Ministry of Finance: Overseas accounting organizations conducting activities in China should register and establish representative offices in accordance with the law.

On September 5, the Office of the Ministry of Finance released the "Administrative Measures for Overseas Accounting Organizations' Domestic Business Activities (Consultation Draft)", which mentioned that overseas accounting organizations intending to establish representative offices in China for activities in the fields of international accounting, social audit theory research, exchange, and cooperation, restricted to one province, should apply to the provincial Department of Finance where they are located. If the activities involve multiple provinces, they should apply to the Ministry of Finance. Overseas accounting organizations conducting activities in China must register and establish representative offices in accordance with the law. If they need to conduct temporary activities in China without registering a representative office, they must file for record according to the law. The original text is as follows: Administrative Measures for Overseas Accounting Organizations' Domestic Business Activities (Consultation Draft) Chapter I General Provisions Article 1 In order to regulate the business activities of overseas accounting organizations in China, these measures are formulated in accordance with the "Law of the People's Republic of China on the Management of Activities of Overseas Non-Governmental Organizations in China", the "Catalogue of Fields and Projects for Overseas Non-Governmental Organizations' Activities in China and the List of Administrative Units Responsible for Business Activities (2019)", and the "Guidelines for the Registration of Representative Offices for Overseas Non-Governmental Organizations and Filing for Temporary Activities". Article 2 The term "overseas accounting organization" mentioned in these measures refers to overseas non-governmental organizations that meet the definition of overseas non-governmental organizations under the "Law of the People's Republic of China on the Management of Activities of Overseas Non-Governmental Organizations in China", and are supervised by the Department of Finance as the business administration unit for their activities in China in the fields of international accounting, social audit theory research, exchange, and cooperation. Article 3 Overseas accounting organizations conducting activities in China must register and establish representative offices in accordance with the law. If they need to conduct temporary activities in China without registering a representative office, they must file for record according to the law. Article 4 The Ministry of Finance and the provincial Department of Finance (hereinafter referred to as the Department of Finance) are the business administration units for the activities of overseas accounting organizations in China. The Department of Finance is responsible for providing opinions on the applications for setting up representative offices, changing registration items, annual work plans, and reports of overseas accounting organizations, supervising and guiding overseas accounting organizations and their representative offices to conduct activities in accordance with the law, and assisting public security organs and other departments in investigating illegal acts of overseas accounting organizations and their representative offices. Chapter II Application for Setting up Representative Offices Article 5 Overseas accounting organizations applying to register and establish representative offices in China must meet the establishment conditions stipulated in the "Law of the People's Republic of China on the Management of Activities of Overseas Non-Governmental Organizations in China" and obtain the approval of the business administration unit. Article 6 Overseas accounting organizations intending to establish representative offices in the fields of international accounting, social audit theory research, exchange, and cooperation limited to one province should apply to the provincial Department of Finance where they are located. If the activities involve multiple provinces, they should apply to the Ministry of Finance. Article 7 Overseas accounting organizations should submit the following application materials to the Department of Finance: (1) "Application for Overseas Accounting Organizations to Establish Representative Offices in China" (see Appendix 1); (2) A description of the activities carried out by the overseas accounting organization in China in the past two years (see Appendix 2); (3) Materials required for registration as stated in the "Guidelines for the Registration of Representative Offices for Overseas Non-Governmental Organizations and Filing for Temporary Activities" (items 2 to 11). Article 8 If the materials submitted by the overseas accounting organization need to be notarized or authenticated, copies may be submitted, along with a Chinese translation of the notarization or authentication document. If the documents are in a foreign language, a Chinese translation must be provided. Article 9 The Department of Finance shall review the application materials submitted by overseas accounting organizations in accordance with the law, and issue the opinion of the business administration unit within 30 days from the date of collecting all materials. In case of special circumstances, the decision-making period may be extended, and the overseas accounting organizations shall be promptly notified. The extension period shall not exceed 30 days. Article 10 During the process of handling the application of overseas accounting organizations, the Department of Finance may further understand and verify relevant situations with the overseas accounting organizations and solicit opinions from relevant departments. Article 11 Within 30 days from the date of approval by the Department of Finance, overseas accounting organizations intending to set up representative offices should apply to the provincial public security organs where the representative offices are located for registration. Within 5 days after the provincial public security organs issue a decision to register, overseas accounting organizations should submit a copy of the registration certificate