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Hiring Staff and Social Insurance for a Longhui Company

A practical guide for foreign founders on hiring employees and handling social insurance at a Longhui-registered company in China, covering contracts, registration steps, contribution basics, and compliance points.

Hiring Staff and Social Insurance for a Longhui Company

If you have registered your China entity with Longhui, the next operational milestone is usually hiring. Employment law and social insurance in China are administered at the local level, so the practical rules that apply to your company depend on the city and district where it is registered. This article explains the general framework foreign founders should understand before making their first hires. It is general information only and is not legal, tax, or HR advice; confirm details with local authorities and qualified professionals.

Before You Hire: The Compliance Baseline

A company in China cannot simply pay a salary and treat the relationship as informal. Several registrations and documents need to be in place first.

Key prerequisites

Written Employment Contracts

Chinese labour law requires a written employment contract. In practice, the contract should be signed within one month of the employee starting work. If a written contract is not concluded within that period, the employer may face obligations such as double wages for the period without a contract, so treat the one-month window as a hard deadline.

What a contract should cover

Contracts are usually prepared in Chinese; a bilingual version can help foreign staff but the Chinese text generally governs in local filings. Have a local professional review templates before use.

Social Insurance: The Core Obligation

China's social insurance system is funded by employer and employee contributions and administered locally. For a standard employee, the main components are:

In many cities the housing provident fund is handled alongside social insurance, though it is a separate scheme. Contribution rates and the salary base are set by local rules and are subject to annual adjustment. Because rates vary by city and can change, do not rely on generic figures; obtain the current local schedule from the social insurance authority or your payroll provider.

How registration typically works

Foreign Employees

Foreign nationals working in China need a valid work permit and residence permit. Social insurance participation for foreign employees is generally required, though some cities apply rules differently and certain bilateral agreements may affect pension contributions for specific nationalities. Check the rules in your registration city and the employee's nationality before onboarding.

Practical Tips for Founders

Disclaimer

This article provides general information for foreign founders and does not constitute legal, tax, or human resources advice. Employment and social insurance rules in China are local and change over time. Verify current requirements with the relevant local authorities and consult qualified professional advisers before making decisions for your company.

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General information only, not legal or tax advice.