From a business standpoint, starting your business or expanding into the Chinese market is very attractive, as there are many options given to businesses that can only be found here. However, when looking at the enormous amount of paperwork, it can be frustrating just thinking about making this change in market. For those companies who do want to set up in China, they have several structure options. These include the Wholly Foreign Owned Enterprise (WFOE), the Joint-Venture, the Representative Office, and the Foreign Invested Partnership Enterprise (FIPE).

With declaring these types of companies you will find that the paperwork is extensive and very in-depth. It can make many businesses decline to join into the Chinese market. However, there is an option that can be utilized to help, which is through using an existing umbrella company or PEO services.

applying for visa

Starting your business in China can be a major headache if you are not careful.

PEO Services (Professional Employer Organization) is legal representation by an umbrella company for a foreign company. This umbrella company is the face for the company in China, going as far as arranging for employees to be paid in the right currency. The umbrella company helps a company to deal with the regulations that China has in place for businesses such as working visa, insurance, taxes, invoicing in china.

The reasons that so many people choose this option are numerous. Businesses who know that the Chinese market is where they need to be, often point out that the use of PEO services allows for:


Companies who use this option will still be their own company, but they also have the benefit of running a business in China.

Gain expertise in the market

With the use of PEO services, most businesses are surprised at the expertise they are getting with dealing with the Chinese market. It allows the company to have a first-hand account of what changes they need to make in order to thrive in the environment. This specialist if going to help find you the workers and other representatives you may need to thrive, and is one reason why so many businesses succeed in the market.

More cost efficient

When compared to what it costs to start a business on the Chinese market, using a PEO service is often the cheaper solution. Those who do this find that they are paying for what they need, rather than paying and then second guessing what they really need to survive in the economy.

Faster business setup

When trying to set up a business in China it can be time consuming. Using PEO services allows for this to be completed faster, allowing your business to get to work sooner.

If you are serious about implementing your business into the Chinese market, and want the easiest solution to do this, then an umbrella company is your answer. This allows you to focus on your business rather than gaining entry into the market without being bothered by all the side activities a company must do like paperwork and so on.

PEO companies, like INS Global Consulting based in Shanghai,  are in charge of  representing legally the consultant and providing him visa, office or any administrative necessities (Resident Permit, etc…), as well as for his/her families (Partner, Children). The employees are then able to start their job immediately. This Visa duration is for a year minimum a year renewable every year.



CCIFC Shanghai, Beijing, HR recruitment firm, SRMH Online