Work Visa vs. Work Residence Permit: Understanding the Difference and Guidelines
By Jonathan Xu
Director of Business Operations and Marketing
SHANGHAI (The Benelux Chamber of Commerce) – Understanding the complexities of obtaining a work visa for China can be a daunting task. From tales of foreign passport holders being deceived by agents to inadvertently engaging in illegal employment, it is crucial to acknowledge the risks associated with a lack of knowledge.
Failure to comply with regulations can result in deportation, permanently barring your return to China. In response to the concerns raised by our esteemed members, we are pleased to share our comprehensive insights on the application process for work visas in Mainland China.
Eligibility for Employment
Drawing upon my personal experience as a former business owner, I had the privilege of delving into the reality of work visa applications for my foreign partners and employees. It is important to note that the only legal means to earn a salary and engage in employment within Mainland China is through a work residence permit, as opposed to a work visa. It is vital to distinguish between these two documents: visas are issued by the embassies of the People's Republic of China (PRC) located outside of China and typically allow for single or double entry. Residence permits are exclusively granted by the Public Bureau of Safety (PSB) and can only be obtained based on a valid visa. Unlike visas, residence permits provide multiple entries and various additional advantages, such as the ability to open a bank account and apply for social security status. While visas typically cover stays shorter than 180 days, residence permits are applicable to durations exceeding 180 days (multiple entry). To legally work and receive a salary in China, both a work residence permit (converted from a 30-day Z-visa, which is a working visa issued by a PRC embassy to enter China) and a work permit are mandatory.
Work Visa (Z-visa)
Work Residence Permit
Work Permit
Q2 visas, granted based on family reunion-related matters, obtained from a PRC embassy abroad, can be converted into a family reunion residence permits. Conversely, Z visas, issued for work-related purposes, obtained from a PRC embassy abroad, must be converted into a work-based residence permit within 30 days of arrival in China. Tourist visas, business visas, and others cannot be converted into residence permits and are intended solely for short-term visits.
How does one apply for the work permit, work visa and the work residence permit?
The process commences with the employer, who must possess an operational entity within Mainland China. The entity should not be blacklisted and must demonstrate a valid justification for hiring a foreign employee. Given the current high unemployment rates among Chinese fresh graduates, which exceed 30%, it is vital to recognize the stringent regulations enforced by various authorities when applying for a work visa. In most cases, foreign candidates are supposed to hold a bachelor’s degree, must have a clean non-criminal record and must have at least 2 years of relevant working experience. Interesting note: the working experience does not count for graduates from Chinese universities.
Step 1 - The Employer
The employer's initial task is to register their company online with the Foreign Expert's Bureau, which, since 2021, has merged with the Government Service Platform of the Ministry of Science and Technology. Companies seeking to hire employees with foreign nationalities must complete the registration process, which typically takes 1 to 2 working days. The required information includes the legal representative's ID or passport, a scan of the business license, and details of an appointed contact person. To ensure accurate completion of this step, please follow the instructions provided in the following sections of the website: "法人单位基本信息" (Basic Information of Legal Entity), "法人单位其他信息" (Other Information of Legal Entity), and "主代办人信息" (Main Contact Person Information).
Once the registration process is approved, the designated contact person will receive a confirmation via text message, allowing them to proceed to the work permit application portal. It is crucial to note that this department operates separately from the PSB.
Step 2 - Work Permit Application
The work permit application is the most time-consuming yet vital step in the process. A work permit is a prerequisite for all foreign employees in China. Without a work permit, a work visa cannot be issued, and consequently, a work residence permit cannot be obtained. During the work permit application process, users must navigate the platform and follow the provided instructions.
The initial step entails determining the appropriate employee category: A, B, or C. These categories are mainly based on a point system. After reading the point system, we could conclude the following: category A is typically designated for academics or high-level executives (CxO positions). Category B encompasses professionals in various fields, ranging from junior to senior positions. Category C is reserved for professionals engaged in labor-intensive industries, such as machine operators and heavy-industry workers. It is important to note that applications for Category C personnel are subject to more stringent scrutiny due to China's existing skilled labor force. Employment contracts generally have a minimum validity of one year. Throughout this article, we will focus on a one-year employment contract.
