The end of a year is always a busy time for companies, but please keep in mind your company's annual report! It will not only affect the operation and credit record of the company but also your residence permit in China.
What’s Corporate Annual Report?
Each year, every company in China must submit its annual report to the Industrial and Commercial Administration Institution within a specific period through an online system.
And all the Annual Reports in this system are available to the public so that any company or individual can check any one of them online.
Why you need to Submit the
Annual Report in advance?
There are too many companies
out there.
According to statistics from the State Administration for Industry & Commerce, the number of registered companies around China is increasing greatly each day.
This means that companies involved in the annual report submission can be overwhelming for the online systems.
Don't wait until the peak time
after Spring Festival
The lunar new year's day falls on February 16th, 2018, and the Spring Festival ends on February 21st.
Most companies will choose to submit their annual reports after the Spring Festival, at that time, the system will be so busy that it may get stuck or even crash.
What If Corporation Fails To
Submit Annual Report?
Companies that fail to submit their Annual Reports within this period will be added to the “Poorly Performing Company List”.
And if the company has been on that list for 3 years, it will be moved to the “Illegal Company List”, which, will result in:
1. A lifetime record of “Illegal Company List” that cannot be eliminated.
2. No way to deal with business alternation or cancellation.
3. Poor credit record that exerts negative influences on cooperation with other enterprises.
4. Long-term limits on visa applying, departure and entry, air tickets buying or high-speed rail tickets buying, or luxury hotels booking (usually 3-star or above).
A bad credit, so many limits!!
In addition, if practices frauds found during Annual Report, you will be fined for 10,000-30,000 RMB (for illegal enterprise).
Tips From HACOS
Besides annual reports, there are many other tasks for foreign-owned enterprise, such as corporate income tax reports, annual foreign exchange inspection, annual joint inspection.
■ If your company has the right to engage in import and export trade, you will also need to do the annual customs inspection;
■ If your company’s business scope includes advertising, then you'll also need to do the annual advertisement inspection.
All these procedure must be submitted within the specified period.
In order to make your company run smoothly over the next year, please make a plan in advance to submit the Corporate Annual Report!
HACOS,Business Services Solutions Master