Hainan company annual examination is one of Tannet’s business followup services. The company is required to conduct the joint annual examination from 1 March up to 30 June every year commencing from the second year following its establishment and once a year thereafter. Both Chinese companies and foreign investment enterprises (FIE) have to comply with the legal requirements for incorporation, continued existence and operating the business.
Foreign invested enterprises that carry on business without submitting the required information will be imposed on a heavy fine. If the FIE does not rectify the non-compliance, the State Administration of Industry and Commerce (SAIC) can revoke the business license in accordance with the law.
Relevant Authorities in Charge of Annual Examination
Those administrative bodies that conduct the annual examination include the State Administration of Industry and Commerce, National Tax Bureau, Local Tax Bureau, the Customs, State Administration of Foreign Exchange, Finance Bureau, Local office of Ministry of Commerce.
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Main Areas Subject to Annual Examination
(1) Whether the corporate name in use is consistent with the registered name;
(2) Whether the principle place of business is same as the approved registered office;
(3) Whether the information of the legal representative has been changed following the pass of a board resolution;
(4) Whether the paid up capital is the same as the registered capital;
(5) Whether the FIE has received the capital by installments as per JV contract or the Articles of Association;
(6) Whether there is unlawful withdrawal of capital from the FIE;
(7) Whether there is a change in the economic nature of the FIE and any amendment made accordingly;
(8) Whether the FIE is engaged in activities as per approved business scope;
(9) Whether business license or the period of operation has expired;
(10) Whether there is any change of investors for the FIE;
(11) Whether there is any forgery, alternation, lease, borrowing of the business license;
(12) Whether the FIE has not commenced business for 6 months since the date of incorporation, or has suspended business for 6 months during any period.
If the non-compliance found in annual examination is not rectified within the period prescribed by the local administration of industry and commerce (LAIC), there will be administrative punishment. In serious cases, the approval authority shall revoke the approval certificate, and the governing LAIC shall revoke the business license.
Contact Us
If you have further queries, don’t hesitate to contact Tannet anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143512 or 86-755-82143181 or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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