Provisions on the Prevention, Investigation, and Punishment of the Illegal Acts of Falsifying Enterprise Registration
(Issued by Order No. 88 of the State Administration for Market Regulation on January 10, 2024 and coming into force on March 15, 2024)
Article 1 These Provisions are developed in accordance with the Regulation of the People's Republic of China on the Administration of the Registration of Market Entities and other applicable laws and regulations for the purposes of regulating the order of administration of enterprise registration, effectively preventing, investigating, and punishing the illegal acts of falsifying enterprise registration, accelerating the establishment of a market order based on integrity and compliance, effectively safeguarding transaction security, and continuously optimizing the business environment.
Article 2 These Provisions shall apply to the prevention, investigation, and punishment of the illegal acts of falsifying enterprise registration.
For the purposes of these Provisions, the “illegal acts of falsifying enterprise registration” means the illegal acts of falsely using the name of another enterprise to register it as the shareholder of a limited liability company, a sponsor of a joint-stock limited company, an investor of an unincorporated enterprise legal person, or a partner of a partnership enterprise, among others, by providing false materials or concealing important facts through other fraudulent means.
For the purposes of the preceding paragraph, “providing false materials or concealing important facts through other fraudulent means” shall specifically include:
(1) forging or altering the seal, business license, approval document, or authorization document, among others, of any other enterprise;
(2) forging identification information;
(3) submitting false undertakings; and
(4) other circumstances under which important facts are concealed.
Article 3 The State Administration for Market Regulation (SAMR) shall be responsible for guiding and supervising the prevention, investigation, and punishment of the illegal acts of falsifying enterprise registration nationwide.
The department undertaking enterprise registration of a local people's government at or above the county level (“registration authority”) shall be responsible for the prevention, investigation, and punishment of the illegal acts of falsifying enterprise registration within its jurisdiction. If a local people's government at or above the county level provides otherwise for the duties for the investigation and handling of the illegal acts of falsifying enterprise registration, such provisions shall prevail.
Article 4 Market regulatory departments shall, in conjunction with the relevant departments, establish a communication and coordination mechanism for the prevention, investigation, and punishment of the illegal acts of falsifying enterprise registration, strengthen information sharing and verification, strengthen prevention from the source, promote whole-process control, and promptly investigate and punish illegal acts in accordance with the law.
Article 5 Market entities shall be subject to legal name registration. The applicant shall cooperate with the registration authority in the verification of identity information.
If the party is a natural person, he or she shall cooperate with the registration authority in conducting legal name authentication by facial recognition and other methods through the legal name authentication system.
If the party is an enterprise, it shall cooperate with the registration authority in verifying its identity through verifying its electronic business license; and if the party does not use an electronic business license, its legal representative, person in charge, managing partner, and other natural persons shall carry out legal name authentication.
Article 6 The applicant shall be responsible for the veracity, legality, and validity of the submitted materials.
The natural person or intermediary entrusted to handle registration matters shall comply with the provisions of laws and regulations, state his or her agent identity, and shall not forge or alter any legal instrument, seal, or signature or use any forged or altered legal instrument, seal, or signature, shall not take fraudulent, deceptive, or other illicit means, shall not instigate, fabricate, or assist others in fabricating or providing false information or materials; shall not maliciously apply for enterprise registration in large numbers for the purpose of transferring profits, which may damage public interest or disrupt the public order.
Article 7 Market regulatory departments, state-owned assets supervision and administration department......