If it’s inconsistent between company’s registered domicile and actual place of operation, how should we determine the jurisdiction in a litigation of China?

Review of case regarding the company’s domicile:

Company A and Company B signed the Entrustment Agreement, stipulating that Company A would entrust the management of the wastewater treatment system of a company in Binhai New Area to Company B.

The agreement stipulates that if the performance of this contract causes personal injury or death to the relevant personnel of Company B, Company B shall be responsible. Later, the maintenance personnel arranged by Company B had an accident, and Company A paid the handling costs in advance. Company A unsuccessfully claimed compensation for the disbursements against Company B, so it filed a lawsuit with the Jinnan Court of Tianjin.

During the defense, Company B raised objections to the jurisdiction, arguing that its main office was in Binhai New Area, Tianjin, not in Jinnan District, and that the accident involved in the case occurred in Binhai New Area, and that the case should be under the jurisdiction of the Binhai New Area Court of Tianjin where its office was located.

Adjudication Results on the company’s domicile:

The trial court held that Company B’s registered domicile is  in Jinnan District, Tianjin

Lawyer Wang Jingzhan’s analysis on company’s domicile:

The industrial and commercial registration information of Company B shows that its registered address is in Jinnan District, Tianjin, and the evidence in the case cannot prove that Company A clearly knew the actual place of business of Company B.

Company A, as a bona fide counterpart, filed a lawsuit with the Jinnan Court, and the Jinnan Court, as the people’s court with jurisdiction and the first to file the case, has jurisdiction over this case.

“Domicile” is the legal connection point for determining the rights and obligations of a legal person when engaging in civil activities, the core point of civil legal relations, and the matters that must be registered and publicized when a company is incorporated. Legally determining the domicile of a legal person is conducive to clarifying the jurisdiction of litigation, the address for service of legal documents, and the place for debt performance.

In practice, some legal persons change their registered domicile in order to enjoy preferential policies such as local taxation and land use, resulting in inconsistency between the domicile and the actual place of operation, which will bring some risks to the company’s operation