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I don't have a legal entity in China,Can I hire Chinese staffs?如果外资公司在中国境内没有设立企业法人,可以聘用中国员工吗?

Yes. But have you considered what is the most important to you as a Chinese employee? Before high salaries and job prospects, there are also the basic legal compliance issues and how they can get paid legally and get basic social security like local employees. In this article, we look at the practical aspects of employment from a non-legal point of view, combining the above two issues.


The first thing to address is how do employees get paid legally?

It is common knowledge that China regulates foreign exchange income. If the foreign company directly pay foreign currency as wages, in addition to consider the bank to give the collection of the ceiling, but also to consider how to each time successfully in the bank to get the money?



Because the foreign currency remittance into the personal account is not directly to the personal account at the disposal of all need to provide the contract documents to the bank for approval before release. Whether the labor contract with the foreign company is recognized by the bank depends on the relevant regulations of each bank. At least this foreign exchange declaration business requires employees to go to the bank counter, very troublesome.


Secondly who is responsible for my social security and housing fund?

If there is no corporate legal entity in the country to sign the contract, then how to open an offical account for the employees to pay social insurance and housing fund? 



One option to consider is using a third-party human resources agency as an intermediary to hire employees and then dispatch them to work for our company. This allows employees to pay social security contributions from the social security account of the third-party human resources company.


The first problem to be solved is the signing of an agency dispatch agreement by a third party manpower company. Most manpower companies require the dispatcher to be a Chinese corporate entity. Only a few human resource agencies accept signing a dispatch agreement for a foreign company, and they usually charge a higher service fee and require the foreign company to pay 1-2 times the employee's salary as a deposit as a guarantee.


This is due to the fact that most HR companies are unable to charge foreign currency.


So what is it that makes our foreign companies reluctant to set up a corporate legal entity in China?


Please leave us a message with your questions and we will select from the questions to give you a question and answer.We will help you to do business in China easily without getting lost.


Author作者 | Lily


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