Global Mobility and Expansion from China

Global Mobility Areas from China

The Global Mobility route is a business route that enables overseas workers to undertake temporary, short-term, and permanent work assignments, allowing employers and entrepreneurs to establish and manage a growing international workforce and expand their international corporation. Examples of global mobility from China include the following:

• Short-term assignments for the training and transfer of staff, where employees can gain insight and bring back valuable industry knowledge
• Long-term business trips for opening up new offices and facilities, and expanding into new markets
• Short business trips for reasons such as networking, negotiating contracts, training staff, leadership development, and attending conferences
• Permanent assignments for transferring staff, either permanently or indefinitely

On the global mobility route, employers also have the opportunity to invest in business and have access to healthcare services. They are also permitted to bring along family members to join them overseas.

Challenges for Chinese Businesses Going Abroad

Along with the numerous benefits of international business expansion, factors such as laws and taxes can also present challenges for entrepreneurs seeking to establish a global brand and tap into new markets. 

Chinese employers and entrepreneurs must comply with the destination country’s immigration requirements, including visa routes for long-term and short-term work assignments and employee sponsorship. Each visa category has its own application process and requirements.

Before deciding on whether to expand a business overseas, consider the following areas:

Tax Laws

Businesses must comply with state and local taxes and may face penalties for noncompliance. Sometimes a company may also be taxed twice on foreign income, known as double taxation. Another tax compliance issue arises when a company has mobile workers and classifies them as contractors. In such cases, these workers are deemed tax citizens in both countries and will be officially classified as employees under local labour law.

Some businesses may also need to pay Value Added Tax (VAT) if their main supplier of goods is based in a foreign country. Companies must also ensure they stay up-to-date with changes to tax on interest income, as these are typically subject to annual adjustments.

Talent Mobility

To successfully adapt to new business markets, companies expanding from China must rely on global talent mobility, which comes with logistical challenges, as well as employee retention hurdles and compliance risks. It can be a challenge for businesses to keep their employees motivated during and after the mobility process.

At IAS, we help employers and businesses from China and around the world implement a robust strategy and framework that enables them to build a skilled and dedicated workforce that can easily transition between markets.

Cultural Differences 

To ensure successful business growth overseas, employers must have an in-depth understanding of the different business models of the destination country, as well as the cultural differences in business etiquette. Contrasting communication styles can impact work culture and team dynamics, and transferred employees may experience difficulties adjusting to a new work environment.

Mobility Compliance

Constantly changing regulations when expanding a business overseas mean that employers must maintain strict record-keeping and reporting practices, as well as conduct more frequent right-to-work checks. A Sponsor Licence is a requirement for most global mobility visa routes, and right-to-work checks can prevent an employer from receiving a civil penalty. 

As a sponsoring employer, it is essential to maintain a record of all tax compliance checks and verify that each sponsored employee’s documents are genuine and contain accurate information, including date of birth and passport photos.

Our dedicated team can help you navigate any challenges you may encounter in the areas above related to global mobility smoothly. We have legal advisors who can assist you with work visa applications, cultural acclimation advice, guidance on foreign tax liability, and more..

Global Mobility Options for Chinese Professionals

The visa routes that are available to professionals and students from China include:

Chinese Visit Visas

A Visit Visa allows foreign nationals to visit a country for business purposes, such as attending meetings, conferences, interviews, lectures, and seminars. A Visit Visa typically has a validity period of 30-90 days. Chinese professionals can apply for a Visit Visa for business trips in many countries, including Southeast Asia, some African nations, the UK, Europe (Schengen zone), and the US.

Skilled Worker Visa

The Skilled Worker Visa is the most commonly applied-for work visa and can lead to settlement. This route is for professionals who have received a job offer abroad from an employer that holds a Sponsor Licence for the UK Global Mobility route. Skilled worker visa programs are available in many countries, including the UK, Canada, Australia, Germany, and many other countries across Europe. After 5 years, employees on the UK Skilled Worker Visa are eligible to apply for Indefinite Leave to Remain (ILR) status. 

EU Blue Card

The EU Blue Card permits professionals who aren’t from EU countries, and have a job offer or work contract, to enter the EU bloc to live and work for a period of up to 4 years, based on the length of the employment contract. An EU Blue Card could also lead to permanent residency.

