Notice! You’ll Be Banned from Taking Plane/Train if…
March has come, for the majority of business owners in China have ushered in an important thing. Do you remember to submit the crucial Corporate Annual Reports? It not only affects your company’s operation but your personal credit in China!
What’s Corporate Annual Report?
Each year, every company in China must submit its annual report to the Industrial and Commercial Administration within a specific time period through an online system.
And all the Annual Reports in this system are available to the public so that any company or individual can check any one of them online.
Why Should You Submit
the Annual Report?
It’s stipulated that companies should submit their annual reports from January 1st to June 30th each year. Companies that fail to submit their Annual Reports within this period will be added to the “Poorly Performing Company List”.
Companies that fail to submit their Annual Reports within this period will be added to the “Poorly Performing Company List”.
And if the company has been on that list for 3 years, it will be moved to the “Illegal Company List”, which, will results in…
A lifetime record of “Illegal Company List” that cannot be eliminated.
No way to deal with business alternation or cancellation.
Poor credit record that exerts negative influences on cooperation with other enterprises.
Long-term limits on visa applying, departure and entry, air tickets buying or high-speed rail tickets buying, or luxury hotels booking (usually 3-star or above).
A bad credit, so many limits!!!
Get A Fine
According to the rules, corporation will incur a penalty or other forms of punishment if it ↓↓↓
Do not publicize Annual Report or related information of corporation based on rules within regulated period. The penalty is 5,000-30,000 RMB.
Fails to submit Annual Report to the government. Those who refuse to make corrections or disobeying the government will be incur a penalty. The penalty is 100-1,000 RMB.
Withholds the truth, practices frauds when publicizes information and Annual Report. The penalty is 10,000-30,000 RMB (for illegal enterprise), or 500-5,000 RMB (for individual business).
The corporate annual report is seen as an indicator of a company’s attitude towards credit, so if you fail to submit it on time, your company will be considered to have lost its credibility and will not be trusted elsewhere, which must be torturing for you.
Why Do I Have to Submit
the Annual Report ASAP?
There are too many companies out there.
According to statistics from the State Administration for Industry & Commerce, the number of registered market entities around China has reached 110 million by the end of 2018, including 34.742 million enterprises. In 2018, there were 21.4958 million new market players and 6.7 million new enterprises, an average of 18,300 new enterprises per day.
This means that this year there will be more than 100 million market entities involved in the annual report submission, which can be overwhelming for the online systems.
Avoid the Peak Time
Companies should submit their annual reports from January 1st to June 30th each year, but most companies will choose to submit their annual reports in the last 2 months of the specific period. At that time, the system will be so busy that it may get stuck or even crash. Please try to avoid the peak time.
The Annual Report Requires Professional Quality Work.
The annual report includes your company’s performance, and financial data etc. Therefore, it’s better to assign this work to professionals in this field.
Tips From HACOS
Besides annual reports, there are many other tasks every year, such as:
Corporate income tax reports,
Annual foreign exchange inspection,
Annual joint inspection.
If your company has the right to engage in import and export trade, you will also need to do the annual customs inspection; and if your company’s business scope includes advertising, then you’ll also need to do the annual advertisement inspection.
All these annual inspections must be finished within the specified time period, otherwise, your company’s operation and credit will be affected in 2019.
As the 2018 annual report submission has begun, HACOS would like to remind you —- please remember to do the annual report and all kinds of annual inspections, which are vital for your company’s credit!