China – Innovare Group

Expand into China with Innovare

Innovare China, a cornerstone of the Innovare Group, empowers seamless business expansion into China’s dynamic market. Leveraging our comprehensive Employer of Record (EOR) services, we ensure your venture’s smooth adaptation to the local business environment. Our in-depth expertise and unwavering commitment to compliance pave the way for your success in China.

Brief Overview

Innovare China

Expert navigation through China’s evolving business landscape.

Streamlined processes for employing foreign talent and managing payroll.

Dedicated support for ensuring adherence to local laws and regulations.

Specialized solutions for both expatriates and local professionals in China.

Local Expertise

Country-Specific Solutions

Onboarding

In China, written employment contracts outlining key terms must be provided to new hires within one month of their start date. These contracts establish a foundation of trust and clarity by specifying:

Payroll Services

China mandates monthly salary payments on the last working day of every month. Furthermore, Chinese employees receive a customary “13th month” or “14th month” pay in the month of the Lunar New Year or Spring Holiday.

Standard workweeks are 40 hours, with overtime capped at 36 hours per month. Employer social security contributions and employee deductions are subject to mandatory rates that vary by region and can change annually.

Taxes

China operates a progressive income tax system for both residents and foreign nationals working in China. All income derived from work performed in China is subject to taxation, regardless of payment location. Here’s a breakdown of the tax structure:

Leave

Chinese employees enjoy statutory leave benefits that promote work-life balance and employee satisfaction. These include:

Annual Leave: Minimum of 5 days, increasing with seniority (up to 15 days after 10 years).
National Holidays: While officially there are 7 legal holidays in China, The General Office of the State Council releases the official holiday schedule for each year in December. In practice, the Holiday Schedule features three major week-long holidays: Chinese New Year, Labor Day and the National Day holiday. Employers should note that Saturdays and Sundays are often connected with the national holidays to make it longer or marked as additional official work days to compensate for adjusted longer breaks around the national holidays. ‍
Sick Leave: An employee suffering from illness or non-work-related injuries is entitled to a sick-leave period ranging from 3 to 24 months, depending on the number of years the employee has worked for an employer and his/her total years of work experience.
Maternity Leave: Minimum of 14 weeks (98 days) maternity leave at full pay, with additional leave possible depending on provincial regulations.
Paternity Leave: Minimum of 15 days paternity leave at full pay.

Termination

China adheres to a termination process requiring adherence to labor law with designated notice periods or compensation in lieu of notice.

Notice Period: Minimum 30 days' notice after probation
Severance pay : The general rule on severance is that employees are entitled to one month of their average monthly compensation for each year of service. Partial years of service over six months are rounded up to one year, while partial years less than six months are counted as half a year. If the termination is initiated unilaterally by the employer without just cause, then the employee is entitled to severance payment. Often, the employer will need to provide additional compensation to the employee to obtain the employee’s consent on voluntary separation, and such compensation amount is subject to mutual agreement.

China Market Insights

Economic Giant

China’s massive domestic market and continuous growth make it a top destination for foreign business expansion.

Innovation Hub

China’s rising R&D investment and thriving tech scene foster a dynamic environment for businesses across sectors.

Government Support

Strategic policies like tax breaks and streamlined registration processes make China attractive for foreign investors.

Global Reach

Comprehensive Solutions, Tailored for You

Swiper Example

FAQ

You've got questions, and we have the answers.

1) What documents should the client have ready to avail EOR services from Innovare in China?

Assignment details with job location, job title and description, industry, monthly salary, contract duration and candidate’s information. Candidate’s information should include nationality, educational level, Updated CV and brief job description. Innovare will then provide free assessment and advice based on the Customer’s information.

2) Do you assist clients with company incorporation in China? If so, to what extent do you provide support?

No, we do not offer incorporation services in China but can refer you to expertise there who provides such service.

3) What does the process of getting started with Innovare for EOR services in China actually entail?

After initial assessment, the Customer to confirm on the eligibility of the candidate and sign contract with Innovare. Innovare will then proceed for onboarding preparation depending on the nationality or current visa status of the candidate. Work permit to be applied to abide to the country’s Department of Immigration. Innovare will provide guidance. accordingly.

4) Does Innovare also support businesses with other aspects of setting up a business, such as becoming a member of a chamber of commerce or taking advantage of particular government schemes or grants in China? If yes, to what extent does that support extend?

Unfortunately, we do not have the capability to support this kind of service at the moment but we can provide official information for the Customer to explore.

5) How does Innovare assist clients with visa and work permit requirements in China? What documents do you require from clients to facilitate the visa application process?

Innovare will provide free initial assessment for the Customer on candidate’s eligibility for Work Permit. The requirements can vary across provinces. Below are requirements to work in Shanghai.
1a) The required documents for applying Work Permit from the candidate include:

Passport copy
Passport-size photo
Training Certificate (if applicable), must be in English & notarized by China Embassy in home country
Education Certificate – must be in English and notarized by China Embassy in home country
Work Certificate / Reference from previous company – min 2 years of experience
Medical Examination Report in home Country, issued by the medical institutions which are authorized by the Local Chinese Embassy. Health check-up results taken in the last 6 months (must be in English/Chinese)
Non Criminal Report Certificate – must be in English and notarized by China Embassy in home country
Updated resume
Detailed Job and Description