What Is a Residence Permit for a China Employee?
A residence permit signifies how long a nonresident person can live in China.

Chinese residence permits look like visas and are included in a foreigner’s passport. Having a residence permit allows a person to enter and exit the country while the permit period is valid.

Residence permits are commonly used by expatriates who work in China.

Types of Residence Permits in China
There are three types of residence permits that give a foreigner the legal right to reside in China, including the following:

#1 Permanent Residence Permits
Permanent residence permits are good for workers who want to become a more permanent part of the Chinese culture. These permits are valid for ten years and can be renewed every ten years. They accompany a D visa.

#2 Foreigner Residence Permit
This type of residence permit is the most common for many foreigners who work in China. It is usually valid for one year.It can usually be renewed every year. It is important to know when you hire workers China in certain positions, such as company executives or legal representatives, they may qualify for a foreigner residence permit that is valid for two years.

#3 Temporary Residence Permits
This type of residence permit has the fastest expiration period, usually for a period less than one year after the employee in China acquired it. A temporary residence permit is usually provided to individuals who do not plan to stay in China for long, such as a visiting scholar or someone who is coming to the country for vocational training.

Servisa provides comprehensive immigration consulting services, helping you to obtain the necessary documents to have your staff work legally in China.

We help employers through each step of the process and provide customized support. Our experts are familiar with current immigration requirements and can ensure that your application meets the latest standards.

We provide you with timely reminders so that you can avoid any surprises or last-minute changes. You are informed of your employee’s application status at every opportunity.

Important Policy Information for Chinese Residence Permits

In 2015, the Ministry of Public Security in Beijing implemented new policies that affect residence permits and make the process easier and more convenient for certain groups. Some of the important changes include:

Expert residence permit – The Beijing Science and Technology Commission developed a list of more than 3,500 firms in China whose employees qualify as an “expert.” If your company is on this list, you can offer employees the opportunity to apply for a five-year work permit. Additionally, after your employee in China works here for more than three years, he or she can apply directly for permanent residency status.

Five-year residence permit – Expatriates who have worked continuously in Beijing for at least two years with a work visa and who have not violated any Chinese immigration laws can apply to receive a residence permit that is valid for five years the next time they renew their permit. This is a much more convenient option for China employees than renewing their residency status every year.

China university graduate residence permit – Foreign students who attended a Chinese university are encouraged to apply for a two-year residence permit after graduation. This policy helps China keep their brightest and top students in the country. Graduates can take advantage of this option to complete an internship, take advantage of a short-term assignment or establish a startup venture.

High earner benefit – China wants to incentivize businesses to invest in the China market and offers China employees who have high incomes to acquire their permanent residence permit. To qualify for this benefit, the employee in China must earn more than 600,000 RMB, paid their income taxes of 120,000 RMB or more per year, worked in Beijing for more than four years in a row and not have acquired a criminal record in their home country.

Personal employment permit – Expatriates who have a permanent residence permit or five-year work permit are allowed to hire personnel who can then receive their own residence permit. This allows expatriates to hire a foreign nanny or Ayi.

　　On July 28, 2018, the State Council of the People’s Republic of China (“PRC” or “China”) released a Circular (GuoFa [2018] No. 28) abolishing 11 administrative approvals. Significantly for Hong Kong passport holders, one of these is the requirement to obtain a PRC work permit in order to take up employment and work in the PRC. This relaxation will also apply to Macau and Taiwan residents. The announcement instructs the Ministry of Human Resources and Social Security (MoHRSS), to formulate substitute policies and measures in connection with the administration and supervision of these residents while working in the mainland. In October 2018, MoHRSS issued a draft Interim Measures, which set out certain arrangements in respect of social insurance contributions in the mainland.

　　Going forward, Hong Kong passport holders will be able to use a PRC mainland travel permit, which is relatively easy to obtain, to take up employment and work in the PRC. Previously this could be used for general travel, visits and even business trips to the mainland, but now it will also cover employment. This means that it will not be necessary for Hong Kong passport holders to apply for a PRC work permit and PRC residence visa to work in China, although this remains a requirement for most foreign nationals to do so.

