On 20^th July 2017, Shanghai Administration of Industry and Commerce issued the Measures for the Directory of Enterprises with Abnormal Operation (Hu Gong Shang Guan (2017) No. 141). It provides the legal basis on what kinds of situations will be put on the abnormal operation list and how to do with the companies which are put on the abnormal operation list. Shanghai Dongjin is concluding the main points as below.

What kinds of situations will be put on the abnormal operation list?

1. The company fails to file the annual report on the company credit online system and make it to the public according to the Article 8 of Interim Regulations on Enterprise Information Publicity;
2. The company fails to make the online report on the company change information in time according to the Article 10 of Interim Regulations on Enterprise Information Publicity;
3. The company reports the untrue and false information publicity;
4. The company is hard to be contacted through its registered address or business address;

What kinds of situations will be regarded as that the company is hard to be contact through its registered address or business address?

1. The mail was posted to the company’s registered address or business address twice but no one receives it;
2. After the on-site visiting, it is certified by the real estate owner, property management company or other department that the company does not exist;
3. After the on-site visiting, it is certified the registered address or business address does not exist.

If the company is found to be hard to be contacted through its registered address or business address, such company will be put on the abnormal operation list after 10 working days since the on-site visiting and make it to the public.

Dongjin comments:

1. The company should ensure the annual report information (especially the address information and the contact person information) is true because it is the basis that the government tries to contact the company.
2. If the company’s registered address is different with the business address, the company should ensure both real estate owner and the management company know its company status and keep it informed if any government tries to find it.
3. For any information in the annual report, the company should keep the proof of the resources of the information (e.g. the financial report, the equity transfer agreement and etc.) for the purpose of any random check by the local government.
4. The company is easily neglecting whether it has been put on the abnormal operation list. We advise that a specialist should check the online status at least every month.

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