China Company Annual Compliance Guide

In this guide, we explain the main duties a mainland China company needs to plan each year. These cover accounts, invoices, tax, payroll and HR, legal compliance, payments and banking, and annual reports. The guide is for foreign-owned companies operating in China, and for owners or finance managers who run a China company from overseas.

This is a general guide. Before service starts, we hold a service planning meeting and agree a plan based on your actual business and transactions. Within the agreed scope, we check records, handle tasks or coordinate the right professionals, and follow up progress. You provide accurate business information, confirm the facts, give the required authority, sign and approve payments where needed.

1 Your Service Plan

Before we start, we meet with you to explain how each duty applies to your company and how we will work together. We use your actual transactions and day-to-day work to build a plan that fits your business.

We agree four things at this meeting:

How your business works. We look at how contracts, sales, purchases, costs and payments connect, and which transactions need further explanation.
When work will happen. We agree when you will send records, when we will check and close the monthly accounts, and whether payments will run weekly or monthly. We also set the dates for payroll confirmation and pay.
Who will do what. We identify who supplies business and attendance records, who checks, files and carries out each task, and which signatures, authority and payment approvals you must provide.
What proves completion. We explain which document or record each task produces and who follows up missing records or unfinished work.

We put these agreements into your service plan for you to confirm before work begins. The plan can fit your business, but legal deadlines and bank review requirements still apply.

Your Annual Overview

Work: Accounts
When to arrange it: Check and close the books each month
What you should receive: Monthly records, financial statements and amounts still owed or due
Work: Invoices
When to arrange it: Issue and collect them as business takes place, then check them regularly
What you should receive: Invoices issued and received, links to the business, and a missing-document list
Work: Tax
When to arrange it: File for each tax period and complete the annual tax reconciliation
What you should receive: Filed returns, submission status and related payment records
Work: Payroll and HR
When to arrange it: Set up records when staff join, provide pay details early each month, then pay and file as agreed
What you should receive: Payroll, employee payslips, payment records and applicable filing and contribution records
Work: Legal compliance
When to arrange it: Review contracts under a separate engagement and carry out planned management checks
What you should receive: Contract review and revision records, a compliance work plan and issue records
Work: Payments and banking
When to arrange it: Prepare and carry out weekly or monthly batches, and maintain the accounts
What you should receive: Payment lists, approvals, transaction records and bank replies
Work: Annual reports
When to arrange it: Submit within the annual reporting period
What you should receive: The submitted report and a system status you can check

These seven work areas follow different schedules. They are not all once-a-year tasks. A new company sets up its arrangements from incorporation and the start of business. For an existing company, we first check the current position and then continue the work.

2 Monthly Accounts

Bookkeeping is more than copying bank movements into a spreadsheet. We need to know what each transaction is and which period it belongs to.

You or your named contact provide contracts, commercial invoices, expense records, and statements for all company bank and payment-platform accounts. We match these records and check customer debts, amounts due to suppliers, stock, equipment, and shareholder or related-company balances. If amounts differ, we check fees, refunds, part-payments and currency conversion. We will not make non-compliant entries just to make the figures match.

The payment date alone does not decide when to record income or an expense. A customer advance may not yet be revenue. Buying equipment does not mean its full cost is an expense in the month of payment. We first check the contract and actual delivery, then apply the company's accounting standards or rules. The accounting treatment and the tax deduction are separate questions. See the Ministry of Finance accounting standards.

Timing. Record real business transactions from incorporation. Collect records throughout the month, check and close the books monthly, and issue reports on the agreed dates. China's accounting year runs from 1 January to 31 December. The first year runs from incorporation to that year-end and may be less than 12 months. See the current Accounting Law.
Our work and your input. We organise and check records, keep the books, prepare statements, ask about unclear transactions and list missing documents. You confirm the business facts and any adjustments that need management's decision. You do not need to prepare professional accounting schedules before coming to us.
What you receive. You receive the period's accounting records, financial statements and important balance details. English management reports also explain profit, bank balances, and money still to be collected or paid.

At year-end, the monthly records support the annual financial report and audit. Article 208 of the Company Law sets out the annual financial reporting and audit requirement. Within the agreed scope, we can coordinate closing records and audit questions. The accounting firm issues the audit report. An audit, annual tax return and company annual report are separate tasks; one does not replace another. See the annual financial reporting and audit rules.

3 Invoices and Fapiao

Overseas owners can confuse a commercial invoice with a Chinese tax invoice, or fapiao. A commercial invoice explains who is charging whom and for what. A fapiao has a specific tax role. The same English word does not make them the same document.

