Hiring an employee in China involves specific legal requirements, stricter than in Europe or the U.S. Here is a clear and complete step-by-step explanation.
✅ 1. Hiring through your own local entity (WFOE, JV, Representative Office)
This is the “standard” method, available only if your company has a legal entity registered in China.
Steps to hire an employee through your company in China
- Have a registered entity in China
Without a Chinese entity, you cannot issue a legally valid employment contract.
- Publish the job offer and recruit
Common recruitment channels:
- 51job, Zhaopin, Liepin
- WeChat groups
- specialized recruitment agencies
- Perform mandatory checks
- hukou (residence registration) verification
- diploma/education verification
- employment history
- for foreigners: work permit + Z visa
- Sign a legally compliant Chinese employment contract
The contract must include:
- salary
- probation period
- working hours & overtime rules
- social insurance
- contract duration (fixed-term or open-ended)
- internal company rules
⚠️ The contract must be in Chinese, often with a bilingual version.
- Register the employee with the Social Security Bureau
You must pay contributions for:
- pension
- medical insurance
- unemployment insurance
- housing fund
- Pay mandatory taxes and social contributions
Social charges in China are high, usually 30% to 45% of the employee’s gross salary depending on the city.
✅ 2. Hiring through an Employer of Record (EOR/PEO)
➡️ The simplest solution if your company does not have a local entity in China.
An EOR (e.g., FESCO, HROne, INS Global, Deel, Papaya Global) legally hires the employee on your behalf.
Advantages
- No need to set up a company in China
- Hiring possible within 1–3 weeks
- Contracts, payroll, and social security handled by the EOR
- Fully compliant with Chinese law
- Ideal to test the market or hire 1–5 employees
How it works
- You choose the candidate.
- The EOR signs the Chinese employment contract with them.
- You pay the EOR → the EOR pays the employee and contributions.
- You manage the employee’s work directly.
This is 100% legal and very common for foreign companies.
❌ What is illegal in China
- Paying an employee directly from abroad → illegal
- Foreign employment contracts → not recognized
- Disguised freelance work (contractor used as employee)
- Representative Offices hiring directly (they MUST hire through a licensed HR agency)
Hiring a foreign employee in China
You must obtain:
- Work Permit (points-based system)
- Z Visa
- Temporary residence permit
- Chinese employment contract
- Police registration + social security registration
These procedures must be handled by a Chinese entity or a licensed agency.
For any information, please contact our team to info@opkofinance.com.
