Internal Controls for Enterprises Operating in China

The approaching end of the year is a time-call for companies not only for budget and development plan. It is also an opportunity to analyze which processes can be improved for better operational efficiency and compliance with new laws and regulations.

It is always important to check and correct the internal compliance measures, and even more now with the new Company Law in force in China, especially for foreign invested enterprises.

The areas to take into account are several, and each company can define a control strategy and plan based on the short, medium, and long-term priority areas.

The areas may include financial management, tax, HR and cybersecurity.

The aspects involved can be many: the internet platform service provider, the accounting software, the assets management, the verification of reimbursement invoices, intercompany agreements, company seals usage, exchange rate analysis, tax documents for random tax inspection, GM duties, staff handbook, HR data and personal information protection, critical data security, anti-corruption training, antifire system, etc.

And the extents embrace: documentation, authorizations and access, along with segregations of duties, in a single harmonious system that considers and interconnects all the company’s departments.

Internal controls protect the enterprise; they are an investment for long-term success.

If you want to share how you are currently managing internal controls and which are the areas you want to focus and intervene on, we are available to discuss your needs and design solutions customized based on your specific needs.

JESA Investment & Management Co., Ltd.