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manager, International Business Advisory and Development
CSC Global Financial Markets
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You finally made the decision to launch your Chinese subsidiary. You have likely done extensive market research and have learned a thing or two about Chinese culture. But don’t forget the last, and maybe most important steps—addressing China’s accounting standards (CAS), its mandatory labor laws, and tax and report-filing requirements to remain fully compliant while operating in China.
This article outlines the six basic compliance requirements necessary to ensure a successful operation in China.
With increased foreign direct investment into China and the country’s desire to become the biggest global economy, China has made significant changes to its accounting standards and tax- filing requirements over the past years. The main goal of developing the CAS has been to reduce financial fraud, optimize the country’s tax strategy, and assess more stakeholders.
The following are basic requirements that companies must adhere to in order to remain compliant with local law:
When companies decide to expand into China, they face major challenges, especially with the interpretation of Chinese accounts. In this final step, you will work out how to consolidate your Chinese company’s accounts with your parent company’s books. We recommend you seek the support and advice of a professional international accounting firm to help with your consolidation efforts.
CSC is one of the world’s largest privately held businesses to offer corporate administration and international expansion services. Within the APAC region, we’ve been serving clients with a full suite of tax and accounting solutions for more than 40 years—including management accounting and bookkeeping, tax compliance, cost and expense management, cash management and payment processing, and more. To learn more, visit us at cscgfmapac.com or contact us at apacbusinessadvisory@cscgfm.com.