The tax authority oversees fapiao. For sales, we help issue them based on real business and your authority. For costs, you or your contact collect the expense records for us to check. At the start of service, we explain the details needed, the authorised roles and how the work will run.

Invoices to customers. You give us the true sales details and the customer's invoicing information. We check the business, amount and tax treatment, then help issue the fapiao under your authority. For refunds or adjustments, we also follow up the business and invoice records.
Invoices from suppliers. Your purchasing or expense contact should promptly obtain records for the real transaction. We check the company name, business, amount and relevant item, and list anything missing.
Overseas goods or services. We check the overseas invoice or receipt that serves as an invoice, plus related tax payment records, under the applicable rules. A Chinese fapiao is not a universal requirement for every overseas expense. See Articles 9 to 11 of the tax deduction evidence rules.

Income and tax duties can arise before you issue an invoice. We check the accounting, invoicing and value-added tax (VAT) timing separately. Issuing an invoice early can also affect when VAT becomes due. See Articles 28 and 34 of the VAT Law, effective from 2026.

You should be able to see the invoices issued and received, the business they support and any records still missing. Having an invoice does not make every cost eligible for a VAT credit or income tax deduction. The business and relevant conditions still matter.

4 Tax Returns

Your local tax authority manages tax filings. We build a filing schedule around your actual business and applicable taxes, rather than preparing only one year-end tax form.

Regular Tax Filings

VAT. For companies with monthly or quarterly tax periods, the basic rule is to file and pay within 15 days after that period ends. The tax authority determines the company's tax period. See Article 30 of the VAT Law.
Corporate income tax prepayments. Under the applicable monthly or quarterly schedule, companies generally file and prepay within 15 days after the period ends. See Article 54 of the Corporate Income Tax Law.
Employee income tax withholding. The company calculates and reports the tax it must withhold. The relevant return and payment are generally due within the first 15 days of the following month. See the income tax withholding rules.

We check surcharges, stamp duty and other taxes where they apply. These 15-day rules describe the basic deadlines. Public holidays can change the filing calendar, so we check the tax authority's dates for each period.

Annual Income Tax Reconciliation

The annual reconciliation checks the year's taxable income, deductions, reliefs and tax already prepaid. It determines whether more tax is due or a refund is due. It is not just the sum of the quarterly forms.

Companies generally complete the annual return and reconciliation within five months after the tax year ends. For a company that continues trading and has a 31 December tax year-end, this is generally by 31 May of the following year. We still check that year's deadline adjustments. A first year of less than 12 months covers the actual period; filing does not wait until the company has traded for a full year. See the annual tax filing rules.

We review the year's accounts, expense records, tax adjustments and missing evidence in advance. Within the agreed scope, we prepare and file the return. You confirm the business facts, required return information and payment arrangements.

We track three separate stages: the return is prepared, the return is filed, and the tax is paid. We keep the final return, successful submission record and payment evidence separately. A draft alone does not prove completion.

A company with no revenue must still meet any filing duties that apply. Whether a nil return is needed, and how to complete it, depends on the actual business and tax. See Article 32 of the tax collection implementing rules.

5 Payroll and HR

Payroll covers monthly pay calculations, payment and related filings. We connect staff information, attendance, calculations, your confirmation, payment and payslips, so you can see who handles each part.

Set Up Employee Records

When an employee joins, you or HR provide their details, role, agreed pay and start date. Send the required records through the agreed secure route. We use them to set up payroll records and arrange the applicable staff registration and contributions.

We recommend preparing and signing the employment contract before work starts. If work has begun without a written contract, it generally must be signed within one month of the start date. Employee social insurance registration is generally required within 30 days of starting work. See Article 10 of the Labour Contract Law and Article 58 of the Social Insurance Law. We check social insurance and housing provident fund requirements and changes against the employee's circumstances and local rules.

Your Monthly Payroll

You check staff and attendance. By the agreed date each month, confirm attendance, starters, leavers, pay changes, overtime and bonuses, and send the changes to us.
We provide pay details early in the month. We calculate pay for the agreed period and show gross pay, applicable income tax and employee contributions, other lawful additions or deductions, and net pay.
You confirm payroll. We explain any differences that need checking. You or your named manager confirm the payroll before the next processing and payment steps.
Payment follows your service choice. If you have also engaged us to make payments, we prepare the wage payment under your authority and carry it out after final approval by you or your named approver. Otherwise, you or your finance team pay and give us the records to check.
We provide employee payslips. When wages are paid, we send each employee their own pay details through the agreed secure route. The payslip shows the period, gross pay, deductions and net pay. See Article 6 of the wage payment rules.
We follow up filings and reconciliation. We handle employee income tax and applicable contribution filings for the right period and deadline. We check actual wage and contribution payments, then match payroll costs to the books. See Article 3 of the tax withholding rules.

