[Direct answer]In the Beijing area, when a company is under investigation by the public security authorities, the key to protecting employees and business operations is to "cooperate with the investigation in accordance with the law, distinguish responsibilities, preserve evidence, and maintain operations." Firstly, relevant employees are required to provide truthful statements, not to collude with each other or destroy evidence; the company should appoint a liaison person to coordinate responses to avoid multiple people responding in a disorganized manner; promptly preserve original materials such as contracts, accounts, and communications; distinguish between the company's actions and individuals' overstepping their authority; and make continuity arrangements for core business and customer relationships. When necessary, apply for bail pending trial or change coercive measures in accordance with the law to resume operations. It is recommended to involve professional criminal lawyers as soon as possible. For more details, please refer to the following link:Criminal defense and criminal case filing services.

I. Problem background and typical scenarios

The company is investigated by the public security organ, which often occurs in scenarios such as tax-related issues, illegal fund-raising, infringement of citizens' personal information, commercial bribery, or cybercrime. Investigations may target the entire unit or only summon individual employees. Typical situations include: the investigating organ suddenly seizing account books and requiring responsible persons and employees to cooperate with the interrogation; employees panicking or colluding with each other out of fear of being implicated; the business being paralyzed due to account freezing or key personnel being restricted; and family members rushing to "use connections" but inadvertently crossing the line. Companies often mistakenly believe that "the more thorough the cooperation, the better" or "silence is the safest", both of which are prone to pitfalls. For issues involving labor employment, it is advisable to combine these with other legal procedures to avoid legal risks.Labor arbitration and work-related injury compensation services.

II. Key points of contention

The focus of the dispute lies in four aspects. Firstly, the subject of responsibility: whether it is a corporate crime or the individual actions of a few employees, which directly determines whether the company and the majority of employees will be held accountable. Secondly, the scope of evidence: which materials should be submitted in cooperation, and which involve trade secrets or personal privacy that need to be protected according to law. Thirdly, the necessity of coercive measures: whether it is necessary to grant bail to key business personnel to maintain the operation of the enterprise. Fourthly, business preservation: how to freeze accounts and seize assets while minimizing operational disruptions without hindering the investigation. When handling similar cases in the Beijing area, the authorities tend to pay more attention to the application of the "fewer arrests and more cautious prosecutions" policy to the involved enterprises, so as to strive for a more secure handling space. For cases involving contract performance, reference can be made to the relevant provisions.Business and contract dispute services for enterprises.

III. Professional analysis by Hengluo Lawyers

Based on Henglu Law Firm's practical experience in handling corporate-related criminal cases, there are three most common "pitfalls" that enterprises face when being investigated: First, destroying or tampering with accounting records in panic or inciting employees to provide false testimony, which directly escalates into new criminal risks such as obstruction of justice; Second, responding inconsistently and providing conflicting statements, which may be deemed as refusal to cooperate or concealment of evidence; Third, neglecting business continuity, leading to secondary losses such as customer loss and supply chain disruption. Professional responses should focus on the following aspects: Unifying responses and establishing a factual chain of "unawareness-unauthorized-compliance" as soon as possible; Separating involved and uninvolved businesses and personnel; Raising objections to excessive seizures and freezes in accordance with the law; Applying for bail pending trial for qualified business personnel. Such work must be coordinated by lawyers with cross-disciplinary capabilities in criminal law and compliance, and it is crucial to avoid making hasty decisions based on personal experience. For property disposal matters, relevant procedures can be combined with other legal strategies to ensure the best possible outcomes.Creditor-debtor relations and enforcement case services.

IV. Practical Suggestions and Legal Basis

The core basis includes the provisions on summoning, interrogation, seizure and freezing, and bail pending trial in the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018); Article 30 and Article 31 of the Criminal Law on the double-punishment system for corporate crimes; and the criminal justice policy of "less arrests, cautious prosecutions, and prudent detentions" and the relevant guidance on compliance reforms for enterprises involved in criminal cases. Practical suggestions include: designating a single compliance liaison person and maintaining a unified stance; preserving and submitting authentic and complete contracts, account books, and approval records; distinguishing employees' knowledge and involvement levels and protecting their rights according to law; promptly applying for the lifting of seizure and freezing orders beyond the scope of the investigation; and introducing criminal lawyers to meet with clients and submit legal opinions during the investigation stage, ensuring that the "protection of employees and businesses" is implemented through procedural actions. For cross-border data, relevant provisions can be referenced accordingly.Financial capital and cross-border services involving foreign countries.

