G-P is the top pick for China compliance — operating here since 2012 with native Mandarin-speaking lawyers and the deepest institutional knowledge of any reviewed provider. INS Global is the best for Greater China specialists — the only provider built from China outward rather than added as a coverage country. Deel is the fastest for standard China onboarding at 5–10 business days.
Foreign companies cannot legally hire employees in China without a registered local entity. Chinese labour law explicitly requires a locally registered entity to sign employment contracts. EOR is not just convenient in China — it is legally necessary for any foreign company without a WFOE or branch office.
Why You Cannot Directly Hire in China
Under the Labour Contract Law of the People’s Republic of China, employment contracts must be signed between the employee and a legally registered employer in China. A foreign company without a Chinese entity cannot be the employer of record.
Your options if you want to hire in China:
| Approach | Timeline | Cost | Best For |
|---|---|---|---|
| EOR (Employer of Record) | 1–2 weeks | $599–$800/mo/employee | 1–20 employees, market testing |
| WFOE setup | 3–6 months | $15,000–$40,000 + ongoing | 20+ employees, long-term operations |
| Representative Office | 2–3 months | $10,000–$25,000 | Market research only (cannot generate revenue) |
| Joint Venture | 6–12 months | $50,000+ | Strategic partnerships requiring Chinese partner |
For most foreign companies entering China, EOR is the right choice for the first 1–3 years.
Top EOR Providers for China
| Provider | China Entity | PIPL Compliant | Monthly Fee | Rating |
|---|---|---|---|---|
| G-P | Owned | Yes | From $699/mo | 4.4 |
| Deel | Owned | Yes | $599/mo | 4.8 |
| Remote | Owned | Yes | $599/mo | 4.7 |
| INS Global | Owned (Shanghai HQ) | Yes | Custom | 4.3 |
| Atlas HXM | Owned | Yes | From $599/mo | 4.5 |
1. G-P — Best for China Compliance
G-P has operated in China since 2012 — longer than any other reviewed provider. Their Shanghai team includes Mandarin-speaking compliance lawyers, HR specialists, and payroll administrators. In a market as complex as China, institutional depth matters more than platform polish.
China-specific strengths:
- Owned legal entity in China
- Manages all Five Insurances and Housing Fund contributions by city (rates vary significantly between Shanghai, Beijing, Shenzhen, and other municipalities)
- PIPL-compliant data handling (China’s Personal Information Protection Law requires domestic data storage)
- Deep experience with mandatory written contracts (China requires these within 30 days of employment start)
- Handles salary dispute escalation with Ministry of Human Resources and Social Security
Weakness: Premium pricing (from $699/mo, often higher for China). Quote-based — no instant pricing.
Best for: Enterprises hiring in Tier 1 cities (Beijing, Shanghai, Shenzhen) where compliance complexity is highest.
2. INS Global — Best Asia-Native China Specialist
INS Global is headquartered in Shanghai — the only reviewed provider built from China outward rather than as a global platform adding China coverage. That origin gives them advantages that are difficult for US/European platforms to replicate.
China-specific strengths:
- Shanghai headquarters with the largest China-native compliance team among reviewed providers
- Deep coverage across Tier 2 and Tier 3 cities where other providers have partner-only coverage
- Mandarin-first operations — not translated from English
- Strong network in Guangdong Province and the Pearl River Delta tech corridor
- Combined EOR + PEO for clients with existing China entities
Weakness: Custom pricing only — no published rates. Platform is less polished than Deel or Remote. Smaller global network outside Asia.
Best for: Companies primarily focused on Greater China who want an Asia-native provider rather than a US-originated platform.
3. Deel — Best for Speed and Platform Quality
Deel’s owned China entity and polished platform make it the fastest route to compliant China hiring. The Deel dashboard handles multi-city payroll with different contribution rates automatically — a significant operational advantage given China’s city-by-city social insurance variation.
China-specific strengths:
- Owned entity
- Automated city-by-city contribution calculations
- Mandatory contract templates compliant with Labour Contract Law
- Strong PIPL compliance documentation provided to clients
- Fast onboarding — typically 5–10 business days
Weakness: Less institutional China depth than G-P or INS Global. Support for complex scenarios (redundancy, disputes) routes through a general compliance team rather than China specialists.