Providing pay details early each month is our service schedule. We agree the pay period, records cut-off, confirmation and pay dates at the service planning meeting. Wages must be paid on the agreed date, and filings must meet their own legal deadlines. Internal batches cannot postpone either duty. See Article 7 on wage payment dates.

You should be able to check staff records, confirmed payroll, individual payslips, actual payments, and applicable filing and contribution evidence. We handle final pay and pay changes promptly. We assess any employee's personal annual income tax reconciliation separately; the company's annual income tax return does not replace it.

6 Contracts and Compliance

We look at legal compliance in two ways. Do the contracts clearly describe the business and each party's duties? Can daily management carry out the work the company needs to do?

Business and Staff Contracts

Business contracts should reflect the actual deal. Customer and supplier terms should explain the goods or services, delivery standards, acceptance, price, payment, refunds, breach and dispute handling. Employee contracts should match the role, pay, work arrangements and applicable labour rules.

We offer contract compliance as an additional service. Under an agreed engagement, we can review and help improve business contracts, employee contracts and related documents. We explain issues and advice in the context of your transactions and management. The review scope, revision support and fees are agreed separately. Where a specific legal opinion is needed, we coordinate the relevant professional.

The contract and the work should also match. For example, payment terms need to fit delivery and bank payment arrangements. An employee's agreed pay must feed into the monthly payroll calculation. Signing a document does not complete the work that follows.

Manage Operational Risks

Operational compliance means carrying out the duties in this guide. Can the team collect records on time? Does each task have an owner? Are approvals complete? Is there evidence of filing and payment?

We use what we learn at the meeting to identify steps likely to be missed or delayed. We then plan records collection, professional checks, your confirmation, execution and review. If an invoice is missing, payroll awaits approval or a tax deadline is near, we identify who must act and when they must reply before the issue grows.

For an existing issue, we first check the period, actual status and impact. We request missing records and arrange catch-up filings, corrections or specialist work as needed. An open issue stays on the follow-up list; handing over a file does not resolve it.

We also include applicable company registration, internal authority, licences and government notices in the management work plan. We arrange the relevant actions and checks. See the company registration rules and foreign investment information reporting rules.

The aim is to plan ahead, assign clear duties and carry out the work. Management can then see where risks lie, which decisions are needed and how to address the issues.

7 Payments and Banking

We agree weekly or monthly batches for preparing incoming and outgoing payments and carrying out the agreed tasks. The plan identifies what to collect or pay, the records needed and the approver. Wages and supplier payments with fixed due dates must also fit the plan. A batch schedule is not a reason to pay late.

Prepare the payment list. Check the parties, currency, amount, purpose and date. Collect the contract, invoice and other business evidence the bank needs. For cross-border payments and currency exchange, check the bank and foreign exchange requirements for that transaction.
Confirm and approve. We send the pending items and missing-record list to you or your named manager for confirmation, and retain the agreed payment approval records.
Act under your authority. If you engage us for payment execution and Bank Service, we prepare the operation within our authority and carry it out after final approval by you or your named approver. We also communicate with the bank and follow up extra records. The bank reviews the transaction independently. If you do not engage us to make payments, your team executes them and provides the records for accounting.
Check the result. Check the debit, credit or bank reply and match the statement to the business. Sending an instruction does not mean the payee has received the money. We track incomplete or returned payments separately.

Bank account maintenance continues during use. It includes checking online banking and authority, updating company and relevant staff documents, and answering the bank's requests for business or identity records. The bank's notices and risk rules govern its reviews; there is no single annual deadline for every account. See Articles 29 to 34 of the Anti-Money Laundering Law on ongoing checks and information updates.

We feed the results back into the accounts. We check receipts, payments, open balances, bank fees and exchange differences separately, so you can follow both the money and the business.

8 Annual Reports

What clients often call the company's "annual inspection" is now mainly the annual report disclosure process. The former enterprise annual inspection system has ended. It does not mean replacing the business licence each year or obtaining one standard "annual inspection pass" certificate. See the market regulator's explanation.

Authority and portal. Companies file through the National Enterprise Credit Information Publicity System. Foreign-invested companies report annual information under the current arrangements, and relevant departments share the data. The market regulation and commerce authorities each have their own duties.
Timing. Foreign-invested companies report the previous year from 1 January to 30 June each year. A company formed in the current year starts reporting the following year. We recommend collecting the data as the annual accounts are prepared, rather than waiting until the last few days. See the annual report timing and content rules.
Our work and your input. Within the agreed scope, we collect the required company, shareholder, actual controller, business and financial information. We check it against the related records, submit after your confirmation and follow up any corrections.
What you can check. Keep the submitted report or a record of its contents, plus the submission or disclosure status shown in the system. A successful submission does not prove that tax is paid or every compliance task is complete.

