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Annual Compliance Check & Company Exit

Two ends of the same problem: knowing whether your Chinese company is actually compliant, and knowing how to close it if it no longer earns its keep.

In short: if your Chinese company is trading, we run an independent health check — annual report, abnormal-operation listings, registry, shareholder and scope records, and whether the filings that should have happened actually did — and tell you what you are exposed to. If it has stopped trading, we project-manage the exit: deregistration realistically takes 9–12 months, while a dormant entity quietly costs US$8,000–15,000 a year to keep alive. Tax settlement and audit work is performed by a licensed accounting firm.

The five dates that run a Chinese company’s year

DeadlineWhat is dueApplies to
30 April (typical)Statutory annual audit by a Chinese CPA firmForeign-invested enterprises
31 MayCorporate income tax annual settlement (汇算清缴)All companies
1 Mar – 30 JunIndividual income tax annual reconciliationEmployees & the company as withholder
30 JuneAnnual report (“many-in-one”) and foreign-related annual reportingAll companies; FIEs additionally
Following 30 JuneTransfer-pricing local file, where thresholds are metCompanies with related-party transactions

Deadlines verified July 2026; local bureaus occasionally vary the audit timing. Confirm your own dates before relying on this table.

Why an independent check. If the firm that keeps your books also assures you the filings are done, nobody is checking anyone. This is a second pair of eyes on your back office — and because we never keep the books ourselves, there is no homework of ours to mark.

What is ours and what is not. The independent check and the exit project management are ours. Tax settlement, catch-up filings and the statutory audit are performed by a licensed accounting firm that contracts with you directly — agency bookkeeping and audit are licensed activities in China and we hold neither licence. Where the check turns up missing filings, we scope the remediation and manage the firm that does it.

The health check

Filing trail

What was actually filed and when — audit report, CIT settlement, annual report, foreign-related reporting — checked against the record, not against an assurance.

Public credit standing

Whether the company is listed as operating abnormally, whether the legal representative is restricted, and what a Chinese counterparty sees when they look you up.

Licence & scope drift

Whether what you now invoice for is still covered by your registered business scope, and whether address, capital or shareholder changes were ever filed.

Exposure & fix list

A ranked list of what is wrong, what it risks, and what it costs to put right — with the items that must be fixed before an exit flagged separately.

Closing a company properly

Deregistration is harder than registration, and the order is not negotiable: tax clearance first, then customs and foreign-exchange closure if they apply, employee settlement, liquidation and public notice, licence cancellation, chops destroyed, bank accounts closed last. Tax clearance is where timelines blow out, because the bureau can revisit years of filings before it signs off.

  • Simply walking away is the expensive option. An abandoned company gets its licence revoked, which triggers penalties and puts the legal representative on a national restriction list — a status that follows the individual into other Chinese ventures.
  • Dormancy is not free. A dormant entity in a first-tier city still runs roughly US$8,000–15,000 a year in bookkeeping, filings and address hosting.
  • Simplified deregistration exists. Since the 2024 Company Law it is open to most foreign-invested companies that wound down cleanly with no unpaid debts — worth checking before assuming the long route.
  • Selling may beat closing. If the licence, scope or qualifications have value, an equity transfer can be faster than liquidation. We will tell you when that is realistic and when it is wishful thinking.

Indicative pricing

ItemTypical basis
Compliance health check (written report) (our fee)from US$350, fixed fee
Catch-up filings & remediation (accounting firm)Quoted once the check shows what is missing
Deregistration project management (our fee)Quoted on scope — tax history is the main driver
Official filing, publication & audit feesBilled at cost
We are consultants, not auditors. The statutory audit must be performed by a licensed Chinese CPA firm and any tax position needs a registered tax professional — we check, coordinate, project-manage and translate, and we bring in the licensed firm where the law requires one. Deadlines and cost ranges verified July 2026. Setting a company up in the first place is a separate engagement: see company setup & compliance coordination.

Ready to get this sorted?

Book a 45-minute consult. We map your situation to the right process, tell you honestly what is and is not possible, and give you a fixed fee. No obligation.

Book a consult · US$120 Credited in full against any service you go on to book.