Global Talent Visa

The Global Talent Visa is another option for highly skilled Chinese professionals working in the arts, technology, science, social sciences, engineering, humanities, and medicine industries. To be eligible, you must have been endorsed as a leader or potential leader. Countries with talent visas include the UK, the US, Canada, Australia, New Zealand, and France.

Senior/Specialist Worker Visa

In the UK, the Senior or Specialist Worker Visa is a global mobility visa that has replaced the Intra-Company Transfer Visa. This visa is for employees of multinational organisations who have been transferred to a branch in another country. 

To be eligible, the worker must have been employed by the company for a minimum of 12 months, unless they earn a salary above a certain threshold. This visa can lead to settlement after a certain period, if you switch to a Skilled Worker route.

Intra-Corporate Transferee (ICT) Permit

In Switzerland, France, and Italy, the Intra-Corporate Transferee (ICT) permit works similarly to the UK’s Specialist Worker Visa, and the US’s L-1 Visa. In the UK, the Intra-Company has been replaced by the Senior Specialist Worker and Graduate Trainee Global Business Mobility routes.

Graduate Trainee

The UK’s Graduate Trainee Visa is a visa option of the Global Business Mobility route for intra-company transfers, which has replaced the Intra-Company Graduate Trainee route. Similar visa routes are available in many countries, including the United States, Germany, Japan, and Australia.

Investor Visas 

The Tier 1 Investor Visa route in the UK is now closed; however, there are alternative options available for entrepreneurs interested in investing in a foreign business and seeking to enter an overseas market. Golden Visas are visas for entrepreneurs looking to invest in foreign business, and are common in countries such as Portugal, Greece, Malta, Spain, and Turkey. Investment can include property investment, investing in business, or investing in government bonds.

Global Business Mobility Visa

The UK Global Business Mobility Visa covers 5 visa routes for professionals relocating from China: 

• Senior or Specialist Worker Visa, 
• Graduate Trainee Visa
• UK Expansion Worker Visa
• Service Supplier Visa
• Secondment Worker Visa

Innovator Founder Visa

The UK Innovator Founder Visa is an ideal option for Chinese entrepreneurs, as it is for individuals interested in starting a business in the UK. To be eligible for this visa, you must have been endorsed for a scalable business idea from an approved body. France also has business and investor programs open to Chinese entrepreneurs.

Popular Expansion Destinations

Choosing the right country for expansion is the first crucial step in achieving successful global mobility. Some of the top countries for expanding a business from China are:

United Kingdom 

The UK is a global financial centre with a diverse and skilled workforce. It is also a popular destination for foreign investment. Business travellers to the UK typically are not required to pay social security (known as National Insurance).

Expanding a business from China to the UK can open the door to increasing business across the rest of Europe; however, there are some drawbacks to consider, such as a complex visa application process, tariffs, and other trade-related issues. Expansion in the UK is also costly, including high import duties and operational expenses.

USA 

The Chinese market has several restrictions on investing, as only Chinese investors can invest in businesses without restrictions within China. The US boasts one of the largest consumer markets, with the world’s largest economy by GDP, and a diverse pool of investors. The US also has the world’s largest consumer market, and New York is also home to the world’s largest stock exchange. Conducting business in the US is easier than in China due to its entrepreneurial culture, which offers lower costs and more lenient regulations for starting a business.

However, there are some areas in which starting a business in the US from China can pose a problem. Geopolitical tensions between the US and China have led to restrictions on data transfers, as well as high tariffs on US exports to China. Competition is also an issue, as the US market is saturated with startups, established businesses, and global brands across all industries. This can make it hard for a Chinese business to stand out.

Europe

Expanding a business from China to Europe means gaining access to the EU single market and a vast talent pool of highly skilled professionals. Chinese businesses expanding into any of Europe’s EU-member countries also benefit from the free movement of goods in EU countries and no customs duties.

There are, however, several challenges that Chinese employers seeking to expand in Europe must consider. Some hurdles for Chinese entrepreneurs to overcome include strict EU regulations and investment screening imposed on China, rising political tensions, and an increase in trade restrictions as the EU sharpens its focus on economic security. There are also high labour and compliance costs to consider..

