The General Office of the State Council has recently issued the Circular on Deepening the Reform of the Commercial System to Further Lift Restrictions and Alleviate Burdens on Enterprises and Stimulate Enterprise Vitality (the "Circular").
The Circular puts forward twelve measures in four areas:
- China will push for adopting fully online procedures for starting a business in order to further reduce the time required for setting up an enterprise to no more than four working days by the end of Year 2020;
- The Circular pledged to simplify regulation and approval procedures while calling for new breakthroughs in the business registration system. For example: improving the intellectualization of name application system, strengthening the protection of well-known corporate names, and establishing a name-related dispute resolution mechanism;
- The government is to simplify the conditions of approval of companies’ operation and production. The power of approval for businesses related to five categories of products, including steel bars for construction purposes, will be decentralized to provincial-level market regulators. It is also to boost the adjustment from the current post-licensing on-site examination for fertilizer products to the notification and commitment;
- The government is to intensify the in-process and ex-post regulation by reinforcing the publicity of corporate information, perfecting the punishment mechanism for dishonest behaviors, propelling the implementation of smart regulation, and further improving the new regulation mechanism based on credit regulation with "dual randomness and one publicity" regulation as the basic method, supplemented by key regulation.
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Mr. Mike Chang
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