Since the AIC reformation last year, many companies were put on the abnormal operation list due to certain reasons. For example, the companies did not file the annual report on time; the companies can hardly be found at its registration address; the information was wrong, and etc. We conclude the following common situation that the companies will be found to be rejected by the government and have the restriction of its business.

• The labor bureau will check the company status and if it is found the company on the abnormal operation list, it will hardly for its foreign employee to extend the term for work visa;
• When the company make the guarantee on the personal credit, e.g. to guarantee its employee when he/she is applying for the tourist visa, if the foreign consulate finds the company is on the abnormal operation list, the visa application maybe rejected;
• When the company is applying for the financial support as the high-technology enterprise, if it is found on the abnormal operation list, his application will be rejected;
• If the company is put on the abnormal operation list, its legal representative will be hardly buy the railway or airplane tickets in China;
• When the company wants to have an online store on ALIBABA, if it is found on the abnormal operation list, his application will be rejected;
• When the company wants to be listed on the stock, it is required to be obtained the legal operation proof from the local AIC bureau. If it is found on the abnormal operation list, such proof is hardly to be issued by the local AIC bureau;
• When the company wants to apply for the loan from the bank, if it is found on the abnormal operation list, the loan application will be rejected.

Dongjin comments: The government will share these information to the public. Any neglect will cause the company having a bad record. The company needs to check from time to time its operation status and take of this issue very carefully.

If you have any questions, please send the email to me.

Ms. Jojo Hu

TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021

Email: jojohu@shanghaiinvest.com