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Hire employees in China through an Employer of Record (EOR)
Hire employees in China without establishing a local entity. Our Employer of Record service handles contracts, payroll, tax withholding, and social insurance — giving you a fully compliant workforce in weeks, not months.
Through our China Employer of Record (EOR) solution, we become the legal employer of your team, assuming employment responsibilities on your company’s behalf. Engaging with MSA’s EOR service in China allows your company to hire, manage, and pay your staff compliantly without establishing a local legal entity.
When you choose MSA for team support, we provide a customized package tailored to your needs and goals. Our services encompass a wide range of outsourced functions, including:
Hire Your Team Compliantly
Ensure full compliance with China's labor laws and tax regulations. We manage all aspects of employment to guarantee adherence to local legal requirements, including drafting compliant employment contracts, managing employee benefits, and ensuring accurate payroll processing.
Speed to Hire
Have employees on the ground in China in as little as 24 hours , instead of waiting to establish a formal legal presence in China.
Superior Employees Benefits
Provide your employees in China with comprehensive benefits, including unemployment insurance, medical insurance, workers' compensation, and maternity benefits.
100% Accurate Payments
We handle the entire payroll process from start to finish, ensuring that your employees are paid accurately and on time. This includes calculating salaries, overtime, bonuses, and deductions in accordance with Chinese labor laws and your company policies.
Obtain Work Visas & Permits
Our global mobility team simplifies this process by providing end-to-end support for obtaining the necessary documentation. We assist with the preparation and submission of all required paperwork, including the Foreigner’s Work Permit Notification Letter and the Z Visa application.
Easily Terminate Employees
Scale your team up or down flexibly. By partnering with us, you can confidently adjust your workforce size to meet your business needs while minimizing risks and maintaining a positive company reputation.
Get a Dedicated China HR Specialist
You will have a dedicated China HR Specialist for all your EOR employees. A single local contact for simpler, more streamlined communication with MSA.
Transition from EOR to Legal Entity
We assist companies in transitioning from an Employer of Record (EOR) solution to a Local Entity in China such as joint venture or wholly foreign-owned enterprise (WOFE). Our goal is to ensure a seamless transition while maintaining continuity for your employees and minimizing disruptions to your operations.
MSA is a leading provider of EOR service in China with over 10 years of experience. In addition to our Employer of Record service, we offer a full range of support, including accounting, tax, and advisory solutions.
Our Western management team and bilingual staff are dedicated to making your expansion into China seamless. With MSA as your trusted partner, you can focus on growing your business while we handle the back-office details.
MSA is a ‘full-stack’ China expansion company — we support international businesses in all aspects of their China expansion.
Often a legal entity, such as a Joint Venture or Wholly Foreign-Owned enterprise is the best option for business expansion. But in some cases, such as where you only seek to hire a small number or employees or test the market in China, an Employer of Record (EOR) solution makes more sense. Through our EOR, we quickly and compliantly hire China-based talent, and can support your business in all aspects of China HR, payroll and employment compliance.
In addition, we can support all elements of your China operations with our expert advisory services: We offer highly skilled professionals across a broad spectrum of functions, including accounting, tax, human resources, IT, and corporate secretarial services.
If you reach a point where you are ready to transition from EOR to a full China presence, we can support a smooth transition to a local legal entity.
China at a Glance
If you are considering hiring employees in China, whether through an Employer of Record (EOR) or another solution, it’s important to understand the key elements of China business and employment.
Aspect
Details
Estimated Population
1.4 billion
Currency
Yuan (CNY) and Renminbi (RMB)
Capital City
Beijing
Languages
Mandarin, Cantonese
GDP Growth
2.3% (2020)
Employment in China
Employment laws and regulations in China apply to both national and foreign employees, with some variations in benefits and entitlements. A formal, written employment contract is mandatory for every full-time employee hired in China.
Types of Employment Contracts
China offers several types of employment contracts to cater to different employment needs. Fixed-term contracts are for a specific period, non-fixed-term agreements do not have a definite expiration, and project-based contracts end when the project is completed.
Contract Type
Description
Fixed-term Contract
Lasts for a specific period.
