Chinese companies must abide by a series of laws and regulations when recruiting foreigners, covering visa, work permit, labor contract, social insurance, taxation and other aspects. The following are key laws and regulations and compliance points:

1. core laws and regulations

1. The the People's Republic of China Exit-Entry Administration Law

Key points: clarify the legal requirements for the entry, residence and employment of foreigners, and prohibit illegal employment.

legal liability:

if an enterprise employs foreigners who have not obtained a work permit, it may be fined 10000 to 100000 yuan.

foreigners who are illegally employed may be fined 5000 to 20000 yuan and leave the country within a time limit.

2. The Regulations on the Administration of Employment of Foreigners in China (Ministry of Human Resources and Social Security, No. 36 [2017])

core requirements:

Foreigners must obtain a "Foreigner Work Permit" and a residence permit.

Posts must meet the principle of "special needs and temporary shortage in China".

Posts prohibited for foreign employees (such as religious propaganda and unopened industries).

3. the People's Republic of China Labor Contract Law

Compliance points:

Written labor contracts must be signed with foreign employees;

The terms of the contract are subject to Chinese labor laws (e. g. wages, working hours, social security, etc.);

Foreign employees enjoy the same labor protection as Chinese employees.

4. "Classification Standards for Foreigners Working in China" (A/B/C Class Talents Classification)

Classification Management:

Class A (High-end Talents): no age or educational background restrictions, enjoy the "green channel";

category B (professional talents): bachelor degree or above +2 years working experience required;

category c (ordinary labor): limited to specific shortage positions (e.g. government agreement projects).

2. key compliance processes

1. Work permit and visa management

Enterprises are required to apply for the Notice of Work Permit for Foreigners through the "Management Service System for Foreigners Working in China";

Foreign employees apply for Z visa (work visa) at Chinese embassies and consulates abroad with the permission notice;

Apply for "Foreigner Work Permit" and residence permit within 30 days after entry.

2. Labor contract requirements

The contract must specify the position, salary, working place, and contract period (up to 5 years);

The salary of foreign employees must not be lower than the local minimum wage standard, and the salary of A/B talents must be 46 times the local average wage.

3. Social Security and Taxes

Social Security Contributions:

Under the Social Security Act, enterprises are required to pay pension, medical, work-related injury, unemployment and maternity insurance for foreign employees (exemption can be negotiated in some cities);

citizens of countries that have signed social security mutual exemption agreements with China can be exempted from paying part of the insurance.

personal income tax:

foreign employees are required to declare their income according to the personal income tax law, and progressive tax rate (3% 45%) is applicable;

eligible people can enjoy special additional deductions (such as housing and children's education).

3. prohibitions and restrictions

1. Prohibition of employment

Foreigners under the age of 18;

Foreign students with study residence permits (subject to school approval);

Unapproved practitioners in religion, education, journalism, etc.

2. Industry Restrictions

Industries that foreigners are not allowed to engage in:

Areas that are not open to the outside world (e. g. press and publication, network information services);

Other restricted occupations stipulated by the state (such as tour guides and traditional Chinese medicine doctors with special qualifications).

4. corporate obligations and legal responsibilities

1. Check documents regularly

to ensure that the work permit and residence permit of foreign employees are within the validity period;

30 days before the certificate expires.

2. Information change and cancellation

Changes in position, address and passport information of foreign employees shall be filed with relevant departments within 10 days.

After the labor relationship is terminated, cancellation of work and residence permits within 10 days.

3. Illegal consequences

Illegal employment of foreigners by enterprises: fines, revocation of business license, even criminal liability;

Illegal employment of foreign employees: fines, deportation, affect future entry applications.

5. regional differences and special policies

1. free trade zone/demonstration zone policies

some free trade zones (such as Shanghai and Hainan) allow simplification of the work permit process for class a talents;

The Guangdong-Hong Kong-Macao Greater Bay Area has special employment facilitation policies for Hong Kong and Macao residents.

2. Employment of foreign graduates in China

Foreign students who graduated from Chinese universities can apply for a residence permit for "entrepreneurship" or "internship" within 2 years with their graduation certificates;

You need to apply for a work permit directly in China (there is no need to apply for a Z visa).

6. compliance suggestions

1. Advance planning: confirm whether the position meets the "classification standard for foreigners coming to China" before recruitment;

2. Professional assistance: entrust foreign-related human resources service agencies or lawyers to handle complex processes;

3. regular training: conduct legal training on foreign-related employment for enterprise HR to avoid operational errors;

4. dynamic tracking: pay attention to the national immigration administration (https://www.nia.gov.cn) and local policy updates.

By strictly complying with the above laws and regulations, enterprises can employ foreign employees in a legal and compliant manner, reduce legal risks and attract international talents.

海外合伙人

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