1. Does equity transfer need to be audited? Equity transfer of state-owned assets or collective assets needs to be audited. If it is an individual company, no audit is required and the price will be executed at the price negotiated by both parties. But if the company's equity transfer price is too low, the tax authorities will step in to review it. 2. State-owned equity transfer procedures The transfer of state-owned equity involves special provisions on the supervision of state-owned assets and must comply with the provisions of the Company Law on equity transfer. According to the Company Law of the People's Republic of China and the Supervision of State-owned Assets of Enterprises "Interim Regulations on the Administration of Enterprise State-owned Property Rights Transfer", "Interim Measures for the Management of Transfer of State-owned Property Rights of Enterprises", as well as provisions on the transfer of state-owned equity to management and the transaction rules of corresponding property rights trading institutions. For the transferor, state-owned equity transactions can be divided into the following steps . (1) Preliminary Approval The transferor will formulate a "Transfer Plan" based on the basic information such as the amount, transaction method, and transaction results of this equity transfer, and submit it to the state-owned property rights authority for review and approval. After obtaining approval for the transfer of state-owned equity, proceed to the next step. Work. (2) The transferor shall organize the liquidation and verification of assets and capital (if the transfer of the state-owned property rights of the invested enterprise causes the transferor to no longer have a controlling position, the state-owned assets supervision and administration agency at the same level shall organize the liquidation and verification of assets and capital), according to the liquidation and capital verification Result in preparation of balance sheet and asset transfer inventory. (3) Audit evaluation: entrust an accounting firm to conduct a comprehensive audit, and entrust an asset appraisal agency to conduct asset appraisal on the basis of asset clearance and capital verification and audit. (After the assessment report is approved or filed, it will be used as a reference for determining the transfer price of the state-owned equity of the enterprise) (4) The enterprise to which the internal decision-making transfer of equity belongs shall convene a shareholders' meeting to conduct internal deliberations on the equity transfer. (If the transfer by agreement is adopted, the state-owned equity transfer shall be obtained. With the approval of the asset management department, the transferor and the transferee should initial the transfer contract and review it in accordance with the company's internal decision-making procedures), forming a resolution agreeing to the equity transfer and a commitment by other shareholders to waive their preemptive rights. If the legitimate rights and interests of employees are involved, the opinions of the Workers' Congress should be heard, and a resolution of the Workers' Congress approving the transfer should be formed. (5) Apply for listing, select a qualified property rights trading institution, apply for listing and trading, and submit copies of the legal person business licenses of the transferor and the transferred enterprise, the state-owned property registration certificates of the transferor and the transferred enterprise, the resolution of the shareholders' meeting of the transferred enterprise, and the supervisor The department's approval for the transfer of equity, the law firm's legal opinion, the audit report, the asset appraisal report and other written materials required by the exchange. (6) Signing an Agreement After the transfer is completed, the transferor and the transferee sign an equity transfer contract and obtain a property rights transaction certificate issued by a property rights trading institution. (7) Approval and filing: The transferor shall submit the written materials related to the equity transfer to the state-owned property rights department for filing and registration. (8) Property rights registration The transferor and transferee shall handle property rights registration procedures with the property rights transaction certificate issued by the property rights trading institution and the corresponding materials. (9) Change procedures After the transaction is completed, the target enterprise shall modify the Articles of Association and the list of shareholders and register the change with the industrial and commercial administration department.