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llaassociates May 16

Payroll Outsourcing China
More and more enterprises are choosing to outsource their payroll function to maintain their competitive edge. Outsourcing your payroll function can enable you to focus on your core business activities, access to external expertise on labor and tax laws and regulations, reduce your risks and cost, and keep your compensation system confidential.

To ensure your payroll function being timely, accurately, and legally completed, our experienced professionals can

a) coordinate with your HR manager or other contact person,

b) collect all relevant information on basic salary, bonus, time records, social welfares, etc., for each of your employees,

c) calculate IIT payable, net salary, welfare payable, etc.

d) coordinate with relevant governmental bodies and pay various social welfares on your behalf,

e) make payment of IIT to tax authority and obtain tax payment certificates

f) make payment to each of your employees

g) update your top management with any latest laws and regulations on social welfares or tax, and

WHAT IS WHOLLY OWNED FOREIGN ENTERPRISE (WOFE)?

The registered capital of a Wholly Owned Foreign Enterprise (“WOFE”) should be subscribed and contributed solely by foreign investors. Branches established in China by foreign enterprises, representative offices and other foreign economic organizations are not WOFEs. Given the advantages of management flexibility and sole decision power, more and more foreign investors are adopting the form of WOFE.

WHEN AND HOW SHOULD I PROCESS THE RELEVANT PROCEDURE IF THERE ARE SOME CHANGES IN MY RO?

You should go through the change procedures if some aspects of your RO have been changed such as the office location, name, number and name of representatives, scope of business, etc.

You should file corresponding application documents to competent government bodies to process the change in your RO. For example, where there is a change of your representatives, application letter, a power of attorney and their resumes etc should be submitted.

WHAT IS REPRESENTATIVE OFFICE (RO)?

A representative office (“RO”) is an office of a foreign enterprise set up in China for liaison with Chinese businesses and customers on behalf of its parent company. A RO is not a separate legal entity. It is not allowed to carry out direct revenue earning business activities. For example, it cannot enter into sales or service providing contracts and cannot receive payment for sales of products or provision of services. All revenue generating contracts should only be signed by the head office of the RO. Therefore, RO is office used as a tool to test Chinese market before a joint venture or wholly foreign owned enterprises is established in China.

WHAT ARE THE DOCUMENTS REQUIRED FOR ESTABLISHMENT OF A WOFE?

The documents required for setting up a WOFE are listed below:

a)An original copy of application letter;

b)A project proposal;

c)A feasibility study report;

d)Resolution of the Board of Directors;

e)An original copy of leasing agreement;

f)Directors name list of board

g)Importing equipment list;

h)Copies of the business licenses or certificates of incorporation of the foreign investor;

i)An original copy of the corporate ratification paper;

j)An original bank credibility letter for the foreign investors;

k)Notice of enterprise’s name confirmation approved by Administration of Industry & Commerce;

l)Contracts and articles of association;

Note: Due to the quick update of the official process, welcome to request the latest process and details by phone or email

lla.cc/service/payroll…

#Payroll #Outsourcing #China

  • Payroll Outsourcing China
                                        More and more enterprises are choo... via llaassociates

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