5. Henglu Law Firm's Reminder

Being investigated does not equal a conviction, let alone mean that the company will inevitably collapse. The key lies in the words "according to the law": cooperate with the investigation but not self-incriminate by generalizing responsibility, protect employees but not incite confrontation, maintain business operations but not transfer or conceal assets. It is recommended to establish compliance traceability and crisis prevention plans in advance, so that after an incident occurs, the company can calmly separate corporate and individual responsibilities and quickly resume operations. Never trust "relationship-based operations". Any promise of "smoothing things over" carries potential legal risks. For systematic preparation, you can refer to the following materials:Special services and other case services.

VI. Frequently Asked Questions

Q1: If a company is investigated by the public security authorities, does it necessarily mean that the company will collapse and all employees will be arrested?

Not necessarily. An investigation at the early stage does not equal a conviction, let alone mean that the company will necessarily be shut down or that all employees will be involved in the case. The key lies in the determination of responsibility: if the illegal acts are committed by individual employees exceeding their authority or without the company's authorization or connivance, it can be argued that they are individual acts rather than corporate crimes, and most unrelated employees will not be prosecuted; even if the company is involved in the case, through compliance rectification, distinguishing responsibilities, and applying for bail, the impact on operations and personnel can be minimized. The outcome depends on the evidence and professional response, rather than the investigation itself. It is recommended to cooperate with the investigation in accordance with the law and engage lawyers as soon as possible, rather than waiting passively.

Q2: After the company is inspected, what materials should be prepared and preserved?

The following materials should be preserved with priority: business licenses, articles of association and organizational structures; hierarchical authorization and approval records; business contracts related to the case, fund transactions and account books; employee job responsibilities and training records; internal reporting and self-inspection materials; as well as original carriers such as communications and emails, which should not be deleted or modified. Materials related to non-involved businesses and personnel should be stored separately to prove their irrelevance to the investigation. The materials submitted must be true and complete, and shall be handled by the designated contact person. When necessary, protection may be applied to the content involving trade secrets in accordance with the law. For details, please refer to the relevant provisions.Criminal defense and criminal case filing services.

Q3: How much does it typically cost to hire a criminal lawyer when a company is under investigation?

The attorney's fees are negotiated between the law firm and the client and formalized in a written contract. For corporate criminal defense, fees can be charged on a stage-by-stage basis (including meeting with the client, obtaining bail pending trial, reviewing and prosecuting the case, and the first-instance trial) or as a lump sum. The specific amount will depend on the complexity of the case, the number of people involved, and the workload. There is no nationwide standard pricing. Compared with remedial measures taken after the fact, proactive compliance and early intervention during the initial stages of a crisis are more cost-effective and can significantly reduce business and personnel losses. It is recommended to request a detailed fee breakdown that clearly specifies the services provided at each stage and whether it includes third-party costs (such as guarantees and appraisals), and then make a decision based on the company's financial capacity.

Q4: How long does it usually take from being inspected to resuming normal operations?

If the investigation only targets individual employees and the unit is not listed as a suspect, it usually takes several weeks to cooperate with the internal verification. If the unit is placed under investigation, the detention period during the investigation stage generally does not exceed two months and can be extended. The review and prosecution phase takes about one and a half months, and the first-instance ordinary procedure takes two to three months. Successfully obtaining bail for key management personnel and promptly lifting the seizure and freezing of assets beyond the scope of the investigation are key milestones in restoring operations, often enabling business recovery within a few weeks. The overall cycle is affected by the case circumstances and the degree of cooperation. The more comprehensive the pre-planning is, the faster the recovery will be.

Q5: If the company is suddenly inspected, what should I, as the person in charge, do first?

It is recommended to proceed in five steps: First, stay calm and appoint a single compliant liaison person to coordinate and maintain a unified stance and approach; Second, immediately stop any acts of deleting or altering accounts, or inciting collusion in providing false testimony, to avoid creating new risks; Third, preserve original materials such as contracts, account books, approval documents, and communications, and isolate businesses that are not involved in the case; Fourth, clarify the responsibilities of individuals and units involved in the case and those not involved, and protect employees' rights in accordance with the law; Fifth, engage professional criminal lawyers as soon as possible to attend meetings, provide legal opinions, strive for bail and the unfreezing of assets, and maintain business continuity. Throughout the entire process, the principles of "acting in accordance with the law, being truthful, and maintaining order" should be adhered to.

The above content is based on the judicial practice in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Hengluo Lawyers for specific situations.

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

Disclaimer: This article is compiled based on the current effective laws and regulations and public 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 case of disputes, please consult a practicing lawyer in time.