Our collection of resources based on what we have learned on the ground
Resources
Q&A
What should foreign enterprises in China be cautious about regarding the laws on...
- December 2015
- Members Access
Unlike many western countries whose legal systems have grown to the complexity of today over hundreds of years, China only embarked upon the establishment of rule of law in the Western sense of the word in 1979. Not only might this underdeveloped leg...
Q&A
Can a foreign invested enterprise in China terminate labor contracts unilaterall...
- December 2015
- Free Access
Due to the slowdown of the Chinese economy, more foreign-invested enterprises (FIE) are seeking to shift operations to cheaper locations in order to control expenses. When employees are unwilling to relocate, the employer can terminate the labo...
Q&A
How can a company reduce the number of staff in China?
- December 2015
- Free Access
Chinese employees are entitled to two consecutive fixed-term contracts and then an open-term contract if requested by the employees. At the end of the first term, the company can simply choose not to renew the labor contract with that employee in ord...
Q&A
What common labor related issues can arise during company divestiture in China?
- December 2015
- Members Access
If a company sells part of its assets and this part involves certain employees , the original labor contracts of these employees become no longer valid and the purchasing company has the choice as to whether to employ the current staff. T...
Q&A
What are some of the steps required to settle labor issues when a company wishes...
- December 2015
- Free Access
When a company de-registers and closes its operations, current labor contracts will be automatically terminated and affected employees will be entitled to the severance payment. In order for foreign companies to legally de-register, they need to...
Q&A
Why is the annual audit important to Foreign Invested Enterprises (FIEs) in Chin...
- November 2015
- Free Access
Since FIEs are allowed to distribute and repatriate their profits or dividends back to their home country only after they complete their annual statutory audits and settlement of all relevant tax liabilities, failure to comply with the annual audit w...
Q&A
What is the process of the annual audit work for Joint Ventures (JV), Wholly For...
- November 2015
- Free Access
First of all, enterprises need to prepare a statutory annual audit report, which includes a balance sheet, an income statement and a cash flow statement. As a next step, enterprises need to prepare a corporate income tax (CIT) reconciliation report. ...
Q&A
What are some factors that need to be considered when doing the annual audit wor...
- November 2015
- Free Access
1) Bank statements: The balance on the bank book needs to be the same as that stated in the bank statement. 2) Expense report: Audit fees, salaries, rentals, utilities, FESCO fees and any other expenses need to be properly accrued with contracts or ...
Q&A
What does ?Regulations on the Administration of Registration of Resident Represe...
- November 2015
- Free Access
On the 19th of November, 2010, the State Council issued the regulations and it came into effect on the 1st of March, 2011. This regulation concentrates the degree of business and their valid financial records. The submission date required is from the...
Q&A
What is needed needs to be prepared when going through annual tax filing process...
- November 2015
- Free Access
Since the responsibility for tax filing in China is with the taxpayer, the bureau does not need to send out tax returns and it is the taxpayer’s responsibility to collect and file tax forms according to relevant regulations. Although regional v...
Q&A
Why is it recommended to start preparing for China?s annual audit in November in...
- November 2015
- Free Access
Most companies in China start preparing for the annual audit in January and February, however it is sometimes recommended to start instead as early as November. This gives companies enough time to carry out a preliminary audit first before the final ...
Q&A
What are some common internet challenges for foreign companies in China?
- October 2015
- Free Access
Due to the Golden Shield Project in China, it is difficult for companies to access non-domestic websites. Internet speed is slow, connections are unstable and latency is high and technically, since there is a very small network bandwidth with China a...
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