Introduction
China offers unparalleled opportunities for businesses seeking scale and innovation. With a vast consumer market, advanced manufacturing capabilities, and rapid adoption of digital technologies, the country continues to attract global investors across industries from e-commerce to renewable energy. Strategic expansion into China provides not only access to a massive domestic market but also integration into one of the most dynamic supply chains in the world.
EOR & PEO Solutions in China
If you’re looking to hire employees in China without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in China acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.
This model allows you to expand into China quickly, while remaining fully compliant with local labor laws without the complexity or cost of registering a local entity.
What Is an Employer of Record in China?
An Employer of Record China (also known as an EOR provider) enables businesses to hire and onboard China employees without having to incorporate in-country. The EOR manages:
- Employment contracts in China
- Monthly payroll and tax filings
- Statutory benefits in China (like social insurance and leave)
- Ongoing HR and compliance responsibilities
What’s the Difference Between EOR and PEO?
A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in China, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in China but still want to hire full-time staff.
Whether you choose an EOR or PEO depends on your China hiring strategy, budget, and long-term plans for the market.
Benefits of Using an EOR Service in China
- Hire employees in China faster, with no setup delays
- Stay compliant with Chinese labor and tax laws
- Avoid the cost of forming and maintaining a local entity
- Access local expertise in employment law and payroll in China
- Simplify HR management while maintaining control over your team
By using an EOR solution, companies can confidently build their team in China, access top talent in China, and stay focused on business growth — without getting tangled in bureaucracy.
Hiring in China
China is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in China successfully, it’s important to understand your options especially when you don’t have a legal entity in China.
That’s where using an Employer of Record in China makes all the difference.
Your Hiring Options in China
Businesses have two main paths to hire employees in China:
- Register a local entity, manage payroll and HR directly, and take on full legal responsibility.
- Use an Employer of Record (EOR) — a third-party EOR provider that acts as the legal employer in China on your behalf.
The second option is faster, lower-risk, and ideal for companies that want to test the Chinese market, launch quickly, or hire remote employees without permanent infrastructure.
Why Use an EOR to Hire in China?
- Drafting and executing employment contracts in China
- Managing China payroll and mandatory contributions
- Handling employee benefits as required under Chinese labor law
Employment in China
Understanding how employment in China works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow Chinese labor laws closely especially when it comes to employment contracts, payroll, and employee benefits.
That’s why many growing businesses choose to use an EOR in China to handle these responsibilities with confidence.
Employment Contracts in China
All employees in China must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of China, and are usually signed before or on the first day of work.
By working with a China employer of record, you can ensure that all employment contracts in China are properly structured, compliant, and aligned with local requirements without having to hire a full in-house HR team.
Payroll & Employer Contributions
Payroll in China involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:
- Social Insurance (五险)
- Pension Insurance (养老保险)
- Medical Insurance (医疗保险)
- Unemployment Insurance (失业保险)
- Work-Related Injury Insurance (工伤保险)
- Maternity Insurance (生育保险)
- Housing Provident Fund (住房公积金)
Employee Benefits and Leave
Chinese labor law mandates several employee benefits, including:
- Annual Paid Leave
- Sick Leave and Maternity Leave
- Paid Public Holidays
- Overtime Compensation
- Severance Pay upon Termination
Using an employer of record service ensures your team in China receives all required benefits and that your business remains fully compliant with Chinese employment law.
Termination & Notice Periods
Ending an employment contract in China requires strict compliance with the country’s labor laws, which set clear rules around notice, severance, and lawful grounds for termination. Notice periods are generally 30 days in writing or payment in lieu, and employers may also be liable for statutory severance based on years of service. Because regulations are complex and vary by region, partnering with an Employer of Record helps businesses navigate compliance confidently, ensuring fair treatment of employees while minimizing legal and operational risks.
Visas & Permits in China
If you’re planning to hire employees in China or bring in foreign talent, understanding China’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in China makes it much easier.
An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in China with confidence.
Work Permits for Foreign Employees in China
Foreign nationals who plan to work in China must secure the appropriate work permit and residence visa, a process that can be complex and highly regulated. Employers are required to sponsor the application, demonstrating the individual’s qualifications and the business need for their role.
By partnering with an Employer of Record, companies can navigate these administrative requirements more efficiently, ensuring compliance with Chinese immigration laws while enabling a smooth and timely onboarding of international talent.
Types of Visas for Foreign Talent
There are several types of visas used to work or do business in China, including:
- M-Visas
- F-Visas
- K-Visas
- C-Visas
- J-Visas
- S-Visas
Each visa type has specific use cases, duration limits, and documentation requirements. If you’re looking to hire in China or send international staff temporarily, an EOR China solution helps you identify the right visa and manage the application process end-to-end.
Business Permits for Foreign Companies
To operate directly in China, foreign companies typically need to register a legal entity in China and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with Chinese labor laws.
Alternatively, you can use an EOR in China to bypass the need for a local entity. The China employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance — making it easier and faster to hire employees in China.
Why Visas & Permits Matter for Global Hiring
If you’re hiring foreign employees in China, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:
- Avoid visa delays or permit denials
- Ensure alignment with Chinese employment law
- Quickly hire and onboard top talent without risk
- Operate legally, even without a registered entity in China
Common Questions on EOR in China
Onboarding time typically ranges between 4 and 12 weeks, depending on job complexity and administrative requirements. EORs streamline the process by managing paperwork, contract drafting, social insurance, and payroll setup.
EOR arrangements operate in a complex legal landscape—while widespread, they may conflict with China's Social Security Law since contributions must be made by the entity holding the actual employment relationship—potentially exposing both employer and employee to risk.
Key areas include timely issuing of written contracts (within one month), adherence to standard work hours and overtime limits, region-based minimum wages, mandatory social insurance and housing fund contributions, paid leave entitlements, strict termination requirements, and probation period regulations.
An EOR can hire both Chinese nationals and foreign employees. For foreign nationals, the EOR manages the work permit and residence visa process, ensuring all immigration requirements are met before employment begins.
Employment contracts must be in Mandarin Chinese and comply with the Labor Contract Law. The EOR drafts and executes contracts that reflect statutory requirements on wages, benefits, probation, and termination, while aligning with the client company’s operational needs.