Circular on the Suppression of Illegal Activities Conducted by Enterprise Registration Agencies

Circular on the Suppression of Illegal Activities Conducted by Enterprise Registration Agencies

Gong Shang Qi Zi [2009] No. 255

December 31, 2009

To the industry and commerce administration, the public security departments (bureaus) and finance departments (bureaus) of all provinces, autonomous regions and municipalities directly under the Central Government, the Shanghai headquarters, branches, business management offices, central sub-branches in provincial capital cities (capitals) and central sub-branches in secondary provincial-level cities of the People's Bank of China, and all banking regulatory bureaus:

To regulate the activities of enterprise registration agencies and promote regulative establishment of enterprises is a necessary security for maintaining the order of source of market economy. In recent years, enterprise registration agencies develop rapidly, and has played an active role in facilitating establishment of enterprises and promoting development of economy, but some problems that shall not be ignored occur, such as forging seals, faking signatures of investors; faking capital verification (auditing) reports, cash payment lists, business domicile certificates and other certificates; advancing capital for enterprises and withdrawing after establishment or capital increase of the enterprises; issuing reports of capital verification, auditing or asset assessment by some accounting firms and asset assessment institutions in violation of laws and regulations. These illegal activities are important reasons for the existence of companies' activities of fictitious reporting of registered capital, forging capital contribution and withdrawing capital contribution and so on, which has disturbed order of market and management of industry, incurred commercial fraud and crimes, destroyed transaction safety, infringed on the base for constructing social credit system and threatened steady and healthy development of economic society. The State Administration for Industry and Commerce, the Ministry of Public Security, the Ministry of Finance, the People's Bank of China and the China Banking Regulatory Commission have decided to carry out special suppression of illegal enterprise registration agency activities all around the nation from January through September of 2010. Relevant issues are hereby set out as follows:

I. Basic principles and targets of the suppression
1. Basic principles. Authorities for industry and commerce, public securities, finance, people's bank and banking regulatory authorities at each level shall be fully aware of the seriousness and hazard of illegal enterprise registration agency activities from the point of implementing scientific development view, promoting construction of harmonious society and maintaining stability, take this suppression as an important content of renovating and regulating the order of market economy, and implement their duties under division of work, cooperate each other, seek both temporary and permanent solutions and develop attack and prevention simultaneously by combination of local situations so as to promote regulation through suppression and promote development through regulation.
2.
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