Non-fixed Term Contract
No definite expiration period.
Project-based Contract
Ends with the completion of the project.
Employee Benefits
Employees in China are entitled to various benefits under The Labour Law, The Social Security Law, The Work Safety Law, and The Union Law. These benefits include health insurance, retirement benefits, unemployment benefits, disability benefits, and maternity benefits.
Benefit
Description
Medical Leave
Up to 12 months for work-related injuries or sickness.
Maternity Leave
98 days, extendable by 15-30 days for complications.
Retirement Benefits
Average retirement age: 60 for males, 55 for females.
Medical Care Benefits
Reimbursement for clinical expenses and critical illness.
Paid Leaves
5-15 days based on tenure, plus marriage, sick, and funeral leave.
Leave, Accrual, and Statutory Holidays
Employees in China are entitled to various types of leave, including statutory holidays, rest days, and annual leave accrual. Statutory holidays include seven public holidays, while rest day policies ensure employees have at least one full day of rest every week. Annual leave accrual is based on cumulative employment years.
Leave Type
Description
Statutory Holidays
7 public holidays including New Year’s Day, Labor Day.
Rest Day Policy
1 full day of rest every week.
Annual Leave Accrual
5-15 days based on cumulative employment years.
Minimum Annual Leave
In China, the minimum annual leave entitlement increases with years of service. Employees with less than one year of service are not entitled to annual leave, while those over 20 years are entitled to 15 days.
Years of Service
Minimum Annual Leave
Less than 1 year
0
1 to 10 years
5
10 to 20 years
10
More than 20 years
15
Contractors vs. Full-Time Employees
Hiring independent contractors versus full-time employees in China involves different legal commitments, costs, and flexibility. Independent contractors typically have fewer overhead costs and are ideal for short-term projects, whereas full-time employees require official employment contracts and are suitable for long-term operations.
Aspect
Independent Contractors
Full-Time Employees
Legal Commitment
Employment contract only
Official employment contract required
Overhead Costs
No benefits, statutory payments, payroll taxes
Includes benefits, statutory payments, payroll taxes
Flexibility
Ideal for short-term projects
Suitable for long-term operations
Hiring in China
Independent Contractors
Hiring independent contractors involves clearly defining work parameters, allowing contractors to decide on working methods, timing, and machinery. A written agreement specifying payment terms is mandatory.
Full-Time Employees
Hiring full-time employees requires an official employment contract. Employers must maintain detailed employee files and compensation records.
Probation and Termination
Probation
The probation period for employees in China depends on the duration of their employment contract. The maximum probation period is one month for contracts ranging from three months to one year. For contracts lasting one to three years, the probation period can extend to two months. Fixed-term contracts exceeding three years have a maximum probation period of six months.
Contract Duration
Maximum Probation Period
3 months to 1 year
1 month
1 to 3 years
2 months
Fixed-term (3+ years)
6 months
Termination
Termination of employment in China requires justifiable reasons and a reasonable notice period. There are different types of termination notices, including with cause, without cause, and fixed-term contract termination. A 30-day notice period is typically required, or three days during probation.
Types of Visas in China
China offers various types of visas for different purposes, including permanent residence, employment, job training, business tours, personal visits, transit, and aircrew and foreign correspondents.
Visa Type
Description
Visa D
Permanent residence.
Visa Z
Employment visa.
Visa X
Job training or higher studies.
Visa F
Business tours, lectures, short-term courses.
Visa L
Personal visits, tourism.
Visa G
Transit through China.
Visa C
For aircrew, train attendants, and seamen.
Visa J-1, J-2
Foreign correspondents (short and long-term).
Payroll and Taxes in China
Payroll Options
Companies hiring in China have several payroll options, including remote payroll outsourcing for foreign employers hiring residents, local payroll administered by another organization, internal payroll for large-scale companies, and fully outsourced payroll managed by an EOR company.
Payroll Option
Description
Remote Payroll
For foreign employers hiring residents.
Local Payroll
Administered by another organization.
Internal Payroll
Local payroll for large-scale companies.
Fully Outsourced
Managed by Global Employment Organization (GEO).
