Why do changes to the company registration matter?
What: Chinese companies must keep accurate and up to date information about their structure, operations, and logistics and register that information with the proper authorities.
Why: If a company fails to register changes to its business, it could face consequences that would put your relationship with it in jeopardy. The lack of disclosure could also be a warning sign that other aspects of the business are also dishonest.
When a Chinese company experiences any number of changes, including its registered capital, address, shareholders, directors, or business scope, it must report these changes to its local government bureau (often referred to as the State Administration of Industry and Commerce, or SAIC) and reflect those changes in its annual return.
If the information registered does not match the information of the business (for example, if the business moved and did not register its new address), the company would be placed on the abnormal business operations list and face a number of potential restrictions until the issue is addressed and resolved.
Questions? We can help. At Nuna Network we offer a variety of valuable guides, tips, and other practical information to help you navigate the sometimes complex landscape with Chinese businesses. We remain the partner of choice for small- and medium-sized businesses seeking guidance in researching, developing, and launching relationships with companies in China. We are your go-to resource for valuable information in navigating the sometimes complex landscape of business operations in China.
In addition, Nuna Network offers a range of validation, verification, and due diligence products and services that can help you determine the authenticity of a range of many other documents that are a part of establishing a business relationship with a Chinese company.
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