China - Local Professional Services China - Local Professional Services
The system for regulation of foreign commercial activity in China is difficult to navigate and is not fully transparent. Companies new to the market are strongly encouraged to retain professional services to structure commercial transactions. Establishing a wholly foreign-owned subsidiary, joint venture, or representative office requires compliance with complex contract approval requirements, business registration requirements, taxation regulations and statutes, and labor regulations. Many U.S. banks, accountants, attorneys, and consultants have established offices in China and are familiar with Chinese requirements. Some Chinese professional service providers also have substantial experience serving foreign clients.
Accountants
Chinese law requires representative offices and foreign-invested enterprises engage the services of accountants registered in China to prepare official submission of annual financial statements and other specified financial documents. All the major U.S. accounting firms have established offices in China and provide services including audit, tax and advisory services, the preparation of investment feasibility studies, and setting up accounting systems that follow Chinese law. Only Chinese-licensed CPAs have the authority to issue audit reports and review documents. Foreign accountants cannot issue independent reports.
Attorneys
Competent legal services are available from both foreign and domestic law firms in China. Foreign law offices are severely restricted in the type of services that they can provide in China, but they can refer existing clients to qualified local counsel.
Management Consultants
Foreign companies new to the Chinese market often engage the services of local consultants to develop market entry strategies, conduct due diligence investigations, and identify potential investment partners, sales agents and customers. Most of the major foreign consulting firms are active in the Chinese market, along with a number of small niche players, as well as many local companies.
The U.S. Department of Commerce maintains lists of U.S. law, accounting and consulting firms with offices in China, as well as lists of Chinese firms with whom the Commercial Office or its customers have had favorable dealings.