Accounting for a small Chinese business costs 3,600 yuan per year — that is ~300 ¥ per month for full support: bookkeeping, tax filings, and communication with tax authorities and banks. Communication with the accountant is in English; Chinese is not required.
What the accountant does
- manages the expense database: processes fapiao, receipts, and contracts that you send electronically
- prepares and submits tax filings: interim filings every six months, and a full filing once a year
- calculates VAT (1%) and corporate income tax (5%) before the annual payment
- assists with bank account opening and identification
- responds to tax authority inquiries — you won't even hear about most of them
What remains your responsibility
- keep all expense documents — photos of fapiao and receipts are sufficient
- send them to the accountant in batches once every month or two
- review the final profit figure before the tax filing
- notify the accountant in advance about non-standard operations, such as large withdrawals or new business activities
As long as the company is a small business, accounting is simple
For turnover up to 5 million ¥, a simplified tax regime applies: minimal reporting, lenient oversight, and remote management. Exceeding this threshold moves the company to the general regime, requiring monthly reporting, full bookkeeping, and 13% VAT upon fapiao request. Details on thresholds are in the article on taxes.
How much it costs per year
| Item | Amount |
|---|---|
| Accounting support | 3,600 ¥/year |
| Nominal office | from 4,200 ¥/year (350 ¥/month) |
| Bank maintenance | 0 — nominal fee, depends on the bank |
| Total fixed costs | ~8,000 ¥/year |
These expenses legally reduce corporate income tax — how to record expenses.
Frequently asked questions
What happens if I miss a tax filing?
Fines and inclusion in lists of violators, which complicates company operations, potentially leading to account blocks. With an accountant, the risk is zero: meeting deadlines is their job.
Do I need accounting if there are no sales yet?
Yes: zero-tax filings must still be submitted. A company without filings becomes "non-compliant" in the eyes of tax authorities faster than you might think, and recovery is more expensive than annual maintenance.
How do I transfer accounting to another specialist?
A digital document database makes the transition seamless: access and archives are simply transferred. This is another reason to keep everything digital from day one.
How much does it cost to hire an accountant for my small business in China?
Full accounting support, including bookkeeping, tax filings, and communication with authorities, costs 3,600 yuan per year. This averages out to approximately 300 yuan per month.
Do I need to speak Chinese to work with an accountant?
No, Chinese is not required because communication with the accountant is conducted in English. It is recommended to avoid using online translators for financial and legal terminology to prevent costly mistakes.
What are my responsibilities as a business owner regarding accounting?
You are responsible for keeping all expense documents, such as photos of fapiao and receipts, and sending them to the accountant in batches every month or two. You must also review the final profit figure before tax filings and notify the accountant in advance about non-standard operations.
What happens if my business turnover exceeds 5 million yuan?
Exceeding the 5 million yuan threshold moves your company from the simplified tax regime to the general regime. This change requires monthly reporting, full bookkeeping, and a 13% VAT upon fapiao request.