Support for Preparing and Undergoing Annual Company Inspection in China

Any company registered in the PRC is required to undergo an annual comprehensive inspection: submit financial and tax reports, confirm registration data, and pass an audit.

The purpose of the inspection is to confirm the accuracy of the company’s information, its reliability, and compliance with tax and corporate regulations. Reports are reviewed by government authorities: SAIC (State Administration for Market Regulation), tax offices, foreign exchange regulator SAFE, and financial supervisors from CBIRC.

Move to Agency fully handles the annual maintenance process: * preparation and submission of accounting and tax reports; * conducting the mandatory audit; * submission of the Annual Report to SAIC; * communication with SAFE, CBIRC, and other regulators; * monitoring deadlines, documentation, and submission of all required forms.

Who is required to submit annual reporting and undergo an audit?

According to the Company Law of the PRC, all companies registered in China — whether a WFOE, joint venture, representative office, or another legal entity — are required to confirm their operating status each year. Document and report verification is carried out by SAIC.

With the development of China’s social credit system, annual reporting has become a key component of business reputation and a measure of reliability in the eyes of the authorities.

What is the difference between tax reporting and annual inspection?

• Tax reporting: reflects the annual tax burden and helps identify over- or underpayments. After completing the Corporate Income Tax (CIT) declaration and other applicable tax forms, the report is submitted to the tax bureau, including calculations and possible refunds.

• Annual Report (Annual Reporting): submitted to SAIC by June 30 — although it does not include a tax component, it serves to confirm the company’s license and legal status.

Key Deadlines for Companies in China

1. By March 15 — all companies must submit inspection documents to their registration authority (SAIC/AMR) as part of the annual inspection process.

2. By May 31 — deadline for filing the Corporate Income Tax (CIT) return and paying the tax.

3. By June 30 —

   • deadline for filing the Individual Income Tax (IIT) return (if applicable);
   • deadline for submitting the Annual Report to SAIC.

What’s included in annual maintenance for WFOE and JV

1. Audit of annual financial statements — a CPA (Certified Public Accountant) reviews the company’s financial records (balance sheet, cash flow, profit & loss, equity changes, etc.). The audit is usually conducted in April, after the financial year is closed and before tax forms are submitted.

2. Annual tax filing — in most cases, the CIT return is prepared by May 31 and may be amended if necessary.

3. Annual Reporting — submitted via the GSXT government portal by the end of June. The report includes:

• company registration details and any changes;
• capital and shareholder structure;
• presence of branch offices;
• market activity overview.

Important: Failure to submit annual reports for three consecutive years may result in license revocation, fines, inclusion on the “blacklist,” and visa restrictions.

What’s included in annual maintenance for a Representative Office (RO)

The process is similar but includes several specific requirements:

1. RO audit — must be signed by two CPAs. The audit covers expenses such as rent, salaries, accommodations, utilities, etc., including the chief representative’s salary. All expenses must be supported by valid contracts.

2. Declared taxable income (Deemed Profit) — the RO is required to pay corporate income tax based on a deemed taxable profit (not less than 15%), which is calculated from total expenses.

3. Annual Reporting for RO — submitted to SAIC and includes:

   • the annual report itself;
   • registration documents;
   • audit opinion;
   • proof of the legal status of the parent company.

Why choose Move to Agency

• Comprehensive service under one roof We guide you through every stage of the annual process — from document collection and audit to tax filing and report submission.

• Expertise in Chinese regulations Our specialists follow all updates in requirements from SAIC, the tax bureau, SAFE, and CBIRC. We ensure full compliance with Chinese law.

• Personalized approach We tailor the process to your company’s structure, scale, and region of registration.

• Reliability and transparency All actions are documented, deadlines tracked, and filings submitted on time. You always know the status of your reporting.

• Support for all company types Whether WFOE, JV, RO, or FTZ entity — we understand the legal and tax specifics of every structure and ensure proper compliance.

FAQ

1. Можно ли подготовить всё самостоятельно?

Да, но это требует технических знаний о законах и системах КНР. Мы предоставляем надёжную поддержку и снимаем нагрузку.

2. Сложно ли пройти аудит?

Нет, если вести учёт корректно. Мы готовим документы заранее и устраняем потенциальные ошибки.

3. Что будет, если пропустить срок?

Налоговые службы и SAIC могут наложить штрафы, компанию внесут в “чёрный список”, заблокируют банковские операции и визовые процессы.

3. Сколько времени занимает обслуживание?

Обычно — до конца июня. Аудит в апреле—мае, налоговая декларация и годовой отчёт завершаются в те же сроки.