To engage in a staffing business for the provision of secondment services, a company must meet the new law's requirements, which include a minimum registered capital of at least RMB$2 million. In addition, a company must apply for a special permit before conducting any staffing business. As the law is silent on the qualifications of an applicant to obtain such a permit, the approval authorities have broad discretion. It is possible the Chinese government will control the number of service providers in a particular geographic area by limiting the number of permits issued. In practice, firms without permits may structure their business models as outsourcing businesses by arguing that they are not providing staffing services. However, because the distinction between "secondment" and "outsourcing" is not defined in any law or regulation, the regulatory authorities may treat the outsourcing model as secondment in substance and thus require a permit.

For more information about contract staffing service, please view Talent Spot website:

http://www.talentspotgroup.com/services/staffing