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Entry, Work and Residence Permits for Foreigners in China

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Entry, Work and Residence Permits for Foreigners in China

For foreigners seeking employment in China, China implements a three-tier administrative approval and licensing system, which is successively divided into domestic employment approval and licensing, entry passage licensing and long-term residence licensing. The three types of licenses are independent of each other, progressive in hierarchy, and their validity cannot be interchanged or substituted. They are issued by different competent authorities. The approval subject, legal function and legal effect are clearly defined, which together constitute the complete process of foreign-related legal employment. All three licenses are indispensable. The absence of any license will directly lead to the illegal consequences of illegal employment or illegal residence.

In practice, most legal risks arising from foreign-related labour relations mainly lie in the misunderstandings that employers and foreign workers have about the three-level licensing system. Based on the relevant provisions of the Exit and Entry Administration Law of the People's Republic of China, this article briefly analyses the compliance logic for foreign personnel from handling procedures abroad to legally working after entry, for the reference of existing and potential customers of Kaizen.

Legal Effect of the Three Types of Permits: Entry, Employment and Residence

For foreigners seeking employment in China, the process can be broken down into the following four steps:

(a) Apply for the "Notice of Foreigner Work Permit" from the provincial-level foreign experts department.
(b) Apply for the Z visa from the Chinese embassy or consulate abroad.
(c) Apply for the "Foreigner's Work Permit for China" from the provincial-level foreign experts department.
(d) Apply to the public security Exit and Entry Administration department for a long-term residence permit.

The above four processes respectively correspond to three types of exclusive administrative licenses: domestic employment approval and licensing, entry passage licensing, and long-term residence licensing, forming a closed-loop supervision system.

Step	Exclusive Administrative License	License Item	Department in Charge
Step 1	Domestic employment approval license	Issuance of Work Permit Notice for Foreigners	Provincial foreign expert administrative department
Step 2	Entry Permit	Issue Z visa	Chinese embassies and consulates abroad
Step 3	Approval to work in China	Obtained work permit for foreigners in China	Provincial foreign expert administrative department
Step 4	Long-term residence permit	Issue long-term residence visa	Public Security Exit-Entry Administration Department

(1)	Entry Permit Foreign personnel who come to China for work purposes must first obtain the "Notice of Work Permit for Foreigners" issued by the provincial foreign expert administrative department and then apply for a Z visa at the Chinese embassy or consulate abroad before entering the country. Z-visa holders are only allowed to enter China for a short period of time, without any qualification to work in China, and cannot be used as a legal basis for long-term stay. The Z visa is valid only once. It becomes invalid immediately upon the individual's entry or upon the expiration of the visa's validity period.
(2)	Domestic Employment Authorization Obtaining the approval for employment within the country is the prerequisite and starting point for foreigners to work legally in China, and it is also the most crucial step. The corresponding licensing authority is the provincial foreign expert administrative department. This licensing only addresses the issue of "whether one can work domestically" and does not have the legal effect of long-term residence. If foreign personnel only have a work permit, they do not have the legal qualification to stay in China, and employers are not allowed to arrange for them to take up formal positions.
(3)	Long-term Residence Permit The long-term work residence permit is issued by the public security Exit and Entry Administration department. It is the final administrative permit that integrates residence rights, employment rights and multiple entry and exit rights. Only by holding a work-type residence permit can a foreigner prove that they possess both the qualifications for long-term residence in China and legal employment.

Misunderstanding of Foreign Employment Compliance

Based on the cases encountered and accumulated experience by Kaizen in providing foreign-related employment services over the years, the most common illegal risks faced by foreign-related employment enterprises are mostly due to the confusion of the legal effect of three types of licenses. Kaizen reminds employment enterprises to focus on avoiding the following three major cognitive misunderstandings:

(1)	Work immediately with only a Z visa, using the entry visa to replace the employment qualification The Z visa only grants foreign nationals the qualification to enter the country for a short period of time. The law does not grant them the authority to engage in legal employment within the country. Foreigners enter the country with a Z visa and start working without completing the registration for work permit or applying for a work-related residence permit. This is an illegal employment behaviour, and the employing unit simultaneously constitutes illegal employment of foreigners.
(2)	Only obtaining a work permit to come to China and remaining on the job for a long time, using employment qualifications to replace residence permits The work permit for coming to China merely certifies that the foreigner has the qualifications to work in the corresponding position but does not confer the legal effect of long-term legal residence. Foreigners legally working in China must simultaneously possess valid employment qualifications and a work-related residence permit. Neither of these two permits can be lacking. The employment model where only a work permit is held, and no residence documents are obtained poses legal risks. Once verified, it will be subject to penalties.
(3)	After entering the country, start working first and then complete the approval procedures later China's entry and exit management system does not allow "employment first and document issuance later". Before foreign personnel complete the procedures for obtaining work permits and work-related residence permits, any act of receiving remuneration or providing job services is regarded as illegal employment behavior. Enterprises cannot use the excuse of "currently in the process of obtaining the certificates" as a defense.

Legal Consequences of Illegal Employment and Illegal Hiring

Once it is verified that there are cases of foreign personnel engaging in illegal employment or enterprises illegally hiring foreigners, the regulatory authorities will simultaneously hold both the foreign workers and the employing entities accountable for their respective legal responsibilities. Both parties are required to bear corresponding responsibilities.

For foreign personnel who engage in illegal employment, law enforcement agencies can impose administrative penalties such as fines. If the illegal behavior is severe, they will be ordered to be deported within a time limit and will have their entry restricted. Relevant illegal information will be included in the foreign-related credit record, which will permanently hinder their future applications for Chinese visas, the approval of work qualifications and residence permits.

Companies will be fined heavily if they hire foreigners without proper procedures. If the violation is severe, the regulatory authorities will confiscate all the illegal gains of the enterprise and order it to make comprehensive rectifications within a specified time. In addition, the enterprise will be included in the list of dishonest foreign-related market entities. When applying for the recruitment of foreign personnel or obtaining various qualifications for foreign-related business, it will be subject to strict restrictions and intensive verification in the future.

Kaizen suggests that foreign-related employment enterprises should fully implement the legal approval process, clarify the boundaries of the validity of the three types of licenses, and comprehensively prevent the risks of illegal foreign-related employment. Clarifying the hierarchical relationship among the three is the foundation and prerequisite for ensuring the legal work of foreign personnel in China. The Z visa, work permit, and residence permit procedures are closely linked. Omission of application materials, overdue processing, and misinterpretation of policies can all lead to rejection, delays, and even administrative penalties.

Kaizen Visa Immigration expert team has been deeply engaged in the entry and exit compliance service for foreigners in China for many years and is proficient in the whole set of procedures. The service covers a number of multinational companies and foreign employees, ensuring the smooth entry and stable life of foreign talents in China. If you have any needs, please feel free to contact our expert team at any time.

Disclaimer

All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.

If you wish to obtain more information or assistance, please visit the official website of Kaizen CPA Limited at www.kaizencpa.com or contact us through the following and talk to our professionals:
Email: info@kaizencpa.com
Tel: +852 2341 1444
Mobile : +852 5616 4140, +86 152 1943 4614
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Entry, Work and Residence Permits for Foreigners in China

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