For foreign companies operating in China, financial oversight should not stop at incorporation. Once the business licence has been issued, the company must maintain accounting records, complete tax filings, manage VAT and fapiao processes, monitor payroll, and ensure that payments, contracts and reporting all remain aligned. Two important tools support this process: the annual audit and the internal control review. They are connected, but they are not the same. The annual aud

Incorporating a Hong Kong company is only the first stage of entering the market. Once the company has been formed, directors must ensure that it remains properly maintained, legally compliant and ready to operate. For foreign investors, this is especially relevant because a Hong Kong company can be managed from overseas, but its statutory, tax and administrative obligations still apply in Hong Kong. A company that is not maintained correctly can face late filing fees, penalt

Special purpose reviews in China help foreign-invested companies deal with capital verification, tax clearance, restructuring, liquidation, internal controls and regulatory enquiries. Here is what overseas businesses need to know. For companies operating in China, the annual statutory audit is only one part of financial and regulatory compliance. There are many situations where a business needs a more targeted review, focused on a specific transaction, event, regulatory requi

China’s digital economy continues to expand at pace, creating clear commercial opportunities for overseas businesses. At the same time, the regulatory environment governing online activity is tightly controlled and continues to evolve. Foreign companies often underestimate how early licensing and structural decisions affect their ability to operate effectively in the market. Launching a website, app, or online platform in China is not simply a technical exercise. It is a regu

Hong Kong has long been used by international companies as a commercial bridge between Mainland China and global markets. For businesses buying from China, selling into China, managing regional distribution or coordinating cross border contracts, a Hong Kong company can provide a practical operating structure that supports trade, banking, tax planning, logistics and supplier management. The value of Hong Kong is not only that it sits next to Mainland China. Its strength lies

Hong Kong remains one of the most attractive jurisdictions for international business, supported by a stable legal system, a freely convertible currency, and a well-established financial sector. However, opening a business bank account is no longer a straightforward administrative step. In the current regulatory environment, banks apply stringent due diligence standards, and overseas companies should expect a structured and sometimes time-intensive onboarding process. Underst

China’s approach to data protection is entering a more assertive phase. While the legislative framework has been largely in place for several years, enforcement is now becoming more structured, more frequent, and more closely tied to corporate governance expectations. For businesses operating in or entering China, this shift is not simply about compliance with data rules. It reflects a broader regulatory position where data management, internal controls, and board-level overs

A Shanghai Index Benchmark for Understanding Real Purchasing Power in 2026 For expatriates relocating to China, understanding the true cost of living goes far beyond headline salary figures. While China is often perceived as a lower-cost destination, the reality is far more nuanced. Living costs vary significantly depending on the city, lifestyle choices, and macroeconomic factors such as inflation, exchange rates, and regional policy direction. Using Shanghai as a benchmark,

Hong Kong’s 2026 Employer’s Return filing season has officially commenced, placing an immediate compliance responsibility on all employers with staff in the jurisdiction. Issued annually by the Inland Revenue Department (IRD), the Employer’s Return is a key reporting requirement that ensures employee earnings are correctly declared for salaries tax purposes. For many businesses, particularly those managing international teams or operating through regional structures, this per

Background A newly incorporated Hong Kong company in the consulting sector approached us after its first year of operations. The business had international clients across Europe and the US, a small team based in Hong Kong, and limited internal accounting resources. The directors were uncertain about their profits tax position, whether they could claim offshore profits exemption, and how to properly handle Employer’s Tax Return filings. They were also concerned about missing d

For overseas businesses incorporating in Hong Kong, one of the first practical questions is whether they need a physical office. In many cases, a company can be established and maintained without leasing premises, hiring local staff or operating from a full commercial office. However, this does not mean the company can operate without a compliant Hong Kong address. Every Hong Kong company needs a registered office address. Many overseas-owned companies also choose to use a vi

For foreign companies operating in China, market access risk is no longer limited to whether a business activity is open, restricted or prohibited at the point of entry. Increasingly, the more important question is whether the company can continue to evidence compliance once operations begin. Across sectors, China’s regulatory environment is becoming more inspection driven. Authorities are placing greater emphasis on documentation, operational visibility, data control, custom

For many businesses operating in Hong Kong, the annual Profits Tax Return has traditionally been viewed as a routine compliance task. Complete the figures, submit the forms, and move on. That approach is no longer sufficient. In 2026, the Inland Revenue Department is placing greater emphasis on accuracy, consistency, and transparency. The Profits Tax Return is increasingly being used as a tool to assess how well a business understands and applies Hong Kong’s tax framework. It

Foreign companies importing into or exporting from China must manage customs registration, product classification, documentation, tax treatment and ongoing compliance. Here is what businesses need to know. For foreign companies operating in China, customs compliance is not a one-off administrative step. It is an ongoing operational requirement that affects how goods enter the market, how products are classified, how taxes are calculated, how supply chains are structured and h

For overseas businesses entering China, one of the first and most important regulatory frameworks to understand is the Foreign Investment Negative List. It defines where foreign capital is permitted, where it is restricted, and where it is entirely prohibited. However, the system is not a single list. It is a structured framework that varies depending on the sector, location, and type of activity. Businesses must often review multiple lists and supporting policies to determin

Hong Kong is re-emerging as a preferred regional headquarters location for international businesses operating across Asia. After a period of structural change, regulatory adjustment, and shifting geopolitical dynamics, 2026 marks a clear inflection point. Companies are no longer asking whether Hong Kong remains relevant. Instead, they are reassessing how it fits into a modern Asia strategy. For many, the conclusion is increasingly clear. Hong Kong continues to offer a combina

Hong Kong’s profits tax regime has long been recognised for its simplicity and territorial basis. That position has not changed. What has changed is how closely the system is now being monitored and enforced. In 2026, businesses are not facing a fundamentally new tax system. They are operating in an environment where the application of existing rules is becoming more precise, more evidence-driven, and less tolerant of weak positions. For companies already operating in Hong Ko

Economic substance has become one of the most important considerations for businesses using Hong Kong within international group structures. In 2026, regulatory focus has shifted decisively away from form-based structuring towards evidence of real activity, decision-making, and commercial purpose. For international businesses, this means that simply incorporating a Hong Kong entity is no longer sufficient. The question regulators are increasingly asking is straightforward: do

When setting up a company in China, the registered address is not a simple administrative detail. It is one of the foundation points of the entire incorporation process. The address affects where the company is registered, which local authority handles the application, what business activities may be approved, whether the company can obtain licences, how tax registration is managed and how future inspections or filings are handled. For foreign investors, this is especially im

In 2026, labour compliance in China is being shaped less by new legislation and more by how existing laws are interpreted and enforced. While the core statutory framework remains stable, evolving judicial guidance and arbitration trends are redefining how employers must manage their workforce. Authorities including the Supreme People's Court and the Ministry of Human Resources and Social Security are increasingly influencing employer obligations through case law, interpretati