Why a Company Health Check in China is Critical in 2025 – and How Woodburn Can Help
- Kristina Coluccia
- Apr 7
- 2 min read
Updated: 2 days ago
As regulatory oversight tightens in China and compliance risks mount for foreign businesses, conducting a corporate health check is no longer optional – it's essential. In 2025, companies operating in China must ensure their operations align with evolving tax, legal, and employment standards, or risk steep penalties, blacklisting, or even forced closures.
What is a Company Health Check – and Why Now?
A company health check is a comprehensive internal audit of your legal, financial, operational, and HR compliance. It ensures that your company is functioning within China's regulatory boundaries – and flags potential liabilities before they become serious.
Recent changes to China's regulatory framework (as highlighted by China Briefing) show an increased push for transparency, accuracy in reporting, and alignment with local policies. The government’s sophisticated use of big data and inter-departmental coordination means non-compliance is easier to detect – and harder to excuse.
Some of the common issues uncovered during a health check include:
Outdated or non-compliant company registration documents
Improper or missing tax filings
Labor contracts that don’t align with Chinese labor law
Inconsistencies in cross-border fund flows
Hidden risks in internal governance structures
Woodburn’s Health Check Services: Peace of Mind for Foreign Companies
At Woodburn, we specialize in supporting foreign-invested entities in China. Our health check process is tailored to the nuances of China’s legal and regulatory system and the needs of international business owners.
Our health checks cover:
Corporate Governance: Ensuring that your business license, articles of association, and internal decision-making structures are compliant.
Financial and Tax Compliance: Reviewing VAT filings, tax clearance, and Fapiao (invoice) management.
HR and Labor: Assessing labor contracts, employee handbooks, and social insurance contributions.
Cross-border Payments: Evaluating how capital and profits are repatriated and whether they follow SAFE (State Administration of Foreign Exchange) rules.
IP and Licensing: Confirming your licenses, trademarks, and IP registrations are up-to-date and defensible.
The Woodburn Advantage
Multilingual Experts: We bridge the gap between international expectations and Chinese regulations.
On-the-Ground Support: Our team has direct experience in China’s key business hubs.
Actionable Reports: We don’t just audit – we provide clear, prioritized recommendations and can help you implement them.
Don’t Wait for a Government Audit
With compliance standards rising and enforcement becoming more aggressive, a proactive approach is your best defense. Let Woodburn identify and fix issues before regulators do.
Contact us today to schedule your China Company Health Check.
Woodburn Accountants & Advisors is one of China’s most trusted business setup advisory firms.
Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.