The “A” foreign company in Shanghai has signed a large business contract with an important client that the company has needed to apply adding registration change of business scope to the local industrial and commercial bureau. If, according to the normal application of process of registration change, with enough time, it would not affect the “A” foreign company to fulfill business contract.
But the “A” foreign company has sent related application files to China Administration for Industry and Commerce have been refused when the legal personnel have signed with overseas investors. The reason was the signature of investors who have filed and registered in CAIC was different from this time, so it have needed investors to issue certification documents of right signatory. After the “A” foreign company has communicated with overseas headquarter, it found that investors had changed right signatory recently. But they had not told the company and CAIC to apply registration change in time. Although the overseas investors have deal with the investor opening certification and the notarial certification of right signatory ASAP, in the end, it delayed this great business contract fulfillment .The “A” foreign company has paid a huge amount of penalty for it.
If concerning the files of investors, the registration department would require investors to provide the latest opening certification and right signatory certification, when the foreign companies have been altered. But when investors changed, the foreign companies in China haven’t grasp details in time, or, while companies have known the details, but they haven’t went to the local industrial and commercial bureau to change alternation registration in time. On account that negligence might cause follow-up alternation application, even it had a huge influence and loss for running business. Therefore, DongJin has noticed, before enterprises have applied alternations, making sure that enterprises had communicated and verified details before hand, supposing that investors and right signatory had changed, they might go to the industrial and commercial bureau of enterprises locations to alter firstly, perhaps, doing notarial certification and preparing relevant documents in advance. In case that applications have been delayed even causing a loss.