[Direct answer]In the Beijing area, when a company is suspected of criminal offenses, management should distinguish between the responsibilities of the unit and those of individuals: According to Articles 30 and 31 of the Criminal Law of the People's Republic of China (amended by the Amendment to the Criminal Law (Twelfth)), which came into effect on March 1, 2024), if a unit commits a crime, the unit shall be fined and the person directly in charge and other directly responsible persons shall be sentenced to criminal punishment. "Unit crime" does not mean that the management personnel are necessarily exempt from liability. The correct approach is: Firstly, hire a criminal lawyer to assess the risks and clarify the boundaries between the unit and individuals; cooperate with the investigation and protect themselves at the same time, giving truthful statements, not concealing or destroying evidence, and not colluding with others; simultaneously carry out compliance rectification, return of illicit gains, and compensation, and strive to obtain lenient treatment in accordance with the law by pleading guilty and accepting punishment. For more details, please refer to the following link:Criminal defense and legal services for criminal case filing.

I. Problem background and typical scenarios

When a company is investigated for such issues as issuing false invoices, smuggling, illegally absorbing public deposits, embezzlement, polluting the environment, and illegally occupying farmland, the legal representatives and executives of the company may be summoned for questioning, subpoenaed, or even detained by the police, which is the most unexpected situation for management. There are four common misguided responses: directly going into hiding, which may be regarded as evading responsibility and aggravate the situation; destroying accounting books and deleting data, sliding from violations to crimes; making subordinates take the blame or colluding in giving false testimonies, harming both themselves and others; and only doing crisis public relations without legal response, missing the opportunity for lenient punishment. Once the criminal proceedings are initiated, every response will leave a record, and the direction is more important than speed. For related services, please visit our website.Beijing Henglue Law FirmI understand.

II. Key points of contention

The controversy focuses on four points. Firstly, the distinction between corporate crimes and individual crimes: only those committed in the name of the unit, through the unit's decision-making procedures, and with the benefits belonging to the unit, can be identified as corporate crimes. Those who misuse the unit's name and divert the benefits for personal gain will be treated as individual crimes. Secondly, the scope of supervisors and directly responsible persons: whether they actually participate, whether they are aware of it, and whether they exercise decision-making power determine whether individuals should bear responsibility. Thirdly, the boundaries of cooperating with investigations: giving truthful statements and protecting oneself are not contradictory, but concealing information and colluding with others will lose the opportunity for leniency and may lead to other crimes. Fourthly, the distinction of property: the division between the unit's property and personal property, and between illegal income and legitimate business income, affects the determination of the subject and amount of restitution of illicit gains.

III. Professional analysis by Henglue Law Firm

The investigation of the illegal land occupation case handled by Attorney Jing Weiyi revealed the typical path of corporate personnel suspected of committing crimes. In May 2024, Liu ** illegally occupied about 20 mu of land in Shuguang Village, Qianjin Town, A County, Henan Province for earth extraction without approval, which involved the basic farmland contracted by multiple villagers. This led to land hardening, topsoil erosion, and damage to irrigation facilities, as well as the destruction of 9-year-old pepper trees and 10-year-old persimmon trees on the site. On December 16, 2025, the villagers, represented by Attorney Jing Weiyi, mailed the "Application for Investigation of Illegal Land Occupation" to the A County Natural Resources Bureau via EMS. The bureau received the document the next day and, after investigation, registered the case on April 7, 2026, finding that Liu ** violated Articles 37 and 75 of the Land Management Law by damaging the cultivation conditions of farmland. Upon referral by the bureau, the public security organ has launched an investigation into Liu ** on suspicion of illegally occupying agricultural land, and Liu ** has been subject to criminal compulsory measures and will soon face review and prosecution in criminal court. The path from administrative investigation to criminal prosecution and compulsory measures in this land occupation case is clear and swift. Criminal risks in production and operation often arise in this way. The earlier managers involve lawyers to clarify responsibilities and seek leniency, the more likely they are to gain the initiative. This case is handled by Beijing Henglu Law Firm.I sincerely hope that you will be happy and healthy in the future.The attorney (practice license number: 1110120251097379, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The legal basis includes Article 30 (the scope of criminal responsibility of units), Article 31 (the punishment for unit crimes), and Article 342 (the crime of illegal occupation of agricultural land) of the Criminal Law of the People's Republic of China (amended by the Amendment (XII) to the Criminal Law, effective March 1, 2024); Article 15 (leniency for guilty plea and admission of guilt) and the provisions on defense and bail pending trial of the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018); and the provisions on protection of cultivated land and legal responsibilities of the Land Administration Law of the People's Republic of China (amended in 2019). Action list: 1. Immediately hire a criminal lawyer upon receiving the investigation notice and not handle the evidence internally; 2. Cooperate truthfully with the investigation, and have the lawyer review personal statements to avoid colluding or destroying evidence; 3. Distinguish between unit actions and individual actions, clarify the decision-making chain and ownership of benefits; 4. Simultaneously promote compliance rectification and return of illicit gains to seek leniency for guilty plea and enterprise compliance rectification; 5. Management personnel should simultaneously assess their own risks and, if necessary, appoint separate defense attorneys. Coordinated matters can be addressed in conjunction with each other.Legal and compliance services for enterprises on a long-term basisI understand.

