Custodial & company secretary services
in China.

Generally, a business agent refers to a company, enterprise or other economic organisation or individual entrusted by a foreign enterprise to act as an agent in any of the following:

• representing the foreign principal on a regular basis in arranging purchases and signing of purchase contracts on behalf of the principal;
• entering into agency agreements or contracts with the principal, storing on a regular basis products or commodities owned by the principal, and delivering on behalf of the principal such products or commodities to other parties;
• being authorised to represent the foreign principal on a regular basis in signing of sales contracts or in accepting purchase orders

One of the requirements for doing business in China is to own and use an official seal or chop to legally authorize documentation. The company stamp chop contains the registered name of the company and must be approved by the Public Security Bureau. The number of seals companies need to hold may differ depending on the business scope or the different types of official documentation.

Although it is a unique and non-transferable asset of the company, a company seal stamp is vulnerable to unauthorized use by non-accredited individuals, organisations or being copied and manipulated by an impostor, which can be detrimental to a business. While one person within a company can in theory hold all company chops, we would advise a segregation of duties to be created or to assign the chops to a trusted chop custodian services provider. Acclime can provide chop custodian services to create this segregation and protect your business from fraud, the establishment of unauthorized bank accounts, unauthorized chopping of legally binding agreements and other risks.

Companies in China are required to undergo an Annual Inspection (for a Representative Office) or are subject to Annual Reporting procedures, conducted by several departments of the government and are required to file accounts according to local reporting requirements. Annual compliance procedures are required by these departments and it is crucial to be aware of the relevant deadlines, as failure to carry them out on time may result in extra expenses, penalties or even the rejection of business licenses.

The documents required for inspection are:

• Annual Inspection Report.
• Audit Report issued by an external accounting firm.
• Financial Statements of the previous year.
• Certificate of Approval for FIEs, Business license and Capital verification report.
• Industry-Specific licenses or permits.
• Financial Registration Certificate.
• Tax Registration Certificate.
• Other forms or documentation as required by relevant government departments.

We can support your business in the completion of all these arduous procedures and requirements. This will save you a lot of time and effort. Our team of highly-experienced accountants and financial professionals will assist you during the annual inspection process and help you navigate through all the financial, environmental and administrative reporting requirements, handling of all the bureaucracy.