The People’s Republic of China is world’s most populous country with a population of over 1.3 billion. Chinese people are made up of Han (91.59% of the total population) and 55 ethnic minority groups. Known as “The Middle Kingdom,” a country with 5,000 years of civilization, China is not only a country with numerous historical incarnations but also a country with the second largest land area of 9.6 million square kilometers. The territory of China ranks third in the world, equaling whole land mass of the European continent. There are 34 administrative units at provincial level, including four municipalities, five autonomous regions, two special administrative regions and 23 provinces. The most developed part of the country known as the “developed modern China” is along the East Coast area represented by major cities such as Beijing (the capital of China), Shanghai(the finance and economic center) and Guangzhou, which are the main strategic locations of many foreign invested enterprises (FIEs) in mainland China. Known as the world’s fastest growing economy, China’s GDP had 9% growth rate in 2013. State owned enterprises (SOEs) are responsible for 50% of all goods and services.
Top 5 List of Issues to consider when working in China:
- The primary risk of doing business in China is the difficulty of collecting full payment on time.
- Operating a foreign owned company business in China without local legal presence creates risk.
- Forms of doing business in China include: Representative office, Wholly Owned Foreign Enterprise (WOFE), and Joint Venture (JV) comes in two forms: Cooperative JV and Equity JV.
- Progressive income tax ranges from 3% to 45%.
- Complex social insurance payment requirements vary by Provinces/Cities Services.
CXC China operates under a WOFE established in Shanghai in 2003 under the leadership of its parent company CXC Global, a worldwide specialist contractor-consulting firm. We provide a low risk market entry strategy for companies wishing to enter the China market. We assist in facilitating the payment and movement of specialist contractors on a global basis via our offices located in several countries around the world. We also assist you with your accounting and management company requirements to ensure that you are compliant minimizing your risk and local legal exposure.
Contracting your staff as consultants through Hawk is the most cost efficient and effective method of exploring the market in China. As Hawk Consultants, your staff will operate under our company structure on your behalf, our solution is a win for all solution because via our services you will have:
- Alternative to employing staff through your organization or FESCO
- Attract the best candidates for the role through tax effective payment strategies
- Consolidated billing. One single payment for multiple consultants or staff
- Contracting your consultants through us: reduces administration costs and accounting work, reduces liability of litigation from consultants or staff, reduces risk and expense of establishing branch offices in China.