　　This is a welcome development and in line with PRC government proposals to facilitate opportunities and streamline the process for Hong Kong passport holders to live and work in the mainland. It will remove some of the administrative challenges and potential delays in obtaining the correct status to work in China.

　　The work permit application can be quite a complex process, with the exact process and documentation required determined based on various qualifications and other criteria for the applicant, including age, position, academic qualifications, salary and work experience. The overall process can take a month or so to complete. Removing this requirement will make it much easier and quicker for Hong Kong passport holders to take up positions in China and commence working.

　　Nevertheless, it is important that Hong Kong passport holders should ensure that they have and retain the following in connection with their PRC employment: a duly executed employment contract; a copy of the business license of the employing entity; and salary payment vouchers or payslips. PRC employers can be liable to pay double salary for a period of time if they fail to put a written employment contract in place. Companies and individuals should also consider PRC individual income tax and statutory social insurance contributions, especially in situations where individuals may have dual roles or employment in both mainland China and Hong Kong.

Since April 2017, a new Chinese regulation has combined the old Alien Employment Permit and the old Foreign Expert Certificate into one and single work permit: the Foreigner’s Work Permit. The regulation also set up a classification of the work permits in 3 categories: A – B – C, depending on the qualification and the skills of each foreigners working in China:

A = high-level experts
B = professional workers
C = low skilled workers
Since this classification has been set up, Class A and Class B of foreign profiles generally allow them to obtain a Work Permit. Class C refers to very specific low-skilled profiles.

To determine the classification of a Work Permit, there are two methods: be directly qualified or reach enough points on the work permit points table.

Direct Qualification

Class A Work Permits

Applications for Class A Work Permit is faster than for Class B and Class C Work Permits. Also, applicants do not need to provide any Diploma or Police Clearance Certificate. Only Class A Work Permit can allow foreigners to work if they are over 60 years old.

High Incoming Earners with a salary of over 50,000 RMB/month + working in Beijing
International prize-winner in sciences, architecture, literary, arts, sports, music, industrial design
Selected profile by the China National Talent Import Plan
Doctor’s degree or higher from a Chinese University of from one of the World Top 500 Universities

Class B Work Permits

Most people qualify for Class B Work Permit. Class B Work Permit is limited to profiles between 18 and 60 years old.
Bachelor degree + 2 years full-time related work experience after graduation
No Diploma + 2 years full-time related work experience after graduation + salary equal or over 26,100 RMB/month
“Excellent” graduate with a Master’s degree from a Chinese university of from one of the World Top 100 Universities

Class C Work Permits

Class C referring to very specific low-skilled profiles, only junior profiles that match a direct qualification can work with a Class C work permit. Class C Work Permit is limited to profiles between 18 and 60 years old.

Bachelor degree or higher from a university in Beijing + employed by a company registered in the Beijing FTZ or Zhangjiang High Tech Park
Master’s degree or higher from a Chinese university (with a score reaching at least 80/100 or B+/B) + employed by a company registered in Beijing
Intern in Beijing part of the “French Intern 1000 Plan”

China Work Visa Calculator and Table
Class A = score over 85 points
Class B = score over 60 points
Class C referring to very specific low-skilled profiles, only junior profiles that match a direct qualification can work with a Class C work permit.

Legalization of Chinese Visa Documents
In addition to the required documents to be submitted to the Chinese authorities to apply for a Work Permit, 2 documents now also need to be translated and authenticated before being submitted: the Diploma and the Police Clearance Certificate. This authentication process is different for each country. Some Embassies/Consulates in China are also able to legalize documents for the Work Permit application (as for example the following Consulates: Australian, French, Greek, Indian, Spanish, British…).

Police Clearance Certificate
Verification from home country
After obtaining the Police Clearance Certificate in their home countries, applicants need to make it authenticated by the Chinese Embassy of their home country.

Verification in China
Some Embassies/Consulates in China are able to legalize Police Clearance Certificate.

However, in the event the Embassy/Consulate of an applicant’s home country in China does not provide such a legalization, the application shall then be made in the applicant’s home country. In this case, for applicants who are already in China, they should consider asking someone in their home country to help them: it can be a relative or an accredited company.
Taking the fingerprints in China to apply for Police Clearance Certificate in the home country
In the case the fingerprints of applicants are requested to obtain a Police Clearance Certificate (some countries request the fingerprints before issuing any Police Clearance Certificate – as Canada or the USA), applicants can register their fingerprints directly in China and send them to their home country.

