Required by PRC Company Law and other relevant regulations, all Foreign Invested Enterprises in China, including Wholly Foreign Owned Enterprises (WFOEs), Joint Ventures (JVs) and Representative Offices (ROs) are required to comply with the statutory annual audit and other compliance processes. Foreign Invested Enterprises in China can only distribute and repatriate their profits or dividends back to their home country after completion of their annual statutory audits and settlement of all relevant tax liabilities. Failure to comply with the annual audit and compliance may result in extra expenses, penalties, or even revocation of business licenses. The annual inspection of enterprises refers to the statutory procedures for the examination and approval of enterprises by the administrative departments for Industry and Commerce in accordance with the law, and the qualification of enterprises to continue their business operations. According to the Pro...