Advisory Services
Audit
Consulting
ESG Advisory
RBI Registration
SEBI Registration
IRDA Registration
FEMA Advisory
Compliances
IBC Services
VCFO Services
Growing
Developing
ME-1
ME-2
EU-1
EU-2
SE
Others
Select Your Location
This whole discussion will be about Annual Audit & Compliance requirements pertaining to the Foreign-invested enterprise, including wholly-owned foreign enterprise, joint ventures, commercial enterprise, branch office & representative office.
All foreign-invested Enterprise in China is required to carry out annual compliance procedures. China is very much vigilant & stern when it comes to legal, paralegal & regulatory regimes of compliance. Non-Compliance may lead to revocation of license as well. Such regulatory measures help in fraud prevention. Especially tax compliance is important as an FIE can only repatriate its profits to foreign investors after Chinese tax bureaus are satisfied that all the relevant taxes have been paid.
Table of Contents
These Audit reports must be signed by China certified CPA’s; the main objective is to ensure compliance of Annual Accounting regulations along with Chinese GAAP.
Audit Procedure takes about 2 months & must be completed before April so as in order to meet the reconciliation deadline of 31st May.
Companies are however required to file CIT returns within 15 days from the end of month or quarter. SAT requires the company to submit an annual CIT reconciliation within 5 months from the previous year’s end.
Annual CIT reconciliation report must include adjustment sheets to bridge in the discrepancies between.
FIE’s who all conduct frequent transactions or are regular in their dealings should prepare an Annual Affiliated Transaction Report on Transfer Pricing issues as a supplementary document.
Also, Read: Procedure of Foreign Company Registration in India.
* The deadline for submitting the required report is June 30.
If it fails to get it conducted by the time, its license of foreign Company Registration will not be valid & it won’t be able to receive or disburse cash. SAFE usually provides guidelines on the same.
*After receiving Bank’s approval the money can be converted into foreign currency Account Outside at a daily conversion rate against the RMB issued by People’s Bank of China & remitted directly to the foreign country.
Such compliance at the internal & external level is a good tool to identify potential business risks. Failure to comply with Chinese Laws & Regulations would result in penalties along with the company being Black Listed which could affect the future business & operations of the whole group. The organization complying with the relevant norms will definitely have good standing & creditworthiness.
Our Recommended Post: Foreign Company Registration in India.
Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.
The Financial Action Task Force, i.e. FATF (the Force), is the global money laundering and terr...
Advance tax refers to the payment of the tax liability before the end of the relevant financia...
On 11.12.15, the Hon’ble Delhi High Court (HC) pronounced a landmark judgement in the case ti...
Money laundering can be defined as the process of illegal concealment of the origin of money ob...
Every assessee in India is obligated to file an income tax return and make the timely payment o...
In the recent past, India has seen burgeoning demand for internet and smartphones. The rapid ri...
The Securities and Exchange Board of India (SEBI), the capital markets regulator, has recommend...
The objective of the enactment of the Prevention of Money-laundering Act, 2002, i.e. PMLA (the...
Tax planning is a continuing effort and a management strategy for ensuring the minimization of...
On 18th May 2023, the Securities Exchange Board of India (SEBI) released a Consultation Paper o...
Are you human?: 9 + 2 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
In India, every business including Limited Liability Partnership, Private Company, Public Company is required to ha...
21 Jun, 2017
The cost involved in setting up a company in the Cayman Islands is a popular option for businesses looking to estab...
27 Apr, 2023
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
Chat on Whatsapp
Hey I'm Suman. Let's Talk!