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Some businesses go down in a blaze of glory. Others quietly fizzle out. No matter which field you are working in, you need to know that it is necessary to formally dissolve your business once you decided to stop operating it. 

 

As the government has rolled out a series of preferential policies and measures for the development of micro, small and medium enterprises (SMEs), there are numerous newly registered companies in China in recent years. 

 

Some may need to close their businesses due to economic conditions, low profits, tough competition, etc. It is difficult for business owners to close their company, however, they can’t just leave it and stop running. 

 

 

Boss, if you decide to close your company or your business is on the verge of going bust, please cancel your business registration! Otherwise, there may be some legal consequences such as heavy fines and travel restrictions. 

 

 

BLACKLISTED BY TAX AUTHORITY

 

1. Offense disclosure & heavy fines

 

China’s State Administration of Taxation (SAT) has implemented measures to what is known as the blacklist system against tax illegalities, which came into effect in 2016. 

 

According to the policy, tax-related offenses including refusing to declare taxes or filing false tax declaration will be recorded in the information publicity system and made public, which will affect the offender’s tax credit. 

 

Related article: Banned Leaving China for Violating These! 

 

However, if offenders can fully pay the taxes and fines (normally 2,000 yuan – 10,000 yuan), the related info will be recorded but not disclosed to the public. 

 

 

Therefore, if you still want to operate your business and keep a good record of your credit, you need to make sure that your company is not blacklisted. Canceling your business registration in time or submitting annual report regularly can get you out of economic loss and other troubles. 

 

However, some businesses go down in a blaze of glory, others quietly fizzle out. You do a little less business one month, and then even less and eventually nothing at all. Either way, a day comes where you know it’s all over. 

 

2. Newly registered company to be affected

 

As all affiliates are recorded in the SAT’s system, the involved offenses may affect the offender’s affiliate companies, such as adding cost and time of tax-related process.

 

LISTED AS ENTERPRISE WITH ABNORMAL BUSINESS OPERATIONS

 

1. Offense disclosure & heavy fines

 

According to China’s State Administration for Industry and Commerce (SAIC),  a company will be given the status of abnormal business operations if it has ceased operations for quite a long time or fails to submit annual return on time. 

 

Meanwhile, the Regulations of Guangdong Province on Commercial Registration stipulates that a company will be fined up to 30,000 yuan if it fails to submit annual report or disclose related info as required. 

 

 

The offense will be recorded by the State Administration for Market Regulation (SAMR) and disclosed to the public via the credit information disclosure system. 

 

If the company handles it within 3 years, the status can be removed. Otherwise, it may be listed as an enterprise with serious illegal and dishonest acts. 

 

 

2. Cancellation of business license 

 

For an enterprise that does not submit annual report as required for two consecutive years and fails to declare taxation, it is likely to have its business license suspended or canceled, which is an extremely severe administrative punishment.

 

In this circumstance, liquidation and registration cancellation are still necessary because shareholders and actual controllers of the enterprise bear certain liability for the enterprise. There’s a risk of economic disputes without liquidation. 

 

 

LIFE AND WORK RESTRICTIONS 

1. Employment restrictions 

 

If an enterprise is listed as an enterprise with serious illegal and dishonest acts, its legal representative and the responsible person are not allowed to work as other enterprises’ legal representative or responsible person. 

 

2. Life restrictions 

 

The person involved will be restricted in various aspects of their life, such as exit-entry, transportation, bank loan, etc. 

 

In summary, if your business is going tougher and tougher, you’d better formally close it. ‘Sleep mode’ is never a good option. 

If you decided to cancel business registration, or have any questions about it, please feel free to contact us, HACOS will help you! 

In order to help you reach the latest update on the global pandemic situation, HACOS has set a quick link on the menu of our WeChat page. Follow us, you can check it whenever you want! 

 

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According to China’s civil aviation regulator, there are several China-bound flights to be suspended in recent days. Today we will share the updates in order to help you plan your travel in advance. 

  

The Civil Aviation Administration of China (CAAC) has issued “circuit breaker” directives on several international airlines’ flights to China as some passengers on these flights have been tested positive for coronavirus. 

 

The involved domestic and overseas airlines include Air China, China Southern Airlines, Emirates Airlines, Ethiopian Airlines, Uzbekistan Airways, Ikar Airlines, Azur Air and Ural Airlines. 

 

△ Screenshot of the directives posted on CAAC’s official web

 

We’ve posted that there are several flights to be temporarily suspended or canceled starting from November 23. You can click here to have a review. Here’s the update of the list:

 

Based on the earlier “reward and circuit breaker mechanism”, airlines must suspend flights on a route for one week if five passengers test positive for coronavirus. If the number exceeds 10, the airline must suspend the flights for four weeks. 