Social Security Contributions in China
In China, both employers and employees are required to make contributions to various social security funds. These contributions include pension, unemployment insurance, housing fund, occupational injury insurance, and medical and maternity insurance. These contributions ensure that employees receive necessary social benefits and protections. The percentages of salary contributed by employers and employees can vary by city. Below is a general guideline for Shanghai:
Contribution Type
Employer Contribution
Employee Contribution
Details
Pension
16%
8%
Based on the employee’s gross salary, up to the contribution ceiling.
Unemployment Insurance
0.5%
0.5%
Both employer and employee contribute equally.
Housing Fund
7%
7%
Both employer and employee contribute equally.
Occupational Injury
0.16% to 1.52%
0%
Employer-only contribution, varies by industry risk level.
Medical Insurance
10%
2%
Includes maternity insurance in some cities.
Maternity Insurance
Included in Medical
0%
In some cities, maternity is merged with medical insurance.
In Shanghai, employers contribute a significant portion of an employee’s salary to social security funds, with the highest contributions to pension and medical insurance. Employees also contribute a portion of their salary, primarily towards pension, unemployment insurance, and the housing fund. The specific percentages can vary by city and are subject to local regulations.
Incorporation
Incorporating a business in China involves meeting specific requirements, including appointing a board of directors, a chairman, a deputy chairman, and a legal representative. The registration process typically takes two to three months.
Requirement
Details
Directors
3 to 13
Chairman
1
Deputy Chairman
1
Legal Representative
1
Registration Timeline
2 to 3 months
China PEO vs China EOR
A Professional Employer Organization (PEO) and an Employer of Record (EOR) serve different business purposes. A China PEO involves co-employment, where the responsibilities are shared between the PEO and the client company. This is ideal for companies needing HR support. On the other hand, an Employer of Record in China acts as the legal employer and takes full responsibility for compliance, payroll, and HR functions, making it suitable for companies expanding into new territories.
Aspect
China PEO
China EOR
Employment
Co-employment
Legal employer
Responsibilities
Shared with client
Full compliance, payroll, and HR responsibilities
Best For
Companies needing HR support
Companies expanding into new territories
Hire in China with MSA’s EOR Solution
Expanding into China offers significant business opportunities but also comes with complex employment laws and regulations. MSA’s EOR services simplify this process, ensuring compliance and efficient payroll, benefits, and taxation management. By partnering with MSA, businesses can focus on their core operations while we handle the intricacies of employment in China.
Connect with MSA today to realize your business expansion plans in China.
Frequently Asked Questions
How does MSA’s China EOR service benefit my company?
MSA’s China EOR service provides several benefits, including:
Quick Market Entry: Simplifies the hiring process without setting up a local entity.
Compliance: Ensures full compliance with Chinese labor laws and tax regulations.
Comprehensive Solution: Provides comprehensive HR support, benefits, and payroll management.
Work Visas & Permits: Assists with obtaining work visas and permits for foreign workers.
Scalability: Allows you to scale your team up or down flexibly.
Conversion to Legal Entity: Helps transition from EOR to a local entity when needed.
What responsibilities does MSA assume as an EOR?
MSA assumes various employment responsibilities, including:
Employment Liability: Takes on liability for employment as specified in our service agreement.
Payroll and Taxes: Handles payroll processing, tax withholding, and payment.
Benefits Management: Enroll employees in health and social insurance programs.
Compliance: Ensures adherence to local labor laws and regulations.
How does MSA ensure compliance with Chinese labor laws?
MSA deeply understands Chinese employment regulations and conducts thorough due diligence to ensure compliance. We manage employment contracts, payroll, taxes, and benefits in accordance with local laws, mitigating your company’s compliance risks.
Can MSA help with recruitment and onboarding in China?
Yes, MSA’s EOR services can include managing the recruitment process, from sourcing and interviewing candidates to onboarding new hires. We ensure that all recruitment and onboarding activities comply with local employment contracts and HR policies.
How does MSA handle payroll and tax administration?
MSA calculates and distributes monthly wages, withholds the correct tax amounts, and ensures timely and accurate payroll processing. We also manage social insurance contributions, reducing your administrative burden and ensuring compliance with Chinese regulations.
