{"id":34275,"date":"2022-07-22T03:43:07","date_gmt":"2022-07-22T03:43:07","guid":{"rendered":"https:\/\/ins-globalconsulting.com\/news-post\/post-to-pdf\/"},"modified":"2024-11-26T23:21:14","modified_gmt":"2024-11-26T23:21:14","slug":"post-to-pdf","status":"publish","type":"news","link":"https:\/\/ins-wpprod.com\/es\/news-post\/post-to-pdf\/","title":{"rendered":"Post to PDF"},"content":{"rendered":"\t\t
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\u00bfQu\u00e9 es una Oficina de Ventas?<\/h2>\r\nUtilizar una Organizaci\u00f3n de Empleo Profesional (PEO)<\/a> y abrir una Oficina de Ventas al ingresar al mercado chino es uno de los m\u00e9todos que est\u00e1 ganando cada vez m\u00e1s popularidad entre las empresas extranjeras. Ya sea que el negocio sea una gran empresa, una PYME, un trabajador independiente o una empresa nueva, la opci\u00f3n de la oficina de ventas puede ser beneficiosa desde varios aspectos. Por supuesto, esto depende de las necesidades y perspectivas de futuro de cada empresa, pero en la mayor\u00eda de los casos, se puede ahorrar una enorme cantidad de tiempo y esfuerzo al elegir abrir una oficina de ventas en comparaci\u00f3n con otras opciones.\r\n\r\nA sales office<\/strong>\u00a0in China is formed by the outsourcing of the legal and administrative management of a foreign company\u2019s representatives to a HR agency (PEO) in China.\u00a0<\/strong>Furthermore,\u00a0the main objective of a sales office is settling an enterprise in China via its representative without any financial or legal hurdles<\/strong>. A key factor is that\u00a0a sales office can only be established by the form of labor dispatch through a PEO.<\/strong>\r\n

Advantages<\/strong><\/h3>\r\nSales offices, one of the Chinese business models accepted by the People\u2019s Republic of China has its distinct advantages and disadvantages. It is imperative to keep in mind that one must evaluate their ability to meet corporate goals and financial objectives while minimizing all possible risks.\r\n\r\nMost imperatively, the costs of a sales office are also very attractive.\u00a0There is no minimal capital investment required.<\/strong>\r\n\r\nAdditionally, no taxation nor administration fee is involved in the registration process, only during the operational process (For example, if the employee is Chinese, income tax and social security fees will occur. Whereas foreign employees will only be subject to income tax). Not to mention,\u00a0the establishment phase only takes one month which is a less time-consuming solution compared to other alternative solutions<\/strong>.\r\n

Disadvantages<\/strong><\/h3>\r\nDespite its advantages, the sales office solution also has its limitations. Primarily, sales offices cannot issue any fapiaos (invoices). They\u00a0must invoice via a PEO<\/strong>. Furthermore, the firm\u2019s funds kept within China are administrated by the dispatched employee\u2019s administrative partner. Which indicates that\u00a0all funds and benefits are directly transferred out of China<\/strong>. In addition, companies cannot request credit from banks and also cannot purchase any real estate in China.\r\n

How it Works<\/strong><\/h3>\r\nThe sales office\u2019s flexible structure allows a firm to promote itself commercially and restriction-free<\/strong>. There are hundreds of hosting platforms and work stations in every city in China. Although as mentioned previously, one must be sure of one\u2019s special needs and objectives in order to find the right system for the company. It is also important to keep in mind that\u00a0a foreign company can only open a sales office in China through a PEO<\/strong>.\r\n\r\nDue to the fact that foreign investors can\u2019t present the documents themselves, every company wishing to\u00a0establish a WFOE<\/a>\u00a0also has to pass through a PRC agency (local Chinese certified agency) that will conduct the submission process.\r\n\r\nIn most cases, when a foreign company chooses to use the sales office method, this indicates that the company\u2019s main and prime objective is to enter the Chinese market in a less time consuming and efficient manner.\r\n
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  1. The first phase in the process of establishing a sales office is to create a physical representation in China. In order to authorize a sales office in China, the local structure of at least one employee in the mainland is necessary. Under these circumstances, the company has\u00a0two options; either to delegate a representative from the company\u2019s home country to China, or hire a Chinese employee<\/strong>.<\/li>\r\n \t
  2. Then, the foreign company finds a PEO and together, decides what type of rental is best to establish the sales office, the geographical location and the size of the office, etc. (these aspects do not alter the employee\u2019s legal or administrative situation). With the assistance of the PEO, it is the foreign enterprise\u2019s responsibility to install its employees in China in the best conditions in order to facilitate the company\u2019s growth and satisfy the local needs (such as client proximity, suppliers and partners, local team diversification, etc.).<\/li>\r\n<\/ol>\r\n

    Case Study<\/strong><\/h3>\r\nOpening a sales office via labor dispatch can be beneficial for many different industrial sectors but especially for the wine sector. Many successful cases have been witnessed with wineries from France, Spain, Chile, etc. entering the Chinese market via a sales office. In China, the wine industry is rapidly developing every year, especially in wealthy cities such as Beijing, Shanghai, Chongqing, and Shenzhen. This is mainly because of the influences of the western culture and the materialistic mindset of the Chinese people. Many Chinese people think that being able to afford and drink wine gives you a title or status of wealth.\r\n\r\nWhen entering the Chinese market, many foreign wine distilleries do not need to delegate many employees. Usually having one to three representatives in the mainland will allow them to operate and make profit. Thus,\u00a0opening a sales office via labor dispatch is often most beneficial for companies that can operate even with a small amount of employees. It mainly depends on how many people a company wants to delegate<\/strong>.\r\n

    The Latest Market Entry Trend<\/h3>\r\nSo what has been increasingly seen in China market-entries from foreign companies? Foreign companies are\u00a0utilizing a sales office via labor dispatch to initially establish themselves in China while simultaneously starting the procedures to establish a WOFE<\/strong>. Considering the fact that a WOFE can take as long as up to 18 months to establish, they are choosing to start off with a sales office while in the meantime going through with the process of applying for a WOFE. By doing so, when the sales office contract expires, the WOFE will be ready. This will allow the transition to go smoothly in a time efficient manner. Moreover, the administrative tasks will be managed by the local partner so the foreign company will not have to deal with any complicated procedures\r\n

    Conclusions<\/h3>\r\nAs the benefits of utilizing a sales office have become more globally known, more and more foreign companies are trying to physically establish themselves in China using this method. However, the downside to this phenomenon is that the increase in sales offices have made the Chinese government more aware, strict, and cautious of the laws and regulations regarding labor dispatch. Therefore, in order to prevent illegal establishment of foreign enterprises, the Chinese Ministry of Human Resources and Social Security has stated that a foreign enterprise cannot have more than 10% of its employees working in China. That is why most foreign companies only choose to send one or two employees to work in the sales office in China.\r\n\r\nIn conclusion, a company must carefully think through all of its needs and find a solution that best meets its needs when expanding to China. All in all,\u00a0a sales office via labor dispatch is recommended for companies who are certain that they want to enter the Chinese market and establish a presence for a long-term but only need to delegate a few representatives in order to develop their products, brand-image, and professional network<\/strong>.\r\n\r\nFor more information or advice on setting up a sales office in China, please contact us.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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