[Direct answer]In the Beijing area, during the criminal investigation of an enterprise, the law does not generally prohibit its normal operation, but the involved assets and accounts may be sealed and frozen, and the relevant responsible persons may be subject to compulsory measures, which will have a substantial impact on the operation of the enterprise. According to Article 144 of the Criminal Procedure Law of the People's Republic of China, the investigative organ may seal and seize the assets and documents related to the case; Article 145 stipulates that the assets and documents sealed in relation to the case shall be promptly unsealed. Whether the enterprise can continue to operate depends on the scope of the investigation, the type of compulsory measures, and the enterprise's compliance status. It is recommended to distinguish between the involved and non-involved assets as soon as possible, and to entrust a lawyer to intervene to safeguard the legitimate rights and interests of the enterprise when necessary.

1. Problem background and typical scenarios

Corporate criminal investigations are commonly seen in scenarios such as unit crimes, actual controllers being involved in cases, related-party transactions or tax-related issues, and illegal fundraising. Typical situations include: company accounts being frozen, resulting in unpaid salaries and supplier payments; legal representatives being detained, leading to a halt in daily decision-making; case-handling authorities sealing up business premises or major equipment; and multiple executives being investigated simultaneously, leading to a governance vacuum. Many business operators mistakenly believe that "being investigated means having to shut down the business", or conversely, "continuing operations without paying attention to the investigation". Both extremes may amplify risks. Related criminal defense can be combined withCriminal case filing and defense servicesCoordinate and respond in a comprehensive manner.

II. Key points of contention

There are three key points of contention. Firstly, the boundary of the assets involved in the case: which accounts and assets are related to the crime facts, and which are necessary for normal operations, need to be clearly distinguished to avoid a "one-size-fits-all" freeze that affects livelihoods. Secondly, the impact of coercive measures on operations: whether the responsible person is granted bail pending trial or detained directly determines whether the enterprise can maintain its operations. Thirdly, the characterization of corporate crimes and individual crimes: with different characterizations, there are huge differences in the subjects of responsibility and the continuity of operations. Defense attorneys often need to work around three goals: "minimizing the scope of the case, unfreezing non-involved assets, and non-detention of responsible persons". For more background information, please refer to the following link:Beijing Henglu Law Firm.

III. Professional analysis by Hengluo Lawyers

A major criminal case handled by Attorney Liu Liqiang of Beijing Henglu Law Firm demonstrated the protection of clients' rights and interests through professional criminal defense, and its intervention logic is also applicable to criminal cases involving enterprises. On June 16, 2024, the defendant drove a car into a laboratory, resulting in one person being killed on the spot and two others being injured. The victims' families entrusted Attorney Liu Liqiang to represent them in the accompanying civil litigation. After comprehensively reviewing the case file, the lawyer argued against the defendant's subjective intent, circumstances of voluntary surrender, and the nature of the crime, maintaining that the defendant should be convicted of intentional homicide and given a heavier punishment, and refuting the classification of the crime as "endangering public safety by dangerous methods" and the defense of voluntary surrender. The court accepted the lawyer's opinion, determining that the defendant intentionally and illegally deprived others of their lives by driving a car into the laboratory, constituting intentional homicide, and the crime was extremely serious. Ultimately, the defendant was sentenced to death, and the court supported the request for compensation in the accompanying civil litigation. This case was handled by Beijing Henglu Law Firm.Liu LiqiangAttorney (Practice License No.: 11101200910454358, subject to the document issued by the judicial administrative organ). Although this case involves an individual crime, Hengluo's approach of "reviewing the case file as early as possible, clarifying the boundaries of the facts, and safeguarding legitimate rights and interests" at all stages of the criminal investigation is also crucial for enterprises involved in criminal cases.

IV. Practical Suggestions and Legal Basis

When an enterprise is under investigation, it should: 1. Immediately distinguish between assets involved in the case and those not involved, and apply for the unfreezing of normal operating accounts; 2. Clarify the responsibilities of the responsible persons and evaluate the necessity of coercive measures; 3. Cooperate with the investigation but avoid self-incrimination or excessive statements; 4. As soon as possible, appoint a lawyer to meet with the investigators and review the case files, raising objections to the seizure and freezing of assets and requesting a review of the necessity of detention. The legal basis for this is Article 144 and Article 145 (seizure and unfreezing) of the Criminal Procedure Law of the People's Republic of China (amended and implemented on October 26, 2018), and Article 95 (review of the necessity of detention); as well as the provisions on holding units criminally liable. Enterprise compliance rectification can also be a mitigating factor. For issues involving corporate governance, relevant provisions may be referred to.Business and contract dispute services for enterprisesEvaluation.