of the overseas non-governmental organization representative office to the Department of Finance. Chapter III Changes to Representative Offices Article 12 If there are changes in the name, chief representative, address, business scope, activity area, etc. of the representative office of the overseas accounting organization, approval from the Department of Finance is required. Article 13 When the representative office of the overseas accounting organization applies for changes in registration items, it should submit the "Application for Changes in Registration of Representative Offices of Overseas Non-Governmental Organizations" to the Department of Finance at the provincial level or above, and submit relevant materials for changes in accordance with Articles 7 and 8 of these measures. Article 14 The Department of Finance shall review the application materials submitted by the representative offices of overseas accounting organizations in accordance with the law, and issue the opinion of the business administration unit within 20 days from the date of collecting the materials specified in Article 13 of these measures. Article 15 Within 30 days from the date of approval of the changes by the provincial Department of Finance or above, the representative offices of overseas accounting organizations should apply for changes in registration to the provincial public security organs where they are located. Within 5 days after the provincial public security organs issue a decision to allow changes in registration, the representative offices of overseas non-governmental organizations should submit a copy of the new registration certificate of the overseas non-governmental organization representative office to the Department of Finance. Chapter IV Annual Activity Plan and Annual Work Report Article 16 The representative offices of overseas accounting organizations should submit the annual activity plan to the Department of Finance before December 31 each year. The annual activity plan should specify the time, location, main content, estimated use of funds, etc. of the planned activities. If necessary, an explanation letter on the annual activity plan should be submitted. Within 20 days from the date of obtaining the registration certificate of the overseas non-governmental organization representative office, the representative offices should submit the annual activity plan from the date of obtaining the registration certificate to December 31. Article 17 The Department of Finance should issue an audit opinion within 20 days of receiving the annual activity plan from the representative offices of overseas accounting organizations. Article 18 Within 30 days from the date of approval of the changes by the provincial Department of Finance or above, the representative offices of overseas accounting organizations should apply for changes in registration to the provincial public security organs where they are located. Within 5 days after the provincial public security organs issue a decision to allow changes in registration, the representative offices of overseas non-governmental organizations should submit a copy of the new registration certificate of the overseas non-governmental organization representative office to the Department of Finance.The representative organization of the accounting organization shall submit the activity plan to the provincial public security agency within 10 days of receiving the audit opinion from the financial department.If the filing with the public security organs is overdue, the annual activity plan should be resubmitted to the financial department with an explanation of the reasons for the delay. Article 19 In special circumstances, when the representative office of a foreign accounting organization needs to adjust the annual plan, it should promptly submit the adjusted activity plan to the financial department. After the financial department approves, it should file it with the provincial public security organs. Article 20 The representative office of a foreign accounting organization should submit an annual work report to the financial department before January 31 of each year. The work report should include audited financial accounting reports, activity reports, personnel and organizational changes, etc. Article 21 The financial department should issue an audit opinion within 20 days after receiving the annual work report from the representative office of a foreign accounting organization. Article 22 The representative office of a foreign accounting organization should submit the approved annual work report by the financial department to the provincial public security organs before March 31 of each year and undergo an annual inspection. Chapter Five Temporary Activity Filing Article 23 If a foreign accounting organization does not set up a representative office within China and conducts temporary activities within the country, it should cooperate with Chinese national authorities, people's organizations, institutions, or social organizations (hereinafter referred to as Chinese partners). Article 24 When a foreign accounting organization conducts temporary activities, Chinese partners should go through the necessary approval procedures as required by the country and file with the provincial public security organs in their location 15 days before the activity. Temporary activities should not exceed one year, and if there is a genuine need to extend the duration, it should be refiled. Article 25 If the financial department's affiliated or supervisory unit intends to cooperate with a foreign accounting organization for temporary activities, they should submit an application to the financial department and submit the necessary materials for filing as specified in the "Guidelines on Registration and Filing for Temporary Activities of Overseas Non-Governmental Organization Representative Offices." After the financial department approves, relevant units should file with the provincial public security organs 15 days before the temporary activities commence. Article 26 Chinese partners should fill out the "Form for Temporary Activity Filing of Overseas Non-Governmental Organizations" within 30 days after the end of the temporary activity and submit it to the provincial public security organs. (Continued...)