Operational Due Diligence: Kicking Your China Business’s Tires

In this issue of China Briefing we a look at operational due diligence and compliance issues that should be taken into account when “kicking the tires” of a China business. This includes operational issues like examining organizational structures, risk assessments, key operational functions, external relationships, competitors, environmental considerations and corporate secretarial responsibilities. It also involves financial issues including assessing financial statements and audit, taxes and tax filing, financial reporting and depreciation of assets. We conclude our look at operational due diligence by reviewing some human resources concerns including  key employment issues and social security benefits that companies in China may face.

 

In additional to operational due diligence issues, we investigate China’s new transfer pricing documentation requirements and look at what records companies will need to have compiled by May 31. With an increased burden on compliance and stricter penalties in place, it is important that enterprises involved in transfer pricing properly maintain their documentation and keep themselves completely updated on all tax requirements.

 

In This Issue:
Operational Due Diligence in China
Financial Due Diligence in China
HR Due Diligence in China
Preparing Transfer Pricing Documentation