{"id":391,"date":"2022-02-17T09:10:59","date_gmt":"2022-02-17T09:10:59","guid":{"rendered":"https:\/\/msadvisory.com\/?post_type=k_service&p=391"},"modified":"2026-04-27T18:38:51","modified_gmt":"2026-04-27T18:38:51","slug":"review-due-diligence","status":"publish","type":"k_service","link":"https:\/\/msadvisory.com\/service\/financial-advisory\/review-due-diligence\/","title":{"rendered":"Review and due diligence for China investments and acquisitions"},"content":{"rendered":"\t\t
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Review and due diligence for China investments and acquisitions<\/h1>\t\t\t\t<\/div>\n\t\t\t\t
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Invest in China with confidence through rigorous financial and operational due diligence. Our review process uncovers hidden risks, validates financials, and delivers the clarity you need before any acquisition, partnership, or major commitment.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t

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9<\/div>
Jurisdictions<\/div><\/div>\n
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1,500+<\/div>
Clients Served<\/div><\/div>\n
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15<\/div>
Years in Asia<\/div><\/div>\n
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11<\/div>
Office Locations<\/div><\/div>\n<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Compliance, Transparency, Avoidance of being defrauded and clear communication are the key issues that every foreign company invested in China faces. We provide all the necessary tools and mechanisms to the foreign investors abroad to maintain full control over their Chinese entity and obtain clear and transparent data and information regarding the business of their subsidiary.<\/p>

The main tools we offer our clients to achieve transparency and control in China are as follows:<\/p>

Company Review in China<\/h2>

A large number of foreign companies operating in China have reviews done by professional and licensed tax advisors. These reviews are generally done on a recurring basis, monthly, quarterly, bi-annually, or annually.<\/p>

Why Do a Company Review in China?<\/h3>

The aim of this support is to have a team of professionals involved in the local accountants\u2019 work, act as a support function for questions and help the management controllers of the headquarter in clarifying sensitive and complex issues and create transparency. The added value here is to have ongoing compliance and clarity in local finances and taxation rather than only relying on the annual statutory audit at the end of the fiscal year which oftentimes is executed by local audit firms with little understanding of international reporting- and compliance requirements.<\/p>

Focus areas of a Company Review<\/h3>

Focus areas for review services are industry-specific, depend on the requirements of the headquarter abroad and can be jointly defined and specified. In our review function, MSA supports in reviewing the subsidiaries\u00b4 recurring accounting, tax declarations and tax issues, payroll, import and export procedures, intercompany transactions, outgoing bank transactions etc. The main goal is to strengthen compliance and increase transparency and efficiency.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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\"Harm-Hoonstra\"<\/a><\/figure>
Ask your questions to our experts<\/a><\/div>

Send us your question and we will answer within 24 hours.\n\nMessage  \u2192<\/span><\/p><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t

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China Due Diligence<\/h2>

Fraud in China can take many forms and can occur in any type of business transaction, perpetrators can be internal- or external actors, commercial companies, or 3rd<\/sup> party agents. Preparation and prevention are the key to success for foreign companies engaging in doing business in China. Proper due diligence allows investors to understand the nature of the transaction or deal, the all the risks involved, and whether the deal is suitable for the company. Proper preparation and prevention are the key to success for foreign companies engaging in doing business in China<\/p>

Foreign entities rely on professional financial advisors to navigate the large numbers of databases, often not accessible to the general public and where information is available exclusively in Chinese.<\/p>

\"Market<\/p>

When Should Foreign Business in China Carry Out Due Diligence?<\/h3>

Financial Due Diligence<\/p>