In this article
VERDICT: The best China EOR in 2023 is Horizons. Horizons stands apart from others China EOR with its regional headquarters in Shanghai and the depth of it’s China’s local expertise.
A China Employer of Record also called China EOR is a specialist HR company that hires and onboards employees for international companies, without the need to set up a local subsidiary in China. In this guide find out how China EORs work and who the best China Employers of Record are in 2023.Â
A China Employer of Record (EOR) is a service provider that helps foreign companies expand and establish a presence in China by acting as the legal employer for their employees in the country.
| Horizons | With Horizons, client companies can leverage their expertise local expertise in entity setup, payroll management, HR support, and compliance assistance. They provide comprehensive China EOR services to ensure smooth market entry and ongoing operations. Horizons has extensive experience in China hiring and recruitment and has a regional HQ in Shanghai. 💡 Pricing starts at $299+ per employee per month. |
| Acclime | Known for its wide range of corporate services, including EOR solutions, Acclime offers client companies the advantage of seamless HR, payroll, and compliance support. This enables them to focus on core business activities while Acclime takes care of the administrative complexities. 💡 Pricing starts at $799+ per employee per month. |
| INS Global | Specializes in providing HR and payroll solutions in China, and their EOR services are tailored to meet the unique needs of companies. INS Global offers extensive support in managing employment contracts, payroll administration, and ensuring HR compliance, allowing businesses to focus on their growth and expansion. 💡 Pricing not available publicly. |
A China Employer of Record (EOR), also known as a China Professional Employer Organization (PEO), provides a range of services to assist foreign companies in hiring and managing employees in China.
It’s important to note that the specific services offered by a China EOR may vary among providers. Therefore, it’s crucial to clarify the scope of services and responsibilities with the chosen EOR to ensure they align with the needs of the foreign company
Engaging a China EOR involves a few key steps. Here’s a general guide on how to engage a China EOR:
| 1. Identify your needs | Determine your requirements and goals for expanding or establishing a presence in China. Consider factors such as the number of employees you plan to hire, the duration of your engagement, and the level of support you expect from the EOR. |
| 2. Research EOR Providers | Conduct thorough research to identify reputable EOR providers in China. Look for companies with experience in the Chinese market, a strong understanding of local labor laws and regulations, and a track record of providing reliable EOR services. |
| 3. Assess EOR Services | Evaluate the range of services offered by different EOR providers. Consider whether their services align with your specific needs, such as payroll administration, compliance management, HR support, and other relevant aspects of employment in China. |
| 4. Request Quotes | Contact the selected EOR providers and request proposals outlining their services and pricing structure. Request an employee total cost of hiring proposal, including the EOR service fee. |
| 5. Evaluate Proposal | Review the proposals received from China EOR providers, comparing their services, pricing, and contractual terms. Consider factors such as the scope of services, service level agreements, termination clauses, and any additional benefits or value-added services they may offer. |
| 6. Conduct Due Diligence | Before finalizing your choice, perform due diligence on the EOR provider you are considering. Verify their credentials, reputation, and client testimonials. You may also want to seek references or speak with existing clients to gather feedback on their experience with the provider. |
| 7. Contract Negotiation | Once you have selected an EOR provider, engage in contract negotiations. Ensure that the terms and conditions align with your expectations and clearly outline the responsibilities of both parties. Pay close attention to service-level agreements, pricing, termination clauses, data protection, and confidentiality provisions. |
| 8. Engage the EOR | Once you have selected an EOR provider, engage in contract negotiations. Ensure that the terms and conditions align with your expectations and clearly outline the responsibilities of both parties. Pay close attention to service-level agreements, pricing, termination clauses, data protection, and confidentiality provisions. |
| 9. Ongoing Communication | Once the EOR contract is finalized, work closely with the EOR to initiate the engagement process. Provide the necessary information about your employees, their roles, and other relevant details required for onboarding and compliance. |
Pro Tip: Remember that engaging a China EOR involves a legal and contractual relationship, so it’s advisable to consult with legal and business advisors familiar with China’s laws and regulations to ensure compliance and protect your interests throughout the process
Engaging a China Employer of Record (EOR) can offer several benefits to foreign companies looking to expand or establish a presence in China. Here are some key advantages:
It’s important to note that the specific benefits may vary depending on the chosen China EOR provider and the unique needs of each company. Therefore, it’s essential to carefully evaluate the services offered by the EOR and align them with your business requirements before making a decision.
While engaging a China EOR offers several benefits, there are also potential disadvantages to consider. Here are some of the disadvantages associated with using a China EOR:
It’s crucial to carefully evaluate these disadvantages in relation to your specific business requirements, long-term goals, and risk tolerance. Conducting thorough research, due diligence, and considering alternative options, such as establishing a legal entity, can help you make an informed decision about whether engaging a China EOR is the right choice for your company.
Engaging a China Employer of Record can provide foreign companies with a streamlined and efficient way to expand and establish a presence in China. By outsourcing employer-related responsibilities, such as compliance with labor laws, payroll processing, and HR administration, companies can save time, resources, and mitigate legal risk.
The EOR’s local expertise and support enable businesses to navigate the complexities of the Chinese market, while maintaining flexibility and scalability. However, it’s important to consider potential limitations, such as reduced control over employment matters and the need to rely on a third party for certain functions.
No, China Employers of Record can be beneficial for companies of various sizes. While larger companies may have the resources to establish their own legal entity in China, engaging an EOR can still provide cost savings, speed, and expertise.
Small and medium-sized enterprises (SMEs) often find EOR services particularly advantageous as they may not have the resources or local knowledge to navigate Chinese labor laws and administrative processes on their own.
Yes. As China expansion experts a China EOR will be able to guide you on the rules around corporate social credit scores. These are a China-specific mechanism for determining whether a company or individual is trustworthy.Â
Yes, it is possible to transition from using a China Employer of Record to register your own China company in the future. The EOR can help facilitate the transition process by providing guidance and support. Keep in mind that establishing a legal entity involves additional time, costs, and administrative requirements. It's advisable to consult with legal and business advisors to determine the most suitable timing and approach for transitioning to a legal entity based on your business objectives and long-term plans in China.
No, it is not required. If you do not possess a company registered in China such as a WFOE, you have the option to engage employees using a Professional Employer Organization (PEO) service offered by a Chinese employment agency or an EOR service such as described on this page.
1. Employ individuals with a China EOR
If you lack a legal entity in China, this is the sole compliant method for having employees work for you in China. An EOR in China allows you to hire in less than 48 hours employees in China without the need to set up your own entity.
2. Onboard employees through a WFOE
If you have already established a WFOE in China, you can directly enter into labor contracts with your employees. You have the option to manage their payroll and benefits in-house or outsource these functions.
3. Engage employees through a representative office (RO)
A representative office in China is not permitted to directly hire employees. The only compliant approach is to employ workers through a labor dispatch agency under the PEO service.
Digital Yuan is a new state-backed digital currency in China. Currently it is only being trialed with salaries for some public employees and is not generally available for salary payment yet.Â
