According to the immigration regulations, after submitting for your new Alien Employment permit for your new employer you will need to cancel your former residence permit you’re your previous employer. You will then be issued a short term M Visa for a duration of 1 month with 0 entry to avoid the illegal employment and further penalties.
No, if you switch jobs you will need to give up your current 5-years residence permit and re-apply for a new working permit and new residence permit through the new company. If you don’t follow this procedure, it will be counted as illegal employment and you will face a huge penalties.
What if I am the owner or legal representative of a company? Can I directly get 2 to 5 years work visa?
If the company opened less than one year, you can only apply 1 year work and residence permit. Second year Visa Shanghai can apply 2 years for you. •From July 2015 onwards, if you applied for your work visa 2 consecutive years in Shanghai and haven’t violated any immigration laws and local regulations Visa Shanghai can help you apply for the 5 year residence permit. •Approval of 5 years residence permit really depends on your profile and local authorities. According to our experience, expats usually have 20% success rate when applying for this service. If your application is denied by the government office you will receive regular 1 years permit. (Application might be rejected due to company registered capital is too small or some other reasons)