Employer of Record Companies in China: Overview
Hiring employees in China presents unique challenges due to strict labor regulations, city-specific tax rules, and complex social security requirements. For foreign companies, the employer of record China model provides a way to hire talent quickly and legally, without having to create a subsidiary or local branch. Under the Employer of Record (EOR) model, a local provider becomes the legal employer, handling contracts, payroll, tax withholdings, and statutory contributions, while the foreign company retains full control over daily operations and performance management. This approach allows companies to enter the Chinese market quickly while remaining fully compliant. In this guide, we review the 6 best employer of record companies in China in 2026, explain how the EOR model works, and outline how to choose the right provider for your expansion strategy.
What is an Employer of Record in China?
An employer of record (EOR) in China is a local organization that legally employs staff on behalf of a foreign company. This means the EOR becomes the official employer for legal, tax, and administrative purposes, while the client company directs the employee’s daily work and performance. This setup allows businesses to hire local or international talent in China without creating a local entity, like a Wholly Foreign-Owned Enterprise (WFOE). The EOR handles all mandatory employment functions, including labor contracts, payroll, tax withholdings, and social security contributions.
The EOR model ensures that every employment relationship complies with China’s strict labor regulations, which vary significantly between cities. It also provides a structured, compliant way to manage documentation, onboarding, and terminations, all while minimizing risk and administrative workload for the foreign company. In practice, using an employer of record enables companies to start operating within weeks rather than waiting months to complete entity registration, offering a faster and safer path into one of the world’s most complex labor markets.
6 Best Employer of Record Companies in China for Global Expansion
The following are the top employer-of-record companies in China, ranked by compliance strength, local expertise, scalability, and global reliability.
1. INS Global
Founded in 2006, INS Global is one of the most established employer of record companies in China, with its headquarters in Shanghai and direct operations across major Chinese cities. Unlike many global platforms that rely heavily on third-party intermediaries, INS Global operates through its own local entity, allowing it to act directly as the legal employer for client teams in China. INS Global supports international companies across industries by managing employment contracts, payroll, individual income tax (IIT), social insurance, housing fund contributions, and all mandatory HR documentation.
Its deep familiarity with China’s region-specific labor laws makes it especially valuable for companies hiring across multiple cities, where compliance requirements can differ significantly. Beyond standard EOR services, INS Global provides end-to-end HR and legal support, including onboarding, probation management, performance procedures, and compliant terminations. This hands-on, compliance-first approach allows foreign companies to scale confidently while minimizing regulatory and operational risk.
Key Strengths
- Direct legal entity in China, acting as the official employer
- Strong multi-city expertise (Shanghai, Beijing, Shenzhen, Guangzhou, and more)
- Precise handling of city-specific social insurance, housing fund, and IIT rules
- Comprehensive HR documentation and auditable payroll records
- Legal guidance for probation, performance management, and terminations
- Fast onboarding timelines, often within days
- Scalable solution suitable for pilot hires, distributed teams, or long-term growth
2. Deel
Deel is a globally recognized HR and payroll platform offering EOR services in over 100 countries, including China. As one of the most technology-driven employer of record companies in China, Deel enables companies to hire and manage employees through a centralized, user-friendly digital dashboard. In China, Deel operates through local partners that manage legal employment, payroll processing, and statutory compliance. This model allows Deel to provide a standardized global experience while ensuring alignment with local Chinese labor regulations.
The platform is particularly appealing to startups and fast-scaling companies with distributed or remote teams. Deel’s strength lies in automation and ease of use. Features such as contract generation, automated tax calculations, and local currency payroll (RMB) help reduce administrative complexity and speed up international hiring.
Key Strengths
- Centralized global platform for managing China-based employees
- Automated contract creation and payroll workflows
- Payments processed in RMB with compliant tax handling
- Strong user experience and quick setup
- Suitable for remote-first and globally distributed teams
- Integration with finance and HR tools
3. Papaya Global
Papaya Global is a cloud-based workforce management provider offering payroll, EOR, and compliance services worldwide. Among EORs in China, Papaya Global stands out for its strong emphasis on data visibility, automation, and enterprise-grade analytics. In China, Papaya Global partners with vetted local providers to manage legal employment, payroll filings, and benefits administration.
Its platform consolidates workforce data across countries, allowing HR and finance teams to track costs, compliance status, and payroll performance in real time. Papaya Global is particularly well-suited for large organizations and technology-driven enterprises that require deep integration with HRIS or ERP systems and want consistent reporting across multiple markets, including China.
