I have a driver with his own car who transports me during the week.
I pay him cash in hand and we were happy with this arrangement. Now someone told him he needs to be registered and/or join a company where he has more benefits.
Anybody familiar with a similar situation?
Is there any organization that he can join who will look after his rights and make sure that
1: he and his passengers are adequately insured
2: he is paying all taxes and insurances
3: he is not getting into any "grey" area that will cause him problems.

I come from a country where "entrepeneurship" is acceptable , but don't want him to be caught running an illegal taxi ie transport service.

All info appreciated

When I worked in Guangzhou we had several drivers for our cars and trucks. Somebody highup in the management was more interested in head counts than in business, and forced us to outsource the drivers. The drivers registered each their own company (which cost them a couple thousand rmb) and sold their services to our company. Totally legal and everybody was happy.
Maybe this might work for you also.

They do have companies set up for just this purposes. You hire your own driver through this company. It just means that you pay more to cover his tax and various "social" payments.

For car insurance it is a separate matter. You basically just need to buy a suitable car insurance policy similar to most other countries.

You could have your driver to join a big registered company to make it legal. Usually the car rental company will charge the driver some management fee each month. Try contact: asd.carrental@gmail.com

This is a good way round it. I had my driver for 2 years the same way as original poster. Insurance was all above board and paperwork was ok. The problem i had was everytime i needed to go to Suzhou on business we would get stopped by trafic police at the toll for some obscure rule about private drivers. Recently he signed a contract direct with my company, he went to a private company for business lisence at a a cost of 1000rmb per month. But he added the grand onto his salary so he didnt lose out.