Laws of the People's Republic of China

The State Administration for Industry and Commerce

Reply of the State Administration for Industry and Commerce on How to Deal with the Situation that an Enterprise Disclaims its Business License After its Application for Registration is Verified and Approved

GongShangQiZi [2000] No.289

December 4, 2000

Hubei Administration for Industry and Commerce:

We have studied your Request for Instructions on How to Deal with the Situation that an Enterprise Disclaims its Business License After its Application for Registration is Verified and Approved (EGongShangZhuZi [2000] No.154) and now reply as follows:

According to the Regulations for Controlling the Registration of Enterprises as Legal Persons and the Regulations on Company Registration Administration, a business entity is only legitimized after the competent registration authority approves its application and issues the business license. Therefore those that fail to claim their business license for corporate entities within 6 months after the approval of their applications for registration may be revoked of their registration and deprived of further issuance of the business license for corporate entities by the competent registration authority. Businesses operating without claiming their business license for corporate entities after the approval of their applications for registration should be duly punished for operating without a business license.