Forum - May 2012

MYTH: You Must House Yourself in This Building

In China, you are free to establish your business wherever you like. If you have a member company in China, you can even use just a cubicle in one of their buildings as your association’s Chinese office.

As long as you identify this location as part of your business application, there is no specific requirement that forces you into a high-rent district. It is important to remember that if you move your business, you need to file paperwork to report the change. If you don’t, your association is out of compliance with your approved business license and subject to a fine.

MYTH: You Must Hire an HR
Company to Manage Your Staff
To hire Chinese staff, IPC was referred
to an HR company in China. It was
informed that this was the only way
U.S. companies could hire locals. These
HR firms sign contracts with the staff
and salaries are paid to the employees
through the HR company. You also
pay the HR company a fee for ser-
vice, which includes payment of taxes
(including income tax), social security
and social welfare (shared between the
individual and the company as a com-
mon practice). By having an HR com-
pany to handle the nuts and bolts of HR
issues, IPC was able to focus its energy
on establishing the business and less on
HR issues. Until the time came that it
needed to terminate an employee.

More than 270 associations have joined the NHCN because...

Unlike other job board networks that send your members to a commercial job board, the NHCN was built for associations, by associations, and keeps associations at the center of the discussion.