Company Closure - EOR China

China Company Closure

EOR China’s mix of professional HR services can help companies in China in de-registration of their business.

How to close your company in China?

EOR China provides dedicated HR services to streamline the closure of your business in China, ensuring full compliance with local regulations and lightening the administrative workload. Rely on us for a smooth and compliant company deregistration process.

Financial commitments

Clear all remaining financial obligations such as debts, taxes, and payroll to prevent legal disputes.

Obtain a tax clearance certificate from the local government.
Comply with local regulations for employee severance and notice periods

Contractual Fulfillment

Assess and correctly conclude or reassign agreements with vendors, clients, and partners.

This could imply that termination isn’t an option for all staff members. Key personnel can remain on the payroll post-entity closure by engaging EOR China‘s Employer of Record service.

Keeping core operations active in China after closure

There are instances where businesses, despite shutting down their Chinese entity, continue to have operational needs within the country.

Employer of Record (EOR) services, also known as employee leasing, enables clients to maintain a workforce in China beyond the closure of their local business. EOR China assumes the legal employer status in China for your critical team members, while you maintain complete oversight of your remaining staff.

Using EOR service during closure

Reach out, outlining your business requirements.

Expect a response from us within one working day.
Identify key staff to continue in China.
Receive an EOR pricing estimate from EOR China.
Access EOR services to maintain your selected team.
EOR China prepares contracts and manages payroll and benefits.
Re-establish regular communication and operations with your China-based team.

Why EOR China?

EOR China, with a track record of 18 years in the industry, stands as a reliable provider of Employer of Record (EOR) services within China. We provide an all-encompassing solution designed to streamline the hiring and employee management process, ensuring adherence to local legal and regulatory frameworks.

Comprehensive HR Assistance

In addition to serving as your Employer of Record in China, we provide an extensive suite of HR services, delivered entirely in English.

Local Presence and Knowledge:

China Payroll Service

All of our clients enjoy easy access to our in-house payroll services for convenient record keeping.

Frequently Asked Questions

What is the main difference between an EOR and a PEO?

An EOR helps businesses hire employees in China without needing a local entity, while a PEO provides HR services like payroll and benefits management for businesses that already have a legal entity in China.

How long does it typically take to hire an employee in China?

The hiring process in China can take several weeks, often ranging from 4 to 12 weeks, depending on the complexity of the role and the necessary legal procedures.

Can a foreign company hire employees in China without a local entity?

Yes, a foreign company can hire employees in China through an Employer of Record (EOR) service, which allows them to employ staff without establishing a legal entity in the country.

How does an EOR help with the payment of social security and taxes for employees in China?

An EOR manages the payment of social security and taxes on behalf of the employer, ensuring that all contributions are made accurately and on time in accordance with Chinese tax laws and regulations.

What happens if an employee in China is injured at work?

In the event of a work-related injury, the employer (or EOR) is responsible for covering the employee’s medical expenses and compensation as per Chinese labor laws, which include provisions for work injury insurance.

Is it necessary to have a local director or legal representative for hiring employees in China?

While it’s not strictly necessary when using an EOR service, having a local director or legal representative can facilitate the hiring process and ensure compliance with local regulations.

What is the annual paid leave entitlement for employees in China?

Employees in China are entitled to paid annual leave based on their years of service: 5 days if they have less than 10 years of service, 10 days if they have 10 to 20 years, and 15 days for those with over 20 years of service.

Is it mandatory for a foreign company to rent an office space for its employees in China?

No, it’s not mandatory to rent an office space for employees in China if you’re using an EOR service. However, having a local business address is often required for legal and tax compliance purposes.

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