Provisional Measures on Managing the Directory of Enterprises With Abnormal Operations

Decree of the State Administration for Industry and Commerce

No. 68

  The Provisional Measures on Managing the Directory of Enterprises With Abnormal Operations have been reviewed and approved by the State Administration for Industry and Commerce. They are hereby published, and will enter into force on October 1, 2014.

Zhang Mao, Director

19 August 2014

Provisional Measures on Managing the Directory of Enterprises With Abnormal Operations

(August 19, 2014, State Administration for Industry and Commerce Decree No. 68)

Article 1. The Present Measures are enacted based on the stipulations of the “Company Registration Regulations of the People’s Republic of China”, the “Provisional Regulations on Enterprise Information Publicity”, the “Registration System Reform Plan of Registered Capital” in order to standardize management of the directory of enterprises with abnormal business operations, guarantee fair competition, promote the integrity and self-regulation of enterprises, strengthen the credit constraints on enterprises, maintain the security of transactions, broaden social supervision.

Article 2. Industry and commerce departments shall include enterprises with abnormal business operations in the directory of enterprises with abnormal operations, disclose the list through the enterprise credit information publicity system, and remind enterprises to fulfill their disclosure obligation.

Article 3. The State Administration for Industry and Commerce is responsible for leading national work on the management of the directory of enterprises with abnormal business operations.

Industry and commerce departments above the county level are responsible for the work of managing the directory of enterprises with abnormal business operations including enterprises registered with them.

Article 4. Industry and commerce departments above the county level shall include in the the directory of enterprises with abnormal business operations any enterprise in any of the following situations:

(a) not having published their annual report in accordance with the period stipulated by article 8 of the Provisional Regulations on Enterprise Information Publicity.

(b) Not having publicized relevant enterprise information within the time limit set by industry and commerce department according to article 10 of the Provisional Regulations on Enterprise Information Publicity.

(c) Disclosing enterprise information that conceals the real situation or is fraudulent.

(d) Being unreachable through their registered address or at their business premises.

Article 5. Where industry and commerce departments include an enterprise in the the directory of enterprises with abnormal business operations, they shall make a relevant decision. They shall include the credit record on the abnormal business operation among enterprise information, and publicize it through the enterprise credit information publicity system. The decision shall include the name of the enterprise, its registration number, the date of inclusion in the list, the reason for inclusion in the list, and the institution making the decision.

Article 6. Where an enterprise does not submit its annual report for the previous year according to article 8 of the Provisional Regulations on Enterprise Information Publicity, industry and commerce departments shall, within 10 working days from the date of publication of the annual report, issue a decision to include the enterprise in the directory of enterprises with abnormal business operations, and publicize it.

Article 7. Where an enterprise fails to comply with the disclosure obligation posed by article 10 of the Provisional Regulations on Enterprise Information Publicity, industry and commerce departments shall issue a written order to fulfill the disclosure obligation within 10 days. Where the enterprise fails to publicize the information within the time limit, industry and commerce departments shall, within 10 working days after the expiration date of the order, make a decision to include the enterprise in the directory of enterprises with abnormal business operations, and publicize it.

Article 8. Industry and commerce departments shall conduct random inspections according to the law, or checks on report received, to verify whether information disclosed by the enterprise conceals the actual situation or is fraudulent. They shall issue a decision to include the enterprise in the directory of enterprises with abnormal business operations within 10 working days after the inspection, and publicize it.

Article 9. Where industry and commerce departments, in the course of the lawful fulfillment of their duties, are unable to contact an enterprise through its registered address or at its business premises, they shall, within 10 working days from the date of the inspection, issue a decision to include the enterprise in the directory of enterprises with abnormal business operations, and publicize it.

Industry and commerce departments may contact the enterprise through the mean of special correspondence. An enterprise shall be deemed unreachable through its registered address or at it business premises where no one has signed for the acceptance of mail sent to the enterprise registered address or to its business premises for two times.The time intervals at which mail is sent shall not be inferior to 15 days, and superior to 30 days.

