What is it about?

Some friends might call it Annual Certificate.It does not matter, the key is that it is the only one for every WOFE (Wholy-Owned Foreign Enterprise) registered in Shenzhen has to comply with in an annual basis in relating to at least seven governmental departments. Regulations in mainland might differ from cities, contents explained here are based on Shenzhen enterprise regulations.

Seven governmental departments are Ministry of Commerce, Ministry of Finance, State Administration of Taxation, Bureau of Statistics, Foreign Exchange Bureau, Market Supervision Bureau and Customs (商务部 财政部 税务总局 统计局 外汇局 市场监督局和海关). Each of them has its certificate or devices to prove related rights and validity. If HR & Financial tasks are outsourced to WealthSharings, certificates mainly are filed in our office and some of functional devices could be with the entity to support daily operations such as Customs U-keys. 

For specific industries such as financing or medicine,etc., except the one we mentioned above, regulations for these industries are need to comply with respectively if appropriated. 

Information consistency

Every year, in the governmental official websites,related information is required to be input. And then system will have aself-reconciliation and cross checking based on what were input during Annual Review process and what information had been recorded and collected from its individual channel regarding to the review period, normally is an annum basis.

June 30th, this month end is the deadline for WOFE to review the period of year 2018. Any failures to do so could cause a BLACL NAME. Specifically, the entity doesn’t comply with this regulation properly, it will be moved to a BLACK LIST in the governmental website of Market Supervision Bureau. Related policies are set to limit certain business activities of the BLACK LIST entities or will be investigated accordingly per specific case situation.

Information in comparison with  the fact

In addition, the information input during the Annual Review  will be taken as the latest updates from an entity and governments  would take it to compare what in the fact exactly exists. Normally,this is handled in a random manner. One of the matters is office registered address. Government officers could go to a building and find an office, check out who is there and if someone there is not registered. An entity with an inconsistence found, it will be moved to Black List also and submit cases to their most related departments.

What different this year?

 Legal Representative Real Name Verification is a threshold to get into Annual Review this year. Certain steps are required including uploading information & certificates with legal representative’s WeChat account and so on. Except for the Legal Representative, also an contact person in responding to the matters from Market Supervision Bureau is required.

What will be different next year?

Per the Announcement, the deadline of Annual Review will be changed from it has been always being to be a rolling basis. From July 1st,2019, two months  from its  registry anniversary date will open and allowed for an entity to process its Annual Review. E.g. WealthSharingswas registered on Sep.29th, 2009, then its next year’s Annual Review deadline is Nov.28th,2020.

Regulationreference: http://amr.sz.gov.cn/xxgk/qt/tzgg/201904/t20190423_17000254.htm