Key Strengths
- Unified global payroll and EOR platform
- Real-time payroll analytics and compliance dashboards
- Automated alerts for regulatory changes
- Strong HRIS and ERP integrations
- Ideal for enterprises managing multi-country workforces
- High transparency into payroll and compliance data
4. Horizons
Horizons (formerly New Horizons Global Partners) is an Asia-focused provider specializing in EOR, recruitment, and HR outsourcing. As one of the more regionally specialized employer of record companies in China, Horizons offers strong on-the-ground insight into Chinese labor laws, cultural practices, and regional compliance nuances. Horizons combines EOR services with strategic HR consulting, making it a strong choice for mid-sized businesses expanding into China for the first time.
In addition to standard employment and payroll services, Horizons also supports visa processing and workforce mobility, both of which are valuable to companies hiring both local and foreign employees. Its approach balances flexibility with compliance, offering tailored solutions rather than purely standardized global processes.
Key Strengths
- Strong regional expertise in China and Asia-Pacific
- On-the-ground HR and compliance support
- Visa and mobility assistance for foreign employees
- Flexible, consultative service model
- Suitable for mid-sized and growing companies
- Combination of EOR and recruitment services
5. Velocity Global
Velocity Global is a large-scale international EOR provider operating in more than 185 countries, including China. Among global EORs, Velocity Global is known for delivering consistent processes and compliance frameworks across markets. In China, Velocity Global works with trusted local entities to manage employment contracts, payroll, tax filings, and statutory benefits.
Its strength lies in helping companies maintain standardized global HR operations while complying with local Chinese regulations. Velocity Global is particularly well-suited for large organizations that value process uniformity and centralized oversight when managing employees across multiple countries.
Key Strengths
- Extensive global coverage, including China
- Consistent HR and compliance processes worldwide
- Centralized platform for workforce oversight
- Strong regulatory risk management
- Ideal for multinational and enterprise-level companies
- Scalable support for complex global operations
6. Globalization Partners (G-P)
Globalization Partners (G-P) is one of the most recognized names among employer-of-record companies in China, offering an AI-powered platform to simplify global hiring and compliance. In China, G-P enables companies to hire employees, manage payroll, and comply with local labor laws through its localized legal and HR infrastructure.
The platform centralizes employment data, providing visibility and governance across global teams while ensuring adherence to Chinese tax and labor regulations. G-P is especially attractive to multinational enterprises that prioritize risk mitigation, governance, and internal compliance controls when entering or expanding in China.
Key Strengths
- Strong global reputation and compliance focus
- AI-powered platform for workforce management
- Centralized visibility across China and other markets
- Robust governance and risk management tools
- Fast and compliant onboarding experience
- Well-suited for large multinational organizations
Why the Employer of Record Model is Essential for Operating in China?
China’s labor landscape is highly regulated and locally fragmented. Each region applies its own rules for social insurance, housing fund rates, and tax bases, making direct employment extremely difficult for companies without a legal presence in the country. The employer of record model eliminates that obstacle by ensuring full legal compliance from day one. For companies looking to hire in China, the EOR takes responsibility for employment contracts, payroll filings, and statutory contributions, while the client maintains full control over the employee’s duties and deliverables.
This approach is essential because even minor compliance errors, such as missing documentation, late payments, or incorrect tax calculations, can lead to fines, back payments, or legal disputes under Chinese labor law. By centralizing these processes under an EOR, companies reduce operational risk and administrative overhead. Beyond compliance, the EOR model also provides agility and speed. Businesses can test the Chinese market, hire distributed teams, or launch short-term projects without the cost and delay of setting up a local entity. It is a structure that balances regulatory assurance with business flexibility, making it an indispensable tool for sustainable expansion in China.
How an Employer of Record in China Works?
An employer of record (EOR) in China functions as the legal employer for workers hired on behalf of a foreign company. The foreign business retains full control over the employee’s daily responsibilities and performance, while the EOR manages all legal, administrative, and compliance-related tasks required under Chinese law. The process begins when the company selects a candidate. The EOR then prepares and signs the employment contract in accordance with local labor regulations, registering the employee for social insurance, housing fund, and tax contributions.
Payroll is processed monthly in Chinese renminbi (RMB), with the EOR responsible for accurate withholdings and reporting to local authorities.
