[Direct answer]In the Beijing area, corporate criminal legal risks refer to the risks that enterprises and their management personnel may violate criminal law in areas such as taxation, financing, market transactions, employment, data, and intellectual property. According to the Criminal Law of the People's Republic of China (implemented on October 1, 1997 and amended by the Amendment (XII) to the Criminal Law of the People's Republic of China), common crimes committed by enterprises include the crime of falsely issuing value-added tax invoices, tax evasion, the crime of illegally absorbing public deposits, the crime of fund-raising fraud, the crime of embezzlement, the crime of misappropriating funds, the crime of bribery of non-state employees, the crime of infringement of trade secrets, and the crime of refusing to pay labor remuneration. Online platforms and content businesses may also be involved in the crimes of operating gambling houses and disseminating obscene materials. According to Article 15 of the Criminal Procedure Law of the People's Republic of China (amended and implemented on October 26, 2018), those who voluntarily plead guilty and accept the punishment may be given a lenient treatment according to law; Article 177 stipulates that those with minor criminal circumstances may be decided not to prosecute. It is recommended to establish a regular compliance review and risk investigation mechanism.

I. Problem background and typical scenarios

The criminal risks of enterprises are often triggered by two types of problems: "business models" and "internal management". Typical scenarios include: raising social funds in the name of business innovation and conducting quasi-financial businesses without authorization; issuing invoices for profit adjustment, operating off the books, or concealing income; obtaining transaction opportunities through kickbacks and rebates; employees embezzling funds or misappropriating company funds by taking advantage of their positions; collecting and using customer data without obtaining legal authorization; core technical teams taking away trade secrets formed during their employment; and online platforms providing traffic or technical support for gambling and pornographic information during their operations. Once such risks are triggered, they often affect both enterprises and individuals, and are likely to be exposed during the due diligence stages of mergers and acquisitions, IPOs, and financing. You can learn more about it first.Criminal defense and legal services for criminal case filingThe response path provided for enterprises.

II. Key points of dispute

The disputed focus of criminal cases involving enterprises can be summarized into four aspects. Firstly, the distinction between corporate crime and individual responsibility: whether the act reflects the will of the enterprise, whether it seeks benefits for the enterprise, and where the illegal proceeds belong, which determines the scope of the responsible subject. Secondly, the determination of subjective knowledge: whether the person is aware of the illegality of the business and whether it is concealed by corporate governance procedures often determines whether the act constitutes a crime or not. Thirdly, the degree of participation and role in the crime: the role differences of decision-makers, executors, and peripheral assistants in joint crimes directly affect the sentencing. Fourthly, the boundary between illegal acts and crimes: the distinction between administrative violations, civil breaches of contract, and criminal offenses involves the coordination of criminal and administrative punishment and the standards for transferring cases. Whether the enterprise has a sound compliance system and takes active measures to rectify violations has also become an important factor for lenient sentencing. For cases involving the validity of contracts and the nature of transactions, relevant provisions can be referred to.Legal services for corporate commercial and contract disputesEvaluate them together.

