Recognizing the difference between a legitimate enterprise and a scam waiting for a sucker can be difficult. Because after all, anyone can build a beautiful website, and it’s easy around here to open a fancy storefront. As of October 1, when the new Enterprise Credit Information Publicity System (ECIPS) launched province-wide, it seems there is a new weapon in the fight.
Under the new system, basic and important information for over 600,000 registered companies in Dongguan can be accessed with a visit to gsxt.gdgs.gov.cn and a few clicks. Basic information includes, who are the legal representatives and shareholders? How much is the registered capital? Where is it located? What service does it provide and what branches do they have? And so on. Important information involves credit records like, has it been cited for any administrative penalties or is it on a blacklists?
With these policies, the old system of annual inspections was canceled. Instead of delivering paperwork to the Dongguan Administration Bureau for Industry and Commerce, which checked the documents annually, companies now send last year’s reports to this website between January to June. The bureau will randomly check 3 percent of the total number after June.
For the public, whether they are a consumer or a businessperson, the main advantage of the system, is the publicly listed blacklists. Those that fail to submit the necessary reports within the mandatory six month period, or fail to update changes within 20 days, or those that submit false information, or inconsistent contact information, are listed on the Abnormal Operations List.
The other will be called Seriously Illegal Enterprises, which includes companies that have been on the abnormal list longer than three years or committed one of the more severe violations. The legal representatives filed for the companies are not allowed to hold the same position at another company.
Because the website is brand new, there won’t be any blacklisted companies, according to officials, declared until next July.