Immigration Implications of Entity Amendments in China
August 31, 2014
By: Jenny Wang and Sophia Cao
Under the current immigration regime in China, employers should ensure that the work authorization documents of their foreign employees are always up-to-date. It is required by law that any changes to the registered contents of the employees' work authorization documents are reported to the immigration authorities within ten days from the date that changes occur. The reporting requirement also applies to the situation of switching employers or leaving an employer.
Sponsoring Entity in General
Under both the Exit-Entry Administration Law (EEAL) and the Work Law of China, work authorization documents must be sponsored by a legal entity in China. From an immigration point of view, the Chinese entity where the foreign national will be working, or the physical working location where they will be spending the majority of their time, should act as the sponsoring entity for their work and residence permits.
Entity Amendment in China
Under Article 33 of the EEAL, if any registered personal or employment information changes at any time (e.g. new passport number, residential address, job title, work permit, sponsoring entity, newborn baby, etc.), both the work permit and residence permit must be updated. Amendments must be processed within ten days from the date the information changes by applying to the local Public Security Bureau office in the foreign national’s place of residence.
Switching employers or leaving an employer is also considered to be a change of work circumstances. Using Beijing as an example, an entity amendment application or a residence permit must be lodged within ten days from the date when the new work permit is ready.
Entity amendment applications in China can usually be completed without the foreign employee having to leave the country. Intra-city transfers may be more complex, but will not usually require an employee to exit China.
Implications for Companies in China
We recommend that employers recruiting a foreign national from another company within China plan well ahead. Assess each amendment case accordingly and obtain the employee’s last working day information in advance. Companies should also establish whether the previous employer will take the initiative and de-register their employee’s current work and residence permits.
Employers also need to remember that the national process for entity amendments is under constant development and may vary slightly across different location
