Every foreign-invested company in China must complete an annual financial audit by a licensed Chinese CPA firm. We coordinate the full process — from document preparation through to final report submission — so your audit is completed on time and nothing holds up your profit distribution or banking requirements.
The annual audit is not optional — and it unlocks everything else. Without a completed audit, your company cannot distribute profits, repatriate capital, or satisfy certain banking and regulatory requirements.
All WFOEs and foreign-invested enterprises are legally required to have their annual financial statements audited by a CPA firm registered in China. We coordinate the full process — and where we handle your monthly bookkeeping, the handover to auditors is seamless.
Signed annual audit report issued by a licensed Chinese CPA firm (Chinese original). English management summary available on request. Filing confirmation and archived report available for bank, regulatory, or parent company use.
China audit only: The annual audit must be conducted by a CPA firm licensed and registered in China. An overseas audit — including a consolidated group audit by your parent company’s auditors — does not satisfy this requirement. A separate China-specific audit is required every year.
A capital verification report (验资报告) confirms that registered capital contributions have been received and properly recorded in the company’s accounts. It is required at specific trigger points — not annually, but whenever the capital structure changes or a new contribution is made.
When existing shareholders inject additional capital to increase the registered capital, a verification report confirms the funds have been received and recorded — required for the SAMR amendment filing.
When a new shareholder subscribes equity and makes their capital contribution, the verification report supports the change of shareholder filing with SAMR and SAFE.
Certain industries, jurisdictions, or bank requirements may require a verification report confirming that the initial registered capital has been fully paid in — particularly for regulated sectors.
CPA-signed capital verification report. Complete documentation package ready for submission to SAMR and any other relevant authorities. Coordinated with the corporate change filing so both proceed together without delay.
Before a WFOE can distribute dividends to its overseas shareholder, a profit distribution audit report is required — confirming the distribution complies with Chinese company law. We coordinate this audit as part of the full repatriation process.
CPA-signed profit distribution audit report. Complete bank submission package ready for the outbound transfer. Withholding tax filed and paid. Treaty rate application submitted where applicable. Full transaction recorded in your accounting records.
Annual audit is a prerequisite. The profit distribution audit builds on the annual financial audit for the same year. If the annual audit has not been completed, the profit distribution audit cannot proceed. Both are typically coordinated together as part of the same annual cycle.
Yes. The audit requirement applies to all WFOEs and foreign-invested enterprises regardless of whether they have any revenue or business activity during the year. A dormant company with zero transactions still needs its nil financial statements audited. The process is simpler and faster for a dormant entity, but it cannot be skipped.
Yes. The China annual audit must be conducted by a CPA firm licensed and registered in China, covering the China entity’s standalone financial statements prepared under Chinese Accounting Standards. A consolidated group audit conducted overseas — regardless of how reputable the auditing firm — does not satisfy this requirement. The two audits serve different regulatory purposes and cannot substitute for each other.
The statutory audit report issued by the Chinese CPA firm is in Chinese — this is the legally required document for regulatory, tax, and banking purposes. We can arrange an English management summary alongside the Chinese original for your internal reporting or parent company requirements. The English version is for reference only and does not carry the same legal standing as the Chinese audit report.
Yes. We can engage and coordinate the CPA firm on your behalf even if the bookkeeping is managed by your own team or another provider. You will need to provide the full-year accounting records, bank statements, invoice files, and supporting contracts. We review the materials before submitting to the auditors and manage the process through to the final report.
No. A profit distribution audit is based on the audited annual financial statements for the year of distribution — and those statements depend on properly audited opening balances from prior years. If your company has never been audited since incorporation, you will need to complete the annual financial audit for every year going back to your first full financial year before a profit distribution audit can be issued. We can assess the scope of catch-up audits required and coordinate the work across multiple years.
We coordinate the full process — from document preparation to final report — so nothing holds up your profit distribution or banking requirements.