Expanding into China is a strategic move for many businesses, but navigating the country's complex employment laws and administrative requirements can be challenging. A China Employer of Record (EOR) provides a streamlined solution, enabling companies to hire and manage employees in China without setting up a local legal entity.
What is an Employer of Record in China?
An Employer of Record in China is a third-party service provider that legally employs staff on behalf of foreign companies. This allows businesses to recruit local talent, comply with China’s strict labour laws, and manage payroll without establishing a subsidiary.
With a China EOR, businesses retain full control over employees’ day-to-day tasks while the EOR takes care of employment contracts, payroll processing, tax compliance, and mandatory social security contributions.
Benefits of Using a China Employer of Record
No Need for a Legal Entity Setting up a company in China can be costly and time-consuming. A China Employer of Record allows businesses to enter the market quickly without the legal and financial burden of establishing a local entity.
Full Compliance with Chinese Labour Laws Employment laws in China are complex and frequently updated. An EOR ensures full compliance with local regulations, including tax obligations, termination policies, and social security contributions.
Payroll and Tax Administration Managing payroll in China requires adherence to strict tax filing requirements and contribution calculations. A China EOR handles salary payments, tax deductions, and statutory benefits, reducing administrative burdens for your company.
Faster Market Entry Companies can hire employees in China within days instead of months, allowing for rapid expansion and immediate business operations.
Reduced Risk and Liability Employment disputes and compliance issues can lead to severe penalties in China. By using a China Employer of Record, businesses minimise risks and ensure that employment practices meet local standards.
How Does a China Employer of Record Work?
Employee Recruitment and Onboarding The company selects the candidate, while the EOR handles all employment contracts and onboarding processes in accordance with Chinese labour laws.
Payroll and Benefits Management The EOR processes salaries, tax withholdings, and social security contributions, ensuring compliance with national and regional regulations.
Employment Compliance and Legal Support The EOR manages all necessary legal obligations, reducing the risk of employment disputes and ensuring smooth workforce management.
Contract Termination and Offboarding If needed, the EOR ensures compliance with Chinese labour laws regarding contract termination and severance payments.
Why Choose Woodburn Global as Your China Employer of Record?
At Woodburn Global, we specialise in helping international businesses expand into China with confidence. Our China Employer of Record services provide expert support in employment law, payroll management, and compliance, ensuring a seamless market entry.
Key Features of Our China EOR Service:
Fully compliant employment contracts
Payroll processing and tax administration
Social security and benefits management
HR and legal compliance support
Fast and cost-effective market entry
By partnering with Woodburn Global, businesses can focus on growth and operations while we handle the complexities of employment in China.
Woodburn Accountants & Advisors is one of China’s most trusted business setup advisory firms.
Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.