China Tax Alert - Issue 5, March 2014
According to the Reform Plan on Registered Capital Registration System issued by the State Council, the current corporate annual inspection system will be replaced by an annual corporate public reporting system. Recently Shanghai clarifies the enterprises registered in Shanghai Pilot FTZ to release relevant business information to the public domain. Enterprises should pay attention to the timeline and contents of annual reporting. Those who fail to release their annual report within the designated period may be listed on the abnormal list, which will have adverse impact on the company’s reputation. At the same time, the requirement of annual reporting and disclosure to the public sets a higher bar on information veracity, and companies should be more careful in this regard.