Shenzhen company annual inspection is mandatory for all companies incorporated in Shenzhen. According to Company Law of the People's Republic of China, Regulations of the People's Republic of China on Administration of Registration of Companies and Regulations of Annual Inspection for Enterprises, from January 1st to June 30th every year, China government takes an Annual Inspection on Foreign Investment Enterprises in nationwide. Enterprises that fails to abide by such legal inspection will incur adverse impact and severe punishment.
Annual Inspection in China
Foreign invested enterprises (FIEs) in China are required to undergo an annual cooperative inspection jointly conducted by several governmental departments of the State Council. These inspections are designed to ensure that FIEs conducting businesses in China are fulfilling the legal commitments they make to each of the departments. Each year from March to the end of June, the annual inspection is jointly hosted by the following governmental departments:
(1) Ministry of Commerce (MOFCOM);
(2) Ministry of Finance (MoF);
(3) Administration of Industry and Commerce (AIC);
(4) State Administration of Taxation (SAT);
(5) State Administration of Foreign Exchange (SAFE);
(6) Statistical Bureau.
Note that the annual inspection required by the SAT is only a review of the tax registration certificate. The inspections of AIC and SAFE are usually more complicated than others and may require additional separate procedures being conducted. Regional variances also exist. Wholly foreign owned enterprises (WFOEs) with branches should pay special attention to ensuring that their branches also undergo annual inspection.
Tannet’s Handling Process
Due to the complexity and big difference requirement by different authorities, we could then assist you to prepare the whole set of these documents and submission to relevant authorities, such as:
1. Obtaining all original accounting and tax information from your management or your local finance team, including, trail balance, balance sheet, profit and loss statement, tax payment certificate, tax returns, detailed expense reports (if applicable) and other required information;
2. Preparing corporate income tax reconciliation sheet, corporate income tax reconciliation reports and corporate income tax annual filing returns in soft version for you to review and confirm;
3. Printing all necessary documentations out and send it for your signature and chopping after your confirmation;
4. Preparing and submitting those documentations and materials for an integrated annual inspection raised by local finance, customs, foreign exchange and other government authorities on behalf of your company.
China has various annual audit procedures that foreign invested enterprises will have to follow in order to achieve full compliance. Tannet’s experienced accountants and financial consultants can help make your clear about the general requirements, key considerations, and materials to be prepared. We provide a wide range of business solutions.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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