Expatriate Employment
China, the world’s second-largest economy, is home to many expatriates who live and work there long-term. These individuals are familiar with Chinese local culture and business practices, while not facing language and cultural barriers with their home countries. They serve as valuable bridges between China and their home countries, and many companies from their home countries are willing to hire them to manage their affairs in China.
If these companies happen to have their own subsidiaries in China, these subsidiaries can directly employ the expatriates residing in China.
However, handling business affairs in China does not always require establishing a local subsidiary. In such cases, these companies need a local Chinese company to employ the expatriates on their behalf.
Chinese law prohibits hiring expatriates through the EOR model. Therefore, if you wish to hire expatriates in China without establishing a local subsidiary, you should discuss with the HROne team to explore whether our Chinese subsidiary can undertake your projects and hire the designated expatriates to complete them.
Relevant Process
- The client submits information about the expatriate and the business activities in China.
- HROne’s Chinese subsidiary confirms whether its business scope allows it to undertake the project and whether the expatriate is eligible to obtain the corresponding work visa.
- Upon confirmation by HROne’s Chinese subsidiary, the client and HROne (or its Chinese subsidiary) sign a service agreement or project contract.
- HROne’s Chinese subsidiary signs an employment contract with the expatriate and handles the work visa application. The expatriate becomes an employee of HROne’s Chinese subsidiary and is assigned to manage the client’s project.
- During the employment period, the expatriate handles the client’s affairs in China, with the client managing their work through HROne’s Chinese subsidiary. HROne’s Chinese subsidiary is responsible for the expatriate’s payroll, social insurance, and other statutory taxes, while the client pays the project service fees monthly as invoiced.
- When the client no longer requires the expatriate’s services, they simply need to notify HROne in advance as per the agreement, pay the required fees according to the law, and terminate the service. HROne’s Chinese subsidiary will handle the termination of the expatriate and the cancellation of the work visa.
