Why Start a Business in Mainland China?


By far and away, Mainland China is considered the fastest growing of the emerging markets the world over. In Mainland China, both local and foreign investors will be presented with an opportunity to explore the numerous business opportunities there are here. There is no shortage of investment options in Mainland China from technology, manufacturing, engineering, and healthcare. With this, we see that Mainland China should be a priority destination for any investor looking forward to global expansion.

The past few years have seen Mainland China enjoy unprecedented growth, moving from centrally-planned to market-based. It has a population of close to 1.5 billion, making it a significant player in economies shaping the global economy. Apart from being the world’s largest manufacturer and exporter of goods, Mainland China also happens to be the fastest-growing consumer market and importer of goods, thanks to the rapid population growth.

As an investor, you may want to enjoy access to such an economic powerhouse, which is one reason why it would pay off to start a business in Mainland China. But, other than this, setting up in Mainland China also allows you to enjoy the benefits of setting up in a country that sits as a leader in technology and innovation.

However, before making a move, it is important to be hands-on on some basics as a foreign investor in China. One of these is the China payroll system and how to handle issues with payroll in China. So here is our quick guide on HR and Payroll, which any foreign investor can use.

HR & Payroll

For any company operating in different jurisdictions, effectively managing its human resources and payroll is a matter of great significance. Moreover, as a foreign entity, you must comply with the strict regulations, register your employees with the relevant authorities, and contribute to the Chinese social security system and Individual Income Tax, IIT.

This can be a daunting task, especially where you happen to be handling employees plying trade across national borders, thus subject to various tax laws.

If you happen to be facing issues with your HR and China payroll, consult with an advisory firm with experience and the necessary expertise to help you out. With these expert firms, you can ensure full compliance in your organization and streamline your day-to-day administrative tasks.


Generally, effective management of your human resources would entail effective management of your payroll in China, proper handling of individual income tax, and contribution to the national social security scheme, China’s social security system. Note that it is essential that all non-Chinese employees have the necessary documentation to live and work in Mainland China. An advisory firm of repute will be of immense help when applying for these critical documents for your employees.

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