Annual Inspection
The annual inspection of an enterprise refers to the industrial and commercial administrative authority inspecting the enterprise according to the law according to law, and confirming the legalization of the enterprise’s continuing business qualification. The company shall obtain the Business License of the Enterprise Legal Person of the People’s Republic of China, the Business License of the People’s Republic of China, and the Business License of the Enterprise Legal Person. “Limited Liability Company, Co., Ltd., a non-corporate corporate legal person and other business units of “Business License” are required to participate in the annual inspection. Companies that have registered in the same year will participate in the annual inspection from the following year.
I.Enterprise annual inspection time
- According to Article 5 of the “Measures for Annual Inspection of Enterprises”, the starting date of the annual inspection is from March 1 to June 30 of each year (the earthquake-stricken area is as of September 30). The registration authority checks the company’s situation in the previous year within the stipulated time.
II.The main contents of the enterprise annual inspection included
- Implementation and changes in business registration matters;
- The capital contribution of the shareholders or investors or the conditions for the cooperation;
- Foreign investment of enterprises;
- The establishment of branches by enterprises;
- Production and operation of the enterprise.
III.The basic process of enterprise annual inspection
- Enterprises apply for and submit annual inspection reports and other relevant materials year within the stipulated time.
- The registration authority accepts and approves the annual inspection materials;
- The enterprise pays the annual inspection fee;
- The registration authority attaches the annual inspection mark and stamps the annual inspection stamp;
- The registration authority shall return the business license of the enterprise.
IV.Documents to be submitted
- Annual inspection report;
- Business license;
- Corporate legal person annual balance sheet and income statement;
- Other materials that should be submitted.
- In addition to submitting the documents listed in (1).(2), the local unincorporated branch shall also submit a copy of the business license of the legal person (the copy of the business license should be stamped with the official seal of the registration).
Companies and foreign-invested enterprises shall submit annual audit reports. - Newly established corporate legal persons that are less than one fiscal year and foreign-invested enterprises whose capital contribution period expires in accordance with the articles of association or contract shall submit capital verification reports.
V.What are the two types of companies that have passed the annual inspection?
- A.
-To comply with industrial and commercial administrative regulations in good condition. - B.
-For violations of industrial and commercial administrative regulations.
VI.Which companies will not pass the annual inspection and how to deal with it?
Article 15 of the “Measures for the Annual Inspection of Enterprises” stipulates that the registration authority shall not pass the annual inspection for enterprises in one of the following situations:
- The paid-in capital of the enterprise fails to reach the minimum amount prescribed by laws and administrative regulations.
- Although the paid-in capital of an enterprise has reached the minimum prescribed by laws and administrative regulations, it is far from the registered capital.
- There are other serious violations of laws and regulations.
The registration authority shall impose penalties on enterprises that fail the annual inspection in accordance with the “Regulations on the Administration of Enterprise Legal Person Registration” and its implementation rules and the “Regulations on the Administration of Company Registration”.
VII.How will the competent registration authority punish companies that fail to report for annual inspections on time?
- Article 18 of the “Corporate annual inspection approach”, in the company without justification before March 15 not to submit annual inspection materials, the registration authorities impose a fine of CNY$1,000. If the annual inspection is not declared before the deadline for the annual inspection and belongs to the company, a fine of CNY$10,000 to CNY$100,000 shall be imposed in accordance with Article 68 of the”Regulations on the Administration of Company Registration”; it is a non-corporate enterprise legal person or an unincorporated business For units, a fine of less than three times the amount of illegal income shall be imposed, but the maximum shall not exceed CNY$30,000. If there is no illegal income, a fine of CNY$10,000 shall be imposed.
VIII.Can enterprises that have not participated in the annual inspection continue to engage in business activities? How will the registration authority handle it?
- Article 19 of the “Measures for Annual Inspection of Enterprises” stipulates that enterprises that have not participated in the annual inspection shall not continue to engage in business activities. The registration authority shall announce the corporate legal persons that have not participated in the annual inspection before the deadline of the annual inspection. If the annual inspection has not been applied for within 30 days from the date of the announcement, the business license shall be revoked.
IX.Can companies that have not undergone annual inspection go through changes and cancellation of registration?
- According to the provisions of the State Administration for Industry and Commerce [1995] No. 258, when an enterprise applies for change or cancellation of registration, if it is found that the enterprise has not gone through the annual inspection procedures or has not passed the annual inspection, the industrial and commercial administration shall not accept the change (including the addition of branches Institutions and foreign investment) or cancellation applications shall be accepted after the annual inspection procedures have been completed.
X.The enterprise has the Internet conditions and adopts the method and process of online declaration for annual inspection
- The enterprise logs into the “Enterprise Online Annual Inspection System”.
- Companies follow the prompts for online registration and online declaration.
- After the company has successfully submitted it online, check the annual inspection results after 5 days to see if the preliminary inspection has passed the annual inspection.
- Pass the annual inspection for the preliminary review, print the relevant materials, and bring the relevant materials to the relevant industrial and commercial office within 7 days. Submit the annual inspection materials, pay the annual inspection fee, and obtain the business license.
- The company’s annual inspection is over.