As the deadline for submitting 2016 annual business reports draws near, many freight forwarding and foreign trade enterprises may find themselves racing against time. Failure to meet this crucial requirement could result in companies being listed in the abnormal operations directory, potentially damaging their reputation and restricting future business activities.
This article provides a comprehensive guide to annual report filing procedures, helping businesses complete their submissions accurately and avoid unnecessary complications.
Which Enterprises Must File Annual Reports?
According to regulations, all businesses, individual industrial and commercial households, and farmer professional cooperatives that obtained business licenses before December 31, 2016, are required to submit annual reports.
Annual Report Filing Timeline
The filing window runs from January 1 to June 30 each year. Companies must complete their submissions within this period to avoid penalties.
Detailed Filing Procedures
Filing methods vary by business type:
For Enterprises and Farmer Professional Cooperatives:
- Must file online through the National Enterprise Credit Information Publicity System
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Steps:
- Log in to the National Enterprise Credit Information Publicity System
- Click the "Enterprise Information Reporting" button
- Complete all required fields as prompted by the system
For Individual Industrial and Commercial Households:
- Option 1: Online filing through the Enterprise Credit Information Publicity System
- Option 2: Paper filing at local town/street industrial and commercial bureaus (recommended for those unfamiliar with computer operations)
Required Report Contents
Companies should prepare the following information in advance to ensure smooth filing:
- Basic Information: Includes company address, postal code, contact number, and email
- Operational Status: Current business status (operational, suspended, or in liquidation)
- External Investments: Details of investments in other enterprises or equity purchases
- Shareholder/Founder Information: For limited liability companies or joint stock companies - contributed capital amounts, timing, and methods
- Equity Changes: For limited liability companies - shareholder equity transfers
- Website/E-commerce Information: For businesses with websites or online operations
- Financial Information: Includes employee count, assets, liabilities, guarantees, equity, revenue, profits, and tax payments (option to keep private)
Important Note for 2016 Reports:
New requirements for social insurance and statistical reporting items have been added.
Social Insurance Requirements:
- Types of insurance participation
- Number of insured employees
- Company contribution base
- Actual contribution amount
- Total outstanding contributions
Statistical Reporting Requirements:
- Primary business activities
- Female employees
- Company control status (branches exempt)
- Parent company's unified social credit code (for branches only)
Consequences of Late or Non-Filing
Failure to submit annual reports carries significant penalties:
- Listing in Abnormal Operations Directory: Publicly displayed by authorities, restricting participation in government procurement, bidding projects, land acquisition, and honorary awards
- Financial Penalties: Fines ranging from $700 to $4,200 for enterprises; $14 to $140 for individual businesses
- Additional Restrictions: Potential difficulties obtaining loans, registering new companies, opening securities accounts, purchasing social insurance, international travel, and credit reputation damage
Remedies for Listed Companies
Companies listed in the abnormal operations directory can take corrective measures:
- Immediate Report Submission: If listed for late filing, submitting within 30 days of notification automatically removes the listing
- Restoration Application: For listings under five years old, companies may apply for removal after resolving the issue
- Critical Deadline: After five years, restoration becomes impossible
With time running short, freight forwarding and foreign trade enterprises should prioritize completing their annual report filings to maintain normal business operations.