1. In how many cities do you provide services in China?
We currently provide services in 20 cities as below. In the cities where we are serving, 21CN is providing the management services of finance and payroll for its customers. 21CN is continually adding cities. If you have needs in a city that is not included below, please contact us for further detail.
Guangzhou Beijing Shanghai Shenzhen Wuxi Xian Tianjin Nanjing Chengdu Suzhou Hangzhou Xiamen Chongqing Jinan Changsha Wuhan Zhuhai Wenzhou Qingdao Fuzhou
2. I will set up an entity in China, can you help me?
Yes, we can! We will explain the regulation on entity setup and the tax treatment difference of the different entities in China to you. We will analyze the advantage and disadvantage of the entities set up according to the actual status of business you want to develop in China, which can help you make the final decision.
3. I have expatriates who will be sent to China, can you help me?
Yes, we can! One of 21CN’s specialties is managing expatriate payroll administration including cash delivery to expatriates in the home and host and tax compliance in China. 21CN has multiple specialists on staff with expatriate payroll expertise to help you set-up and manage your expatriate payroll needs in China.
4. Our company in China doesn’t have an accountant, can you help me?
Yes, we can! One of 21CN’s specialties is managing the finance administration including doing the bookkeeping, tax reporting and preparing all kinds of accounting statements not only according to Chinese accounting rules but also the GAAP of the headquarter outside China. 21CN will prepare the accounting statements according to the format required by headquarter to the client every month.
5. Will you handle the payments of employee’s net pay, social insurance contribution and tax payments?
Yes, we can! 21CN often manage all the funding needs for our clients including employee’s net pay, social programs and local tax payments in China. This is accomplished either by providing one payment to 21CN and we handle all the foreign exchange and distribution within China or we obtain the client’s authorization over its bank account and manage the payments through that account. If a client wishes to distribute the payroll themselves, 21CN will supply the payment details directly to the client for disbursement.
6. Does our company need a bank account in China?
No, you do not need a bank account in China unless it is a local requirement. We can manage all of your funding needs. In the case where a local bank account is required, 21CN can help you set up an account and then manage the ongoing payments through that account for you, if requested. If you have an account in China but don’t want to use it, 21CN can manage all your payments through its bank account directly.
7. Will you work directly with the human resource company or the tax providers in China?
At the clients’ requests, we will work directly with their human resource companies and tax providers to support the management of their employees. 21CN works closely with a variety of human resource companies and tax providers today at our client’s request, sometimes with minimal client involvement!
8. The 21CN Difference
21CN’s core competency is management services of finance and payroll for locals and expatriates in China. We focus on the cities in China but not the worldwide. We are not just a “part” of a larger outsourcing engagement nor are we coupled with specific HR services/technologies. We have excellent expertise in bookkeeping, tax reporting, payroll management and entity setup.
9. We are expanding our business are in the process of setting up a WOFE. We understand that we cannot hire employees in China until we have the legal entity established. Could you help to hire employees on our behalf in the interim and transfer them back to us when the legal entity is setup?
You are correct, we have to find a company who can hire employees on your behalf in the interim and transfer them back to the WOFE when it is setup, i.e. “Talent Agency”. And only the human resource company in China can provide this service. We have been working with the human resource companies (HR company) in China for many years and provide the services to the clients together. HR company and your company will sign a personnel agency agreement with some supplemental agreements to do the payment of salary, IIT reporting and social insurance contribution (but it's not the employment) until the WOFE is established. CIIC can't sign any employment contracts with the EE because your company doesn't set up the WOFE in China yet. And HR company must pay the money equal to 3 months salary and social insurance in HR company’s bank account as the risk deposit for any labor dispute between the EE and HR company during the period before the WOFE is set up. This money will be refunded to the WOFE or used to deduct the EE's salary and social insurance after the WOFE is set up.
Here are the procedures we will follow before the setup of WOFE.
- 21CN will review all agreements from HR company and send them to your company for the signature.
- 21CN will set up the payroll for HR company's EE and collect the new hire information from your company (21CN can provide the format of new hire form if necessary and please require the EE to fill in)
- Your company sends the payroll change information to 21CN every month.
- 21CN will calculate the payroll according to the payroll change information and send to HR company.
- 21CN will check the calculation of IIT and mandatory insurance contribution done by HR company and revise any error.
- 21CN will prepare the payroll register after the confirmation on the calculation on the requirement of your company.
- Your company will confirm the register and inform any revision to 21CN.
- 21CN will check all expense invoices approved by the responsible in your company and include the expense reimbursement amount in the payroll register.
- Your company will wire the fund according to the payroll register to HR company for EE's payroll and mandatory insurance and to 21CN for EE's expense reimbursement, which will be shown clearly in the monthly payroll register.
- Your company will send any new hire or termination information to 21CN 15 days before the date of on board and termination.
- Your company will contact 21CN directly for all information needed and 21CN will feedback to you asap.
After the WOFE is set up, 21CN can continue to provide the payroll service, accounting and tax reporting services for the WOFE.
