Published by ChinaMNC · Xingning

China's Government Information Disclosure Rules: What Foreign Founders Need to Know

A practical guide to China's Government Information Disclosure Regulations, explaining how foreign founders can access government information for company registration and compliance.

What This Regulation Means for Your China Company Registration

If you're a foreign founder setting up a company in China, you'll interact with various government agencies. The Regulations on Open Government Information (revised in 2019) govern how those agencies must disclose information—and how you can request it. Understanding these rules helps you navigate registration, permits, and compliance more efficiently. Below are the key takeaways for international entrepreneurs.

Your Right to Request Government Information

Under Article 27, beyond information that agencies proactively publish, citizens, legal persons, and other organizations—including foreign-invested enterprises—may apply to local governments and county-level or higher departments for relevant government information. This means you can formally ask for details on procedures, requirements, or decisions that affect your business.

How to File a Request

• Where to apply: Submit your request to the agency's government information disclosure office (Article 29).
• Format: Use a written form, including letters or electronic data messages. If writing is genuinely difficult, you may apply orally, and the office will fill out the form for you.
• If your request is unclear: The agency must guide you and, within 7 working days of receiving your request, inform you once of what needs to be corrected and a reasonable deadline (Article 30). The response period starts after they receive your corrected application. If you fail to correct without justification, your application may be treated as withdrawn.
• Date of receipt: For mailed applications, the date the agency signs for it counts as the receipt date; for ordinary mail without signature, the disclosure office will confirm with you on the day it receives the request, and that confirmation date is the receipt date (Article 30(2)).

Response Time for Proactive Disclosure

For information that agencies must proactively disclose, it should be published within 20 working days from the date it is formed or changed (Article 26). While this applies to proactive disclosure, it gives you a sense of expected timelines.

What Information Is Available

Agencies must proactively disclose information involving adjustments to public interests, matters the public needs to widely know, or matters requiring public participation (Article 19). For municipal and county governments, this includes information on municipal construction, public services, public welfare undertakings, land requisition, housing expropriation, public security management, and social assistance (Article 21). If you're locating a factory or office, such information can be crucial.

Additionally, governments at all levels must strengthen online disclosure platforms, integrate them with government service platforms, and improve online processing (Article 8). They must also set up reading rooms in national archives, public libraries, and government service venues, with facilities for searching, viewing, and downloading information (Articles 24 and 25).

What Information Is Not Disclosed

Some information is exempt from disclosure, and knowing this saves you time:

• State secrets: Information determined to be a state secret, or whose disclosure is prohibited by laws and administrative regulations, or that could endanger national security, public safety, economic security, or social stability (Article 14).
• Third-party interests: Information involving trade secrets or personal privacy that would harm the lawful rights of a third party is not disclosed, unless the third party consents or non-disclosure would significantly affect the public interest (Article 15).
• Process information: Discussion records, drafts, consultation letters, and request reports formed during administrative functions, as well as administrative enforcement case files, may be withheld unless laws or regulations require disclosure (Article 16).

Before disclosing any information, agencies must review it under the Law on Guarding State Secrets and other rules (Article 17).

How to Use This for Your Business

As a foreign founder, you can leverage these rules to:

• Clarify registration requirements: Request specific information on procedures, documents, and timelines for company setup.
• Check local regulations: Obtain details on municipal construction, land use, and public services that affect your operations.
• Ensure compliance: Access information on environmental or safety requirements that may apply to your industry.
• Resolve uncertainties: If a decision affecting your business is unclear, you can request the underlying information.

Remember that agencies must maintain coordination mechanisms to ensure consistency (Article 11). If your request involves multiple agencies, they will consult to provide accurate information.

Practical Tips for Foreign Founders

• Identify the right agency: The agency that created the information is responsible for disclosure; if it was obtained from another agency, the creating or initially obtaining agency is responsible (Article 10).
• Be specific: Clearly describe the information you need to avoid delays.
• Use official channels: Submit requests to the government information disclosure office, not to individual officials.
• Keep records: Note the date you submit your request and any confirmation of receipt.

These regulations are designed to increase transparency and facilitate business. By understanding your rights, you can navigate China's regulatory environment more effectively.

Conclusion

China's Open Government Information Regulations provide a formal pathway for foreign founders to access information necessary for company registration and ongoing compliance. While certain information is protected, the system encourages proactive disclosure and offers a request mechanism. Use it to your advantage when setting up and running your China entity.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For personalized assistance with company registration and operations in China, contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.