In May 2015, the Ministry of Human Resources and Social Security of the People's Republic of China ("MOHRSS") amended a number of regulations. The regulations were amended to reflect recent changes in the registered capital system and company registration procedures and further the government's broader strategy to limit administrative interference in business. The regulations that were amended included the Administrative Measures for Sino-Foreign Cooperative Operation of Occupational Skills Training, Interim Administrative Provisions on Establishment of Sino-Foreign Equity/Cooperative Joint Venture Employment Agencies, Interim Administrative Provisions for Sino-Foreign Joint Venture Talent Intermediary Agencies, and Provisions on the Administration of Talents Markets.

The amendments involved the following key changes to the establishment and operation of Sino-foreign employment agencies, talent intermediary agencies (i.e., headhunters and executive recruiters), and occupational skills training institutions and programs:

  • The minimum registered capital and capital verification requirements were removed. However, as in other industries, the MOHRSS still requires such agencies and institutions to meet certain operational standards, such as having sufficient funds, qualified personnel, and appropriate facilities.
  • Approval from MOHRSS to operate is required only after the business license of the joint venture is issued, instead of prior to its establishment. This will make it simpler to undertake initial investment and conduct pre-operational activities such as hiring, equipment purchase, and fit-out of premises.
  • Approval from the local MOHRSS on holding of job fairs is no longer required.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.