In addition, the EOR ensures compliance with city-specific regulations, manages documentation for onboarding and offboarding, and supports with statutory benefits and employee records. For the client, this means a single point of contact to manage workforce operations across multiple regions in China, without facing the burden of entity setup or ongoing legal maintenance. By handling all employment obligations locally, an EOR allows companies to focus on strategy, sales, and growth, while reducing the risks associated with China’s complex employment landscape.
Employer of Record vs Other Market Entry Options in China
Companies looking to expand into China typically face several paths: setting up a local entity, engaging contractors, or partnering with an employer of record. Each option has different implications for cost, control, and compliance. Creating a Wholly Foreign-Owned Enterprise (WFOE) offers full operational control but requires significant investment, time, and regulatory approval. Establishing a legal entity in China can take months and involves ongoing reporting, capital requirements, and tax obligations. For early-stage or smaller operations, this approach often proves too slow and costly.
Hiring independent contractors may seem simpler, but it carries high compliance risks. If the relationship functions like traditional employment through supervision, regular hours, or exclusivity, it can be reclassified as an employment relationship, leading to potential fines and back payments. By contrast, an employer of record provides a legal, compliant, and faster way to operate. The EOR already has an established legal entity in China, allowing foreign companies to hire employees in days, remain compliant with local labor and tax laws, and avoid the long-term commitment of creating an entity. In short, the EOR model combines the flexibility of contractors with the security of direct employment, offering an ideal bridge for businesses testing the market or building their first teams in China.
Legal and Compliance Considerations
Operating in China requires strict compliance with labor, tax, and data protection regulations. An employer of record (EOR) handles employment contracts, payroll taxes, and social contributions in line with local law, ensuring compliance across different cities with varying rules on social insurance, housing funds, and minimum wages.
Proper documentation, including contracts and employment records, is essential to avoid penalties or disputes. EORs also manage HR and payroll data securely in accordance with China’s Personal Information Protection Law (PIPL), including cross-border transfers. Terminations must comply with legal procedures, including notice, evidence, and compensation. Partnering with a qualified EOR ensures employment relationships in China are fully compliant, transparent, and legally defensible.
How to Choose the Right Employer of Record Company in China?
Selecting the right EOR partner in China can determine whether your expansion is smooth and compliant or costly and risky. The best provider should combine local regulatory knowledge with operational reliability and transparent communication. Start by evaluating the provider’s local presence and licensing. A strong EOR should have a registered legal entity in China and proven experience managing multi-city payroll and compliance. Ask for evidence of their ability to handle regional variations in tax filings, social insurance contributions, and housing fund administration. Next, assess process transparency. Reliable providers offer clear documentation, including payslips, contribution receipts, and tax filings. They should also have defined SLA timelines for onboarding, payroll processing, and termination procedures.
Technology is another consideration. An efficient EOR uses secure, data-compliant HR management systems and integrates seamlessly with your existing global HR or finance platforms. This ensures consistency in reporting and visibility across teams. Finally, prioritize support and communication. Choose a partner that provides bilingual HR and legal teams, proactive updates on regulatory changes, and dedicated account management. These factors make a major difference in long-term reliability and compliance. In summary, the right EOR in China will offer local expertise, robust compliance systems, and responsive service, enabling your company to grow confidently while staying aligned with all Chinese employment and tax requirements.
Why INS Global is a Trusted Employer of Record Company in China?
INS Global stands out among employer-of-record companies in China for its direct local presence, compliance-first approach, and tailored client support. By operating through its own legal entity, INS Global maintains full control over contracts, payroll, and statutory obligations. This lowers reliance on third parties and improves accuracy.
Key advantages include:
- Direct in-country operations
- Precise city-level compliance
- Rapid onboarding timelines
- End-to-end HR and legal support
- Scalable solutions for growing teams
Through this integrated, hands-on model, INS Global gives companies the confidence to enter and expand in China efficiently and compliantly. Its combination of local authority and global reliability makes it a trusted EOR partner for organizations seeking long-term success in the Chinese market.
Final Thoughts
In 2026, employer of record companies in China remain one of the most effective solutions for foreign businesses navigating the country’s complex labor environment. Whether you are testing the market or scaling long-term operations, the EOR model allows you to hire legally, minimize risk, and focus on growth rather than administration. Selecting the right EOR partner is a strategic decision. Providers with strong local expertise, transparent processes, and proven compliance frameworks offer the greatest advantage for sustainable success in China.
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