Seeking solutions for your accounting needs is critical for any business in China. Choosing the right accountant can be the most important decision you can make in the process. In the end, a good accountant is a valuable financial consultant and a trusted advisor.

• Accounting System Setup
  After setting up the entity, you will need to consider hiring accounting professionals to assist you to establish the accounting system in accordance with the accounting standards generally accepted in the People’s Republic of China (the “PRC”) and the actual operations of the your local WFOE/JV. The accounting and tax compliance requirements are constantly being updated and changed as China continues with its economic reform and progress. Hence, hiring professional accounting professionals like us, will mean an added advantage of a large pool of resources that is trained and in practice.Our responsibilities include: the establishment of accounting policies & procedures, initial set-up of accounting system encompassing the China standard chart-of-accounts, accounting ledgers and adhering to PRC statutory financial & tax reporting processes. We document our entire accounting system and processes, typically into flowcharts that allow client and ourselves to be familiar with each’s roles, functions, responsibilities and deadlines. We will set up the accounting system using the existing China approved accounting software system for local China reporting. We will assist clients to map accounting and financial reports to meet parent company’s reporting format. We will make consolidation adjustments according to client’s parent company consolidation accounting policies & procedures.
• Cashier Services
  Cashier services include process domestic / overseas payments, maintenance of cash book, bank support, reimbursement for employees and payment for staff salary / social insurance
• Invoicing Services
  In China, the control of the invoices (‘ Fa Piao’) is managed by the tax bureau. The recipient of monies from the payer must issue valid tax invoices, or fa piaos, to the payer. Anyone who pays for goods or services are entitled to tax invoices. Any invoices that do not comply with the requirements can be rejected by the rightful recipient. A Fa Piao is a necessary document for deducting expenses.The management of Fa Piao has been gaining greater scrutiny over time. Most major cities’ enforcement of issuing the Fa Piao has been very stringent.

Our invoicing services starts with having the accounting professionals who are qualified by the tax bureau, and can handle the processes relating to the Fa Piaos. Our services shall include deploying qualified people to “purchase” the Fa Piao eg. The special VAT invoices on behalf of client from the tax bureau. Our people shall then upon your sales of services and goods, issue the services invoices and VAT invoices, which are acceptable by the tax bureau.

• Bookkeeping
  We will prepare and maintain the accounting books and records for you in accordance with the accounting standards generally accepted in the PRC (“PRC GAAP”). Our role includes obtaining the relevant accounting information from the company, analyzing the information, coding the transactions and posting the transactions to the accounting ledgers.
• Tax Filling
  We will assist clients to comply with the following tax filings based on the taxation laws of PRC

• Monthly Value Added Tax (“VAT”)
• Additional Related Taxes (“AT”)
• Quarterly and Annual Corporate Income Tax (“CIT”)
• Monthly Individual Income Tax (“IIT”)
• Annual Individual Income Tax (“AIIT”)
• Stamp Duty
• VAT Refund

• Group Reporting
  The China accountant of a foreign parent company must understand the parent company’s accounting policies and procedures. While the local Chinese GAAP have to be adopted, the financial statement entries will be adjusted towards the parent company’s policies, be it U.S. GAAP or International Financial Reporting Standards (IFRS) for consolidation purpose.Our financial people understand the adjustments that must be made to the books of the Chinese subsidiary and also understand the impact of the adjustments when they are consolidated with the parent. We carry on the group reporting services for clients that need their subsidiaries to report their monthly financials for consolidation purposes.
• Annual Inspection
  According to the China Laws, all the companies are required to carry out its Annual Inspection (年检). We will assist the company to carry out the Annual Inspection according to the rules stipulated and in conformity to the laws of the People’s Republic of China. We would deliver and submit the completed forms and other relevant information of the company to the government departments for inspection.The typical Annual Auditing and the Annual Inspection time tables are:

• Annual Audit Assistance
  According to the China Laws, every company must hire a certified CPA firm to conduct annual audit on its accounts. We will recommend our affiliated firm to provide this service for your company. We may also provide audit assistance services to assist you eg. preparing necessary audit schedules and presenting information for the auditor’s (appointed by you) checking work. We will also assist you by organizing and preparing your answers towards the auditor’s enquires

Post the incorporation of a WFOE/JV/RO, the company would need to hire people. The human resources processes of hiring, registering of employment and establishment of staff social security etc. are fairly complex in China. The 2008 Labour Contract has put a great deal of onus on the part of the employer to comply the laws and the rules and regulations stringently.

Post-incorporation Social Security Registration & Payroll Services Initial Set-up
After the company is registered, we will assist you to set up the entire process flow including below:

• Payroll process – Initial Set-up
• Employees and payroll databases record
• Social Security account opening for the new company
• Personal Files maintenance registration for the company

Hiring/Termination registration
In the event of any new hiring or termination, we will assist the company to register the new employee or termination records with the relevant authorities eg. Manpower Bureau, Tax Bureau, Statistics Bureau, etc.

Salary Calculation/Pay Slips Distribution / Social Insurance Filling
We may take the role of your HR department, to handle monthly payroll routine work for all your local and expatriate staff:

• Payroll calculation and distribution in RMB
• Social Benefits filing and payment every month
• Personnel File maintenance
• Pay slips to staff
• IIT Declaration

Employment Permission / Residence Permission
We provide the value-added services for the expatriate/foreign national staff of your company:

• EP&RP (Employment Permit/Residential Permit) – new application by first time foreign employee
• Renewal, transfer or cancellation for employee
• RP – new application for family member of foreign employees
• Renewal, transfer or cancellation for family member

Payroll and Related Yearly maintenance

• Social benefits annual inspection for local staff required by Manpower Bureau
• Salary statistics report for local staff required by Statistics Bureau
• Base Adjustment for social benefits for local staff required by Manpower Bureau
• Annual IIT filing (for annual income over RMB120,000) (“AIIT”)

De-registration of a Representative Office
Due to the limited activities available to a representative office, foreign investors may want to expand into a more considerable investment eg. WFOE/JV. Generally speaking, they may want to close their representative office and set up a company in the form of a WFOE / JV. In this instance we shall be able to assist them to de-register their RO and set up a new entity.

Liquidation of a Limited Company
According to PRC law, a Limited Company must be dissolved if any of the following circumstances occur:

• The term of operation expires and is not renewed
• The Company experiences financial difficulties and the Board deems it necessary to dissolve the company.
• Due to force majeure, the company is unable to continue its business
• The company is bankrupt
• The government has decided to close down the entity due to illegal acts damaging the public interest
• Other reasons for dissolution and/or termination clauses stipulated in the original Joint Venture Contract and/or the Articles of Association

We will assist to de-register the certificates / licenses and get certain approval from different government bureaus, such as Ministry of Commerce, State Administration of Industry and Commerce (SAIC), the Customs Administration, the Tax Authorities and State Administration of Foreign Exchange (SAFE).

With our assistance, all the company’s bank accounts shall be closed. In addition, some companies in particular sectors may have other specialized registrations and those should be closed off as well.

In China, it takes approximately 6 to 10 months to complete the RO de-registration while 12 to 18 months to complete the whole liquidation process for WFOE/JV.