Best for: Companies wanting fast, tech-forward China EOR with strong platform UX.
4. Atlas HXM — Best for Direct Entity Model
Atlas operates exclusively through owned legal entities — no third-party partners anywhere in its network. In China, where the risk of substandard local partners is higher than in most markets, this is a meaningful compliance guarantee. Consistent standards regardless of which Chinese city you’re hiring in.
Best for: Companies prioritising entity ownership as a compliance guarantee.
Critical China Compliance Considerations
Five Insurances and Housing Fund
Every Chinese employee is enrolled in the Five Insurances and Housing Fund (五险一金). Contribution rates vary by city and are recalculated annually:
| Insurance | Employer (Shanghai) | Employee (Shanghai) |
|---|---|---|
| Pension | 16% | 8% |
| Medical | 9.8% | 2% + ¥3 |
| Unemployment | 0.5% | 0.5% |
| Work Injury | 0.2–1.9% | — |
| Maternity | 0.8% | — |
| Housing Fund | 5–7% | 5–7% |
Total employer overhead in Shanghai: approximately 27–35% on top of gross salary, plus the EOR fee.
Written Contracts — Mandatory Within 30 Days
Chinese law requires a written employment contract to be signed within 30 days of an employee’s start date. If not signed within this window, the employee is entitled to double wages from day 31. Your EOR must prioritise contract execution on day one — not day 28.
PIPL — Data Localisation
China’s Personal Information Protection Law (PIPL) restricts cross-border transfer of personal data. Employee data collected in China must be stored on China-based servers or pass a security assessment before transfer overseas. Ask your EOR specifically:
- Where employee data is stored
- What their cross-border data transfer mechanism is
- Whether they have completed the mandatory Personal Information Protection Impact Assessment
Termination in China
Termination in China requires careful management:
- Written termination notice required (30 days or 1 month salary in lieu)
- Severance = 1 month salary per year of service (N formula), mandatory in most non-disciplinary terminations
- Fixed-term contracts: after 2 consecutive fixed terms, the third must be open-ended
- Employees cannot be terminated during pregnancy, medical leave, or occupational disease treatment
Individual Income Tax (IIT)
China’s IIT applies progressive rates from 3% to 45%. EOR providers must withhold monthly and submit annual reconciliation. Non-resident employees (under 183 days in China per year) face different treatment. Confirm your EOR handles both resident and non-resident IIT correctly.
What to Ask China EOR Providers
- Do you own your China entity, or use a local partner?
- What cities do you cover with owned-entity compliance (not just payroll)?
- How do you handle PIPL — where is employee data stored?
- How do you manage city-by-city contribution rate differences?
- What is the all-in cost including Five Insurances and Housing Fund for our target city?
- Walk me through your China termination process including severance calculation
Frequently Asked Questions
Is it illegal to hire someone in China without an entity? Yes. Chinese labour law requires employment contracts to be between the employee and a locally registered Chinese entity. Using an EOR is the compliant solution — the EOR’s China entity becomes the legal employer.
What is a WFOE and when should I set one up instead of using EOR? A WFOE (Wholly Foreign-Owned Enterprise) takes 3–6 months and $15,000–$40,000+ to establish. EOR is the right choice until you have 15–25 employees in China — at that point, cumulative EOR fees often justify entity setup.
Can an EOR help with PIPL compliance? Yes, but verify the specifics. Ask where employee data is stored and whether they have completed a Personal Information Protection Impact Assessment. Vague answers to this question are a red flag.
How much does it cost to hire in China via EOR? EOR fee ($599–$800/mo) plus Five Insurances and Housing Fund (approximately 27–35% of gross salary in Tier 1 cities). For a Shanghai employee earning ¥25,000/mo (~$3,450), total monthly employer cost is approximately $4,500–$5,000 plus the EOR fee.
Which EOR is best for hiring in Chinese Tier 2 cities like Chengdu or Wuhan? INS Global has the broadest Tier 2 and Tier 3 city coverage. G-P and Deel cover major Tier 2 cities but have less depth outside Beijing, Shanghai, and Shenzhen.
