Hiring Abroad: Local Staff and Posted Employees
What to settle before hiring overseas — employing entity, contracts, work permits, social security and localisation quotas.
Updated 2026-11-12
Scope:Companies planning to hire locally abroad or post Chinese staff overseas.
Overview
Employment compliance spans labour law, immigration and social security. Hiring without a local entity, or letting staff work on the wrong visa, can bring penalties and tax exposure.
Key concepts
- Employing entity: local subsidiary, branch or an employer of record (EOR).
- Work permit: required for foreign staff; categories usually depend on role, salary and qualifications.
- Localisation quotas: some Gulf states require a share of nationals in the workforce.
- Social security: obligations may differ for local and foreign employees.
Steps
- Choose the employing entity; compare EOR with your own entity on cost and control.
- Confirm the work permit type and eligibility for each role.
- Check localisation ratios and quotas.
- Draft contracts under local labour law (hours, leave, probation, termination).
- Register for social security and payroll tax withholding.
- For posted staff, also consider personal tax residence and double social security contributions.
Documents
- Employer registration and licence
- Employee passports, degrees and work references (often legalised)
- Employment contracts and job descriptions
Common limitations
- Some roles require local job advertising first.
- Business visas generally do not permit employment.
Practical notes
Work permit and social security overviews are in Compare · Employment.
Official resources
Labour and immigration authority links are in each handbook’s Employment and Official Resources chapters.