Steps to Successful Overseas Expansion

For businesses to successfully expand overseas, they require in-depth research, strategic planning, and careful consideration. From corporate structuring to business registration and visa applications, there are several key stages to consider when establishing an international presence.

1. Set clear objectives for what you want the business to achieve through expansion, and develop an expansion model. Is expansion a short or long-term goal? Having solid goals, such as entering a new market or increasing brand awareness, will help set the path for what you want to achieve. Compare the benefits and challenges of global mobility for your business.
2. Create a budget for the business expansion project, ensuring that it factors in legal expenses, infrastructure, and employee costs.
3. Conduct thorough market research on the socio-political landscape, your competitors, customer behaviour, and market size, to gain an understanding of business growth opportunities. Using this research, you will be able to make financial projections and set a target timeframe for your expansion.
4. Select a trading name for your new venture. Register the new company or business branch and file the necessary paperwork once you have learned the tax requirements and legal responsibilities of the destination country.
5. Outline the types of employee assignments required for global mobility and establish the criteria for eligibility. Make sure you have an official assignment policy in place.
6. Start building a team from several departments that will help create and implement a talent strategy for global expansion. The team should include representatives from HR, finance, and legal. Create a plan to foster a collaborative work culture between talent in both countries.
7. Ensure that your marketing strategy and messages resonate with the host country/countries (including the company’s logo and branding, brand story, social media platforms, promotional materials, and marketing channels).
8. Familiarise yourself with the immigration laws and visa requirements of the country where the business will be expanding.
9. Ensure that all required paperwork is gathered for all employment contracts and visa applications. This includes application forms, passports, and certificates of sponsorship.
10. Seek expert legal advice on tax compliance and the tax risks for the destination country. Each state has its own payroll scheme and local employee taxes.
11. Make travel arrangements for relocating staff and family.
12. Verify that the job roles of overseas workers align with the visa requirements. Apply for any work permits.

Our Global Mobility and Expansion Services

At IAS, we understand the various challenges of managing an overseas business expansion and how difficult the process can be without legal assistance. Through personalised legal advice, we will guide you on how to navigate the stages of growing a business internationally. With our assistance, you will gain a comprehensive understanding of the immigration requirements that a company must meet when expanding or establishing a business abroad. The areas we cover include:

Expansion Advice

Our dedicated team of immigration lawyers can help you through the complex process of expanding a business overseas, whether that’s opening a new branch or entering a new market. We will take you through the fundamental steps to transfer your employees from China to the destination country as quickly and seamlessly as possible, covering all the legal framework.

Visa Applications

At IAS, our immigration lawyers have years of experience in training their clients to ensure they are meeting all the immigration and visa requirements. We’ll ensure you apply for the most suitable visas and guide you through the China visa requirements and processes for Chinese nationals, including eligibility criteria, documentation, financial details, and visa fees.

Company Registration and Compliance

Before you even register a company, we can deliver end-to-end guidance on how to secure a local address. We’ll guide you through the different stages of registering a company abroad, as well as explain the types of companies and their corresponding legal structures. 

We’ll also provide expertise on tax compliance, tax compliance risks, and other compliance requirements for your destination country, assisting you with any potential legal issues that may arise along the way. Whether you need assistance with record-keeping, right-to-work checks, or obtaining a sponsor licence, we can help.

Relocation and Settlement

We offer a range of global mobility services, providing tailored support for companies managing employee transfers and sending staff on international business assignments. Our expert concierge support service will also provide logistical support for shipping and packing. Our global mobility services extend to overseeing the relocation of your personal possessions, booking travel arrangements, and coordinating healthcare.

Accommodation

Finding appropriate accommodation can be a challenge when expanding business abroad. Whether you are moving abroad on your own or bringing family with you, our professional relocation housing assistance can help. We also provide solutions for temporary accommodation to help you get settled in a foreign country.

Cultural Integration and Training

Expanding a business involves more than logistics, taxes, and laws. Work culture clashes can arise if the country of expansion has different work models, ethics, and team structures. At IAS, our legal team will provide comprehensive support on how to integrate employees from both countries smoothly, thereby improving long-term employee retention.

At IAS, we have a highly knowledgeable and dedicated team of international immigration lawyers serving Chinese Businesses and Individuals, including multilingual lawyers and support staff who can speak Mandarin and English fluently