China Company Renew
The annual renew of enterprises refers to the statutory procedures for the examination and approval of enterprises by the administrative departments for Industry and Commerce by the law, and the qualification of enterprises to continue their business operations.
The Switch from China Company Renew to China Company Annual Report
China has switched from enterprise’s annual renew to the annual report. The enterprise shall submit the annual report to the administrative department through the public notice system of the credit information of the market subject within the prescribed period.
The Date of the annual report begins and ends from March 1st to June 30th each year.
The annual report includes:
- Implementation and change of the company's registration particulars;
- Internal Auditing with the help of Audit Firm;
- The contribution of the shareholder or the contributor;
- External investment of the company;
- Establishment of branch offices by the company;
- Operation report of the company;
Misunderstandings of Annual Report
Many business owners think annual reports are very troublesome. They ignore the benefits of the annual report. The implementation of the yearly report system is conducive to the establishment of a fair and competitive market environment. The enterprise shall publicize the annual report to the public through the corporate credit information system, and make public the contributions of the shareholders (promoters) of the company and the status of the assets.
Moreover, the implementation of the annual report system also facilitates the maintenance of transaction security. The vast majority of consumers, Banks, creditors and trading partners can check the credit information of enterprises through the corporate credit information system before trading with the enterprise. This is conducive to ensuring trade security, avoiding and reducing transaction risks.
The Significance of China Company Annual Report
The enterprise is responsible for the authenticity and legality of the annual report. The administrative departments may make random checks on the publicity contents of the annual reports of enterprises. The regulatory authorities will punish the enterprise following the law if the yearly report conceals the truth and practices fraud.
The penalties for failing to submit an annual report are also considerable. Once was listed in the business exception list, the enterprise shall restrict or banned from further financing, application for the government land supply, import, and export, registration of a new company, bidding, government procurement, manufacturing production and business operation, professional qualifications application, etc. following the law.
The Adoption of Credit Information Publicity System for China Enterprises
For enterprises that have not publicized the annual reports within the prescribed time limit, the administrative department shall load them into the exception list of the management system of the credit information publicity system.
The enterprise may apply to the administrative department for the resumption of the regular record state within three years to fulfill the duty of public notice of the annual report. Otherwise, it will be blacklisted. Annual renew or annual report, although only a one-word difference, reflected the regulatory authorities' re-understanding of market relations. It is also significant progress in the concept of legislation and system design.
Checklist for China Company Renew & Internal Auditing Outsourcing, Audit Services:
- Original Business License
- Official Seals
- Financial Seal
- Contract Seal
- The Balance Sheet
- Profit and Loss Statement
- Legal representative’s ID card/passport
- Office Lease Agreement
- License for Opening Accounts
- Capital Verification Report (if applicable)
- Other Required Files