Diploma Verification
Verification in China
Besides the authentication of Diplomas abroad, or through a Consulate in China, the Chinese Ministry of Education has launched an online system able to verify foreign Diplomas: http://renzheng.cscse.edu.cn/ . The verification process through this system takes approximately 1 month.

Verification from Abroad
This authentication process is different for each country, however, everywhere, the authentication process ends with the same last step: legalization by the Chinese Embassy in the applicant’s home country.

Application from home country

Before being able to apply for Work Visa (“Z-Visa”) at Chinese embassy/consulate abroad, applicants shall first get the Notification Letter for Foreigner’s Work Permit (“Notification Letter”), which is the official Letter from the Chinese authorities stating that an applicant has been approved to work in China.

To be granted the Notification Letter, the employer has to apply first by providing the required documentation to local Expert Bureau. It takes approximately 3-4 weeks to obtain the Notification Letter.

Then, applicants may apply for Z Visa at Chinese embassy/consulate in their home country.

After getting Z-Visa, applicants may enter in China. They would have to undertake a medical examination and to register their residence at local police station. Then, the 2 last steps would be to convert Z-Visa to working-purpose Residence Permit and to apply for Work Permit.

Application in China
For applicants who are already in China and wishing to get Work Permit in tier-1 city, it is possible to apply directly for the Work Permit by submitting all the required documentation to the local Expert Bureau. When the Work Permit is issued, applicants will then have to apply for a working-purpose Residence Permit (in tier-1 cities, it is possible to convert a Tourist Visa, a Business Visa and a Study Visa into a residence Permit – applicants can hence avoid having to go back to their home countries to apply for a Work Visa and then come back again in China).

Required Documents
The exact documents checklist submitted to Chinese authorities will depend on individual case.

Generally, the following documents are required to be provided:
From the Employee
Diploma: the original Diploma has to be submitted along with its notarized and legalized copy
Police Clearance Certificate: the PCC needs to be notarized and legalized
Work Certificate
CV
Labor Contract
Medical Report
Police Registration Form of Residence

From the Employer
Business License (+ Certificate of Approval if any)
Passport of the Legal Representative
Company Stamp

Requirements Applicants can directly apply from within China for the Foreigner's Work Permit if they meet the following requirements:
(1) High-end talents (Category A) with other types of visa or valid residence permits if already in China;
(2) Foreigners working in China who changed their employer but retain the same post (occupation) and whose work-type residence permits are still valid;
(3) Accompanying family members of foreigners working in China, with valid visas or residence permits;
(4) Other applicants who meet the requirements of approval authorities.

New policy on Foreigner's Work Permit

Effective on April 1, 2017, the State Administration of Foreign Experts Affairs rolled out a unified work permit system nationwide that began to process applications of both "foreign experts" and ordinary foreign nationals, referred to as R visas and Z visas respectively. There will be one permanent tracking code for each person so as to manage and record in real time the work, service, credit history and other related information of foreigners working in China.

The new system uses a points-based, three-tiered classification system to evaluate which candidates qualify for the work permit. Compared with the old system, the new one requires fewer supporting application materials, provides a more transparent evaluation process, and shortens turnaround time.

Rights and obligations of the applicant

(I) According to the Administrative License Law, an applicant or employer enjoys the following rights:
1. To be informed of the progress of the application;
2. To be informed of the reasons for failing to be accepted or approved;
3. To be entitled to make statements and defend themselves with regard to the administrative licensing of an administrative organ;
4. To be entitled to apply for administrative reconsideration or file an administrative lawsuit with regard to the decision of reviews.

(II) According to the Administrative License Law, the applicant, the employer, and the unit or person that presents proof materials shall fulfill the following obligations:
1. Make sure that the materials submitted are complete, accurate, and effective;
2. Cooperate with decision-making organs checking the authenticity of the materials through face-to-face talks, telephone calls, and field investigations;
3. Work within the permitted areas after gaining the work permit;
4. The legally-obtained Foreigner’s Work Permit shall not be transfered to others.