Under Chinese labour law, every employee must have a clearly defined Legal Employer in China — a registered entity that signs employment contracts, processes payroll, contributes to social insurance, and assumes liability for labour disputes. For foreign companies without a Chinese WFOE or representative office, acting as a Legal Employer in China directly is not possible. China Payroll solves this by acting as the Legal Employer in China on your behalf, covering all statutory obligations while you retain full managerial control of your workforce.