PEO involves using a company based in China to provide physical and legal housing for a foreign or Chinese employee. It allows companies that do not have an office in China to recruit and work with an employee locally. PEO solution is an important and sometimes decisive step to ensure a safe and successful development in China: the company can start its development while limiting risks and investments
It’s a transitional option between setting up and establishing a structure in China. The “portage” company offers support throughout the process of creation and acquisition of full autonomy.
In this way, PEO service offers companies wishing to enter the Chinese market the opportunity to gain an insight into the market without the need for a physical presence or a legal entity in China. This solution offers great flexibility and efficiency in deployment and customization. The employee is almost immediately ready to operate locally.
Thanks to its support and in-depth knowledge of the Chinese labor market and its legislation, the PEO services company enables the foreign company to start its business in China without the need for specific experience or multicultural management skills.
The company delegates the management of the employee’s payroll and related administrative formalities to all local authorities. In effect, the third-party company becomes the local employer of the employee, who benefits from a local contract. As such, the umbrella company will take the necessary steps to obtain work visas and residence permits for foreign employees coming to work in China. The company will act as an intermediary for the payment of salaries and the various taxes and charges associated with the employee (insurance, contributions).
Our HR Team in China is responsible for managing and monitoring the employee’s expenses and is the local contact person for maintaining solid contact with the employee in China. Finally, if necessary, the company can rent office space or any other premises required for the company’s activities in China.
PEO IN CHINA: SPECIFICS AND LEGAL FRAMEWORK
PEO is strictly regulated in China. Few companies can legally offer this service. In fact, VVR International is the only European company to benefit from licenses recognized by the Chinese authorities, such as the Labor Dispatch License. It should be noted that the portage of a Chinese employee and that of a foreign employee are not regulated in the same way by law.
In China, PEO requires the PEO company to pay all taxes and social security contributions in the employee’s place of residence. Thanks to its multiple locations, including four strategic regions of the country – Shanghai, Beijing, Guangzhou and Shijiazhuang – VVR International offers a wide choice of zones in which to develop the company’s activities according to its field and strategy.
VVR INTERNATIONAL: EXPERTISE IN HUMAN RESOURCES AND MANAGEMENT OF FRANCO-CHINESE TEAMS
Differences in culture and work practices can be an obstacle, leading to misunderstandings that negatively affect a company’s operations in China. VVR International, with its strong presence in France and China and its experts in human resources and in the management of Chinese teams, ensures that the collaboration is set up in the best possible conditions and helps to manage difficult and unforeseen situations (accidents, resignations, epidemics, etc.).
VVR INTERNATIONAL: CUSTOMIZED RECRUITMENT, YOUR OUTSOURCING SOLUTION IN CHINA
The choice of employees is crucial to the success of the first stages of development in China. That’s why, in addition to our PEO services, VVR International’s teams can take care of the recruitment of a new Chinese or foreign employee.
Thanks to the expertise of its dedicated VVR RH department, VVR International will search, interview, sort through a unique process and finally select the best talents to offer you the ideal candidate for recruitment. To do this, our teams will carry out a diagnosis of the company and its needs in order to define the profile best suited to the position.
Download our fact sheet on PEO in China.