According to the notice issued by State Administration for Market Regulation of the PRC, all companies, non-corporate enterprises, partnership enterprises, sole proprietorship enterprises, branches and individual businesses registered on before 31 December 2018, shall file an annual report for 2018 to the competent market regulation authorities starting from 1 January to 30 June 2019.
Entities that fail to file annual reports in compliance with the regulations will be listed in a list of abnormal business operations. Fines and penalties will be applied as well in some places.
For example, in Guangdong Province of the PRC, enterprises that fail to file annual reports for two consecutive years from 2015 will be imposed a fine of RMB5,000; a fine of RMB10,000 will be imposed if they fail to file annual reports for three consecutive years or above. Individual businesses that fail to file annual reports and refuse to correct will be imposed a fine of RMB100 up to RMB1,000.
All representative offices of foreign enterprises registered on or before 31 December 2018 shall file annual reports for 2018 to the competent market regulation authorities starting from 1 March to 30 June 2019.
According to the Registrations on Administration of Registration of Representative Offices of Foreign Enterprises of the PRC, representative offices that fail to submit annual reports will be imposed a fine of RMB10,000 up to RMB30,000. The registration certificate will be revoked in case corrections have not been made within a prescribed time limit.
Kaizen would like to advice the relevant enterprises and representative offices to handle the annual report issues in time accordingly to avoid fines and penalties. Please feel free to contact Kaizen in case you need our professional services. Kaizen will do our best to provide the relevant annual reporting services to you.
For those clients that have engaged Kaizen to provide annual reporting services, please be assured that we have arranged to proceed the annual reporting for you accordingly.