I. Market regulatory area (highest frequency violations)
1. Unlicensed / ultra-wide operations
If a business is opened without a business licence, or if it goes beyond the authorized business (e. G. A catering enterprise does not sell tobacco) it will confiscate the proceeds of the offence and will be fined 10,000 to 100,000 yuan; if the offence is serious, the licence will be revoked and a fine of 100,000 to 500,000 yuan。
2. Registration of false/hidden information
The submission of false material for fraudulent registration, fraudulent reporting of registered capital, or late filing of a change of registration is punishable by up to $2 million and the cancellation of a business licence。
3. False advertising / unlawful advertising
The product's efficacy is exaggerated, false promises (e. G., “combination with disease”) are in violation of the advertising act and individual advertisements are punishable by up to $2 million。
4. Inadequate product quality
The production and sale of products that do not meet safety standards (e. G. Expired food, defective appliances) is subject to confiscation of goods and a fine of more than three times the value of the goods。
Ii. In the area of labour (most prone to disputes)
1. Wage arrears / social security violations
Any person who maliciously defaults on his or her remuneration for work, fails to pay his or her social security contribution in full or fails to pay his or her contributions shall be paid back within the prescribed period and liable to a fine of one to three times the amount due, and the person in charge may be placed on the list of defaults。
2. Illegal use of child labour/violation of the rights of special groups
The recruitment of a minor under the age of 16 or the violation of the protection of female or minor workers (e. G. The placement of a female worker during night work during pregnancy) is punishable by a fine of $5,000 for each person recruited, and the revocation of a licence in serious cases。
3. Unsigned labour contracts / overtime
A person who has worked for more than one month without a written contract and has been forced to work overtime is ordered to pay double wages and a fine of $500-2000 per person。
Iii. The tax sector (most lethal red line)
1. Tax evasion/false declaration
Forgery of books, concealment of income, false declaration of taxes are punishable by a fine of up to five times the amount of tax theft, in addition to the collection of taxes and the withholding of money, and are referred to the judicial authorities for the purpose of committing an offence。
Invoice violations
Fake, illegal billing, even for smaller amounts, is fined between $50,000 and $500,000, and tax credit is reduced directly to d, affecting financing loans。
3. Late filing / tax arrears
Failure to file a tax within the prescribed time limit will be subject to a withholding fee and a fine of $2,000 - $10,000; long-term arrears will be classified as irregular。
Environmental protection (the most severe penalties)
1. Over-standard discharge/illegal disposal of waste objects
Waste water, exhaust gas, noise discharges exceed standards, or hazardous waste is not treated as required, punishable by up to $1 million and ordered to be discontinued and repaired。
2. Unencumbered environmental facilities
Construction projects that do not have an environmental impact assessment, or where environmental equipment is stopped or stolen, are ordered to stop construction and are fined 1 to 5 per cent of the total investment。
V. Emergency fight areas (most easily ignored)
1. Inadequate fire-fighting facilities
If the fire escape is blocked, the fire extinguisher is out of date and the smoke alarm is out of service, it will be fined from $5,000 to $50,000, and those who fail to meet the deadline will be ordered to shut down。
2. Operationalized without receiving and inspection for fire
Public gatherings such as malls, hotels, etc. Operate without permission and are punishable by a maximum penalty of $0. 3 million and are forced to shut down。
Other key violations
Undue competition
Commercial bribes, letters of fire and violations of trade secrets are confiscated and fined from $100,000 to $3 million。
2. Torts in intellectual property rights
Counterfeiting trademarks and patent infringement is punishable by up to $5 million and confiscation of tort products, in addition to damages。
3. Infraction of prices
Price lifting, price fraud (if a false discount) is punishable by a fine of less than five times the proceeds of the offence and a maximum of $5 million for the proceeds of the offence。
Business pipes critical reminder
(b) conduct regular self-compliance checks, focusing on verification of certification, contracts, taxes and environmental protection
(b) creation of a staff social security desk to eliminate unpaid and irregular work
Compliance reviews prior to advertising to avoid absolute language and false promises
The administrative penalties are modified in a timely manner, and the conditions are met to apply for credit restoration, so as not to prejudice bid solicitation and financing。
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