 

The quota for the above-mentioned flights shall not be used for other routes.

 

If a flight triggers the circuit breaker mechanism during this period, the suspension times will accumulate. 

 

If you have bought the tickets for the involved flight during the suspension period, please contact the airline to change the flight as soon as possible. 

 

We will keep following the updates on China-bound flights and the latest entry policies. Stay tuned! 

 

If you have any questions about coming to China, please feel free to contact HACOS! 

In order to help you reach the latest update on the global pandemic situation, HACOS has set a quick link on the menu of our WeChat page. Follow us, you can check it whenever you want! 

 

Share to let your friends know!

SOURCE | CAAC / GD Today

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2021 is coming! Don’t forget to prepare your company’s annual report! According to the relevant regulations, companies in China are required to submit an annual report of the previous year from Jan 1 to Jun 30, or they will be fined, even shut down.

 

WHAT IS ANNUAL REPORT?

 

According to the Interim Regulation on Enterprise Information Disclosure, an enterprise shall, from January 1 to June 30 each year, submit the annual report of the previous year to the administrative department for industry and commerce through the enterprise credit Information disclosure systems. 

 

  

This process is known as annual reporting or annual inspection process. The system will close after the deadline and those who fail to submit the reports shall be fined and included into a list of enterprises with abnormal operations, which affect the business license renewal. 

 

 

WHO NEEDS TO SUMMIT?

 

An enterprise set up and registered in the current year shall submit and disclose its annual report from the next year. 

 

In other words, business entities formed in or before 2019 are required to do annual reporting this year, including: 

 

• Enterprise
  
• Sole Trader 
• Specialized Farmers Cooperatives

WHY DO IT IN ADVANCE

• From the perspective of the government
  

According to statistics from the State Administration for Market Regulation of China, the actual number of entities across the country has reached 119 million by the end of 2019. 

 

It means that a huge amount of entities are involved in the annual report process, which may cause problems like system lags even crashes. 

 

Therefore, preparing for the process in advance can ensure the process goes smoothly and avoid the risks of failure.

 

• From the perspective of enterprises

As said above, an enterprise needs to submit an annual report with contents that can reflect the status and performance of the enterprise. So you have to collect and sort out a lot of information before the process. 

 

It could be really troublesome and complicated to prepare all the info and details, so we recommend you find a professional and experienced agency to do it. 

 

 

 

WHAT IF OVERDUE?

 

• Listed as enterprises with abnormal operations
  

Enterprises that fail to report on time will be included into the list of enterprises with abnormal operations. If your company has been on the list for three years, it will be blacklisted as an enterprise with serious illegal and dishonest acts.

 

 

Once a company is blacklisted, it will be on the list for five years. What’s more, the legal representative and director of the company are not allowed to be in charge of other companies. 

 

For the company cannot comply with the rules in a timely manner, authorities will cancel its business license. 

 

• Restricted in many aspects

The failure will be recorded and affect your social credit. That means you are not allowed to do a lot of things in daily life, for example:

 

• Cannot buy high-speed railway tickets 

• Be restricted to entry or exit the country 

• Cannot open an online shop 

• Cannot declare your enterprise as high-tech enterprise 

• Children cannot travel around 

 

 

What’s more, you will be affected in public procurement, loans, honorary title awarding, and so on. 

 

• Imposed a fine

Authorities will order these companies to rectify within time limits and impose a fine topped at 30,000 yuan. 

 

 

If you have received such a message recently, don’t worry, it’s a regular notice issued by the government. Please feel free to contact us if you have not prepared for the process, HACOS will help you! 

In order to help you reach the latest update on the global pandemic situation, HACOS has set a quick link on the menu of our WeChat page. Follow us, you can check it whenever you want! 

 

Share to let your friends know!

👇These Articles May Help You

	You’ll Be Blacklisted for These Transactions! Strict Rule!
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A series of new policies and measures have now been or will soon formally adopted and come into force. Let’s see how they will affect your everyday life in China and check the updates of important news! 

– 01 –

China releases official 2021 public holiday arrangement

 

Last week, China’s General Office of the State Council released the official 2021 public holiday arrangement. There are 7 Chinese festivals having a holiday for all citizens, according to the Regulation on Public Holidays for National Annual Festivals and Memorial Days. 

 

We have summarized the related info and make the calendar for 2021, you can click here or check the following link the get the full content. 

