Establish and Run Your China Operations

<p>VJM Global provides comprehensive accounting and compliance services for foreign companies operating in China. Our service scope covers WFOE registration and entity formation, monthly bookkeeping under Chinese Accounting Standards, Enterprise Income Tax compliance (quarterly provisional returns and annual reconciliation), VAT registration and Golden Tax fapiao management, transfer pricing documentation under STA Announcement 42, payroll processing with social insurance and housing fund management, annual statutory audit co-ordination, SAMR annual reporting, and SAFE foreign exchange compliance for capital account management and profit repatriation.</p>

<p>VJM Global's hybrid delivery model combines qualified chartered accountants handling cross-border advisory — DTAA structuring, FEMA compliance, transfer pricing, multi-jurisdictional reporting — with established local Chinese partner firms managing on-ground execution including SAMR registration, Golden Tax invoicing, and statutory audit. This model provides international advisory depth at mid-market pricing, with ISO 27001 certified data handling. For companies operating across multiple countries alongside China, our EAI International network (145+ member firms) enables co-ordinated compliance under a single engagement.</p>

<p>Entity registration is the starting point, not the full service. After WFOE or JV formation, VJM Global manages all ongoing compliance obligations — monthly VAT returns and IIT withholding, quarterly EIT provisional returns, annual EIT reconciliation by 31 May, statutory audit and SAMR annual report by 30 June, payroll processing with city-specific social insurance and housing fund calculations, transfer pricing documentation updates, and SAFE annual reporting. Our monthly reporting packages provide parent company finance teams with real-time visibility into their China subsidiary's financial position.</p>

<p>Operating in China requires engagement with multiple regulators — SAMR for business licensing and annual reporting, the State Taxation Administration for EIT, VAT, and IIT, SAFE for foreign exchange controls, MOHRSS and local bureaus for social insurance and housing fund, and CICPA-registered auditors for statutory audit. VJM Global co-ordinates all these regulatory relationships through a single engagement, ensuring deadlines are tracked, filings are consistent, and compliance gaps between regulators are identified before they become enforcement issues.</p>

<p>We use a dual-platform approach for China engagements. Local Chinese accounting software — Kingdee or Yonyou — is used for Golden Tax fapiao integration and STA-compliant record-keeping. International cloud platforms — Zoho Books, QuickBooks, Xero, or Oracle NetSuite — are used for parent company reporting, multi-currency accounting, and real-time visibility for overseas finance teams. All data handling follows ISO 27001 information security protocols, with secure cloud-based document management for cross-border collaboration.</p>

<p>Yes. Before your WFOE is operational, you can hire through an Employer of Record arrangement where the EOR acts as the legal employer in China, managing employment contracts, payroll, social insurance, housing fund, and IIT withholding. This is suitable for market testing or building a small initial team (1-10 employees). VJM Global advises on when transitioning from EOR to a fully incorporated WFOE makes commercial and compliance sense — typically when headcount, invoicing needs, or intellectual property protection requirements justify the entity formation investment.</p>

<p>VJM Global holds ISO 27001 certification for information security management, which governs how client data is handled, stored, and transmitted across jurisdictions. All cross-border data sharing between our India-based teams and local Chinese partner firms follows documented security protocols including encrypted file transfer, role-based access controls, and regular security audits. For clients with operations subject to China's Personal Information Protection Law, we co-ordinate with data protection counsel to ensure cross-border data flows comply with PIPL requirements.</p>

<p>VJM Global serves foreign companies across China's primary investment sectors — manufacturing, technology, financial services, healthcare and pharmaceuticals, consumer goods, and professional services. Our industry depth comes from working with companies across the India-China, Japan-China, US-China, and EU-China investment corridors. Each sector has specific regulatory requirements — manufacturing WFOEs need environmental approvals, technology companies must navigate the Negative List and PIPL, and financial services entities require separate licensing — and our team structures compliance programmes accordingly.</p>

<p>The Golden Tax Phase IV system is China's mandatory electronic invoicing platform for all VAT-registered entities. Foreign companies must issue official fapiao (VAT invoices) through this system for every commercial transaction. Phase IV integrates tax, banking, customs, and social security data, giving the State Taxation Administration real-time monitoring capability over business transactions. Incorrect or missing fapiao result in denied input tax credits and potential penalties. VJM Global's local partner teams manage Golden Tax setup, staff training, and monthly fapiao reconciliation as part of our standard accounting service.</p>

<p>Profit repatriation from China requires tax clearance from the State Taxation Administration, audited financial statements confirming distributable profits, a board resolution approving dividend distribution, and bank processing through the designated SAFE-registered foreign exchange account. Dividend withholding tax of 10% applies to non-resident shareholders, reduced to 5% under certain DTAAs including the India-China agreement for qualifying holdings. VJM Global manages the complete process — from annual EIT reconciliation and audit through to dividend declaration documentation and SAFE-compliant bank remittance processing.</p>