Mandatory Business License Update Ordered for Companies in Shenzhen

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Mar. 18 – According to the “Regulations on Commercial Registration within the Shenzhen Special Economic Zone,” commercial subjects (including enterprises and individually-owned businesses) registered in Shenzhen before March 1, 2013 shall apply for an updated business license with the commercial registration authorities. Issues regarding the business license update have been notified as follows.

Implementation Scope
The following commercial subjects registered in Shenzhen before March 1, 2013 shall apply for an updated version of their business license:

  • Joint stock limited companies and their branch offices (including foreign-invested enterprises)
  • Limited liability companies and their branch offices (including foreign-invested enterprises)
  • Cooperative stock enterprises and their branch offices
  • Non-corporate legal persons and their branch offices
  • Partnership enterprises (including foreign-invested partnership enterprises) and their branch offices
  • Foreign enterprises engaged in business operations within China
  • Individual proprietorship enterprises and their branch offices
  • Individually-owned businesses (including Hong Kong, Macau or Taiwan individually-owned businesses that have registered in Shenzhen)

“Basically, the purpose of this new regulation is to simplify the business registration procedures,” explains Penny Li, Manager of Business Advisory Services at Dezan Shira & Associates’ Shenzhen office. “Under the new regulations, the role of the AIC will be as a ‘registration authority’ instead of an ‘examination and approval authority.’ However, foreign invested enterprises still need to get approval from the Ministry of Commerce before they can be registered with the AIC.”

Implementation Period
The above-mentioned commercial subjects shall apply for an updated business license between March 1, 2013 and February 28, 2014.

Business License Update Requirement
The updating procedure for business license shall be carried out according to the “Notice on the Implementing Measures for Business License Update for Commercial Subjects in Shenzhen Special Economic Zone (shenshijiangui [2013] No.2).” The Shenzhen Municipal Market Supervision Bureau shall be responsible for the interpretation of this notice.

In-charge Authorities
The following commercial subjects shall apply for an updated business license at the Civic Center Administrative Service Hall:

  • Joint stock limited companies and their branch offices (including foreign-invested enterprises)
  • Non-corporate legal persons and their branch offices
  • Foreign-invested partnership enterprises and their branch offices
  • Foreign enterprises engaged in business operations within China

The branch offices of the Shenzhen Municipal Market Supervision Bureau shall be in charge of the business license updates for other commercial subjects based on the principle of territorial jurisdiction.

Locations for Business License Updates

Shenzhen-9-Pingshan-New-District Shenzhen-10-Longhua-New-District

Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.

For further details or to contact the firm, please email china@dezshira.com, visit www.dezshira.com, or download the company brochure.

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