Looking at the trend for the Chinese governmental changes on the administrative matter, the super-national treatment enjoyed by the foreign invested enterprise will be gradually cancelled, as well as the local tax preference policies. On the others side, the fact that the Chinese government is further simplifying the pre-approval procedures and will strengthen their post-administration will cause the local foreign invested companies to meet more potential punishment.
Shanghai Dongjin would like to share our understanding with you as the below points.
The registration procedure will be simplified
The company will have only one unique credit number for the registration at the various authorities;
The investor can have a much ideal company with less restriction on the registration (e.g. the company name, business scope, the register address and etc) only if there are no laws and regulations to prohibit it. The online registration will be further promoted.
The application subject to a pre-approval will be reduced. Most company can have the business license at first and then to apply for the special license if it is required.
The government will strengthen their administration
The company will be required to positively show to the public its true operation information. If the company does not make information publication in time or submit the wrong or fake information, the company will be put on the “abnormal operation” name list and show to the public.
Since the company has been put on the “abnormal operation” name list for three years, it will be further put on the list for seriously breaching the law and show to the public.
It will affect the company’s daily operation when they are handling the following matters: to enter into the business contract, to hire the staff, to make the loan from the bank, to make the custom clearance, the entry or exit China for a foreign staff, to apply for the favorable policy, to apply for the tax exemption and deduction, to invite to or submit of the tender, to governmental purchase and to give the prize or honor. Furthermore, it will cause the bad record on the main responsible person.
If you want to know more details, please contact our senior consultant.
Ms. Jojo Hu
TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021