Overview:
A medium-sized company in Germany sought to establish a presence in China to capitalize on emerging market opportunities. However, due to delays in obtaining approval from the board of directors to incorporate an entity in China, the client faced challenges in commencing operations and hiring local talent. To overcome these obstacles, the client turned to Woodburn Accountants & Advisors for its Employer of Record (EoR) services.
The Challenge:
The client encountered several hurdles in expanding its operations to China:
1. Lack of Incorporation Approval: The client had not yet received authorization from its board of directors to establish a legal entity in China. This delayed the process of hiring and onboarding employees directly, hampering their ability to initiate business activities and establish a foothold in the Chinese market.
2. Compliance Concerns: Operating in China entails adherence to complex labor laws and payroll regulations. The client lacked the expertise and resources to navigate these compliance challenges effectively, risking potential penalties and legal issues.
3. Talent Acquisition: The client needed to recruit and onboard local talent swiftly to meet project deadlines and operational demands. However, without a legal entity in China, traditional hiring processes were not feasible, further complicating the recruitment process.
The Solution:
Woodburn Accountants & Advisors offered a comprehensive solution to address the client’s challenges and facilitate their expansion into China:
1. Employer of Record (EoR) Services: Woodburn assumed the role of the client’s employer in China, enabling them to engage and onboard employees without the need for entity incorporation. This streamlined the hiring process, allowing the client to deploy talent quickly and efficiently.
2. Recruitment & Staffing: Woodburn, through its extensive network of partners, referred the client to a reputable headhunting firm in China to source local talent. As Woodburn worked with the recruitment partner for years, the solid partnership helped ensure the seamless enrollment of employees, aligning with the client’s specific requirements and project objectives.
3. Payroll Management & Compliance: Woodburn managed all aspects of payroll processing and compliance, including salary computation, labor contract signing, and employee handbook distribution. They ensured compliance with Chinese labor laws and regulations, handling social insurance contributions and individual income tax (IIT) remittances on behalf of the Client. In addition, the employees’ company expenses were also consolidated and reimbursed via Woodburn.
Outcome:
By leveraging Woodburn's EoR services, the client successfully overcame the challenges and was able to initiate operations, ensure compliance, facilitate talent acquisition and create a seamless onboarding for its employees in China. Finally, they were able to kick off their China project in half the time it would have taken to incorporate an entity in China.
Woodburn Accountants & Advisors is one of China’s most trusted business setup advisory firms.
Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.
Talk to an expert
Schedule a 30-mins complimentary, no-obligation call to see how Woodburn can help you. Book a call with our Head of Business Advisory - Kristina Koehler-Coluccia.
Topics we can advise on include:
Company Registration
Cloud Accounting & Financial Reporting
Cloud Payroll Services
Tax & Audit Services
Recruitment
Employer-of-Record
Visa Application
Trademark Registration
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