Professional Employer Organization (PEO) services are built for foreign companies whose business operations require to hire local or foreign employees in China. Acadia takes care of all employment, HR, administrative and legal matters, so the end-client can enjoy a physical presence in China without the need to set-up a legal entity.
Schedule a Consultation to discuss our China PEO services.
Professional Employment Organization
PEO stands for Professional Employment Organization. Our PEO services are built for foreign companies whose business operations require them to hire local staff in China. The PEO hires those individuals to work as an employee for a legal entity registered in the country of their residence on a fulltime basis.
The relationship is governed by a back-to-back contract between the PEO and the client. Acadia takes care of all employment, HR, administrative and legal matters, so the end-client can enjoy a physical presence in China without the need to set-up a legal entity. Our Solutions include:
- Employment & Payroll Outsourcing
- Employee Mandatory Social Benefits Contribution
- Employee Individual Income Tax Filling & Annual Declaration
- Recruitment Assistance
- Commercial Insurance
- Expense Claims
Why use a PEO structure in China?
Foreign-based companies usually lack a proper structure in China, particularly in their initial stages of establishment. To properly operate and hire a team, they require guidance from a China-based entity that cannot only locate but hire staff members on their behalf. This much-needed assistance is available in the form of a PEO as these entities are fully licensed to perform business activities in China.
As a subsidiary a PEO is entitled to carry out all administrative and human resource related tasks on behalf of a foreign-based company. This includes payroll management, visa processing, tax compliance and submission, expense management, social insurance, office rental in addition to many other services. A PEO also deals with all legal formalities on a foreign company’s behalf, making it easier for the company to focus on establishing and strengthening its presence in the market.
When a PEO structure is needed?
Many multinational companies and foreign investors may find themselves several challenging situations when starting a business in China:
- Companies are required to on-board local staff to handle ground operations (client meetings, sales support, supply management, etc) but the company strategy does not require the setup of a Representative Office or a Wholly Foreign Owned Enterprise (WFOE).
- Foreign Small or Medium Sized Enterprise testing the Chinese market that need to hire local staff for early market research, marketing activities and exploration.
- Companies that intend to register an entity in China but want to hire staff in the interim period before formal establishment.
It can be challenging to have great talent on board in a new country as simply and efficiently as possible. Especially when a company is unable to hire due to a lack of an established legal entity and is facing the urgent need to commence business operations.