Jing Shang Zong Bu Zi [2021] No. 4
To all departments and units it may concern,
To carry out the "Regulations of Beijing Municipality on Optimizing the Business Environment", in line with the "Administrative Measures of Beijing Municipality for Notification Commitment for Application-based Government Services", the "Opinion of Beijing Municipal Commerce Bureau on Implementing Notification Commitment System for Determination of Beijing-based Regional Headquarters of Multinational Corporations (Trial)" has been formulated and issued to you for your conscientious implementation.
It is hereby announced.
Beijing Municipal Commerce Bureau
February 8, 2021
Opinion of Beijing Municipal Commerce Bureau on the Implementing Notification Commitment System for Determination of Beijing-based Regional Headquarters of Multinational Corporations (Trial)
The Opinion pertaining to implementation of the notification commitment system for determination of Beijing-based regional headquarters of multinational corporations is hereby formulated in line with the "Administrative Measures of Beijing Municipality for Notification Commitment for Application-based Government Services" to put in place the "Regulations of Beijing Municipality on Optimizing the Business Environment".
I. Meaning of notification commitment
"Notification commitment" mentioned herein refers to a model under which Beijing Municipal Commerce Bureau (the "Bureau") may directly make determinations after it provides one-off notification to the standards and procedures for item handling, the required application materials and the related legal responsibilities, while the applicant undertakes, in writing, its compliance with the due requirements and the liability for any failure to the commitment. An applicant may opt for either the notification commitment way or the regular way of handling items.
II. Items to handle and corresponding requirements
1. Determination of Beijing-based regional headquarters of multinational corporations
A regional headquarters may be identified and determined when it meets the following conditions:
a. A foreign-invested company registered as an independent legal person;
b. Total assets value of the overseas parent company exceeds USD 200 million;
c. Overseas parent company pays in a total registered capital of over USD 10 million in Beijing.
2. Replacement of certificate for Beijing-based regional headquarters of a multinational corporation
Beijing-based regional headquarters of a multinational corporation shall replace its certificate under the following circumstances:
a. Changes are made to the name of the Beijing-based regional headquarters of a multinational corporation, or
b. The original certificate expires.
3. Cancellation of certificate for Beijing-based regional headquarters of a multinational corporation
The certificate for the Beijing-based regional headquarters of a multinational corporation shall be nullified in the event that it is shut down, or relocated to places other than Beijing.
III. Handling procedures
1. Regular procedures
Regular procedures for determining the Beijing-based regional headquarters of a multinational corporation will take 3 business days, while certificate replacement and nullification will take 2 business days.
a. Application submission: An applicant may submit application materials via a comprehensive service window at the Beijing Government Service Center (the "Center"). Only complete materials will be accepted, while applications with incomplete materials will be rejected.
b. Examination and decision: Service staff of the Bureau based at the Center will examine the submitted application materials before granting an approval for the application with complete materials, accurate information and proof of eligibility.
c. Certificate issuance and delivery: Certificates shall be collected by the applicants via the comprehensive service window at the Center, or be delivered to the applicants by mail.
2. Notification commitment procedures
Certificate for the Beijing-based regional headquarters of a multinational corporation will be produced and issued on the site when applicants opt for notification commitment for determination or certificate replacement. Certificate will be duly nullified on the site upon cancellation request.
a. Application submission: An applicant shall submit a "Notification Commitment Statement" and other required materials through a comprehensive service window at the Center.
b. Decision making: Formality examination shall be conducted over the submitted application materials, where eligible applications will be approved and certificates will be made and issued, while ineligible applications will be rejected and the reasons made known to the applicants.
