Cross-border e-commerce can supplement ODI filing, but is it really compliant?

In the process of serving customers, we found that many companies registered overseas companies without ODI filing (overseas investment filing), which is illegal. Domestic companies that want to invest in overseas projects or subsidiaries need to apply for ODI filing. Is the supplementary ODI filing compliant? According to the regulations, the formal process is: you must do the ODI filing first, and then register the overseas company. If the overseas company has already registered, and then go to the ODI filing, the corresponding overseas company may have defects in compliance. of. Can the supplementary ODI be approved for subsequent financing and listing? If it is a company that wants to raise funds for listing in the future, it is not recommended to do so. The ODI certificate has the date of approval and issuance, and the overseas company registration certificate also has a date. After checking, it can be found that the registration process is reversed. This The flaws of non-compliance will always exist. The financing and listing have high requirements for compliance, and the follow-up is likely to be questioned. Some customers have also asked us, if we use a newly registered overseas company that has done ODI filing to acquire an original overseas company, is this operation compliant? This is doable, but it just makes the process more complicated, and it still cannot fundamentally solve the risk of being questioned in the process of financing and listing, resulting in failure to pass the review! This operation is actually to change the original shareholder of the overseas company from the mainland company to the newly established overseas company, that is to say, the original overseas company becomes the reinvestment company of the mainland company, and the mainland company needs to do the reinvestment filing. When filing, it will also trace the historical issues of the original shareholders and financial and taxation accounts. The original overseas company still needs to complete the ODI filing before making the reinvestment filing. Therefore, this operation not only makes the procedure more complicated, but also increases the cost a lot! Moreover, even in this way, the ODI filing date, overseas company registration date, and historical change records can be checked. These points will also be checked out, and there will also be a risk of failure in subsequent audits. Compliance advice The above-mentioned methods for supplementing ODI filing and mergers and acquisitions, even if there are no historical problems in the financial, taxation and accounting of the original overseas company, there will still be certain risks. Whether the follow-up financing and listing can be approved depends on whether the organization that conducts due diligence on the company approves this operation. A small number of listing counseling agencies/personnel will approve it, but most of them may not accept it. They help the company to go public. Sponsorship and endorsement entail corresponding responsibilities, and listing is not something that can be accomplished in a short period of time. It is unclear how the policy on listing regulations will change in the later stage. In view of this situation, the most compliant plan is— Set up a new Hong Kong company that has done ODI filing, transfer the business and trademarks of the original Hong Kong company to the new Hong Kong company, and spin off the original overseas company. This question also shows that: 1. Corporate compliance should plan the layout in advance, so as to reduce the cost of corporate compliance and improve compliance efficiency at the same time. 2. Look for professional people/institutions to do professional things, so as not to waste energy and money on the wrong path. 3. Find us for cross-border compliance!

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