China set-up simplified by new ‘One Window, One Form’ policy
China has set out plans to implement a ‘One Window, One Form’ policy for registering Foreign-Invested Enterprises (FIE). The circular, which was issued jointly by the Ministry of Commerce (MOFCOM) and State Administration for Industry and Commerce (SAIC), will be implemented nationally from 30 June 2018.
The ‘One Window, One Form’ policy is designed to simplify business registration. After 30 June, FIEs will be able to submit a single form to a single office, rather than having to deal with multiple forms and government offices. The new procedure should reduce the time required to prepare forms and liaise with different bureaus.
China updates work permit renewal policy and introduces R-Visa
Foreign companies must, as of 28 February 2018, submit work permit renewal applications for their foreign workers at least 30 days prior to their expiry, according to a notice from the State Administration of Foreign Experts Affairs (SAFEA).
If a company fails to renew a work permit in time, it will then be required to follow the procedures for applying for a new work permit. To renew a work permit, a company must provide the labour bureau with a renewal application form along with the employee’s labour contract, passport, residence permit and current work permit.
Overview of Social Benefits in China
Sovereign has previously highlighted the importance of Foreign-Invested Enterprises (FIEs) in China adhering strictly to all labour laws, whether at a national or local level. Time and again we hear stories of FIEs that have faced legal or financial troubles as a consequence of failing to treat their local employees in full accordance with the law.
By now, the importance of having a detailed Employment Contract and Employee Handbook in place for your China staff should be well-known to foreign investors. However, another area of employment in China that often causes confusion is that of Social Benefit payments. This brief article will examine what these benefits are and the importance of ensuring that all statutory contributions are handled correctly. We will also refer to some misconceptions often associated with China’s social benefit system.