Canada    FinTech Guide    Chapter 10    China


10. Accounting
China  China

Currently, although the demand for online accounting services is vast, the market of online accounting services is still at the beginning stages.



Legal Affairs


FinTechs providing online accounting services shall obtain the business license with the approved business scope about “accounting technology services etc.” Then, upon its incorporation, it shall apply for an ICP filing to the telecommunication authority, which is applicable to an “ICP not for profit”. The FinTech which is a company incorporated in China is entitled to apply for an ICP filing.

Other than the ICP filing which is applicable to online services, the FinTechs are not required to get other approvals to proceed with online accounting services.



Economic Conditions


As the economy of China developed rapidly in recent years, the market size expansion of small and micro businesses is remarkable. The strong market demand exists which brings new opportunities for online-accounting services.

A report of a market research company IDC showed that, 47.3% of enterprises which had not used online-accounting services were considering the informationization of accounting, among which 46.7% were willing to accept online accounting services.

The biggest companies in the online accounting service are Kingdee Group and Chanjet Information Technology Company Limited according to the press and annual reports of Chanjet.



Miscellaneous


Although there is no specific license for providing online accounting services, from the customers’ perspective, the customers which are companies incorporated in China, shall comply with the relevant rules of accounting as it prepares its accounting statement/documents. As the service providers, in order to provide satisfactory service, the FinTechs shall ensure that the online accounting service could provide such functions.



Contributing Authors

JunHe LLP

Norah Yinuo Zhang
Beijing, China

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Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018