Annual License Reviews and Audit Procedures

Many foreign-owned businesses in China are familiar with the requirement to submit to an annual audit, however many overseas executives of such businesses are unaware that there are a number of other, vitally important annual license review issues that need to be applied for at the same time. This issue of China Briefing accordingly describes what these are in order for foreign companies operating in China to be fully aware of them and take the appropriate steps to ensure they are completed. If not, the business administration processes in China that help the company to operate can fail, leaving you effectively paralyzed and unable to trade.

The annual audit process then in China is not purely just about financial issues. You also have to submit a range of other documents and licenses to the authorities for checking and renewal if necessary?the so-called annual co-operative examination. This is a bureaucratic process, but it is a good time to take stock and ensure all your paperwork is up to date.

Luckily, the authorities do try to make it is easy as possible for you?you can either submit your details via the internet, or by going to an office where officials from a total of seven different agencies come together temporarily for this process.

These seven agencies are (almost) the same as the ones to which you have to submit your audited accounts:

Bureau of Foreign Trade and Economic Co-operation (BOFTEC)
Administration of Industry and Commerce (AIC)
Economic Committee
Financial Bureau
State Administration of Tax (SAT)
State Administration of Foreign Exchange (SAFE)
China Customs

Next :
General accounting treatments on significant audit areas

To know more, the whole issue is available (after a free subscription) on China Briefing website with others archives
For more information on China’s legal and tax issues or to ask for professional advices in related matters, please write to info@dezshira.com

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