How to set up multisite for multi language?

I will answer to my best ability point by point.

  1. Yes, wp multisite would be ideal for this and it will all be in one database.

  2. Not easy to do without a plugin, but yes there are plugins available for translations. However issues might arise, especially with regards to the customer’s expectations.
    a) This can be a problem, as the translation plugins available out there are imperfect; it may mistranslate so in the end customer cannot expect to only update the main site.
    b) As with the previous point, automatic translations may not be perfect. You need to manage the customer’s expectations here.
    c) Again, automatic translations are still imperfect for now. It may be better for your case and the languages you need to translate to but I can tell you now it’s rubbish for Asian languages.
    So in this scenario, automatic translations may either make your life easier or you/your client may have to put in more work and translate and/or fix the translations manually.

  3. I am not aware of any plugins that do this, however I am not saying it does not exist. I do want to reiterate the point though that automatic translations can cause issues.
  4. Yes this plugin can be used on a multisite without any issues as far as I know.

Good luck with your project, and do manage your client’s expectations. The technology is there but it’s not quite perfect yet. There are still some jobs left for humans after all 🙂

Edit: I used this tutorial when I had to set up a multi-lingual multisite –> http://wplang.org/wordpress-multisite-multilingual/

I still had to fix a number of translations especially for Chinese language. That doesn’t translate automatically very well at all.