The time flies. it’s May now. Have you done the annual inspection for your company?

 

In accordance with “Provisional regulations on disclosure of enterprise information” (《企业信息公示暂行条例》), the company who was founded before Dec. 31, 2020 shall finish the annual inspection to AICs (Administrative bureau of Industry & Commerce) through National Enterprise Credit Information Publicity System (企业信用信息公示系统) before 30th.Jun.2021.

 

(Refer to Article 8 of the Regulations: an enterprise shall submit its annual reports of the preceding year to the AICs (工商行政管理局）and disclose such reports to the public though National Enterprise Credit Information Publicity System (企业信用信息公示系统) before 30th.Jun. 

 

Otherwise, the company shall be listed in an abnormal operation recording system (the “Abnormal System” 经营异常名录). If the circumstances are severe, the company shall be subject to administrative penalties. (Refer to Article 17 of the Regulations: under any of following circumstances, an enterprise shall be listed in an abnormal operation recording system (the “Abnormal System” 经营异常名录)

 

1. Failure to disclose annual reports within the time period stipulated by the Regulations or failure to disclose pertinent enterprise information within the time period ordered by AICs. 

 

2. Concealing facts of falsifying information. 

 

Please be aware of that if an enterprise fails to fulfill its disclosure obligations for 3 years, the AIC of the State Council or the AICs of provinces, autonomous regions, and municipalities directly under control of the Central Government shall list such enterprise in a severe violation recording system (the “Violation System”), and disclose such violation to the public through the Disclosure System. 

 

Legal representatives, person in charge of the enterprise listed in the Violation System shall not act as legal representatives or person in charge of other enterprises in 3 years.