China Payroll & HR Administration

China payroll begins with the entity. Rules vary by province and city, so the location decision (commonly Beijing, Shanghai or Guangzhou, where we have offices) comes first, followed by proof of lease and the incorporation process itself.

Then the structure: a wholly foreign-owned enterprise, a joint venture requiring a Chinese partner, or a representative office, which is an extension of the overseas parent and limited to non-commercial activity. Registration has been simplified by the five-in-one business licence, which combines the business licence, organisation code, statistical registration and tax registration, though VAT and import/export still require separate certificates.

Chinese labour law requires written employment agreements for full-time staff (oral contracts are permitted only for part-time work), and equal treatment of employees regardless of sex or race, with rights to collective bargaining and a prohibition on child labour.

New hires must provide proof of residence, and the company must file social insurance paperwork on the employee's first day at work. The contract must set out the job description, employer details, social insurance arrangements, terms and conditions including remuneration, and hazard prevention and safety provisions.

Alongside payroll we handle bookkeeping, financial reporting, preparation of management accounts, consolidation, annual audit coordination, profits tax return filing, offshore tax claims, cash management and virtual CFO support for mainland entities.

Our China teams have more than twenty years of experience across multiple industries, working with the Hong Kong desk so group reporting and compliance stay consistent on both sides of the border.