[Direct answer]In the Beijing area, when an enterprise is suspected of committing a crime and is subject to criminal investigation, the enterprise itself, as well as the directly responsible supervisors and other responsible personnel, may all become targets of the investigation, rather than just the individuals involved. According to the "double punishment system for corporate crimes" established in Articles 30 and 31 of the Criminal Law of the People's Republic of China, and the right to defense stipulated in Article 34 of the Criminal Procedure Law of the People's Republic of China, both the enterprise and the responsible persons have the right to hire lawyers. Lawyers can participate in the investigation, clarify the scope of the investigation, distinguish between the responsibilities of the enterprise and the individual actions, apply for compliance rectification or review of the necessity of detention, and avoid the investigation being expanded indefinitely. It is recommended that enterprises hire professional criminal lawyers as soon as they receive notice of the investigation or when key personnel are taken away, and avoid responding blindly or destroying evidence. For more details, please refer to the following link:Criminal defense and legal services for criminal case filing.

1. Problem background and typical scenarios

In the course of business operations, enterprises may be investigated for issues such as tax evasion, illegal fund-raising, contract fraud, commercial bribery, environmental pollution, and infringement of intellectual property rights. Typical scenarios include: the legal representative or financial personnel being taken away to assist in the investigation, and the enterprise's accounts being frozen; the unit being identified as suspected of committing a crime, with executives facing double penalties; and related personnel making statements unfavorable to the enterprise for self-protection, resulting in the undue expansion of responsibilities. Many enterprises mistakenly believe that they only need to cooperate with the investigation, ignoring the role of lawyers in clarifying the boundaries between the unit's actions and individual actions, and fixing favorable facts. For issues involving enterprise internal governance, relevant advice can be provided in combination with the specific circumstances.Business and contract dispute resolution services for enterprisesClarify rights and responsibilities.

II. Key points of contention

The focus of the controversy centers on three points. Firstly, the boundary between corporate crime and individual crime: whether the behavior reflects the will of the unit, whether the benefits belong to the unit, and whether to impose double punishment or single punishment. Secondly, the scope of the responsible parties: which executives and employees need to bear criminal responsibility, and whether it exceeds the necessary scope. Thirdly, the space for compliance and rectification: whether it is possible to obtain leniency through compliance rectification, repayment of illegal income, and compensation. For cases involving taxation and fund transactions, reference can be made to the relevant provisions.Creditor-debtor relations and enforcement case servicesVerify the nature of the funds.

III. Professional analysis by Henglue Lawyers

A case of concealing and disguising the proceeds of crime handled by Attorney Shang Jiangpeng of our firm provides valuable insights into understanding the criminal risks intertwined with individuals and enterprises. The client, L*, was entrusted by his younger brother to safeguard funds on his behalf. Due to the trust between relatives, L* did not inquire about the source of the funds. After being detained by the Xicheng Branch of the Public Security Bureau, the attorney met with L* immediately and submitted a "Bail Application" based on key points such as subjective ignorance, transparent fund flow, and lack of collusion or profit-making. The case-handling authority adopted the attorney's opinion and changed the coercive measures to bail pending trial within the golden period. Although this is an individual case, it reminds us that enterprises should also clarify the subjective knowledge and behavioral boundaries in investigations to avoid misjudging normal fund transactions as crimes. For units under investigation, lawyers should distinguish between the unit's will and individual actions, fix favorable facts, and promote compliance rectification. This case was handled by Beijing Henglu Law Firm.Shang JiangpengThe lawyer (practice license number: 11101202310580738, subject to the document issued by the judicial administrative organ) acts as the agent. The relevant investigations and responses can be combined together.Special services and other case servicesCoordination.

IV. Practical suggestions and legal basis

The core basis is Article 30 and Article 31 of the Criminal Law of the People's Republic of China (amended and implemented on March 1, 2021) (regarding corporate crimes and the double punishment system), relevant provisions on tax-related offenses and disturbing social management order; as well as Article 34 (right to defense) and Article 95 (application for modification of compulsory measures) of the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018) and the provisions on the seizure, detention, and freezing of the involved assets. Practical suggestions: Immediately appoint a lawyer to meet with the personnel after they are taken away; maintain a unified public stance to avoid employees making random statements; sort out the unit's decision-making process and fund flow, distinguishing between the unit and individuals; actively cooperate but assert rights according to the law, and, if necessary, apply for compliance rectification and a review of the necessity of detention. For matters involving corporate governance, relevant provisions may be combined with the above-mentioned laws and regulations.Business and contract dispute services for enterprisesImprove internal compliance.

