Learning The Fact About Hiring Independent Contractors In China
The number of foreign businesses seeking to set up operations in China is still fairly large. This is despite the fact that many such businesses do not possess the resources or the funds to set up a big operational base in the country. This lack of resources leads many such organizations to hire the services of the so called u201cindependent contractorsu201d in China. Hiring such contractors seems to be the best way to cut down the operational costs of the business set up in China. Key Facts About Independent Contractors In China The first and the most important thing that foreign business organizations need to understand is that hiring independent contractors in China is illegal. Sadly, rather than opting to believe the professionals from the best executive search firms in China, most overseas business organizations take the advice of their Chinese lawyers on the issue. In fact over the past several years, China has adapted an increasingly aggressive approach towards establishments that are following such practices. What Drives Foreign Businesses To Hiring Independent Contractors One of the reasons that drive foreign businesses to consider hiring independent contractors is that it cuts down their operational costs considerably. Most importantly small organization do not have to go through the formalities of forming a WFOE in China, which is mandatory for every legal business set up. Risks Associated With Hiring Independent Contractors As any professional executive search firm in China informs its clients, the risks of hiring independent contractors are far greater than any benefits that may be obtained. The most obvious risk of hiring independent contractors is that it makes the business operation totally illegal. Opting for this method of recruitment also puts the China IP assets of the business at a huge risk.
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