Services for Japanese companies entering the Chinese market

The purpose of this service is to investigate the situation of the local company, sort out the problems, and make it useful for future management. The investigation will focus on accounting and taxation and will briefly summarize violations of accounting and tax laws, as well as areas for improvement. Depending on the size of the company, it usually takes about one week for the investigation and one week for the analysis and report to be drafted. You can also request a statutory audit from a major Chinese accounting firm. We can also translate the statutory audit report into Japanese for further understanding. Please make use of this service for your consolidated documents and taxation measures in Japan.

When conducting a corporate acquisition or equity transfer, it is necessary to investigate the financial condition of the target company and whether there are any legal violations. Financial due diligence needs to be done in a short period of time.
Especially in the case of state-owned enterprises, it is necessary to negotiate for cooperation in the investigation. Our investigations are prompt and reasonable, and we can respond to urgent requests.

When conducting a corporate acquisition or equity transfer, it is necessary to calculate the corporate value. In particular, if there is equity in a state-owned enterprise, a statutory valuation report is required for the act of equity transfer. We are affiliated with a Chinese asset valuation company and can accurately convey the client’s requirements. We are able to provide legal valuation reports that are valid throughout China.

As international transactions have become mainstream today, international taxation is　becoming more and more important. Many of the members of our firm have experience in international business and overseas, and we are a group of professionals who are well versed in international practices and accounting and taxation. In particular, dealing with transfer pricing taxation is an important issue for corporate management. By cooperating with the company, it is possible to deal with this issue in a reasonable manner at minimal cost. In addition, we have a partnership with a local tax accountant firm that has a pipeline to the tax authorities in China, which enables us to obtain a variety of the latest information.

Withdrawal from China often involves a great deal of expense and time. Labor and　taxation are important issues in liquidation. While labor is a matter of negotiation with the employees, taxation must be investigated by the tax authorities. The investigation period is limited to the last three years, but if significant violations are discovered, the investigation can go back many years. We provide in-depth strategies to bring liquidation to a conclusion with minimum cost and minimum time.

Our firm will take the initiative in providing these services in cooperation with various specialists.
Please contact us if you have any problems with accounting, taxation, or management in China.

Under Japan’s Companies Act, all companies are required to close their books at least once a year and keep their financial data. We can prepare an audit report on corporate law based on Japanese accounting standards and provide an audit report in Chinese after reclassification based on Chinese accounting standards.

When listing a company on the Japanese stock market, an accounting audit based on the Financial Instruments and Exchange Act is required. The listing audit will be conducted in accordance with Japanese accounting standards, but we can also provide support in accordance with international accounting standards. In addition, we also provide accounting guidance and preliminary audit services in preparation for listing.

Financial due diligence is required when acquiring a Japanese company. Small and medium-sized companies in Japan generally use tax-based accounting, and many of them do not undergo accounting audits. Experts who are well versed in accounting and taxation can help you derive correct accounting information.

When acquiring a Japanese company, a business valuation report may be required. We work with an asset valuation firm in China to prepare a Chinese statutory valuation report. In some cases, we invite asset valuers from China to Japan to perform corporate
valuation.

We regularly survey the Japanese companies we have invested in and prepare survey reports in Chinese. In order to improve the management of the company after the acquisition, an outside expert can conduct an accounting survey to clarify the actual financial condition of the company, which can be useful for sounder corporate management.

We also handle company accounts and tax returns. We are a group of experts who are well versed in overseas transactions and can provide smooth accounting and tax filing services. In addition, under Japanese law, tax returns can be filed by affiliated tax
accountant firms.