Getting prepared for your annual audit inspection

By Chris Devonshire-Ellis

All foreign invested businesses in China are required to prepare annual financial statements, including balance sheets and income statements for their annual Chinese audit. Such accounts must be in accordance with the Chinese accounting standards for business enterprises – there are now no differences between standards for domestic and foreign enterprises. Foreign companies, including their legally responsible persons, must take full responsibility for the truthfulness, legitimacy and completeness of these financial statements. These documents must be completed ahead of the submission of consolidated accounts for tax purposes by the end of April every year, for the financial calendar year ending the previous December 31.

These statements will be used for computing the taxable and distributable profit. Accordingly, an annual audit by a firm of certified public accountants registered in the PRC is required under Chinese law.

There are a number of areas where you need to take particular care and where there are some differences between Chinese and Western accounting practice. These are guidelines only as every business is Read the rest of “China’s audit regulations – Filings shortly due” or post a comment

As China’s role on the international stage grows, its trade practices have attracted increased scrutiny from the international community.

In recent years, a number of complaints have been made to the World Trade Organization (WTO) concerning the Government of China’s involvement in the marketplace and, in particular, the wide range of alleged subsidies — most of which are indirect — offered to…

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By Cliff Sosnow, Robert Kwauk and Elysia Van Zeyl

As China’s role on the international stage grows, its trade practices have attracted increased scrutiny from the international community.

In recent years, a number of complaints have been made to the World Trade Organization (WTO) concerning the Government of China’s involvement in the marketplace and, in particular, the wide range of alleged subsidies — most of which are indirect — offered to domestic producers and exporters by the Government of China. Recently, these complaints have crystallized into the establishment of a WTO panel at the request of the United States and Mexico to examine the existence and impact of subsidies that are alleged to have unfairly boosted Chinese exports and skewed Chinese buying decisions to favour Chinese-made products. Read the rest of “Spotlight on Chinese Subsidies” or post a comment

This table summarizes the procedures and costs associated with setting up a business in China.STANDARDIZED COMPANY
Legal Form: Limited Liability Company
City: ShanghaiRegistration Requirements:

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When entering the China market, many multinational companies assume that a country with a population as large as China’s would not have a labor shortage. However, the fact is that qualified labor is at a premium in China. Under the booming economy, the rising demand for Chinese labor has exceeded its supply. Hiring talented employees—young, upwardly mobile Chinese professionals with advanced skills and an understanding of international business—is even more difficult. Because of the limited availability of such employees, the competition for this talent is intense.

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