KPMG China has officially converted its China operations from a
joint venture to a special group partnership with limited
liability, which places control of the firm in the hands of Chinese
partners.
The Chinese Ministry of Finance (MoF) approved KPMG’s restructuring
plans in July, following an announcement of new rules by the MoF in
May, which are designed to place control of large firms into the
hands of the Chinese and ensure voting rights are dominated by
Chinese-qualified CPAs.
KPMG China is the first of the Big Four to undergo the
transition.
The rest of the Big Four are still operating under joint venture
agreements with local firms, however Deloitte and Ernst &
Young’s licence is to expire soon.
KPMG China chief partner Yao Jianhua told Chinese media the
converted firm will observe Chinese laws and regulations and
practice according to international professional standards.
“Transformation will not affect the firm’s overall operations,” he
said.
According to the new rules by 2017 firms must have no more than 20%
of partners qualified outside of China. And, partners have to be at
least 40 years old and not older than 65.