Customs, licences and other special reports need their own checks where they apply. The company annual report does not replace every other authority's requirements.

9 Changing Providers

If you already have an accountant or provider, you do not need to resolve every technical question before contacting us. Once authorised, we normally contact the outgoing accountant directly. We check the books, filings and records before arranging the handover.

Understand the business. We ask how you operate and what payments, payroll or filings are coming up. We then check progress with the outgoing accountant.
Agree periods and duties. For accounts, tax, payroll and reporting, we record where the old provider's work ends and ours begins.
Collect five record packs. These cover books and evidence, tax filings and payments, bank records and open balances, authorised system roles, and staff payroll. We ask the relevant contacts for any records held by your team.
Check differences. We list missing records and unfinished tasks, with a follow-up owner and reply date. If the old books correctly recorded revenue, later receipts must clear the existing customer debt, not record the same income twice.
Continue urgent work. We arrange the required authority, next filing and pay run, while keeping your confirmation and payment approval in place.
Confirm the handover. We provide the record inventory, missing-item and action list, and next-filing plan, then begin the agreed monthly work.

The access list records authorised roles and permissions. It must not contain passwords, verification codes or U-Key security credentials. If you need to verify your identity or sign, we explain the action and timing in advance.

In one real mainland China handover, a filing deadline was near. The former provider still held some working papers, and it was not clear who would submit that period's return. We checked the filing period, asked the client to confirm who would handle it, and requested filing evidence from the former provider. We tracked missing historical records separately.

This case showed why a handover needs a named person for the next filing as well as the records. Historical gaps and current work can be handled separately. We do not need to wait for every old document before planning the next tasks.

10 How EZIPD Works

The service planning meeting turns general duties into your service plan. Our ongoing work then puts that plan into practice. We make clear:

How work progresses. We follow the agreed monthly close, payroll and weekly or monthly payment schedule, and explain in advance what you need to provide or confirm.
What is complete. We retain reports, payslips, returns, payment evidence, registration records and bank replies separately. The action list tracks unfinished work.
What the figures mean. English management reports explain profit, bank balances and important amounts to collect or pay. They identify decisions for management.
When the plan needs to change. If business volume, staff, customers or payment methods change, we check whether the old arrangements still fit and update the plan.

Better decisions need enough useful information. We combine your real business records with our team's hands-on service experience and professional judgment. This helps you understand the options and their effects, and prepare early. That is the EZIPD decision engine: we explain the duties and help you decide how best to carry them out for your company.

Service Intelligence turns those judgments into named owners, records, dates and actions. Where company roles or funds are involved, we draw on Structure Intelligence and Banking Intelligence too. Design First, Action Follow means agreeing a client-specific plan first, then executing, checking and improving it as the business develops.

11 Common Questions

Are All Seven Areas Included?

Do not rely on the service name alone. The accounting service described here includes the handover inventory, missing-item and action list, next-filing plan, monthly bookkeeping and tax, payroll, and English management reports. Contract compliance is an additional service. Annual audit, registration and licence work, wage or other payment execution, and ongoing Bank Service also need an agreed scope, responsible provider and quote. Do not assume one fee includes everything. We explain these roles at the start.

Must We Redo All Old Accounts?

Not necessarily. We first check the old books, filings and business records. We continue using sound records, then assess how to address gaps, differences or unfinished work. Changing accountants does not by itself mean redoing every past period.

Can Owners Manage from Overseas?

You can name business and approval contacts. Within the agreed scope, we coordinate the professional work and explain progress through English reports and an action list. We arrange any identity checks, signatures or approvals you or the legal representative must complete. Engaging us does not remove those required actions.

12 Review Your Plan

Tell us the company's location, current business, whether it has staff, its main receipts and payments, and any notices you are unsure how to handle. If there is an existing provider, you can also tell us how to contact them. If you do not know the last completed month, we can help check during the initial discussions.

We first identify the near-term priorities, discuss the service scope, and use the service planning meeting to agree arrangements for your company. You do not need to send complete books, employee files or personal login details in an initial enquiry.

Request a confidential strategic review

If the company is still being set up, start with our China market entry readiness guide. This guide covers the ongoing work after incorporation.

Official Sources

The rules above were checked on 3 November 2026. We check the applicable taxes, filing calendar, employee rules, licences and bank requirements against your company's facts and current notices. Records submission and advance preparation dates in the service plan are agreed working arrangements, not uniform legal deadlines.