Annual Audit Report of Wholly Foreign Owned Enterprise in China

Update time:2016-02-23  source:

Any limited companies in China should summit annual audit report to the relevant authorities. The annual audit cost is about RMB 6,000.


Any company will be subject be to a fine if the Annual Audit Report is not submitted in a timely manner.


PROFIT REPATRIATION


China Government allows Foreign Invested Enterprises remit their profits out of the country and such remittances do not require the prior approval of the State Administration of Foreign Exchange (SAFE).


Dividends cannot be distributed and repatriated overseas if the losses of previous years have not been covered while dividends not distributed in previous years may be distributed together with those of the current year.


Repatriating the registered capital to home countries is forbidden during the term of business operation.


TERMS AND TERMINATION


In China, terms of 15 to 30 years are typical for a manufacturing WFOE (although some may have a longer term).


It is also possible to obtain extensions of the WFOE's duration.


For projects in which the amount of investment is large, or the construction period is long and the return on investment low, projects producing sophisticated products using advanced or key technology provided by the foreign partner, or for projects producing internationally competitive products, the term of WFOE may be extended to 50 years.


With special approval from the State Council, the term may be even longer than 50 years.


The WFOE may be terminated under certain conditions. For example, the inability of the WFOE to operate due to heavy losses, or in the occurrence of an event of force majeure, etc.


DE-REGISTRATION


To closing down or de-registration a WFOE in China would be much more complicated than establish a New WFOE.


It could be stuck there if the liquidation report can't be approved by local tax authority, thereafter, investor has to spend great amount of time on the closure of a WFOE.


Find it here about required documents, procedures and cost to deregistration a WFOE in China.


Contact our offices below to get a free review of your WFOE.


Contact us:
For more inquiries, please call our hotline at anytime: HK Tel: 852-21962686; Fax: 852-34262391;


China Tel: 86-755-82352600; 86-791-88167848;Fax: 86-755-82143182; Website: www.citilinkia.com; E-mail: info@citilinkia.com. 


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