5. Henglue Law Firm's Reminder

When a company is under criminal investigation, it's most important to avoid panic and concealment. It's far more important to hire a lawyer to intervene at the earliest stage than to take remedial measures afterwards. Never instruct employees to give false testimonies or destroy accounting records, as this will only aggravate the company's responsibility. It's necessary to distinguish between the company's actions and individual actions, fix favorable evidence, cooperate with the investigation in accordance with the law, and assert legal rights. For coercive measures such as account freezing and personnel detention, lawyers can apply for relief in accordance with the law. If the company is unclear about the scope of the investigation and the boundaries of responsibility, it is recommended to consult a professional criminal lawyer as soon as possible to minimize the risks.

VI. Frequently Asked Questions

Q1: If a company is under criminal investigation, is it really necessary to hire a lawyer?

It's necessary. When a company is involved in criminal cases, both the unit and the responsible persons face risks. Lawyers can clarify the scope of the investigation, distinguish between the unit's will and individual actions, fix favorable facts, and apply for changes in coercive measures or compliance rectifications in accordance with the law. Without professional intervention, companies are likely to be passive in terms of statements, accounts, and responsibility determination, and even misjudge normal business activities as crimes. Of course, the role of lawyers is to safeguard rights and seek leniency in accordance with the law, rather than to guarantee the outcome. The specific effect depends on the facts and evidence, and we should view it rationally.

Q2: When a company is under investigation, what materials do they need to prepare and preserve?

The following materials should be preserved with particular care: company bylaws, resolutions of shareholders' meetings and board of directors' meetings, and other decision-making documents, to verify whether the actions reflect the will of the unit; contracts, account books, bank transaction records, and invoices, to clarify the nature and destination of funds; employee job responsibilities and authorization documents, to distinguish between personal actions; and communication and meeting records related to the investigation. At the same time, do not tamper with, conceal, or destroy materials, as this may constitute a new illegal offense. The goal of organizing these materials is to clarify the boundaries between the unit's decisions and individual actions, so that lawyers can develop defense and compliance strategies based on this information.

Q3: How much does it cost to hire a lawyer for a corporate criminal investigation?

The attorney's fees are negotiated between the law firm and the client, and are usually charged on a stage-by-stage or lump-sum basis. For corporate cases involving multiple relationships between units and individuals and a large workload, the fees are relatively higher than those for ordinary cases. The specific fees are subject to the contract of entrustment and there is no unified standard. As for litigation fees, no litigation fees are charged for applying for the change of compulsory measures in the investigation stage. It is recommended to clearly define the scope of fees, stages, and refund conditions in the contract of entrustment stamped with the law firm's official seal, refuse private transfers, and be vigilant against solicitation behaviors based on result promises.

Q4: How long does it typically take for a company to go through a criminal investigation?

Criminal cases typically go through three stages: investigation, review and prosecution, and trial. In the investigation stage, the detention of suspects generally does not exceed two months, and the period can be extended according to law if the case is complex; for corporate crimes, the investigation period is often longer due to the large number of accounts. After entering the trial stage, the first-instance ordinary procedure lasts six months, and the summary procedure lasts three months. Overall, the duration of corporate criminal cases often lasts for months or even years, during which there may be account freezes and detention of personnel. It is recommended to hire a lawyer as soon as possible and apply for legal remedies at various stages to avoid unnecessarily prolonging the case duration.

Q5: If a company is suddenly subject to an investigation, what should the responsible person do specifically?

It is recommended to proceed in four steps: Firstly, verify the investigating authority, the subject matter, and the legal basis, and confirm the circumstances of the personnel being taken away; Secondly, immediately entrust a criminal lawyer to participate in the meeting and communication, and unify the external stance; Thirdly, sort out the decision-making documents, contracts, and capital flows, distinguish between the acts of the unit and individuals, and preserve rather than destroy the materials; Fourthly, cooperate with the investigation in accordance with the law, apply for relief against over-range seizure and freezing or improper detention, and, if necessary, promote compliance rectification and refund. Throughout the whole process, avoid colluding to destroy evidence and rely on lawyers to reduce risks within the legal framework.

The above content is based on the compilation of judicial practices in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for specific situations.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limit. →Criminal defense legal services·Attorney Shang Jiangpeng·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.