Employment Agency China has become more open to expatriates working online for China-based companies, and with the proper paperwork, you can do so as well. Visas for online work in China are available for those who qualify.
Before You Hire, Your Employees in China was designed to help you understand the China employment landscape to make informed hiring decisions. We provide information on employing Chinese and foreign employees in Employment Agency China, including recruitment, hiring, contracts and more.
Steps of Hiring Employees in China:
- Hiring without legal entity through PEO:
PEO service (PEO stands for Professional Employer Organization) is an innovative concept in China – employee outsourcing. A PEO company serves as the employer of employees selected and worked for foreign companies by acting as a labor dispatcher in China. All management duties, such as employee benefits administration, payroll processing, tax payments, and government compliance, are taken care of by the PEO company on behalf of the foreign investor.
- Hiring Chinese staff after forming a company:
WFOEs have fewer paper works and zero costs initially, and most importantly, you have 100% legal rights on your China business. It is possible to set a WFOE in 3 days. Other visas, such as Z visa and R visa, require an employer’s certification before they are issued.
- Select Employees under Representative office:
When setting up a representative office in China, it is essential to understand that this is not allowed to hire employees directly. The foreign investor must employ the workers through a licensed labor dispatch/PEO and employment agency. Hiring them directly would make the entire investment unlawful and subject to possible fines, penalties, and closure of the representative office.
- Hire employees through local partners:
In our firm, we had a supplier who was willing to recruit our employees and promote us. However, we thoroughly investigated the local company before allowing it to recruit our employees. We were concerned about the local company’s compliance with laws and regulations. As a result, we found that it didn’t have the correct accounting software to keep track of our employees’ payroll and other human resource issues such as employee benefits and entry/exit permits. Our employees’ feelings toward the local company became highly hostile. The result was that they complained about the local company’s lousy performance to us directly, which prompted us to terminate this arrangement.
Points you need to know before hiring in China:-
- Employment Contract:
Chinese people are used to signing a two years or three years contract with their employer. In cities such as Beijing, Shanghai and Guangzhou, it’s common to work in China for only 2 or 3 years and then re-apply again.
- Mandatory Benefits in China:
For Chinese employees, Social Insurance and Housing Fund should be part of the compensation. However, it is a difficult job to complete these requirements by a foreign company. Hiring Chinese employees will help you save this trouble.
- Salary Structure:
When signing an employment contract with your employer, it is essential to know what benefits you will be receiving. Below are some standard benefits packages which are usually provided.
Employment Agency China helps foreign companies set up their WFOEs in China. If they do not wish to set up a legal entity, then we can employ and manage 100+ employees on their behalf utilizing our in-country local experts. We provide payroll; government-registered payroll taxes collection & filing, HR & admin support by our team of experienced HR professionals, tax accounting, and tax advisory services.