It is crucial to emphasize that, for the majority of job positions (approximately 90%), the minimum requirements consist of two crucial elements: a Bachelor's degree and a clear non-criminal record. These documents must also be legalized and translated by an authorized translation agency. The legalization process currently involves two steps: (i) legalization by the applicant's government, specifically the foreign affairs office, and (ii) legalization by the PRC embassy in the applicant's country. While the local apostille requirements may vary from country to country, the legalization performed by the PRC embassy always includes a green sticker. Scanned copies of these two documents must be uploaded to the system. Other necessary documents include :
- A scan of the passport
- A recent headshot
- The employment contract (signed and stamped by both the employer and the employee)
- The application form which is generated by the system
- Important: the salary and job position in the application form need to match with the information given in the employment contract!
- The non-criminal record (legalized and translated)
- The highest obtained degree (legalized and translated)
- Health declaration form/promise letter
The standard approval process typically takes between 5 and 10 working days, involving three levels of inspection. At any level, the inspectors may request additional clarification or supplementary materials from the employer. In unfortunate cases, applications may be rejected. Later in the process, employers will be required to present all original documents. This aspect will be further discussed in Step 4.
Once the application successfully passes all inspection levels, the employer will receive a digital "NOTIFICATION LETTER OF FOREIGNER'S WORK PERMIT IN THE PEOPLE'S REPUBLIC OF CHINA." This document should be sent by the employer to the employee, granting them the right to apply for a Z-visa (30-day work visa) at a PRC embassy abroad. Applicants are advised to print the document in color and carry it during the work visa application.
Step 3 - Registration and Health Examination
All foreign visitors arriving in Mainland China who do not stay at a hotel are required to register at the local police station within 24 hours. Some cities offer online platforms to simplify this process. In Shanghai, foreign visitors can register by scanning the provided QR code. Failure to register may impede the conversion of a work visa into a residence permit.
Within the initial 30 days, foreign passport holders must also undergo a mandatory health examination if their intended stay in Mainland China exceeds 180 days. The health examination results, along with a scan of the entry stamp from Customs and the Z-visa, must be uploaded to the Work Permit system upon completion. After approximately four working days of further inspection, the work permit application can be considered finalized, and the employer must await further instructions from the Foreign Experts Bureau (FEB). The FEB will communicate a proposed date for the employer to visit their office. During this final step, the employer will need to bring the employee's original materials, as discussed in a previous step. No copies will be accepted.
Step 4 - Work Residence Permit
In the last step, the employer must accompany the employee to the Public Bureau of Safety (PSB), which handles all affairs related to the work residence permit. In certain Chinese cities, the employer may also need to obtain an additional certificate to issue the work residence permit. This certificate, known as the contact card (联系卡), can only be granted after the local police station inspects the actual office. Acquiring this certificate may take up to 15 working days, so it is advisable to complete the process before the foreign employees' arrival in China, considering the initial 30-day stay limit.
In Shanghai, the contact card is not required. To conduct the final step at the PSB, the employer must bring the following documents:
- Applicant's passport (along with a company-stamped copy)
- Applicant's work permit (along with a company-stamped copy)
- Health Examination Form (blue document, along with a company-stamped copy)
- Recent headshot (photo booths are available at most PSB offices)
- Application letter from the company (a template can be provided by the Chamber upon request)
- Color-printed copy of the online registration at the local police station (or through the QR code mentioned in Step 3)
- Company-stamped copy of the business license
Conclusion
Upon successful submission of all the aforementioned documents at the PSB, it generally takes up to 10 working days to receive the passport with the work residence permit, allowing multiple entries. If you have any questions or doubts, it is highly recommended to seek assistance from professionals. The Chamber is delighted to connect you with one of our Benelux members who can provide guidance.
Fortunately, the renewal process is much simpler and requires fewer documents. Remember to initiate the renewal process at least 30 days prior to the expiration of the work permit and work residence permit.