Key practical points:
• Every entity must keep proper accounting books in renminbi and in Chinese.
• Off-the-books accounts, forged vouchers and hidden revenue are prohibited.
• The entity's legal representative is legally responsible for the truthfulness of accounts and reports.
• Accounting records must be kept for statutory periods (often up to 30 years for certain books).
• Accountants must follow Chinese accounting standards and prevent any manipulation.
Accounting Law · Yalla China
中华人民共和国会计法 / Accounting Law
Enacted: 1985-01-21 ✅ Effective: 2000-07-01
📝 Overview
The basic law governing bookkeeping and financial reporting for enterprises and organisations in China, requiring accuracy and honesty and prohibiting falsification. It makes the legal representative responsible for the truthfulness of the accounts.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
💬 Practical reading
💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
If you run a company in China, know that the legal representative (法定代表人), not just the accountant, is personally responsible for truthful accounts. Keeping one correct set of books and avoiding off-the-books accounts protects you from serious penalties. General orientation, not legal advice.
📎 Official source
npc.gov.cn
🕒 Updated: 16 March 2026