STATUTORY RESERVE

12 Months Ended

Dec. 31, 2012

Insurance [Abstract]

STATUTORY RESERVE

NOTE 16. STATUTORY RESERVE

Under the PRC Law, the Company’s subsidiary and variable interest entities in the PRC are required to make appropriation to the statutory reserve based on after-tax net earnings and determined in accordance with generally accepted accounting principles of the People’s Republic of China (the “PRC GAAP”). Appropriation to the statutory reserve should be at least 10% of the after-tax net income until the reserve is equal to 50% of the registered capital. The statutory reserve is established for the purpose of providing employee facilities and other collective benefits to the employees and is non-distributable other than in liquidation.

For the years ended December 31, 2012 and 2011, the Company contributed $141,117 and $32,588 to statutory reserve, respectively.