III. Professional analysis by Henglue Law Firm

Based on Henglue Lawyer's practical observations in handling corporate-related criminal cases, the outbreak point of corporate risks is often not a single act, but the mismatch between the business model and regulatory red lines. Taking a case of operating a gambling house handled by Henglue Lawyer as an example: On December 20, 2025, the defendant W * was detained in criminal custody on suspicion of operating a gambling house. Originally, W * failed in business and faced employment difficulties, so he contacted an overseas online gambling platform. Later, to repay debts and make a living, he joined the platform as a live streamer, and the live stream interface was embedded with gambling advertisements and recharge entrances. W * claimed that he only engaged in ordinary chat interactions and did not actively induce bets, but he could not control the implanted gambling functions. The prosecution authorities identified his limited compensation and the platform's gambling funds as illegal criminal proceeds and advocated a severe evaluation. After the meeting with Attorney Zhu Guiying, four key points were identified: Firstly, W * only provided traffic assistance and did not participate in the operation of the gambling house or profit sharing. He had a low status and minor role in the joint crime and should be identified as an accomplice; Secondly, after being arrested, W * always truthfully confessed and expressed his guilt and repentance; Thirdly, W * suffered from a disease requiring continuous treatment, and prolonged detention would be detrimental to the control of his condition; Fourthly, he was a first-time offender with low social dangerousness. Based on this, the lawyer drafted an application for bail and demonstrated it item by item through arrangements such as returning the proceeds, paying the fine in advance, and arranging for a guarantor and a guarantee deposit. The prosecution authorities adopted the defense opinion, and on January 19, 2026, W * was granted bail after being detained in criminal custody for 30 days. This case was handled by Beijing Henglue Law Firm.Zhu GuijingThe lawyer (practice license number: 11101202011246828, subject to the document issued by the judicial administrative organ) acts as the agent. This case reminds enterprises that once their business models cross the regulatory red line, even if they only provide assistance such as traffic generation and technical support, they may still be held criminally liable. It is more important to conduct pre-review than to defend against accusations afterwards. For cases involving the determination of ownership of technical achievements, follow-up measures can be taken accordingly.Intellectual property protection and corporate legal servicesProcessing; for those involved in financing and cross-border business, you may refer to the following for reference.Financial capital and cross-border legal services involving foreign affairsEvaluate the compliance boundaries.

IV. Practical suggestions and legal basis

The legal basis is the provisions of the Criminal Law of the People's Republic of China (implemented on October 1, 1997 and amended by the Amendment (XII) to the Criminal Law of the People's Republic of China) concerning corporate crimes and related offenses, as well as Article 15 (leniency for plea and confession) and Article 177 (non-prosecution) of the Criminal Procedure Law of the People's Republic of China (amended and implemented on October 26, 2018). Specific offenses and prosecution standards shall be subject to the currently effective criminal law, judicial interpretations, and relevant regulations. Practical suggestions: First, establish a compliance inspection mechanism to regularly screen risks in the areas of finance and taxation, financing, bidding and tendering, data, and intellectual property; Second, improve internal systems and implement rules on invoice and fund approval, anti-commercial bribery, data classification, and personal information protection; Third, conduct legal reviews of new businesses and models in advance to avoid exceeding licensing and regulatory redlines in the name of business innovation; Fourth, strengthen employee training and the construction of reporting channels to timely detect and correct violations; Fifth, immediately establish a response team after being involved in a case to cooperate with investigations, fix favorable evidence, and simultaneously carry out compliance rectifications to strive for lenient treatment. Relevant funds and asset disposal matters can be handled throughSpecial services and legal services for other casesCollaborate to make progress together.

5. Henglu Law Firm's Advice

The characteristics of corporate criminal risks are that "they are invisible in normal times, but cause severe damage when they erupt". Firstly, regard compliance as a cost rather than a burden. A criminal case filed against a company will have a far greater impact on its financing, bidding, and reputation than the cost of compliance; Secondly, focus on key personnel. Legal representatives, actual controllers, and financial managers are often the first to be held accountable, and they should be given special reminders and training; Thirdly, keep records. Major decisions and fund transactions should be documented in writing, which is not only a management requirement but also crucial evidence to distinguish between the company's will and individual actions when involved in a case; Fourthly, stay calm when faced with emergencies. Timely entrusting professional lawyers to participate in meetings, evidence collection, and compliance rectification can help avoid making unfavorable statements in panic; Fifthly, pay attention to the behavior of employees and outsourcing parties. The diversion and promotion of platforms and channels may also trigger criminal risks. For specific business models requiring compliance assessments, you can make an appointment for a consultation with Henglue Criminal Defense Team.

VI. Frequently Asked Questions

Q1: If a company is suspected of committing a criminal offense, can it seek a non-prosecution or probation instead of being sentenced to imprisonment?

There is room for negotiation, but it depends on the specific circumstances of the case. According to Article 177 of the Criminal Procedure Law of the People's Republic of China (amended and implemented on October 26, 2018), for cases where the crime is minor and the offender does not need to be sentenced to punishment or is exempted from punishment according to the Criminal Law, the People's Procuratorate may decide not to prosecute. For those who voluntarily and truthfully confess their crimes, admit the facts of the crime charged, and are willing to accept punishment, they may be given lenient treatment according to Article 15. Enterprises can strive for lenient treatment through compliance rectification, full refund and repayment, paying back taxes, obtaining understanding, etc. Whether probation is applicable needs to be judged comprehensively based on the nature of the crime, the circumstances, the harmful consequences, and the repentance. No lawyer should promise specific results.

Q2: What materials do enterprises need to prepare for conducting a criminal risk assessment?

These typically include: company charters, shareholding structures, and governance documents; main business models and related business licenses and filing materials; financial statements, tax declarations, and invoice management records; financing contracts, fund transactions, and external guarantee materials; employee handbooks, anti-commercial bribery, and data compliance systems; intellectual property ownership and confidentiality agreements; as well as past administrative penalties, litigation, and complaint records. When necessary, a special legal audit can be conducted on key business operations to identify risks such as missing licenses, fund pools, fraudulent transactions, and personal information processing. The more complete the materials are, the more targeted the risk list and rectification plan will be, and it will also be easier to prove that the enterprise has fulfilled its management obligations in the event of legal disputes.

Q3: How much does it cost for a company to hire a lawyer for criminal compliance and defense?

The fees vary depending on the content of the services. Full-time legal advisors or special compliance checkups are generally charged on an annual or project basis; defense after being involved in a case is charged separately according to the litigation stage, taking into account the charge and the scale of the case file and the workload. According to the "Measures for the Administration of Lawyer's Service Fees" and industry rules, risk-based representation is prohibited in criminal cases, and risk-based representation in property-related compliance projects is also subject to a percentage cap. It is recommended to first clarify the service list and deliverables, then request a written quote, and specify the charging items, service stages, and the way of bearing third-party expenses in the contract. The payment should be transferred to the lawyer's firm's public account.

Q4: How long does it usually take for a corporate criminal case to proceed from filing to sentencing?

The time differences are significant. According to the Criminal Procedure Law of the People's Republic of China (amended and implemented on October 26, 2018), the detention period during the investigation stage generally does not exceed two months. If the case is complex or cannot be concluded within the prescribed time limit, it may be extended according to law; the review and prosecution stage generally lasts one month, and the period may be extended for major and complex cases; the people's court generally pronounces judgment on public prosecution cases within two months after accepting them, and the longest period shall not exceed three months. For cases involving the death penalty or accompanying civil actions, the period may be extended upon approval. For cases involving corporate crimes, a large number of suspects, or the need for appraisal or judicial audit, the overall cycle may reach more than one year. Enterprises should be prepared to deal with such cases over the long term.

Q5: How should enterprises specifically prevent criminal risks?

It is recommended to proceed in four steps: Firstly, regularly conduct criminal compliance checkups, with a focus on inspecting the financial and taxation, financing, bidding and tendering, and data and intellectual property sectors; Secondly, establish and implement internal systems, such as invoice and fund approval, anti-commercial bribery, data classification, and personal information protection; Thirdly, conduct pre-legal reviews of high-risk businesses to avoid exceeding licensing and regulatory redlines in the name of business innovation; Fourthly, immediately establish a response team after being involved in a case to cooperate with the investigation, fix favorable evidence, and simultaneously carry out compliance rectification to strive for leniency. When necessary, professional lawyers can be engaged to provide special solutions and employee training, so as to preemptively prevent risks in daily operations.

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 Henglu Law Firm for specific cases.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, 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.