Interim Measures for the Administration of Lists of Enterprises with Abnormal Business Operations

【Source】http://home.saic.gov.cn/zw/wjfb/zjl/201408/t20140827_213217.html

Article 1: These measures are formulated on the basis of the "P.R.C. Regulations on Company Registration and Management", "Provisional Regulations on Release of Information by Enterprises", "Reform Plan for Registration of Registered Capital" and other administrative regulations and State Council Provisions, so as to regulate management of the list of irregular business operations, to protect fair competition, to promote enterprises creditworthiness and self-discipline, to strengthen credit restrictions for enterprises, to preserve transaction security, and to expand societal oversight.

Article 2: The administrative departments of industry and commerce are to include enterprises with situations of irregular business operations into the irregular business operations list, and disclose it through the enterprise credit information disclosure system, reminding them to perform on the disclosed obligation.

Article 3: The State Administration for Industry and Commerce is responsible for guiding the work or managing the list of untrustworthy enterprises with irregular business activity nationwide.

Administrative departments of industry and commerce at the county level or above are responsible for the work of managing the list of enterprises with irregular business operations in their jurisdictional region.

Article 4: The administrative departments of industry and commerce at the county level or above shall include enterprises with any of the following situations in the list of irregular business operations:

(1) Failed to disclose an annual report as for in the time provided by article 8 of the "Provisional Regulations on Release of Information by Enterprises"

(2) Failed to disclose relevant enterprise information in the time provided as ordered by the administrative department of industry and commerce in accordance with article 10 of the "Provisional Regulations on Release of Information by Enterprises"

(3) Disclosed enterprise information that conceals the true situation or is false or misleading;

(4) Where it is not possible to make contact through their registered address or place of business;

Article 5: Where the administrative departments of industry and commerce put enterprises on the list of enterprises with abnormal business operations, they shall make a decision on the entry, and put the entry of the enterprise onto the list in the announced information on that enterprise, and uniformly announce it through the enterprise credit information announcement system. Decisions on entry shall include the entities' names, registration number, date of entry, reason for entry, and organ making the decision.

Article 6: Where enterprises do not follow article 8 of the "Provisional Regulations on Release of Information by Enterprises" to announce the previous years annual report to the public through the enterprise credit information disclosure platform, the administrative departments of industry and commerce shall make a decision to enter them on the list of irregular business operations within 10 working days of that years annual report disclosures concluding, and publicly announce it.

Article 7: Where enterprises do not follow article 10 of the "Provisional Regulations on Release of Information by Enterprises" in performing disclosure obligations, the administrative departments of industry and commerce shall give a written order to perform the disclosure obligations within 10 working days. Where enterprises do not disclose information within the period provided in the order, the administrative departments of industry and commerce shall make a decision to enter them onto the list of irregular business operations within 10 working days of the period completing, and announce this to the public.

Article 8: Where administrative department of industry and commerce lawfully carry out spot checks or conduct reviews based on reports, and verify that enterprises have concealed the truth or made false or misleading statements in enterprise information disclosures, they shall make a decision to enter them onto the list of irregular business operations within 10 working days of the period completing, and announce this to the public.

Article 9: Where in the course of lawfully performing duties, administrative departments of industry and commerce are unable to contact the enterprise through the registered domicile or place of business, they shall make a decision to enter them onto the list of irregular business operations within 10 working days of the period completing, and announce this to the public.

The administrative departments of industry and commerce may go through special mail delivery to contact the enterprises. Where a mailing to the enterprises registered domicile or place of business goes unsigned two times, it is viewed as unable to be contacted through their registered domicile or place of business. The two mailing attempts must not be less than 15 days, and must not more than 30 days.

Article 10: Where enterprises perform disclosure obligations in accordance with the 'Provisional Regulations on Release of Information by Enterprises" within 3 years of being entered into the list of irregular business operations, they may apply for removal to the administrative department of industry and commerce that made the decision on entry.

Where administrative departments of industry and commerce remove enterprises from the list of enterprises with irregular business operations in accordance with the preceding paragraph, they shall make a removal decision and announce it through the enterprise credit information announcement system. Decisions on removal shall include the entities' names, registration number, date of removal, reason for removal, and organ making the decision.

Article 11: Enterprises included in the list of irregular business operations in accordance with article 6 of these Measures may apply to be removed from the list after supplementing the unreported annual report and disclosing it, and the administrative department of industry and commerce shall make a decision on removal within 5 working days of receiving the application.

Article 12: Enterprises included in the list of irregular business operations in accordance with article 7 of these Measures may apply to be removed from the list after performing the disclosure obligations, and the administrative department of industry and commerce shall make a decision on removal within 5 working days of receiving the application.

Article 13: Enterprises included in the list of irregular business operations in accordance with article 8 of these Measures may apply to be removed from the list after correcting their disclosed information, and the administrative department of industry and commerce shall make a decision on removal within 5 working days of reviewing.

Article 14: Enterprises included in the list of irregular business operations in accordance with article 9 of these Measures may apply to be removed from the list after changing their registered domicile or place of business, or can be contacted again through their registered domicile or place of business, and the administrative department of industry and commerce shall make a decision on removal within 5 working days of reviewing.

Article 15: 60 days before 3 years is completed from the data of an enterprise being included on the list of irregular business operations, the administrative department of industry and commerce shall remind it to perform its relevant obligations as an announcement through the enterprise credit information disclosure system; where the obligations are not performed when the 3 year period is complete, they are to be included in the list of enterprises with serious violations, and announce this to the public through the enterprise credit information disclosure system.

Article 16: Where enterprises have objections to their being included on the list of enterprises with irregular business operations, they may submit a written application to the administrative department of industry and commerce that made the decision within 30 days of the announcement, and submit relevant proofs; and the administrative department of industry and commerce make a decision on whether to accept it within 5 working days. Where it is accepted, it shall be verified within 20 working days, and the applicant is to be informed of the verification results in writing; where it is not accepted, the applicant is to be informed in writing of the reasons.

Where through verification the administrative departments of industry and commerce find that the entry of an enterprise into the list of enterprises with irregular business operations was in error, they shall correct it within 5 working days of review.

Article 17: An administrative reconsideration may be lawfully applied for, or administrative lawsuits may be raised in accordance with law, regarding decisions on entry or removal from the list of enterprises with irregular business activity.

Article 18: Where the administrative departments of industry and commerce do not perform duties in accordance with the relevant provisions of these Measures, the administrative department of industry and commerce at the level above is to order corrections; where the circumstances are serious, the responsible management and other directly responsible personnel are to be punished in accordance with law.

Article 19: The State Administration for Industry and Commerce will formulate uniform templates for documents related to management of the list of enterprises with irregular business operations.

Article 20: The State Administration for Industry and Commerce is responsible for interpretation of these measures.

Article 21: These Measures take effect on October 1, 2014 The February 24th , 2006 order, "Measures on Annual Inspections of Enterprises" by the State Administration for Industry and Commerce is simultaneously abolished. ^[1