On August 7, 2014, the State Council announces the Interim Regulations on the Public Disclosure of Enterprise Information (the Regulations), which becomes effective October 1, 2014.
Establishment of the Public Disclosure of Enterprise Annual Reports and the Enterprise Credit Information Database
The Regulations establish a system for the public disclosure of enterprise annual reports and the enterprise credit information database, specifying the period within which enterprises' annual reports are required to be submitted, the procedures for the public disclosure of such information, and the information required to be made public within 20 working days after the generation of such information through the enterprise credit information database.
The applicable administration of industry and commerce is required to publish in the enterprise credit information database the following enterprise information: (i) registration and filing information; (ii) chattel mortgage registration information; (iii) equity pledge registration information; (iv) administrative penalty information; and (v) other information to be made publicly available. Other government departments are required to publish the following information generated during the execution of their duties: (i) information on grant, change and renewal of administrative licenses; (ii) administrative penalty information; and (iii) other information to be made publicly available.
Enterprises are required to submit between January 1 and June 30 of each year their annual reports for the preceding year, which are required to include the following information: (i) mailing address, postal code, phone number, email address of the enterprise; (ii) the current status information of the enterprise such as start and closure of business and liquidation; (iii) information regarding the investment made by the enterprise; (iv) if the enterprise is a limited liability company or company limited by shares, the information on the amount of capital contribution subscribed and paid by its shareholders or promoters, the timing and manner of capital contributions; (v) information on equity change of a shareholder of a limited liability company; (vi) name and URL of the enterprise’s website or online store; and (vii) number of employees, total assets, total liabilities, guarantees provided to third parties, total owners' equity, total operating revenues, primary business revenue, total profit, net profit, and total tax amount of the enterprise.
Penalty for failure to enforce the Regulations
The Regulations provide that enterprises failing to disclose their annual reports to the public within the prescribed time limit or that are found to have committed fraud in their disclosure of enterprise information will be listed in the directory of enterprises with abnormal operation, which will be made available to the public through the enterprise credit information database.
In addition, in order to encourage enterprises to rebuild their credit, the Regulations also establish a credit restoration system.
The change in the disclosure of enterprise information is an important part of the reform on business registration system.
- Interim Regulations on Enterprise Information Publicity
- Issuing authority: the State Council
- Date of issuance: August 7, 2014 / Effective date: October 1, 2014