Which companies can be exempted from annual check and how to apply for the exemption?
Answer: If a company meets the following (1), (2), (3) or (4), it can apply to the registration organ for the exemption:
(1) The company abides by laws and disciplines, has sound operational status and high business credit, and is evaluated as “A” grade in the annual check by the Industrial and Commercial Bureau for consecutive three years;
(2) The company has a renowned trademark or provincial-level famous trademark;
(3) The company is evaluated by provincial or city-level Industrial and Comemrcial Bureau as “attaching importance to contract and keeping promise” for consecutive three years recently; or
(4) The company is evaluated by provincial and city-level government as a “star company” for consecutive two years recently.
How to apply for the exemption?
Answer: Recommended by the competent department or by the company itself, the company may file a written application to the registration organ. Upon examination and verification by the competent industrial and commercial department, the company may handle the exemption procedures according to regulations.
What are the materials to be submitted by the company after applying for the exemption?
Answer:
1. Exemption Application;
2. Recommendation Letter from the competent department or Self Recommendation Letter of the Company;
3. Corresponding certificates proving the qualification of the company;
4. “Annual Check Report” in duplicate;
5. One original and one copy of the permit as specified by state laws and regulations involved in the business scope;
6. Original and duplicate of the Business License.
How to handle the exemption procedures?
Answer: 1. The company shall submit the report to the industrial and commercial registration organ one month prior to the annual check deadline;
2. After examination, the registration organ shall conduct joint check with trademark, ads, contract, and fair transaction departments;
3. When “Annual Check Report” is formally submitted by companies, the company meeting the exemption qualifications may be exempted for submitting the “Annual Audit Report” and “Assets and Liabilities Sheet”; for a company not meeting the exemption qualifications, the registration organ shall notify the company to go through annual check procedures as a common company;
4. For a company exempted from annual check in 2003 after verification, after the company passes the annual check as approved by the registration organ, the annual check remark shall be stamped on the original of the Business License, and the annual check chop shall be stamped on the duplicate;
5. The company is exempted from paying annual check fee;
6. After the annual check work is done, the industrial and commercial administrative organ will publish the List of Companies Exempted from Annual Check on newspaper or make the list public.
Remarks on the exemption
1. The exemption period extends for two years, and consecutive applications are allowed;
2. If a company exempted from annual check is identified to have engaged illegal activities, its exemption qualfification will be cancelled by the industrial and commercial administrative organ immediately;
3. If a company is exempted from annual check in 2001 after verification by the industrial and commercial administrative organ and has to apply for the exemption in the following years, it shall file an application report to the industrial and commercial administrative organ within the specified timeline, specifying the operational condition of the company in the 2-year exemption period, as well as illegal activities (if any) and the reasons for continual exemption. Besides the materials to be submitted by the company as a company applying for exemption, the company shall also submit the certificates approving the compliance with new application condition. The industrial and commercial registration organ will work out the examination comments within seven working days in accordance with the specified procedures. If the company meets exemption conditions, it shall follow exemption procedures; otherwise, it shall follow the procedures of a normal company.