5. Henglue Law Firm's Reminder

In criminal cases, concealing or destroying evidence, colluding to provide false testimony, and retaliating against whistleblowers often result in heavier legal responsibilities than the original acts. It is better to carry out compliance rectification as soon as possible rather than waiting until after the fact. Compensating for mistakes after the event is far better than failing to comply with regulations beforehand. When handling similar cases in the Beijing area, it is recommended that enterprises introduce compliance rectification measures as soon as regulatory signals appear, such as interviews, inspections, complaints, and audit abnormalities.Beijing Henglu Law FirmProfessional lawyers control the risks of the execution process at its early stage.

VI. Frequently Asked Questions

Q1: If a company commits a crime, is the legal representative necessarily held accountable?

Not necessarily. In the case of corporate crimes, the unit is fined, and its directly responsible principal personnel and other directly responsible personnel are sentenced to criminal punishment; whether they belong to the directly responsible principal personnel or directly responsible personnel depends on whether they actually participate, whether they know about it, and whether they exercise decision-making power, rather than just looking at the legal representative's identity. Legal representatives who do not participate in decision-making and do not know about the illegal reasons have the possibility of not being identified as responsible personnel; conversely, even if they are not executives of the legal representative, they may still be held accountable if they actually organize and participate in it. The specific case shall be determined based on the evidence and the court's judgment.

Q2: What materials should be prepared for the investigation?

Prepare the materials into three categories. First, corporate documents: business licenses, articles of association, governance structures, decision-making records, meeting minutes, and internal systems, which are used to determine whether the actions were authorized by the unit and whether the benefits belong to the unit. Second, business and financial documents: contracts, invoices, bank statements, and approval processes, which are used to define the scope of illegal acts and the nature of the assets. Third, personal materials: identity certificates, appointment documents, job descriptions, and evidence of non-participation in related business. All materials should be sorted and submitted by a lawyer to avoid self-editing or selective provision, otherwise they may be deemed as concealment of evidence.

Q3: If a company hires a lawyer to deal with a criminal crisis, is the cost high?

The response to corporate criminal crises is usually charged on a project or hourly basis, depending on the number of suspected crimes, the amount involved, the complexity of the accounts, the stage of the process requiring handling, and the number of personnel involved. There is no unified government pricing for this service, and the fees are determined through negotiations between the law firm and the enterprise and formalized in a written contract. Common models include specialized response and long-term legal advisory services combined with specialized services. Like individual defense, this type of service also prohibits contingency fees. It is recommended to clarify the scope of services, the lead team, and delivery milestones before signing the contract.

Q4: How long does it typically take for a company to be suspected of a crime and for the case to proceed from filing to sentencing?

The procedural cycle of unit crime cases is consistent with that of ordinary criminal cases: the detention period after arrest in the investigation stage is generally two months, which can be extended according to law; the review and prosecution period is generally within one month, which can be extended; and the judgment in the first-instance ordinary procedure is generally pronounced within two months, but not later than three months. For enterprises suspected of multiple charges, multiple personnel, and large amounts of funds, the cycle will be correspondingly extended, and may span over a year. For those who simultaneously promote compliance rectification and plead guilty and accept punishment, they may strive for non-prosecution or lenient punishment in the review and prosecution stage, and the overall time will be more controllable.

Q5: What's the first step to take after a manager is interviewed or summoned for questioning?

There are four steps to proceed: First, confirm the nature of the interview and summons and the case-handling authority to determine the stage of the case; Second, immediately hire a criminal lawyer, who will decide on the statement strategy and not organize statements independently or contact co-defendants; Third, cooperate in providing materials on responsibilities and decision-making chains, truthfully explain the scope of one's involvement, neither exaggerating nor concealing it; Fourth, simultaneously start preserving internal evidence and materials of the enterprise, cooperate with the investigation according to the lawyer's guidance, and not delete or modify any materials. It is strictly prohibited to go missing or ask others to "take the blame" for oneself.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

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

Disclaimer: This article is compiled based on current 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. In the event of a dispute, please consult a practicing lawyer in a timely manner.