Hiring a Local Employee through a PEO Company in Greater China (Mainland China, Taiwan and Hong Kong)

In this article, we provide the insight idea about hiring a local employee through  a PEO company in Greater China, included Mainland China, Taiwan, and Hong Kong:Hiring a local employee

  • Hiring a local employee without a legal entity in Greater china
  • What service are included as a part of PEO/ employee leasing service
  • What kind of companies need PEO services
  • What are the advantages of outsourcing my employees


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Hiring a local employee without a legal entity in greater China

Companies not having a legal entity in Mainland China, Taiwan and Hong Kong cannot directly hire local employees legally. A common solution for these companies is to hire local employees through an HR Agency, like HROne, that has the capacity to provide PEO/Employment services in Mainland China, Taiwan and Hong Kong. The HR Agency directly signs the employment contract with the client’s employee and handles the monthly payroll, individual income tax (IIT) and mandatory benefits/social security (social insurance and housing fund in Mainland China, Mandatory provident fund in Hong Kong etc.) for the client’s employee.

What services are included as a part of PEO/employee leasing service?

This depends on each service provider. Right from directly signing employment contracts with the employee, onboarding them, arranging their business travel VISA, payment of salaries and contributing the mandatory insurances/social security to providing legal support. The PEO company fulfills all the duties of a legal employer in that country, for that employee.

What kind of companies need the PEO services?

1. Representative Office (RO/Rep. Office)

2. Foreign companies who have no legal entity in mainland China, Hong Kong and Taiwan.

3. Companies who have the legal entity in China but have no headcounts for hiring some employees.

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What are the advantages of outsourcing my employees?

– Legal Compliance – The service provider can legally hire the local employees on behalf of the foreign companies, and handling their monthly payroll, mandatory benefits which are required by the local government.

– Saves Time – For a small business, outsourcing your employees is more effective than doing it all on your own. You can focus on your core objectives of your business, leaving the rest of the work to your employment service provider.

– Saves Money – Startups can save money by cutting costs on the resources allocated to pay employees and maintain payroll, tax and insurance documents. It is much cost effective to outsource your employee instead of hiring an internal HR to handle the employment, monthly payroll, statutory benefits issues.

– The service provider assists the foreign company in case of the labor dispute. The service provider can give the professional legal advisory for foreign companies and assist them with the litigation and arbitration issues.

How HROne can be beneficial to your business

HROne’s offers Employee Leasing/Talent dispatching services for companies not having a legal entity in Mainland China, Taiwan and Hong Kong. HROne fulfills all essential responsibilities as that of a legal employer for the local employees in Mainland China, Taiwan and Hong Kong. More importantly, HROne can provide bilingual service to its clients – both in English and Chinese.