Companies that have already registered a subsidiary or representative office in China should keep their accounting records according to the PRC rules and in accordance with the Chinese law, in particular, “The Accounting Law of the PRC”, the measures of applying “The Law of the People’s Republic of China on the Regulation of Activities in the Provision of Accounting Agency Services” and other relevant documents. This means that the company must have one:
– staff accountant
– an accounting service agreement with a specialized firm authorized to provide such services.
Finding a good accountant is not easy, it’s true for any country and for a company of any size.
In China, the problem is more complicated due to the fact that most of Chinese accounting companies speak onlyChinese, the service in English or Russian is an exception. Many foreign companies also face the problem of certain accounting differences, as PRC and IFRS accounting systems are not the same.
The functions of a cashier and an accountant in China are also usually separate and the job is performed by two persons. When working with Chinese accounting companies, difficulties may also arise when calculating employeessocial benefits (not every companyprovides this service). As a rule, accounting companies in China try to limit their services by compiling the necessary financial reports and filling in tax returns, which is not always satisfies foreign companies, as when working in another jurisdiction there are a lot of questions and it’s necessary to consult with the accountant permanently.
Our company – UGL Consulting Co., Ltd., Beijing – has certain competitive advantages in providing accounting and audit services to the foreign companies in China:
- We speak Russian, English and Chinese.
- Our staff consists of Chinese accountantsof top and middle qualification.
- We prepare official and management financial reports and also reflect deferred payment transactions in the books.
- We provide advice on any issues related to tax and financial reports and also accounting management system in China.
- We work with the social security funds of the PRC and monitor social benefits for our clients’ employees.
- We will help to build an individual scheme of tax deductions and optimization in the group.
Our experience in accounting and audit of companies in China will help you to avoid many difficulties, we can also build an effective tax optimization scheme, which is designed individually for each client.
Our employees have many years of accounting experience, which allows us to answer any question quickly and accurately. Work with us and your accounting service in China will be in good hands!