What happens if I need to terminate an employee?
MSA provides guidance and manages terminating employment contracts, including severance terms and legal requirements. We ensure that terminations comply with the terms of the contract and local HR practices, facilitating a smooth transition for both you and the departing employee.
Can MSA assist with transitioning from an EOR to a local entity?
Yes, MSA can assist companies in transitioning from using our EOR services to establishing their legal entity in China. We provide support throughout the process to ensure a seamless transition.
How do I get started with MSA’s China EOR service?
To get started, you can request a proposal from us. Our team will work with you to understand your needs and provide a customized solution to help you hire and manage staff in China compliantly and efficiently.
MSA is one of the most customer friendly incorporation firms in China. They took the time to understand our business and key objectives, then tailored the whole incorporation process accordingly.
VU
Verified User
Verified on G2
5/5
EOR & HR
Can Highly Recommend MSA!
MSA has been outstanding in providing comprehensive EOR services. Their team is incredibly knowledgeable about local employment laws and regulations, ensuring full compliance at all times.
RH
Rick H.
Verified on G2
5/5
Incorporation
Positive Experiences with MSA Throughout Whole Process
MSA was great to work with during the process of setting up our representative office in Shanghai. They were always responsive, clearly explained all required steps, and kept us on schedule.
JD
Jim D.
Verified on G2
5/5
Incorporation
Excellent Service for Company Incorporation and Compliance
We needed to set up a WFOE in China quickly to meet an important client deadline. MSA handled the entire process from start to finish, including registration, bank account setup, and initial compliance.
LN
Lisa N.
Verified on G2
5/5
Tax & Accounting
Help with Tax Matters in Malaysia
MSA's tax advisory team helped us navigate a complex cross-border tax situation between China and Malaysia. Their advice was practical and always tailored to our specific business structure.
VU
Katherine B.
Verified on G2
5/5
Tax & Accounting
Excellent Experience with MSA, 100% Recommended
From the very first consultation, MSA demonstrated deep expertise in Asia business services. They helped us restructure our regional operations for better tax efficiency.
VU
Jeanne Y.
Verified on G2
4.5/5
Advisory
Global Standards, China Know-How
We were looking for a partner that understood both international standards and local Chinese business practices. MSA turned out to be exactly that kind of partner.
TG
Tom G.
Verified on G2
5/5
EOR & HR
Entering HK and China First via EOR Then Setting Up Our Subsidiary
MSA helped us enter the Chinese and Hong Kong markets quickly through their EOR service, while simultaneously handling the full subsidiary setup process.
SS
Sinan S.
Verified on G2
5/5
EOR & HR
Our Experience with EOR Services Switching to MSA
Switching our EOR services to MSA was one of the best decisions we made. The transition was seamless, and we saw immediate improvements in both service quality and cost efficiency.
VU
Dennis K.
Verified on G2
5/5
Tax & Accounting
MSA Promised and Delivered Effortless Transition
When we decided to switch our accounting and compliance services to MSA, we were nervous about the transition. MSA made it completely stress-free with a clear migration plan.
VC
Victoria C.
Verified on G2
5/5
EOR & HR
We Did Payroll Optimization with MSA, Worked Like a Charm
Our payroll processes across multiple Asian entities were fragmented and inefficient. MSA consolidated everything into a streamlined system that reduced errors significantly.
CY
Chris Y.
Verified on G2
5/5
Tax & Accounting
Tax Declaration and Accounting Support, + IFRS Reporting
MSA handles all our tax declarations and accounting in China with exceptional accuracy. Their team also provides IFRS-compliant reporting which simplifies our global consolidation.
VU
Verified User
Verified on G2
5/5
EOR & HR
MSA Onboarded Our Team via PEO: Can Recommend Absolutely!
We needed to quickly onboard a team of 5 engineers in China without having a local entity. MSA's PEO solution was perfect — fully compliant and operational within 2 weeks.
