchased withing 1-5 days which is very convenient in daily lift.
Restaurants & Entertainments
Brief: China leading lifestyle information platform
Website: Dianping.com
Dianping was founded in Shanghai in April 2003. Dianping is China’s leading local lifestyle information and trading platform, as well as the world’s first independent third-party consumer review website. Dianping not only provides users with information services such as merchant information, consumer reviews and consumption concessions, but also provides O2O (Online to Offline) transaction services such as group purchase, restaurant reservation, takeout and e-membership card.
For foreigners or foreign investors in China, it is one of the most important apps to use for living and working in China. You are able to find the most popular restaurants, tourist attractions, entertainments, shopping malls, etc with the reviews from their previous customers, which is a great app for you to find the place and evaluate the place.
Dianping is now covering in most of the cities in China. Wherever you are travelling in China, you can always locate Dianping to the city you are travelling, all the good places you are able to easily find and go.
General Living and Business
Brief: Most popular expats community in China
InterNations is a foreign community in China that mainly supports expats living and working in China. In this English platform, you are able to find the most useful information you may need to moving to China and living in China like travelling guide, children’s education, rental guide, city guide, etc. If you are unable to find the information you needed, you can also raise up your question in the community, there will be a lot of knowledgeable community remember to answer your questions.
In the meanwhile, there are different type of events hold in InterNations. You can select the events base on your own preference and purpose. You can establishment your own connections easily in China.
If you would like to hiring employees working your new company in China, InterNations is also one of the good choices because of its big foreigner pools.
Foreign Chamber of Commerce
Brief: Commercial Organization for foreign companies
Website: http://www.europeanchamber.com.cn/
Foreign chamber of commerce indeed is one of the very important websites that foreign investors shall know before doing business in China. The most popular chamber of commerce in China is European chamber of commerce which was founded in 2000. Companies invested from Europe or individual from European counties can all join as a corporate member and individual member and take the advantages of the membership.
For foreign companies start doing business in China, you are able to get the business guide related to start doing business and operation in China like China social security, China salary calculation, China labor contract, China holidays and leaves through the chambers, the daily, weekly, and monthly WeChat updates, newsletter inform you the latest business information you shall know of doing business in China.
Chamber is also a good channel for you to advertising your own business and find your clients through their advertising plan, newsletter promotion, member directory, events advertising, online and off-line events.
Here are the 9 websites JSC suggested to foreign investors who are new comers to the China market. If you are planning to start doing business in China, please feel free to email us info@jscgroups.com.
Frequently asked questions for payroll and hiring employees in China.
No, you do not need.
If you don’t have a company in China, you can hire employees through PEO service through the employment agency in China.
a) Hire employee through the PEO/employment service.
If you don’t have a legal entity in China, this is the only compliance way to have employee working for you in China.
b) Hire employee under WFOE.
If you already set up a WFOE in China, you can sign the labor contract with employees directly. You can either choose to handle their payroll land benefits yourself, or you can choose to outsource.
c) Hire employee under representative office (Ro)
Representative office in China is not allowed to hire employees directly. The only compliance way is hire employees through labor dispatch agency under PEO service
PEO refers to a professional employment organization, in China it’s also called employee outsourcing, labor dispatch. Foreign companies can hire staff in China through a PEO agency without setting up a legal entity in China.
Severance payment in China is based on the number of years employee has worked for the company.
Each full year employee worked for your company, one month salary shall be paid as severance payment.
For the working periods that are less than 6 months, half month salary shall be paid.
If employee’s monthly salary is higher than 3 times local average monthly salary, each year of the severance payment compensated shall be 3 times local average monthly salary.
If employees are in the probationary period, both employee and employer shall give 3 days as notice period for termination.
After probationary period, both employee and employer shall give 3o days as notice period for termination.
If employer need immediate termination, employer shall compensate one month salary.
No, you do not need.
No, You shall have a company registered in China to sign a written labor contract with each of your employee.
In practice, employer will sign a fixed term contract with their employee. However, when it goes to the third time renewal of the contract, then the contract becomes to a permanent contact.
Sign a two years or three years contract is more common in China.
Labor contract in China shall be at least in Chinese, and including but not limited to:
Company details including full name, address and legal representative or person in charge.
Employee details including full name, ID number, address.
Term of the employment contract; (E.g., 2 years, 3 years…).
Position (job title), location(city), working hours, holidays, leaves.
Package: gross salary, bonus, commission, social insurance, other benefits.
Occupational safety, and occupational hazard prevention.
Other terms which laws and regulations required.
You need to set up a company in China and then set up a separate Social Insurance and Housing Fund Account. After the company has been set up, you can contribute the benefits to the employees who have signed a contract with you.
The most popular job portals in China is: Zhaopin.com, Liepin.com, zhipin.com. However, these three job portals only accept a registered company in China.
If you don’t have a company in China, you can search candidates through Linkedin.com or engage a headhunting or recruitment firm to help you search the candidates.
In China, employees’ individual income tax (personal tax) shall be declared monthly by the employer, and yearly by employee themselves.
