Recently, the State council of the PRC released a circular to implement unified registration for pledge of movable property and right (hereinafter referred to as the circular). According to the circular the unified registration will be implemented throughout the country from 1 January 2021.

The unified registration applies to:

1. pledges of production equipment, raw materials, semi-finished products and products;
2. pledges of accounts receivable;
3. pledges of deposit slips, warehouse receipts, bills of lading;
4. finance leases,
5. factoring;
6. retention of ownership.
7. other registrable moveable properties and rights, except for those of motor vehicles, ships, aircraft, bonds, stock equities and intellectual property rights.

Starting from 1 January 2021, the registration can be processed through a self-service system (https://www.zhongdengwang.org.cn) of the Credit Reference Center of the People's Bank of China. The applicant shall be responsible for the authenticity, integrity and legality of the registered contents. The registration authority will not conduct substantive examination on the registered contents.    

The reform of unified registration for pledge of movable property and right will set a two-year transitional period which starts from January 1, 2021 till December 31, 2022. During the transitional period, the market supervision authorities will continue to provide the public with the registered information of pledges of production equipment, raw materials, semi-finished products and products. After the end of the transition period, the market supervision authorities will no longer be responsible for the information publicity.

KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.