{"id":7905,"date":"2021-06-09T06:30:33","date_gmt":"2021-06-09T06:30:33","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=7905"},"modified":"2025-04-23T09:52:17","modified_gmt":"2025-04-23T09:52:17","slug":"why-real-name-verification-affects-echop-china","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/why-real-name-verification-affects-echop-china\/","title":{"rendered":"China’s move towards e-chops and real name verification"},"content":{"rendered":"

From business licences to opening a bank account, as more and more services shift online, real-name verification has become an essential part of company operations in China. Here’s how real-name verification might affect you getting your e-chop or e-business license in China<\/h2>\n

Chinese offices have been promoting the application and use of <\/span>electronic chops (e-chops) and electronic business licences since <\/span>April 2020. This change implies that hard copy company certificates, including business licences, could soon become history. However, complications can arise if a company\u2019s representatives need to complete real-name verification before applying for and using electronic documentation.<\/span><\/p>\n

In this article, Hawksford <\/a><\/span>introduces the most common scenarios where foreign companies operating in China need to complete real-name verification for legal and financial representatives. The article also details the application procedure for<\/span> e-business <\/span>licences<\/span> and e-chops to help foreign-invested enterprises (FIEs) make a seamless transfer to digital when establishing a business in the Chinese market.<\/span><\/p>\n

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About e-business licences and CA certificates<\/span><\/h4>\n

Certification Authority (CA) certificates are commonly issued by the State Administration for Market Regulation (SAMR) in the form of USB keys, <\/span>and used for bookkeeping, tax declaration and annual reporting purposes. <\/span>However, as of 1<\/span> April 2021, the Shanghai SAMR<\/a> stopped issuing CA <\/span>certificates, and all <\/span>newly-established companies must now apply for the so-called e-business licence<\/span>,<\/span> which is necessary for tax declarations and annual reporting. I<\/span>n Beijing, e-business licences have been issued already starting last year, while in other cities they are not yet applicable. <\/span>E-business licences have the same legal effect and functions as hardcopy business licences and can be used in most aspects of the company\u2019s compliance operations.<\/span><\/p>\n

Below are the most common scenarios where legal and financial representatives require real-name verification.<\/span><\/p>\n

E-business licence application<\/span><\/h4>\n

Legal representatives must complete real-name verification in order to<\/span>\u00a0<\/span>obtain<\/span> an e-business licence. <\/span>If<\/span> the legal representative<\/span>\u00a0is a<\/span> foreigner<\/span>, <\/span>they<\/span> may visit the local SAMR office in person for onsite real-name authorisation. Alternatively, a foreign legal representative<\/span> may authorise a local Chinese person to apply for the e-business licence by signing a confirmation letter and providing their (the legal representative\u2019s) email address. A l<\/span>egal representative<\/span> may use the e-business licence <\/span>themselves,<\/span> or authorise a maximum of five Chinese individuals to manage the licence.<\/span><\/p>\n

A foreign legal representative<\/span> may authorise a local Chinese person to apply for the e-business licence by signing a confirmation letter and providing the legal representative\u2019s email address<\/span><\/p><\/blockquote>\n

Applying for and using e<\/span>-chops<\/span><\/h4>\n

Under PRC regulations, e-chops may be used<\/span>\u00a0in the following scenarios:<\/span><\/p>\n