Doing Business in China with a PEO/EOR
The People’s Republic of China, with a population of 1.417 billion (Worldometers, 2019), is proving to be one of the most attractive countries for foreign investment. This should come as no surprise given its rapid rise as a world leading economy in recent years and the fruitful business environments that have been created as a result. For international companies looking to do business in China for the first time, a professional employer organization (PEO) or employer of record (EOR) could prove a convenient way to test the markets and establish a core executive or professional team.
Read on to discover the benefits of using a PEO in China, and get rankings of the best China PEOs/EORs.
Why use a PEO in China?
Using a PEO in China can help to overcome many of the legal and regulatory challenges of doing business in China. Instead of setting up an entity in China, foreign investors can look to partner with a PEO that already has an office in China, enabling them to hire, onboard, manage, pay, and renew or terminate contracts compliantly all under one roof without the expense of setting up themselves. PEOs are especially attractive solutions for temporary business activity in China or for those wishing to prove the viability of business expansion without making a more significant commitment.
Best China PEOs/EORs
1. New Horizons Global Partners: www.nhglobalpartners.com
Of all the PEO companies in China, New Horizons Global Partners stands out as an established and highly regarded organization, and as one of the few PEOs that actually has their headquarters in China. Fortune 500 companies trust Shanghai-based NHGP with their PEO services in China, and there is no wonder given the company’s ability to hire top talent across China within days, as opposed to the usual months. NHGP offers a full suite of business services from contract drafting in Chinese and English and employee onboarding to setting up social security and handling local disputes. Unlike other companies in this business, NHGP makes it clear that they absorb all local employment liabilities, making it a straightforward and easy process for foreign companies looking for a true ‘one stop shop’ for PEO services in China.
2. Velocity Global: www.velocityglobal.com
Velocity Global offers a comprehensive suite of services for businesses looking to do business in China. Their solutions are end-to-end and they pride themselves on being able to help businesses grow nearly anywhere in the world with capabilities in over 185 countries. A large American company founded in 2014, Velocity Global has become a big name in the international PEO/EOR space. For companies looking for initial information on expanding globally, Velocity Global’s online Resource Center is a good starting point.
3. papayaglobal: www.papayaglobal.com/
papayaglobal boasts clients like Wix and Fiverr and offers a platform-based PEO solution in China for foreign companies that want to hire in China without a local entity. The company provides an end to end global professional employment service, and stands out for its focus on technology. The platform is sleek and could streamline the process of hiring, employing, and managing staff in China. The main difference between papayaglobal and other companies on this list, however, is that papayaglobal is a SaaS solution intended for use in over 100 countries; it is not a company with specialists in the country itself, but nonetheless could provide a convenient tech solution for companies that want to manage any ad hoc local issues themselves.