Article 10. An enterprise listed in the directory of enterprises with abnormal business operations shall, within 3 years from the date of its inclusion, comply with the disclosure obligations according to provisions of the Provisional Regulations on Enterprise Information Publicity, and it may request to be removed from the list of enterprises with abnormal business operations to the industry and commerce department that issued the decision.

Where industry and commerce departments shall, in accordance with provisions of the preceding paragraph, remove an enterprise from the list of enterprises with abnormal business operations, they shall issue a decision, and publicize it through the enterprise credit information publicity system. The decision shall include the name of the enterprise, its registration number, the date of its removal from the list, the reason of its removal, and the institution that issued the decision.

Article 11. According to article 6 of the Present Measures, an enterprise included in the list of enterprises with abnormal business operations may, while submitting the annual report it has failed to submit and after its publication, apply for removal from the list of enterprises with abnormal business operations. Industry and commerce departments shall make a decision to remove the enterprise from the list within 5 days from the date of receipt of the application.

Article 12. According to article 7 of the Present Measures, after an enterprise included in the list of enterprises with abnormal business operations has fulfilled its duty of disclosure, and it applies for the removal from the list, industry and commerce departments hall make a decision to remove the enterprise from the list within 5 days from the date of receipt of the application.

Article 13. According to article 8 of the Present Measures, after an enterprise included in the list of enterprises with abnormal business operations has corrected its public information, it may apply for removal from the list of enterprises with abnormal business operations to industry and commerce departments. Industry and commerce departments shall make a decision within 5 days from the date when they conducted the verification.

Article 14. According to article 9 of the Present Measures, where an enterprise included in the list of enterprises with abnormal business operations obtains its registered address according to the law or changes its business premises, or proposes to be contacted again at its registered address or at its business premises, and it applies for removal from the list of enterprises with abnormal business operations, industry and commerce departments shall make a decision to remove the enterprise from the list within 5 days from the date when they have conducted the verification.

Article 15. Within 60 days before the 3-years period of listing an enterprise in the list of enterprises with abnormal business operation has expired, industry and commerce departments shall alert the enterprise to fulfill its duties through the enterprise credit information publicity system. Where 3 years have elapsed and the enterprise has not yet fulfilled its duties, it shall be included in the list of enterprises with abnormal business operations, and the inclusion shall be announced to the public through the enterprise credit information publicity system.

Article 16. Where an enterprise has an objection on the list of enterprises with abnormal business operations, it may, within 30 days from the day of the public announcement, file a written application and relevant evidentiary materials to the industry and commerce department that issued the decision. The industry and commerce department shall make a decision on whether to accept the application within 5 days. If the application is accepted, it shall be verified within 20 working days, and the applicant shall be informed in writing of the results of the verification. If the application is not accepted, the applicant shall be informed in writing of the reasons for its rejection.

Where industry and commerce departments verify that an enterprise has been included in the list of enterprises with abnormal business operations by error, it shall correct such error within 5 working days from the date of verification.

Article 17. The decision to include or remove an enterprise from the list of enterprises with abnormal business operations may be subject to administrative reconsideration or to administrative litigation according to the law.

Article 18. Where industry and commerce departments fail to fulfill their duties in accordance with the Present Measures, industry and commerce departments at the next higher level organ shall issue an order to correct. Where circumstances are serious, the official in charge and other directly responsible personnel shall be dealt with in accordance with relevant provisions.

Article 19. The format of official documents related to the list of enterprises with abnormal business operations shall be uniformly determined by the State Administration of Industry and Commerce.

Article 20. The Present Measures shall be interpreted by the State Administration for Industry and Commerce.

Article 21. The Present Measures shall go into effect from October 1, 2014.The “Measures for the Annual Inspection of Enterprises”, adopted by the State Administration for Industry and Commerce the State Administration for Industry and Commerce on February 24, 2006 through its decree no. 23 are at the same time repealed.

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