5. Henglu Law Firm's Advice

Hengluo Law Firm advises: If a company is involved in criminal cases, it doesn't necessarily mean that it must shut down, but it must not ignore the investigation. The core strategy is to "set boundaries, ensure operations, and intervene early" — quickly clarify the scope of the assets involved to seek their unfreezing, ensure employee salaries and necessary operations, and at the same time, express opinions and safeguard non-involved rights in accordance with the law through lawyers. For cases involving the identification of corporate crimes, attention should be paid to regulatory rectification and responsibility differentiation. Never destroy accounts or instruct others to give false testimonies, as this will aggravate the responsibility. It is recommended to consult professional criminal lawyers as soon as possible to develop a plan that balances cooperation with the investigation and protection of the company. Asset unfreezing and recovery can be connectedCreditor-debtor relations and enforcement case services.

VI. Frequently Asked Questions

Q1: Can a company continue to operate normally if it is under criminal investigation, or will it be shut down directly?

The investigation does not necessarily mean a mandatory closure. The law does not absolutely prohibit the involved enterprises from continuing their operations. Whether they can actually operate depends on three factors: whether the involved assets and accounts have been sealed and frozen, whether the main responsible persons have been detained, and whether the business premises have been sealed and confiscated. If only some of the accounts are involved in the case, the enterprises can apply for the unsealing of the non-involved accounts to maintain the salaries and supply chains; if the legal representatives are detained, they need to authorize others to temporarily manage the business on their behalf. If there is an actual need for operation, the enterprises can explain the situation to the case-handling authorities through lawyers and apply for protection to avoid the "one-size-fits-all" approach affecting the survival of the enterprises and the rights and interests of their employees.

Q2: If a company is under investigation, what evidence materials should it prepare and preserve?

The following documents should be prepared with priority: business licenses, articles of association, and shareholders' resolutions, etc. Contracts, accounting records, and fund transaction records related to the involved business should be provided to distinguish between the involved and non-involved parts. Employee rosters and salary records should be provided to prove normal business operations. Additionally, materials clarifying the responsibilities and boundaries of the responsible persons should be prepared to avoid personal actions being mistakenly attributed to the company. At the same time, evidence related to non-involved assets should be preserved to facilitate the application for unfreezing. The goal of organizing evidence is to "define the scope of the involved case, prove the facts of normal business operations, and clarify the responsible parties". It is strictly prohibited to conceal or destroy evidence, as this may constitute a new crime.

Q3: How much does it cost to hire a lawyer for a company involved in criminal cases, and is the fee high?

The attorney's fees are calculated on a per-case basis, depending on the nature of the case, its complexity, the number of individuals involved, and the workload. For major corporate crime cases, the fees are typically higher due to the large number of case files and the lengthy duration of the proceedings. The specific fees are subject to the terms of the engagement contract, with no unified standard. In criminal litigation, contingency fees are prohibited. The law firm must issue a contract with its official seal to clarify the fee stages and scope. It is recommended to fully communicate the case details and budget with the law firm before entrusting them with the case, and to entrust the case in stages to control costs. It is also advisable to prioritize meetings during the investigation stage and reviews of the necessity of detention, as these often offer the best cost-performance ratio.

Q4: How long do corporate criminal investigations typically last, and what is the impact on business operations?

The duration of the cycle varies greatly depending on the nature of the case. Generally, criminal cases go through three stages: investigation, review and prosecution, and trial. The detention period during the investigation typically ranges from two to seven months, and it can be extended according to the law for major and complex cases. Corporate crimes often take longer due to account audits and evidence collection from multiple people, which may last from one to several years. The length of time the business is affected depends on the progress of lifting the seizure and freezing orders and other coercive measures. The earlier the boundaries of the case are clarified and the application for lifting the seizure is made, the shorter the impact period will be. It is recommended to simultaneously promote compliance rectification and asset unfreezing to shorten the window of uncertainty.

Q5: The company has just been notified to cooperate with the investigation. What should be done in the first step?

In four steps: First, cooperate calmly with the investigating authorities, request them to issue legal documents and understand the suspected charges and the scope of the investigation; Second, immediately sort out the business and assets involved in the case, distinguish between company accounts and personal accounts, and between those involved in the case and those not involved, and preserve the evidence for normal business operations; Third, if the responsible person is detained or arrested, promptly appoint a lawyer to meet with him or her, understand the case and apply for a review of the necessity of detention or bail pending trial; Fourth, maintain a unified public stance and stabilize the team and clients internally, to avoid disposing of assets or destroying evidence without authorization. Throughout the entire process, rely on professional criminal lawyers to balance cooperation with the investigation and protection of the enterprise.

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 relevant evidence, so as to avoid missing the statutory time limit. →Criminal defense legal services·Attorney Liu Liqiang·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open 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.