Annual requirement · capital account compliance

Foreign-exchange reporting on your capital account

The old annual foreign-exchange inspection was replaced by an annual registration of outstanding equity interests, filed through the capital account system. The name changed, but the exposure did not: if your cross-border receipts, payments and shareholder loans do not reconcile to what was registered, your capital account stops working.

  • We reconcile first, then file — cross-border receipts, payments and shareholder loans tied back to the registration
  • Discrepancies found before you file — a written gap list, not a surprise from the bureau later
  • Shareholder loans handled properly — the most common source of mismatches we see
  • English throughout — reports and correspondence in English with your finance team

Timing

The annual cycle for foreign-exchange reporting

Two windows matter. Missing the first one is the expensive mistake, because it is the one that gets the entity flagged.

1 January to 30 June

The window for filing the annual registration of outstanding equity interests for the previous year. Late filing is recorded and carries consequences.

Ongoing, as transactions happen

Each cross-border receipt, payment and registration needs to be consistent with the underlying transaction at the time it occurs.

Before any capital-account transaction

Conversions, outward remittances and capital changes are smoother when the underlying registration is clean. We check it before you need it.

Scope of services

What the work actually covers

Written out in detail on purpose. If you are comparing firms, this is the list to put side by side with theirs.

Deliverables

What lands on your desk

Reconciliation working papers

Line-by-line tie-out of cross-border activity to registrations and bank records.

Written discrepancy list

Every mismatch found, why it happened, and what correcting it involves.

Filing support pack

The prepared position and supporting documents, ready to submit through the capital account system.

Shareholder loan schedule

A clean schedule of every loan: amount, term, rate, interest accrued and registration status.

English summary for head office

A short English summary of the entity's foreign-exchange position, written for a non-China reader.

Query support

We answer follow-up questions from the authorities and your bank for a stated period after the filing.

Process

From first email to finished work

01  You send the basics

Entity type, what has been requested, and when it is due. One email is enough to start.

02  Scope and fixed fee

We come back within one business day with a written scope, a fixed fee and dates.

03  Documents and fieldwork

One document request list. We work from it, and visit site only where the work genuinely needs it.

04  Delivery and follow-through

Signed output in English or bilingual, plus support through whatever filing follows.

Fees

How we price it

Fixed, in writing, before fieldwork starts. The drivers below are the ones that actually move the number — we tell you which of them apply to you in the first reply, not after you have signed.

  • Entity size, number of bank accounts and transaction volume
  • Whether prior-year figures are audited or management-prepared
  • Reporting language: English, Chinese, or bilingual
  • Whether group reporting requires a GAAP reconciliation
  • How much of the bookkeeping we have to rebuild first

FAQ

Questions about foreign-exchange reporting

Is the annual foreign-exchange inspection still required?

The annual inspection itself was abolished in 2015 and replaced by an annual registration of outstanding equity interests, filed through the capital account system. The obligation did not disappear; it changed form and moved online.

What happens if we do not file?

The entity is flagged in the foreign-exchange system, which typically restricts capital account transactions until it is corrected. Correcting it later costs more than filing on time.

Our shareholder loan does not match the registration. Is that serious?

It is the most common problem we see, and yes it needs fixing, because it blocks related transactions. We identify it, explain what caused it, and tell you what correcting it involves.

Do you file on our behalf?

We prepare the audit position and the supporting pack and support you through the filing. The submission itself is made through the entity's own capital account access.

Can you work in English with our regional finance team?

Yes. Reports and correspondence are in English. We can also work directly in Chinese with your local finance staff and keep your reporting in English.

Get your capital account checked before you need it.

Most entities only discover a mismatch when a transaction is blocked. Send us the capital account statements and we will tell you where you stand.