Sunnyvale, CA -- (SBWIRE) -- 10/10/2011 -- An increasing number of companies with profit-generating trading entities in China are finding it difficult to repatriate their accumulated reserves to the US via dividends.

“The release of foreign exchange by China authorities is an issue, companies are frustrated with as they are not able to get cash out,” said Dr. Shan Nair, CEO and Co-founder of Nair & Co., a global services firm that helps companies expand internationally.

“There is a lack of understanding of the foreign exchange regulations in converting Chinese Yuan into a tradable currency like the USD. So when the US parent wants to repatriate some of their accumulated Chinese Yuan reserves, they think all you need is to declare a dividend and apply for a wire transfer to the US parent. While China allows Foreign Invested Enterprises (FIEs) and enterprises to remit their profits/dividends out of the country, there are a range of requirements companies must first meet, including regulatory and corporate governance compliance in China - the list is long and the key is to formulate a profit repatriation strategy,” added Alvin Chan, Client Services Director at Nair & Co., and an expert in China expansion.

Documents are submitted to bank for verification process: The document list includes:

•Tax payment statement

•Tax returns

•Audited reports

•Credit reports

•Other information as requested.

About Nair & Co.
Nair & Co. provides an integrated solution in the HR, finance, tax, compliance and legal arenas making a company’s overseas operations less risky, stress free and more strategic. It currently has 750+ client operations in over 50 countries with offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP).