(By You Yunting) Our previous post introduced that recently China revised the Company Law. All Company’s business license will be changed in China to cooperate with this revision. In today’s post, we would like to introduce some leading reform measures in Shanghai and Guangdong Province which will be implemented all over the China. The following are the differences between the 2014 version of Company’s business license and the preceding one.
- All companies shall renew its new business license
The prosperous coastal regions in China will fully renew its business license of commercial registration Since January 1, 2014. Enterprises registered in Shanghai and Guangdong province shall renew its business license before December 31, 2013. Failure to renew its business license will be fined.
2. A new business license will be marked with a quick response code.
A new business license will be integrated new technology with a quick response code at the top. Pointing the phone at a quick response code through a mobile application may immediately inquire all company’s registration information online. According to our experience, a company’s registration information online may contain the company’s name, legal representative, term of operation and address, etc., and an online inquiry website may be a website of local commercial administration. Pursuant to Chinese laws and regulation that a company shall display its business license in the enterprise’s main office or business premises, new business licenses would hold back to some extent the fraud that misrepresent others’ business license.
3. The simplification of annual inspection
The State Administration for Industry and Commerce orders enterprises to be inspected annually. Any enterprise that operates illegally or cancels registered capital will be failed to annual inspection. However, such annual inspection is a burden to an enterprise. According to the new business license, an enterprise shall submit an annual inspection record online at the period from March to July without inspection on the spot.
4. The simplification of registered capital and the scope of operation
There is no “registered capital” section in the new business license, which can be inquired online. At the same time, the “scope of operation” section will also be simplified only into the major operation instead of detailed contents. An enterprise that modifies its scope of business now shall not file a separate application that is required in the past.
5. An address can be used to registered many companies.
The administration for industry and commerce only permits an address to apply for a company in the past. Now it is starting to change that companies with investment relation could be allowed to register at a same address and that an address can be registered many companies in some governmental approved specializing industry districts without quantitative restrictions.
Lawyer Contacts
You Yunting：86-21-52134918 youyunting@debund.com/yytbest@gmail.com
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