Guide for Employers Navigating Work Permits in China

Hiring foreign talent is key to providing your business with a competitive edge, and unlocking new skills and perspectives. For those looking to set up an office on Chinese soil or hire abroad, obtaining a Chinese work permit is essential. However, managing compliance and the highly regulated application process can be complex. 

The correct documentation and approvals will be required, whether you’re expanding business operations, relocating a team member, or onboarding a new hire. We’ve put together this guide to help you avoid costly delays and pitfalls in one of the world’s most dynamic business environments.

China’s economy has seen progressive growth for over 40 years and, while there are signs of slowing in 2024, it has been a popular business location for centuries. Government incentives for company expansion, the large pool of skilled workers, and quality manufacturing capabilities make the large country an attractive opportunity to many companies. This can mean that businesses setting up international premises might look to China, which means relocating employees across the globe.

An announcement came in 2023 from the Ministry of Commerce that the preferential individual income tax (IIT) on foreigners’ fringe benefits has been extended until 2027. This is great news for foreigners living and working in China, and therefore, also for companies with employees living in the country. But what exactly does this mean?

Understanding China’s Permit System

The work permit system in place in China is designed to ensure that international hires constantly meet strategies and labour needs. As such, the process of acquiring an employment permit here is structured, tiered, and monitored closely by authorities. The two documents you’ll need to worry about when hiring foreign talent in China are as follows:

1. Work Permit Notice: Before an employee enters China, this authorisation is required to allow the person to apply for an official work visa.
2. Work-Type Residence Permit: Following entry to China, this is a long-term permit that grants legal working status.

These two documents provide the legal foundation for a foreign national to be employed and live in China. Without obtaining these, individuals leave themselves vulnerable to fines, visa cancellation, or even deportation in some cases. 

Talent Classification System

Obtaining a work permit in China is unfortunately not one-size-fits-all. Specific requirements and employee specificities will dictate what is required. But with careful forward planning, employers and HR teams can avoid setbacks and save time. 

Like other nations, China has a points-based system to sort foreign workers into one of 3 categories. Which category the foreign worker is classified in will affect processing time, likelihood of approval, and what documents are required. 

1. Category A: Highly skilled professionals, senior-level roles, priority sector qualifications. 
2. Category B: Foreign professionals with relevant qualifications, experience, and skills required by the Chinese market.
3. Category C: Temporary or entry-level employees.

You should ensure that you know which classification your employee falls into before beginning any application process. It’s worth noting that Category A talent will benefit from fewer administrative hurdles and faster approval times, whereas Category C approvals will typically be more difficult to obtain, with local limits in place.

China Work Permit Requirements for Employers

Securing a work permit in China is about more than the right documentation. Your business must demonstrate that they are credible, compliant, and has a legitimate need for foreign talent. A smooth experience for everyone involved can only be achieved by staying proactive and organised. 

Can My Company Sponsor a Foreign Employee?

With a business presence in China, you’ll need to meet basic requirements in order to sponsor a foreign worker. While more may be asked by authorities for hires in certain industries, you should be able to demonstrate the following:

• Valid business licence that was registered in China.
• No outstanding legal or tax issues.
• A need for a foreign hire.
• HR and legal representatives overseeing the hire.

What Am I Required To Do In The Work Permit Process?

If you are choosing to sponsor a foreign worker in China, you are taking on the responsibility as an employer. At each step, you will be required to support your employee. This will include, but is not limited to:

• Preparing supporting documents (employment contract, company licence, invitation letter, etc.)
• Registering on government portals
• Deadline monitoring (for arrival registration, residence permit applications, etc.)
• Employment record maintenance

Overview of the Application Process

When both your organisation and prospective employee meet basic eligibility requirements, you can then begin the application process. The process can be specific to what city you’re in, so this may impact specifics in some cases. Here is an overview of the steps involved in securing a Chinese work permit for a foreign employee.

Step 1. Employee Classification and checks

You’ll need to confirm the role that needs filling, the foreign talent classification of the prospective employee, and that all required documentation has been translated into Chinese.

Step 2. Submit Work Permit Notice Application

As the employer, you’ll need to submit an application to the local Foreign Expert Bureau via the SAFEA online system for a Work Permit Notice. Processing time typically takes between 5 and 15 days, depending on the specifics of the case. Documents required will typically include:

• Copies of employee passport, CV, qualifications, and criminal record check.
• Medical certificate.
• Company business licence.
• Official job description.
• Employment contract.

Step 3: Application for Z Visa

After receiving the Work Permit Notice, the employee will now need to apply for the Z Visa at their local Chinese consulate or embassy within the UK. They will need to present:

• Work Permit Notice (acquired in Step 2).
• Passport and additional passport photos.
• Visa application form.

Step 4: Registration in China

When the employee arrives in China, they will need to register at the local police station within 24 hours of arrival. Without doing so, further steps may be delayed.

Step 5: Work Residence Permit

Within 30 days of their first arrival, the employee will need to apply for a work-type residence permit, which will allow long-term residence and employment in China. Once approved, which can usually take between 7 and 15 working days, it will be valid for 1-2 years. They will typically need to present all documentation already collected in previous steps:

• Police registration documents.
• Passport and visa.
• Work Permit.
• All supporting company documents.