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3 Things CN Company Must Confirm Before Hiring Foreign Employees

As globalization continues to deepen, more and more foreign employees are joining Chinese companies, bringing diverse perspectives and valuable experiences. These talents not only enhance the diversity of corporate culture but also strengthen the competitiveness of Chinese companies in the global market. However, before applying for work visas for these foreign talents, there are several details that Chinese companies must carefully confirm to ensure a smooth process.

1 Ensuring Qualification for Hiring Foreign Employees

According to Chinese policies, companies must complete several steps to ensure they have the legal qualifications to hire foreign employees and apply for work visas.

The first step is registering an account on the Foreigners Working in China Management Service System, a prerequisite for gaining the qualification to hire foreign workers. This registration process involves filling in company details and uploading required legal documents, such as business licenses and the legal representative’s identification.

However, not every company automatically qualifies. In some cities, there are specific requirements regarding the company’s operational status, duration of establishment, and the number of Chinese employees. 

2 Necessary Documents for Foreign Employees to Legally Work in China

Under Chinese regulations, foreign employees must start with applying for a Notification Letter of Foreigner’s Work Permit from abroad. This is the first step in the entire work visa application process.

The Chinese company must submit the relevant application materials, including the applicant’s passport information page, personal details, and other supporting documents, to the State Administration of Foreign Experts Affairs. Once the application for the work permit notification is approved, the foreign national must take this notice along with other personal documents to the Chinese embassy or consulate to apply for a Z visa to enter China.

After entering China, the foreign worker must apply for a work permit issued by the Foreign Experts Bureau in the city where they will be employed, ensuring their legal right to work. This application requires the work permit notification, a medical examination report, and an employment contract, among other documents. Once the work permit is obtained, the employee must then apply for a residence permit from the local exit and entry department to ensure their legal stay in the country. Only after obtaining both of these permits can a foreign employee legally work in China.

It’s important to note that in many cities, current policies allow foreign nationals who are already in China to apply for a work permit notification without leaving the country.

3 Are Chinese Companies Required to Pay Social Insurance for Foreign Employees?

In China, according to the Interim Measures for the Participation in Social Insurance of Foreign Employees Working in China, all legally employed foreigners must participate in social insurance, including basic pension insurance, medical insurance, work-related injury insurance, unemployment insurance, and maternity insurance.

If the foreign employee’s home country has signed a bilateral or multilateral social insurance exemption agreement with China, they may be exempt from paying certain insurance contributions according to the terms of the agreement. To date, China has signed such agreements with Germany, South Korea, Denmark, Canada, Finland, Switzerland, the Netherlands, Spain, Luxembourg, Japan, and Serbia.

It’s also essential to note that labor contracts play a critical role for both Chinese companies and foreign employees, especially when submitting various documents during the application process.

While the process of recruiting foreign employees may seem complex, involving many procedures and paperwork, it is highly beneficial for Chinese companies. Foreign employees not only bring international perspectives and expertise but also help enhance a company’s global competitiveness and innovative capacity. Their unique cultural backgrounds and work experiences can foster team diversity, stimulate new ways of thinking, and support the company’s growth towards internationalization.

Common Misconceptions About Work Visas in China -Lisa

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