Recently, the Trial Measures for Management of Cluster Registration Enterprises at China (Guangdong) Pilot Free Trade Zone in Nansha New Area (Exposure Draft) (hereinafter referred to as the Trial Measures) was unveiled to collect public opinions from the date of release to August 17. This means that the management experience in the practice of one domicile for registration of a cluster of enterprises will be turned into a management system. However, it is required under the Trial Measures that enterprises engaged in guarantee and petty loan businesses shall not be allowed to apply for registration as cluster registration enterprises.

 

The Trial Measures said that, cluster registration means that the domicile or site for business operation (hereinafter referred to as domicile) of an enterprise is used as the registered domicile of a number of other enterprises, and the enterprise provides domicile trusteeship and other commercial secretary services to form up a cluster registration mode. It means that a domicile can be used for registration of a number of enterprises.

 

Cluster registration enterprises should meet relevant standards. There are “prohibitions” under the Trial Measures that three types of main market players are not allowed to apply for cluster registration: enterprises with business scope covered by the List of Examination and Approval Procedures Before Business Registration; enterprises engaged in business operations that need specific sites, such as production and processing as well as catering, hotel, entertainment and cyber café services; enterprises engaged in guarantee and petty loan businesses.

 

Moreover, in accordance with the Trial Measures, any cluster registration enterprise failing to submit annual reports and make tax declarations according to relevant laws and regulations for two consecutive years will have to accept the disposals of related market supervision and tax departments, including submission of supplementary annual reports and tax declarations under supervision, change of business registration and even cancellation of business license.

 

Source: Translated from Invest Guangzhou, August 10, 2016