 

Related article: China’s Official 2021 Public Holiday Calendar Just Came Out! 

– 02 –

Business visitors gain quick channel between China and Japan 

 

China and Japan resumed business travel on Monday with a fast-track entry system that exempts eligible visitors from compulsory 14-day quarantine. 

 

 

“It will accelerate the pace of resumption of companies’ manufacturing activities amid the pandemic and I believe it will provide an important support for the recovery and development of the Chinese and Japanese economies,” State Councilor and Foreign Minister Wang Yi told the online Sino-Japan forum on Monday. 

 

In a message read at the forum, Japanese Foreign Minister Toshimitsu Motegi also hailed the change. 

 

 

According to Xinhua News, the newly-launched “fast track” can further fuel bilateral cooperation to beat the COVID-19 pandemic and get work and production back on track. 

– 03 –

You can buy cheaper flight tickets soon! China expands domestic route airfare reform

The Civil Aviation Administration of China (CAAC) said last week that it would liberalize airfares of domestic routes operated by at least three airlines from Dec 1. 

 

The reform will substantially increase the number of domestic air routes with market-based prices, and the mechanism for the market to determine prices will further strengthen, the CAAC said. 

 

This move will likely continue to tap domestic market demand and accelerate the recovery of the sector. 

 

– 04 –

Shenzhen checkpoint to suspend operation of 24-hour service

 

The schedule for Shenzhen Bay Checkpoint to implement 24-hour border crossing service before the end of the year has been suspended due to COVID-19, the Shenzhen Municipal Office of Port of Entry and Exit announced on its official website.

 

Due to the risks of COVID-19, the border crossing time has been adjusted to 10 a.m. to 8 p.m. from the original 6:30 a.m. to midnight. 

 

Hong Kong and Shenzhen will develop and assess the 24-hour service appropriately under the overall situation of COVID-19 prevention and control, according to the website. 

 

 

For the facilitation among cities of the Guangdong-Hong Kong-Macao Greater Bay Area, Shenzhen and Hong Kong had agreed in August to implement the 24-hour service at Shenzhen Bay Checkpoint. 

 

Shenzhen Bay Checkpoint will be one of the three checkpoints between Shenzhen and Hong Kong that offer the service if the arrangement goes through. The other two checkpoints are Liantang Checkpoint in Luohu District and Huanggang Checkpoint in Futian District. 

 

– 05 –

2 new intercity rail lines launched in Guangdong

Two new intercity railways officially began service in Guangdong on Monday, further facilitating the travel of local residents and tourists in the province. 

 

The Guangzhou-Qingyuan Intercity Railway Line, which reaches 38.2 kilometers, will help accelerate the economic integration of Guangzhou and Qingyuan.

The new line has six stations, including two at ground level and four elevated. Travel time is about 30 minutes for the whole journey. 

 

 

The 22.6 kilometer-long Guangdong Donghuan Intercity Railway has four stations, including one at ground level and three underground. It links Huadu station, also an intercity transfer station for the Guangzhou-Qingyuan line, to Guangzhou Baiyun International Airport, one of the major aviation hubs in the country. 

– 06 –

Loudspeakers to be banned in Shanghai metro 

A new restriction on the use of loudspeakers in metros will take effect in Shanghai on Dec 1, according to Shanghai Metro on Wednesday. 

 

The posters about the new rules are already in trains. They also reiterate the rule that bans eating and drinking in carriages. 

 

The move has been supported by many netizens, some of whom have suggested that the rules be rolled out across the country.

 

Regarding the implementation of the rules, a staff member told local news portal ThePaper that passengers may alert the metro’s customer service when they notice any offenses being committed.

– 07 –

China to improve export control list as ECL to be effective

The Ministry of Commerce will further improve the country’s export control list and release it in due course. 

 

Export control is a common international practice in which a country prohibits or restricts the export of specific items, Gao Feng, spokesperson for the ministry, told an online press briefing in October. 

 

His remarks came after China’s top legislature passed a law on export control, which would go into effect on December 1.

 

China may take countermeasures against any country or region that misuses export control measures and poses a threat to the country’s national security and interests, according to the new law. 

 

The law also specifies that technical documentation related to the items covered by the law is also subject to export control stipulations. 

If you want to source and export products from China, please feel free to contact us! 

 

In order to help you reach the latest update on the global pandemic situation, HACOS has set a quick link on the menu of our WeChat page. Follow us, you can check it whenever you want! 

Share to let your friends know!

SOURCE | China Gov / Xinhua News / ecns / GDToday

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