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Company Formation China



Accounting in China

Updated on Wednesday 26th August 2020

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Accounting-in-China.jpgAbout 20,000 companies have been registered in China, in the first two months of 2018, according to recent statistics. Because the business climate is appealing to both locals and foreigners, the Chinese market provides complete support and space for business development in a wide range of performant industries. As soon as you have incorporated a business in China, it is mandatory to hire the services of an accounting firm in order to control better the financial operations, in complete respect and agreement with the Accounting Law in China. It is good to know that in this direction, our company formation specialists in China can offer in-depth details and guidance for your smooth business operations.

Accounting services for a company in China

From the beginning, we mention that the Chinese accounting standards are also applicable in the mainland China and respect the worldwide international accounting rules, known as the IFRS (International Financial Reporting Standards). On request, our team of advisors can be chosen for accounting purposes of the selected business structure in China. We can offer the following accounting services at any time:
  • bookkeeping, payroll, and financial annual statements preparation and filing;
  • VAT registration and tax filings according to the legislation of the country;
  • tax advice and tax minimization methods for your company in China;
  • account payable services (we can manage the payment of invoices, run the bank accounts).
If you would like to benefit from proper accounting services for your company in China, we suggest you get in touch with our Chinese agents in company incorporation.

Bookkeeping services in China

Under the Chinese law, bookkeeping and records of financial activities of a company must be kept for at least 15 years. The same law mentions that all business transactions in China must have a fapiao or the tax invoice which shows that the Chinese authorities will receive the tax payment. In other words, fapiaos are the legal statements that companies pay their taxes in China. In this direction, firms in China are obliged to keep all invoices (incoming and outgoing) with the help of bookkeeping. We also mention that our team of advisors can help you with preparing and drafting the documents for tax registration or VAT returns. Besides bookkeeping, payroll services are mandatory in a firm: we can help you manage the registration for social contributions, employee registration, and salary calculation.

Accounts receivable services in China

The accounts receivable services can be offered by our team of advisors in China who can help business persons handle the operational risks in compliance with the laws in China

Payroll services in China – What you need to know

The payroll services are important aspects part of the accounting matters in China. This kind of service refers to payroll tax calculation and also payroll records of employees in a firm. We have a team with experience and necessary skills for payroll services for your company in China, so you can simply address your inquiries about the necessary accounting services and let us handle them.

Tax minimization for companies in China

Many entrepreneurs in China decide on tax minimization tools at a certain point, as part of a business strategy. This kind of financial instrument can help a company owner pay fewer taxes in China. Some specific examples refer to advanced payment of company loans or credits, charity creation, or retirement plans, to name a few. A tax minimization process can be entirely created and presented by one of our accountants in China who will attentively analyze the financial status of the company registered in China, in order to propose the necessary and recommended solutions. Tax minimization methods are optimal solutions for companies that need to cut down the amount of taxes, so, if you would like to know more about these aspects, please feel free to solicit the support of our team of accountants in China.

What to consider when choosing our accounting services in China?

The accounting services are important to any kind of company registered in China, regardless of the activities developed. When choosing the accounting firm in China, it is important to know from the start the type of services you need and then to verify if the chosen accountants are certified or not. The experience of an accountant will weigh much at the time one decides on choosing the necessary financial specialist for the company. We remind that our team of accountants in China are certified specialists and have experience in a number of accounting matters, plus, they use the accepted programs and tools at international standards. Tax planning, bookkeeping, and payroll services are part of the accounting services a company in China can receive, so feel free to get in touch with us.

What other accounting services can we offer in China?

Knowing the business needs of entrepreneurs, our team of accountants can help them with bank payment management and accounting control procedures in the firm. Let our team take care of the mandatory requirements in your business, linked to the accounting matters.

What is a financial planning in China?

Financial planning in China refers to the ways in which your company can handle the profits in a smart manner. There are numerous strategies that can be adopted in your firm when thinking of a financial planning, like educational and retirement plans or managing debts.

FAQ about accounting in China

1. Can I receive complete bookkeeping and payroll services in China?
Yes, these are important services, part of the accounting matters we offer for companies registered in China. You can solicit complete information about our services from our accounting firm in China.
2. Can an accounting firm handle the annual financial statements?
Yes, this is another important aspect of the accounting services we offer for companies in China. The annual financial statements are significant documents that must be submitted to the entitled financial authorities in China.
3. Can I get support for tax registration and other related matters?
Yes, our specialized accountants in China can provide entire support for tax registration in China, plus all aspects that concern a company seen as a taxpayer in this country. Send us your inquiries if you want to know more about the tax registration for companies in China.
4. How can I choose a good accountant for my firm in China?
First of all, one should check the experience of the selected accountant and verify if he or she is certified in this field. Our accounting firm in China is at your service if you want complete services. We remind you that our specialists are certified accountants in China.
5. Should I externalize the accounting services in China?
Yes, many entrepreneurs would rather hire the services of an accounting firm instead of creating a whole department. This way, you have the guarantee that all the financial aspects are entirely supervised, in a very professional manner. Please talk to our team for extra details.

Investments in China

China remains one of the main business hubs in the world and home to large companies that activate in manufacturing, IT, tourism, automotive, and many other significant sectors. There are major foreign investment projects that already have success in the Chinese markets, and the following facts and numbers highlight a part of the business climate and economy in China:
  1. The total FDI stock for 2019 stood at around USD 1, 769 billion;
  2. According to the 2020 Doing Business report issued by the World Bank, China ranks 31st out of 190 economies in the world;
  3. China was the second-largest FDI recipient in the world, after the USA, in 2019;
  4. The major investors of China are the USA, Singapore, South Korea, Cayman Islands, Japan, the Netherlands, Germany, and Taiwan.
We kindly invite you to benefit from the accounting services in China offered by our team of consultants, so please feel free to contact us at any time.

Meet us in China

Call us now at +86-755-82148419 to set up an appointment with our company formation specialists in China. Alternatively you can incorporate your company without traveling to China.

As a Tannet Group Limited client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in China. 

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