Ｎｕｒｔｕｒｉｎｇ　ＳＭＥｓ

ＣＨＲＩＳ　ＤＥＶＯＮＳＨＩＲＥ－ＥＬＬＩＳ

Practical financial, tax and accounting issues affectinginternational SMEs during the early stages of investment.

Tax invoices and foreign currencycontrol

Small manufacturing enterprises (SMEs)usually need to almost immediately purchaseequipment, rent offices, buy raw materialsand hire local staff within China. All theseexpenses should, in an ideal world, be paidfrom the company's local bank accountand not from any other sources (e.g. hold-ing company's money or investor's cash).What's more, the company should give clearinstructions to its staff in order to obtain le-gal tax invoices from Chinese local vendors.Anything other than an official invoice (thefamous fapiao) would not be booked into theChinese accounts.