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Employer Of Record


Principles and benefits using Employer of Record (EOR)

Setting up an employer of record solution in China requires understanding the general operating principle. We explain in detail the important points that you need to know. Once implemented, this solution simplifies the daily lives of our customers and has many advantages. We also give the various situations in which our customers use it.


Employer of Record (EOR)

is a solution used by foreign companies that do not have their own legal structure in Mainland China and therefore cannot hire any employee. An Employer of Record (EOR) manages HR, Legal, Compliance and Taxation responsibility of the employees on your behalf in a country where you don’t have your own legal entity. This solution is mainly used in these situations:

Company in the process of being created

In China, the creation of a company can takes between 4 and 6 months. The client uses “portage salarial” on a temporary basis until its own company is operational.

(EOR) is advantageous:

  • Employer of Record (EOR) simplifies business, remove complexity.

  • The administrative burden this creates exceeds the capacity of your existing HR teams.

  • When you do not have the legal expertise to identify the appropriate regulatory framework for China.

  • Modest cost.

  • Ease, flexibility: no creation of a legal structure, no limitation of the quota of foreign employees, no bookkeeping, nor administrative employees. This allows you to focus your energy on the core business: customer relations and the technical part.

  • Comfort: our customers sign a minimum contract of 1 year, but more than half of our customers use our services for 4 years, some of them have been using our services for 80 months.

  • We take care of all the filing and obtaining work permits, legal watch regarding changes in the law, payment of salaries (in China or outside China), payment of salary tax, Allows being perfectly in order from a legal point of view in China but also in the country of origin.

  • We currently host around sixty employees, who work for around forty clients.

The principle of (EOR)

  • Contract between 3 parties: the client company in Europe, the employee to porter, one of our local companies in China (Shanghai, Beijing or another city depending on the employee's workplace).

  • We study each employee's file before submitting the request.

  • We identify the possible difficulties of a file.

  • We take care of the work permit application and its follow-up.

  • We sign a local employment contract with the employee to porter (his contract with his employer in Europe will be suspended while he is working in China, then will be reactivated when he will be assigned to another site outside China).

  • Every month, we pay employees' salaries to their account in China or to their account in their country of origin.

  • We pay income tax every month in China, and we collect proof of taxes paid in China for each employee.

  • We pay social security contributions every month when there are any. Currently (Q3 2022), there are no compulsory contributions in Shanghai for foreigners.

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