When and why are employees transferred to a new entity in China?

As part of Horizons’ continued growth and strategic alignment, we are relocating our China headquarters to Jiangsu province, where we now support our largest client base. To reflect this change, employees currently engaged through Horizons' Shanghai entity and located outside of Shanghai will be transferred to a newly registered Horizons China entity in Jiangsu.

This is a purely administrative change. There will be no negative impact to employees’ terms of employment, benefits, or compensation. The transfer supports Horizons’ efforts to streamline operations, improve local compliance, and align with our expanding client presence in Jiangsu and surrounding regions.


Timeline of the Transfer

  • July (current): Clients and employees are notified of the upcoming entity transfer. Affected employees are contacted by Horizons and provided with a detailed explanation of the process.

  • End of July / Beginning of August: Signing of Mutual Termination and Transfer Agreements (MTTAs) and new employment contracts begins.

  • August: Employee records updated; legal transition to the Jiangsu entity finalized. Operations and employment continue as usual under the new entity, with no change to employment conditions.


Frequently Asked Questions

1. Why Jiangsu?
Jiangsu Province is one of the most economically dynamic and historically prosperous regions in China. With a GDP of 13.7 trillion yuan in 2024, Jiangsu ranks as the second-largest provincial economy in the country, ahead of many other major regions, including Shanghai. This move is a strategic upgrade that aligns with our goals.

Our transition to Jiangsu allows us to:

  • Be closer to emerging technology and AI innovation centers

  • Benefit from robust local support for tech and HR industries

  • Expand access to top talent and academic partnerships

  • Operate in a more cost-efficient and scalable environment


2. Can employees remain under the Shanghai entity?
Only employees who are based in Shanghai will remain under the existing Shanghai entity. Employees located outside of Shanghai will be transferred to the new Jiangsu entity as part of this administrative realignment.


3. Will this transition affect employee benefits such as social insurance, housing fund, or IIT?
No, there will be no changes to employees’ benefits. Social insurance contributions, housing fund payments, and individual income tax (IIT) declarations will continue as usual.


4. Will the expense reimbursement process change?
The overall process for submitting expenses remains the same. However, due to the transfer between entities, there is a change regarding fapiao (invoice) titles.

  • Before the transfer: All outstanding expenses incurred before your new employment contract begins must be submitted with fapiaos titled to the Shanghai entity.

  • After the transfer: Any expenses incurred from the start date of your new employment contract must be submitted with fapiaos titled to the new Jiangsu (Yixing) entity with the following information:

    • Company name: 新视野(江苏)数字科技有限公司

    • Tax ID / Unified Social Credit Code: 91320282MAEP5PXG1D

We recommend submitting any pending expense claims as early as possible before the transfer takes effect to avoid confusion or delays.

费用报销流程会有变化吗?
提交费用的整体流程保持不变。但是,由于实体之间的转移,有关发票抬头会有所变化:

  • 调动前:新工作合同开始前发生的所有未付费用的发票,需开具上海实体的信息。

  • 调动后:自新工作合同生效之日起产生的任何费用的发票,必须开具新的江苏(宜兴)实体。开票信息如下:

    • 名称:新视野(江苏)数字科技有限公司

    • 纳税人识别号:91320282MAEP5PXG1D

建议在调动生效前尽早提交所有未报销的费用,以避免混淆或延误。


5. What happens to employees’ existing service years?
Your service years will be fully recognized and preserved. As part of the process, employees will sign two documents:

  • A Mutual Termination and Transfer Agreement (MTTA), which acknowledges and protects your full service history

  • A new employment agreement under the Jiangsu entity, with unchanged terms and benefits


6. What if an employee is still in probation period?
The probation period will continue under the new entity’s employment agreement.
Example: If an employee has a total probation period of six months and has completed four months with Horizons, the remaining two months will carry over and continue under the new employment agreement.


7. Do employees have to sign a new mission letter?
No. The mission letter already signed remains valid. There is no need to sign a new one.



Documents Attached

  • Sample Mutual Termination and Transfer Agreement (MTTA)

  • Sample Employment Agreement

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