Companies looking at China expansion need to know about legal changes that may impact growth plans, according to INS Global.
SHANGHAI, Jan. 25, 2023 /PRNewswire/ -- The beginning of 2023 saw numerous laws and regulations come into effect in China. It's important for foreign companies and investors doing business in China to have a full understanding of these changes that may affect operations or plans for expansion into the country.
To avoid issues, fines or penalties, companies looking at expansion to China should consult an experienced strategic partner like INS Global that has expertise in the country.
Here are examples of just three of several new laws that could impact businesses in China:
New Data Security Measures
New guidelines instruct businesses on how they can gather, manage and process data. All businesses offering software and information technology services are subject to the new Trial Measures.
Women's Rights in the Workplace
The revised Women's Protection Law includes provisions for recruitment and employer's obligations in the workplace. This includes specific questions you can't raise in interviews such as the marital status of a woman or whether she may be pregnant. There are as many as 30 new provisions that companies need to abide by and train hiring managers for.
Tariff Adjustment Plans
Changes to import and export tariff rates could have a huge impact on certain businesses including IT products, infant food and certain electric appliances. New regulation have resulted in tax adjustments to as many as 8,948 items. Companies that fail to update accounting practices for these changes could face penalties or even court cases, depending on the sector.
Why Year of the Rabbit Is a Great Time to Open in China
The Year of the Rabbit, which begins on January 22, 2023, favors speed and agility. Businesses that act quickly and take advantage of China reopening after lengthy Covid shutdowns will be rewarded with opportunity. Typically, setting up a new business in China can take two to six months but delays often happen due to licenses or new regulations. But many foreign-owned companies expanding to China are opting to work with a Professional Employer Organization (PEO) like INS Global, with decades of experience and expertise in compliance in China, that can setup businesses in a matter of days.
"Change is a way of life in China's business culture," says Wei Hsu, Managing Director of INS Global. "Companies looking to capitalize on opportunity now that Covid restrictions have loosened need to understand how changing laws and regulations may affect their expansion plans. We know the China market inside and out, and are able to keep our clients apprised about changes that may either put them at risk or offer a big competitive advantage," Wei added.
Lack of time and knowledge of Chinese laws are driving many companies seeking growth in China to partner with a PEO like INS Global, to make the process of launching first-time operations in China seamless, fast and fully compliant.
About INS Global
INS Global is the fastest-growing organization providing worldwide business expansion services and simplifying operations without hassle or delay. Our range of services include global PEO, global employer of record and company incorporation services. We provide comprehensive and innovative solutions to the global needs of organizations.
To learn more about how INS Global can help foster growth for your company, please visit https://ins-globalconsulting.com/contact/.
SOURCE INS Global