1 / 9

Learning The Fact About Hiring Independent Contractors In China

The number of foreign businesses seeking to set up operations in China is still fairly large. This is despite the fact that many such businesses do not possess the resources or the funds to set up a big operational base in the country. This lack of resources leads many such organizations to hire the services of the so called u201cindependent contractorsu201d in China. Hiring such contractors seems to be the best way to cut down the operational costs of the business set up in China.<br><br>Key Facts About Independent Contractors In China<br><br>The first and the most important thing that foreign business organizations need to understand is that hiring independent contractors in China is illegal. Sadly, rather than opting to believe the professionals from the best executive search firms in China, most overseas business organizations take the advice of their Chinese lawyers on the issue. In fact over the past several years, China has adapted an increasingly aggressive approach towards establishments that are following such practices. <br><br>What Drives Foreign Businesses To Hiring Independent Contractors<br><br>One of the reasons that drive foreign businesses to consider hiring independent contractors is that it cuts down their operational costs considerably. Most importantly small organization do not have to go through the formalities of forming a WFOE in China, which is mandatory for every legal business set up.<br><br>Risks Associated With Hiring Independent Contractors<br><br>As any professional executive search firm in China informs its clients, the risks of hiring independent contractors are far greater than any benefits that may be obtained. The most obvious risk of hiring independent contractors is that it makes the business operation totally illegal. Opting for this method of recruitment also puts the China IP assets of the business at a huge risk.<br>

cornerstonechina
Télécharger la présentation

Learning The Fact About Hiring Independent Contractors In China

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Learning The Fact About Hiring Independent Contractors In China

  2. Learning The Fact About Hiring Independent Contractors In China The number of foreign businesses seeking to set up operations in China is still fairly large. This is despite the fact that many such businesses do not possess the resources or the funds to set up a big operational base in the country. This lack of resources leads many such organizations to hire the services of the so called “independent contractors” in China. Hiring such contractors seems to be the best way to cut down the operational costs of the business set up in China. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com Executive Search Executive Search CHINA CHINA – – ASIA ASIA

  3. Learning The Fact About Hiring Independent Contractors In China Sadly, most organizations opting for this solution are ignorant of the fact that it makes their China operations completely illegal and exposes them to the risk of losing their assets. Key Facts About Independent Contractors In China The first and the most important thing that foreign business organizations need to understand is that hiring independent contractors in China is illegal. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com Executive Search Executive Search CHINA CHINA – – ASIA ASIA

  4. Learning The Fact About Hiring Independent Contractors In China Sadly, rather than opting to believe the professionals from the best executive search firms in China, most overseas business organizations take the advice of their Chinese lawyers on the issue. Hence, it is not surprising that such companies often end up unwittingly breaking the law as Chinese labour law does not support any form of employment where the employer can avoid paying minimum benefits. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com Executive Search Executive Search CHINA CHINA – – ASIA ASIA

  5. Learning The Fact About Hiring Independent Contractors In China In fact over the past several years, China has adapted an increasingly aggressive establishments that are following such practices. approach towards What Drives Foreign Businesses To Hiring Independent Contractors One of the reasons that drive foreign businesses to consider hiring independent contractors is that it cuts down their operational costs considerably. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com Executive Search Executive Search CHINA CHINA – – ASIA ASIA

  6. Learning The Fact About Hiring Independent Contractors In China For a small organization with 12-15 employees, this can prove to be a major boost. Such organizations do not register themselves and they do not have to pay the usual employment benefits to the local people working for them. They also get to save a considerable amount of money in taxes as well as the rent for setting up a formal office for the business. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com Executive Search Executive Search CHINA CHINA – – ASIA ASIA

  7. Learning The Fact About Hiring Independent Contractors In China Most importantly they do not have to go through the formalities of forming a WFOE in China, which is mandatory for every legal business set up. Risks Associated With Hiring Independent Contractors As any professional executive search firm in China informs its clients, the risks of hiring independent contractors are far greater than any benefits that may be obtained. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com Executive Search Executive Search CHINA CHINA – – ASIA ASIA

  8. Learning The Fact About Hiring Independent Contractors In China The contractors is that it makes the business operation totally illegal. most obvious risk of hiring independent Opting for this method of recruitment also puts the China IP assets of the business at a huge risk. This is because contrary to what their belief, the business organizations do not actually own these assets and they can be seized by the government in case of a crackdown. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com Executive Search Executive Search CHINA CHINA – – ASIA ASIA

  9. Learning The Fact About Hiring Independent Contractors In China They face the constant threat and stress of being shut down any time and losing all their investment and credibility. The businesses might also have to pay a huge penalty in lieu of the taxes that were evaded by the business during its operation. In addition, the businesses operating in this manner are not able to carry out their day to day operations in a free and fearless manner, which can affect their profitability and growth in a significant manner. Tel : +86-21-6474-7064 | simon-wan@cornerstone-group.com Executive Search Executive Search CHINA CHINA – – ASIA ASIA

More Related