Guangzhou Implements Commercial Registration Reform

January 15, 2014 Posted by China Briefing Reading Time: 3 minutes

Jan. 15 – The Guangzhou Administration for Industry and Commerce (AIC) released the ”Circular on Fully Implementing the Commercial Registration in Guangzhou Municipality (hereinafter referred to as ‘Circular’)” on December 30, 2013. The Circular, which rolls out commercial registration reform across the city, began January 1, 2014. Detailed information can be found below.

According to the Circular, on January 1, 2014, Guangzhou replaced the annual inspection system for enterprises and individual businesses with an annual reporting system. All commercial subjects in the city, including companies, non-corporate legal persons, partnership enterprises, individual proprietorship enterprises and individual businesses, shall logon to the Guangzhou Hongduan Information Website to submit their annual reports between March 1 and June 30 each year.

Moreover, the city will implement the following three new systems:

”Business license before certificate” system, meaning enterprises in Guangzhou may obtain a business license before obtaning other pre-approval certificates issued by other goverment departments (if there are any);
Subscribed capital registration system,meaning shareholders of the company will be able to decide on the amount, method, and deadline for the subscription of contributions; and
Directory management system for enterprises with abnormal operational activities.

Starting from January 1, 2014, commercial enterprises in the city no longer need to go through approval procedures for their business scope with the AIC; however, the business scope of foreign-invested enterprises still needs to be approved by the Bureau of Foreign Trade and Economic Cooperation of Guangzhou (BOFTEC). The city will allow one business location to be registered on several business licenses, and several locations to be registered on one business license (Regarding the address issue, further implementing rules will be issued in this regard in due course later).

Moreover, all commercial subjects in the city that apply for name pre-approval, registration for company establishment and alternation, deregistration or pledge of equities shall go through the relevant formalities according to the “Implementing Measures for Commercial Registration Reform in Guangzhou Municipality (Trial)”. Applicants can log on to the Guangzhou Hongdun Information Website to download the relevant forms.

Application Procedures
Commercial subjects that have not updated their business license can apply to the industrial and commercial administration authority at all levels for the updated business license according to the following measures:

For applicants that apply for the updated business license but do not need to go though relevant formalities for company establishment or alteration: they can use either the self-service machines set up at the administrative hall of registration authority or log on to the Guangdong Hongddun Information Website to confirm their primary business and specific business items. Such applicants shall then fill in the Application Form for Updated Business Licenses and go through the relevant formalities for a business license update.

For applicants that need to go through the formalities for company establishment or alteration when applying for the updated business license: they shall confirm their primary business and specific business items according to the aforementioned measures, and apply for change of primary business and business scope when going through the formalities for a business license update.

Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.

For further details or to contact the firm, please email china@dezshira.com, visit www.dezshira.com, or download the company brochure.

You can stay up to date with the latest business and investment trends across Asia by subscribing to Asia Briefing’s complimentary update service featuring news, commentary, guides, and multimedia resources.

Shenzhen Initiates Commercial Registration Reform