VU
Verified User
Verified on G2
5/5
Tax & Accounting
Our Go-To Partner for Solving Tax and Cashflow Issues
MSA has been our go-to partner whenever we face tax or cashflow challenges in China. Their proactive approach means they often identify issues before they become problems.
VU
Verified User
Verified on G2
4.5/5
Advisory
Dedicated Service Solving Issues
What stands out about MSA is their dedicated approach to problem-solving. When we had a complex visa issue for one of our employees, they worked tirelessly until it was resolved.
VU
Verified User
Verified on G2
5/5
Tax & Accounting
Tax Optimisation in China
MSA's tax optimization strategies saved our company a significant amount in our China operations. Their team identified several tax incentives we were eligible for but hadn't been claiming.
WH
Wilson H.
Verified on G2
4.5/5
Tax & Accounting
Cost Savings Through Accounting- and Tax Restructuring
We engaged MSA to review our accounting and tax structure in China. Their recommendations led to substantial cost savings while keeping us fully compliant with local regulations.
ES
Edouardo S.
Verified on G2
5/5
Incorporation
Nanjing Company Incorporation
Setting up our company in Nanjing was made straightforward by MSA. They handled all the local government interactions, documentation, and registration processes efficiently.
VU
Verified User
Verified on G2
4.5/5
Tax & Accounting
We Liquidated One of Our Subsidiaries in China with MSA
Liquidating a Chinese subsidiary is notoriously complex. MSA managed the entire process professionally, handling tax clearances, employee settlements, and deregistration.
VU
Verified User
Verified on G2
5/5
Incorporation
Excellent Help with Setting Up WFOE in Shanghai
MSA provided excellent support throughout our WFOE setup in Shanghai. They were transparent about timelines, costs, and requirements from the very beginning.
VU
Verified User
Verified on G2
5/5
Incorporation
Establishment of Our RO with Guidance of MSA
We wanted to explore the Chinese market but were not ready to set up a full company. MSA guided us in making the right choice based on our company's activities and goals.
VU
Verified User
Verified on G2
5/5
Incorporation
MSA Went Far and Beyond During Our WFOE Set-Up in China
Interest, response time, diverse cultural backgrounds, and assistance in different languages made our WFOE setup experience exceptional.
VU
Verified User
Verified on G2
5/5
Tax & Accounting
MSA Set Up Our WFOE in Shanghai and Works from Our Accounting System
Clear advice and instructions during the setup. And the ability to work in our accounting environment, so we can easily consolidate the financials at headquarters level.
VU
Verified User
Verified on G2
5/5
Incorporation
MSA Helped Setting Up Our Subsidiary in China
We saw business opportunities in China and were debating whether to set up a company. Due to the excellent guidance of MSA we were able to successfully establish our subsidiary.
VU
Verified User
Verified on G2
5/5
Tax & Accounting
Our Go-To for China Tax Issues and Support
Responsive and proactive team that listens to our issues and comes with practical and quick solutions.
VU
Verified User
Verified on G2
5/5
Incorporation
Great Support Setting Up WFOE in Beijing
Ability to speak Dutch, clear and fast communication, and guidance and advice along the way made the process smooth.
VU
Verified User
Verified on G2
5/5
Advisory
Great Backoffice Support
They require very little input from our side, but if we need some clarifications, they are quick to respond.
VU
Verified User
Verified on G2
5/5
Advisory
Fast and Easy Entry to China
Communication was very fast and easy, services clearly communicated. MSA made our market entry straightforward.
VU
Verified User
Verified on G2
5/5
Incorporation
Starting Our JV in China with the Support of MSA
Knowledge, responsiveness, and cultural understanding made MSA an invaluable partner for our joint venture setup.
VU
Verified User
Verified on G2
5/5
Advisory
Great Partner to Complement Our Own Service Portfolio
They add value to our customers while respecting that we are the primary contact for them.
VU
Verified User
Verified on G2
5/5
Incorporation
Great Assistance During Company Incorporation in China!
Professional expertise and English proficiency made the entire incorporation process smooth and efficient.
VU
Verified User
Verified on G2
5/5
Advisory
Great Support in China
They cover also smaller cities in China, providing excellent support regardless of location.
VU
Verified User
Verified on G2
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