How to Avoid to Get Blacklisted After China Company Registration

No boss wants the China company to be listed in the blacklist.

Therefore, Business China reminds you that you have to avoid the following several conditions firstly during China company operation:

Ⅰ. Not timely publish enterprise information after China company registration

The instant information of the enterprise shall be proactively publicized within 20 working days since the date of formation, which includes the following:

1. Information on subscribed and actually paid contribution amount, contribution time and contribution way of the shareholders of the limited liability company or the initiator of the company limited by shares;

2. Information on equity change such as transfer of shareholder equity of the limited liability company;

3. Information on obtaining, change and extension of administrative permit;

4. Information on pledge registration of intellectual property;

5. Other information which shall be publicized legally.

If the information is not timely publicized, the industrial and commercial department will order it to publicize within 10 days, those enterprises still not publicizing will be listed as abnormal.

Ⅱ. The information publicized by the enterprise is false

The industrial and commercial department will verify the information publicized by the enterprise through spot check and report treatment, those concealing true conditions and practicing fraud will be listed as abnormal within 10 working days from the date of verification.

Ⅲ. Not timely having annual audit

According to the provisions of the Reform Scheme of Registered Capital Registration System, the enterprise shall submit the annual report to the industrial and commercial administration authority through the market subject credit information publicity system within the stipulated time limit each year and publicized to the society for any unit and individual to inquire. If annual audit is not handled within the stipulated time limit, it will be listed as abnormal and publicized within 10 working days from the date when annual report is over.

Ⅳ. Delaying in financial reporting

As for the newly-built enterprises, some bosses sometimes think that the company does not operate business, it is zero reporting, and delaying for several days is OK. The consequence is if it is overdue, the enterprise will be required to rectify within a prescribed time limit and accept punishment of the tax authority. If the company does not report within the time limit and can not be contacted with nowhere to be found after on-site verification, it will be identified as abnormal account. Suggestions: carry out tax declaration on schedule and timely pay attention to the caution of the tax bureau on tax matters.

Ⅴ. Timely declare but fail to pay taxes on time

Some enterprises timely declare but forget that there is no money in the associated bank card, thus the system of the tax bureau is not successful in transfer and the taxes are not paid successfully. It is suggested that the financial staff of the enterprise shall not work in a confused status and must ensure that the associated bank card has sufficient amount to pay the taxes.

Ⅵ. What if the company is listed in the blacklist

Blacklist generally refers to that the legal representative can not apply for company registration within three years after the industrial and commercial bureau lists the original company in the illegal enterprises.

Along with perfect and improvement of Chinese credibility system, in the future, it is very likely that the company will be canceled and what’s worse, the reputation of the legal representative and shareholders may be affected. However, don’t worry, every boss, if the company is listed in the blacklist, you shall timely find the reason and remove your company from the blacklist. The company blacklists are divided into blacklist of industrial and commercial bureau, blacklist of tax bureau, blacklist of bank, under different conditions, the removal steps are different and the charges are different.

Warm tips of Business China: If a company is listed in the blacklist, it must be caused by bad management. It is hard to found a company, it is harder to manage the company properly. Therefore, every boss shall mange the company well and go through a formal process to avoid the company’s being listed in the blacklist.