Shanghai Government plans to work on the overall reform for “separating permits from business licenses” and improve the business environment. Due Working Plan has been issued on the date of June 30^th, 2021.

The reform aims to implement the full “list-based administration” for enterprise business licensing within the city since July 1^st, 2021, the reform of the examination and approval system would include direct cancellation, examination and approval towards record-filing, notification commitment and optimization of examination and approval services. Those methods would highly raise the transparency, convenience, and predictability for market entities.

The specific matters for enterprise business licensing would be managed based on the List, this List would be dynamic adjusted and published to the society. Beside the List, no one has the power to restrict any enterprise to enter relevant industry for business and operation. The 2021 edition of the List within the scope of Shanghai city and another for the Pilot Free Trade Zone are published at the same time.

Ⅰ Cancellation for certificates and simplification for approvals

1. Direct cancellation. After the cancellation of examination and approval, the enterprise can obtain the business license to carry out business operation, relevant administrative license or certificate shall not be required. The establishment and change of registration information shall be timely shared to the municipal big data resource platform.
2. Examination and approval towards record-filing. In principle, post-filing shall be implemented. If it is necessary to be recorded in advance, the enterprise can carry out business operation by completing the record-filing procedures.
3. Notification commitment. Illegal act of trust-breaking would be recorded in the enterprise credit record, corresponding punishment for trust-breaking shall be imposed in accordance with the law and regulations.
4. Optimization of examination and approval services. If the validity period is set for the license but the operating licensing conditions are basically unchanged, the validity period shall be extended or cancelled in principle.

Ⅱ Innovation and supervision

1. Clear the regulatory responsibilities. If the examination and approval is directly cancelled or changed into record-filing, the original department shall take the supervision responsibility.
2. Improve the supervision methods. Give full play to the basic role of credit supervision, and punish for dishonesty act, further promote the "Internet + supervision" mode using big data, the Internet of things and artificial intelligence.
3. Implement comprehensive supervision over industries. Sort out the supervision risks of industries, comprehensively use various kinds of supervision methods, and scientifically allocate supervision resources.

Ⅲ System integration and coordination

1. Further implement the reform of the commercial registration system. Carry out standardized registration for business scope, and compile a catalogue for the standardized business scopes. In the Pilot Free Trade Zone, pilot reform of the registration and confirmation system shall be taken.
2. All services shall be put online through the “Government Online-Offline Shanghai” platform.
3. Strengthen the information sharing. Relying on the big data resource platform, promote the collection, governance and application of enterprise-related business information as registration, business licensing, record-filing, law enforcement inspection and administrative punishment. Realize mutual recognition and data sharing across regions and departments. Any information that could be obtained through electronic licenses and data sharing system shall no longer be required to provide the corresponding materials.

If you want to read the complete article, you can refer to the below link (in Chinese only): http://www.shanghaiinvest.com/cn/viewfile.php?id=16388

If you have any question, please contact me. 

Mr. Mike Chang (Partner)

TEL: 0086-21-68868321

Email: mikechang@shanghaiinvest.com