How it works
- You choose the person and agree the role and salary.
- The EOR provider becomes the legal employer and signs a PRC-compliant employment contract.
- The provider runs payroll, individual income tax withholding, social insurance and housing fund contributions.
- You manage the employee’s work and pay the provider a monthly fee plus employment costs.
What to watch
- IP and confidentiality: make sure inventions and confidential information are assigned to your company, not the provider.
- Termination: PRC labour law strictly limits dismissals. The contract and handbook need to be right from day one.
- Selling in China: an EOR doesn’t let you sign customer contracts or issue invoices in China.
Related: Payroll · Employment & work permits · WFOE registration
Frequently asked questions
Is an EOR legal in China?
Yes, when it's structured properly through licensed providers. The arrangement and the employment contracts must comply with PRC labour law, which is what we check and draft for you.
When should I switch to a WFOE?
Usually once the team grows beyond a handful of people, or once you need to sign customer contracts and invoice in China. A WFOE also gives you more control over employment terms.
Reviewed by Admin, Choi & Partners · 3 October 2026. This page is general information, not legal advice.