Do you want to save yourself from future mishaps of your business? And don’t want to catch your business in any scam and forgery. Then Due diligence services are for you! Read along to know more about due diligence services in china, a need of time!
Due diligence refers to inspection to verify company investing potential, product, and staff for opposing company. It includes registration, finance, accounts examination, taxation, and on-field investigation of the company in consideration. In China, due diligence has proven to be successful for businesses.
Due Diligence in China
We cannot emphasize much that due diligence has proven to be a milestone for a fruitful business. It has saved a lot of business from unbearable losses. In China, limited information access and ever-changing rules and regulations might be a source of hesitancy for running a business.
But, skillful experts offer due diligence services, and they have the pure intention for your business.
A Guide On Conducting Due Diligence
Do you also want to conduct due diligence before signing up with a party? Below down are some steps. These get done by WFOE(wholly foreign-owned enterprise) before collaborating with any Chinese firm.
Know About The Companies’ Whereabouts
In the very first step, you need to investigate the authenticity of the company you are considering.
We will look for proof that it is a registered company, not just made up.
And by registering, it means it is certified by the state administration for market regulation or local SAMR in china. We will be looking at the person in name the company is registered, its stakeholders, its registered capital and shares, etc.
Double-Check On Financial Status
Now, after assessing the basics of the company next task is to look for their account detail.
We now look forward to their share percentages, bank statements, the loans they have taken. And we will look into their debts, grants, subsidiaries, important transactions, and particularly the capital the company has made up till now.
Soon promptly next step is to monitor their account history at least three to five years back. By this, we will be looking into their dues, fixed assets, debt, and liabilities.
And these all should be under the Chinese accounting standards.
Field Visits Are A Must
Apart from looking at things from the far, a field visit to the company will tell you a lot. We will go there and check out their warehouse, workplace environment, witness their work ethics and meet their employees.
The on-field examination will make things crystal clear. And we can also get references for the company you are considering closing deals with from the market.
Save yourself and your business from any future upheavals and get more information about due diligence services in china.