Navigating global expansion: when "going global" shifts from a race for speed to a battle for compliance

Joyce Lau, Head of Financial Accounting & Tax for Vistra Greater China, started the session by sharing key findings from the Vistra Friction Index: Where to Grow, Where to Execute (APAC Edition 2026). The index quantifies operational friction across 12 major APAC markets, measured against three core dimensions: entity management & regulatory, accounting & tax compliance and HR & payroll operations.

Several findings merit close attention:

• Entity establishment timelines vary — some markets allow company registration in as little as 15 minutes, whilst others require upwards of three months. This disparity directly impacts market entry pace and capital efficiency.
• Tax compliance burden is emerging as a critical variable in market selection — significant differences in tax rate structures, layered tax obligations, filing complexity and automation levels mean that total compliance costs are reshaping how enterprises prioritise markets.
• The Opportunity-Friction Quadrant maps all 12 APAC markets into four strategic categories, enabling enterprises to identify which markets call for "move fast", which require "invest in governance", which are suited to "harvest & optimse" and which demand "selective only".

Core insight: Enterprises that learn to navigate friction build lasting competitive moats. Friction itself becomes the advantage. Click to download the full white paper.

In the second part of the webinar, Kevin Ng, Executive Director of Financial Accounting & Tax services for Vistra Greater China, addressed the core financial, tax and compliance challenges facing Chinese enterprises expanding overseas. His session covered three thematic deep-dives and one real-world case study:

• Accounting standards & the IFRS framework — conceptual framework, CAS differences and the closed countries list
• Financial system deployment & compliance — a comparison of three models and the decision-making framework for selection
• Global tax structure & compliance — compliance pressures, tax architecture and professional service solutions
• Case study — a practical transformation journey from outsourcing to ERP localisation

I. Accounting standards & the IFRS framework — conceptual framework, CAS differences and the closed countries list

Over 140 countries and jurisdictions now permit the adoption of IFRS, yet more than 30 retain mandatory local bookkeeping requirements — what we called "closed countries". Crucially, IFRS adoption and local statutory bookkeeping requirements are not mutually exclusive. Enterprises frequently face the dual obligation of managing group reporting under IFRS whilst maintaining local statutory accounts. This session examined the practical implications of standards divergence and shared forward-planning strategies for closed countries.

II. Financial system deployment & compliance — three models compared and the selection framework

The webinar introduced three bookkeeping models: centralised ERP with localisation, centralised ERP without localisation and non-centralised ERP, analysed across multiple dimensions. No single model is universally superior — enterprises should select the approach best aligned with their stage of development, business scale and internationalisation strategy. Additionally, a collaborative service model with a global professional partner (the outsourcing model) represents a valuable complementary option.

III. Global tax structure & compliance — compliance pressures, tax architecture and professional service solutions

Chinese enterprises operating across multiple jurisdictions face mounting compliance pressures driven by regulatory divergence and rising operational costs. At the same time, they must navigate critical international tax risk areas including transfer pricing, permanent establishment (PE) recognition, controlled foreign corporation (CFC) rules and the GloBE global minimum tax requirements. Kevin also shared insights on the evolution of the tax function, the pyramid-shaped tax framework and a phased approach to upgrading tax management capabilities.

IV. Case study — a practical transformation from outsourcing to ERP localisation

How did a Chinese A-share listed automotive manufacturer complete the journey from outsourced bookkeeping to full ERP localisation — under tight timelines, an undetermined operating model and strict cost constraints? This session presented the phased implementation pathway and key outcomes, demonstrating how a global finance and tax management philosophy translates into real-world project delivery.

Global expansion is never a single-step journey. Wherever your enterprise stands on its path — market assessment, structural design, compliance implementation, or systems upgrade — Vistra's 9,000+ experts across 50+ markets are ready to move forward with you.