IV. Required application materials:
1. Determination of the Beijing-based regional headquarters of a multinational corporation
a. One original hardcopy of an application form signed by the legal representative of the regional headquarters, specifying the profile of the overseas parent company, the parent's investments and total paid-in registered capital in China, organization chart of the enterprise incorporated in China by the overseas parent company, a profile of the applicant and the underlying matter, etc.;
b. One original hardcopy of the power of attorney signed by the legal representative of the overseas parent company permitting the regional headquarters to be incorporated and perform its basic functions;
c. One original hardcopy of a registration document of the overseas parent company stamped with the valid inquiry seal of the archive inquiry department of the competent market regulator, or certified and notarized legally; and
4. One original hardcopy of the legally audited balance sheet or annual report of the overseas parent company for the previous year (Chinese version of the annual report bearing the official seal of the overseas parent company required if the annual report is in a language other than Chinese).
2. Replacement of certificate for Beijing-based regional headquarters of a multinational corporation
a. An application form for certificate replacement, specifying the profile of the applicant, the time of determination and the underlying matter, and
b. The original certificate of determination for the Beijing-based regional headquarters of the multinational corporation.
3. Cancellation of certificate for Beijing-based regional headquarters of a multinational corporation
a. An application form for certificate cancellation, specifying the profile of the applicant, the time of certification and the underlying matter, etc.;
b. The original certificate of determination for the Beijing-based regional headquarters of the multinational corporation.
V. Day-to-day supervision
a. Service staff of the Bureau based at the Center shall examine all the application materials submitted by the applicants, keep the working records, and update the profiles of the applicants.
b. In the event of any deviation from an applicant's practice and its commitment, the deviation shall be handled legally according to its significance. For a minor or moderate deviation, the applicant shall be ordered to make rectifications within a prescribed time limit. The certificate shall be revoked if the applicant fails to do so, or a deviation remains despite rectifications. For a major deviation, the certificate shall be directly revoked, and the applicant held legally liable.
VI. Credit supervision and punitive measures
1. Categories for deviations of commitment fulfillment
Results of commitment fulfillment inspection shall be included into the Beijing Public Credit Information Service Platform (the "Platform") for differentiated credit management. Three categories are specified for deviation of commitment fulfillment, i.e. minor, moderate and major deviations.
"Minor deviation of commitment fulfillment" refers to submitting incomplete materials or inaccurate information for no good reason. "Moderate deviation of commitment fulfillment" refers to submitting information incompatible with the facts or failing to submit accurate required materials. "Major deviation of commitment fulfillment" refers to submitting false materials, failing to make rectifications within a prescribed time limit or failing to meet applicable requirements in spite of rectifications.
With regard to the determination of the Beijing-based regional headquarters of a multinational corporation, an applicant shall be identified and treated for moderate deviation of commitment fulfillment if committing three (and above) minor deviations within one year, while being identified and treated for major deviation if committing two (and above) moderate deviations within one year.
2. Punitive measures
Information concerning minor deviation of commitment fulfillment shall be included into the Platform, just being kept on file instead of being publicly notified.
Information concerning a moderate deviation of commitment fulfillment shall be included into the Platform and be publicly notified for a duration of 1-6 months.
Information concerning a major deviation of commitment fulfillment shall be included into the Platform and be publicly notified for 6-12 months.
3. Credit restoration
An applicant may restore its credit by making a credit commitment or completing a credit rectification. After completion of credit restoration, the period of public notification may be shortened by 1-6 months as appropriate. When the applicant completes a credit restoration, public notification of such behaviors shall be terminated, and information concerning the credit restoration shall be included into the Platform.
VII. Channels for complaints
In the event of dissenting to a determination process or decision, an applicant may state the concerns to a Government Service Hall of the Bureau. If the issue remains unsettled, the applicant may file a complaint to the Bureau, or consult or complain via government websites.
An applicant may file a written application with Beijing Municipal Bureau of Economy and Information Technology, accompanied by evidentiary materials, in the event that it believes that information concerning its deviation of commitment fulfillment recorded on the Platform is incompatible with the facts or should not be publicly notified according to law.
VIII. Effective date
The Opinion shall go into effect as of their date of issuance.