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How an EOR simplifies your workforce expansion in China

Grow your team in China
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Enter the Chinese market with an EOR’s hiring solutions

China offers a highly skilled workforce, thriving tech and manufacturing sectors, and a vast consumer market—among the many reasons why it is a sought-after destination for global expansion.

However, getting past administrative red tape such as local employment laws, tax regulations, and HR complexities can be overwhelming.

This is where an Employer of Record (EOR) simplifies the process. An EOR acts as the legal employer, ensuring compliance with contracts, benefits, and payroll according to Chinese regulations. You can focus on managing your team and scaling your business, while the EOR handles the complexities of local HR.

In the next section, we’ll explore how partnering with an EOR gives your business a strategic advantage in expanding into China.

Why an EOR is your best bet for hiring in China

Entering the Chinese market offers significant opportunities, but managing local employment complexities can quickly drain resources. Setting up a legal entity, ensuring compliance, and handling payroll and benefits can consume valuable time—time that could be better spent focusing on growth.

An EOR simplifies this process by taking care of the administrative and legal responsibilities. Acting as the legal employer, an EOR ensures compliance with China’s labor laws, manages payroll, and oversees taxes and benefits, giving you the freedom to focus on strategic goals.

With an EOR, you can:

  • Hire top talent in China quickly and compliantly without needing a local entity.
  • Transfer compliance responsibilities, including tax regulations and mandatory social contributions, to the EOR.
  • Offload payroll management, tax withholding, and benefits administration to an experienced partner.
  • Minimize operational burdens by delegating contracts, onboarding, and HR management tasks.

With an EOR by your side, you can avoid the challenges of setting up a local entity and concentrate on growing your team and expanding your business. This approach offers the quickest and most efficient path to establishing a strong presence in China.

Next, let’s look at how different solutions compare, so you can choose the one that best fits your needs for expansion in China.

Choosing between an EOR and PEO in China

When entering a new market like China, businesses must carefully evaluate the options available for managing HR and compliance. Two primary solutions often considered are Employer of Record (EOR) and Professional Employer Organization (PEO). Each has distinct advantages, and understanding these differences is critical for making the right choice that aligns with your company’s needs and goals.

Here’s a breakdown of how EOR & PEO differ:
Choosing between an EOR and PEO

For businesses focused on growth and compliance, partnering with an EOR offers the quickest, most reliable path to establishing a strong presence in China.

Employ top talent in China through an EOR

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How to choose the best EOR provider in China

Expanding into China is a promising opportunity, but selecting the wrong Employer of Record (EOR) provider can create unnecessary complications. Issues such as non-compliance, hidden charges, and poor support can derail your expansion plans and impact employee satisfaction. That’s why it’s essential to evaluate the right EOR providers carefully.

Here’s what to focus on when selecting an EOR for your operations in China:

  • Expertise in Chinese regulations

Your EOR must have deep expertise in Chinese employment laws, tax obligations, employee rights, and local benefits. Opt for a provider with a solid track record in handling compliance for companies in your industry. Guesswork in legal matters can cost you dearly.

  • Reliable and accessible support

Strong customer support is essential. Choose a provider that offers 24/7 assistance and assigns dedicated account managers to your business. Personalized support ensures faster issue resolution and a better experience for you and your team.

  • Clear and upfront costs

Avoid surprises by partnering with an EOR that provides a straightforward pricing structure. Ask for a full breakdown of costs to ensure transparency and prevent unplanned expenses.

  • Balanced cost and service quality

Low-cost solutions can lead to expensive problems in the long term. Prioritize providers that balance affordability with dependable service to ensure smooth operations and compliance without cutting corners.

Expansion should drive growth, not introduce unnecessary risks. That’s why choosing the right EOR is crucial—it must align with your business vision and goals. 

By understanding how EORs operate in China, you can refine your expansion strategy with more clarity. This understanding enables you to collaborate effectively with your EOR partner, ensuring smooth operations and a successful market entry. We’ll explore this further in the next section.

How EOR services work in China

Expanding into China can be complex, but an Employer of Record (EOR) simplifies every step. From compliant hiring to seamless onboarding and ongoing HR management, an EOR ensures your business stays aligned with Chinese labor laws while you focus on growth.

Here’s how the process works:

Step 1: Drafts and shares compliant contracts

Once you’ve found the perfect candidate, the EOR generates employment contracts that meet Chinese labor laws. These contracts can be customized with job responsibilities, work hours, compensation, and termination clauses. The EOR securely sends the finalized contract to the candidate for review and signing.

Step 2: Offers competitive benefits

To attract top talent, the EOR provides locally compliant benefits packages that meet Chinese standards. This not only ensures legal compliance but also helps you build a motivated and loyal workforce.

Step 3: Automates documentation collection

The EOR handles collecting essential documents such as tax identification numbers, banking details, and other required information for payroll setup. This automation ensures a hassle-free onboarding experience for you and your new hire.

Step 4: Manages payroll efficiently

Payroll in China requires precise management of taxes, social security contributions, and deductions. With the support of a global payroll solution, the EOR ensures accurate and timely salary payments while seamlessly consolidating payroll for your international teams in one centralized platform.

Step 5: Handles compliance and HR tasks

After onboarding, the EOR oversees ongoing compliance with Chinese labor laws, ensuring timely salary payments and benefit delivery. They also manage employee offboarding, including severance and documentation, for a seamless exit process.

By tailoring this process to fit your unique requirements, an EOR provides a smooth and hassle-free route to expanding in China, enabling you to prioritize growth and streamline operations.

Quickly establish your presence in China with Multiplier EOR

Expanding into a market like China may seem challenging, but Multiplier’s Employer of Record (EOR) services make it straightforward. Designed for businesses aiming to grow rapidly and efficiently, Multiplier allows you to bypass the need for a local entity, helping you hire top talent and manage your workforce with ease.

Multiplier’s EOR services go beyond operational tasks—they offer a partnership you can rely on. From creating locally compliant contracts to managing payroll, taxes, and tailored benefits aligned with Chinese labor laws, Multiplier covers every aspect of hiring, onboarding, and employee management.

With expertise in over 150 countries and outstanding ratings on G2, Multiplier is the trusted partner for businesses globally, streamlining their expansion efforts.

Book a demo today to see how Multiplier simplifies workforce expansion into China.

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