Ef­forts made to ease busi­ness rules

China Daily (Canada) - - TOP NEWS - By ZHANG YUE in Bei­jing and YU RAN in Shang­hai

Ef­forts to re­form busi­ness reg­is­tra­tion pro­ce­dures in China are to be stepped up to re­duce ad­min­is­tra­tive costs and en­hance eco­nomic re­struc­tur­ing from the sup­ply side.

Sev­eral such mea­sures were adopted at a State Coun­cil ex­ec­u­tive meet­ing on Wed­nes­day, presided over by Premier Li Ke­qiang.

“Busi­ness sys­tem re­form is cru­cial this year to achieve sta­ble eco­nomic growth and main­tain em­ploy­ment,” Li said.

“No­tice­able achieve­ment has been made in re­cent years, but there are still prob­lems to be solved.”

The re­form drive, launched in March 2014, aims to sim­plify ad­min­is­tra­tive pro­ce­dures and lower the re­quire­ments for busi­ness reg­is­tra­tion.

The gov­ern­ment also plans to adopt more mea­sures to deepen the re­form, such as es­tab­lish­ing neg­a­tive lists on which cer­tain types of busi­ness reg­is­tra­tion are banned and stream­lin­ing dif­fer­ent doc­u­ments pre­vi­ously re­quired for busi­ness reg­is­tra­tion into a sin­gle cer­tifi­cate.

Dur­ing the coun­try’s at­tempts to cut ex­cess ca­pac­ity, mea­sures in­clud­ing pol­icy sup­port and re­duc­tion of taxes and ad­min­is­tra­tion fees, will be in­tro­duced to help work­ers in in­dus­tries af­fected by the process.

The in­te­gra­tion of mul­ti­ple cer­tifi­cates will be fur­ther ex­panded to in­di­vid­ual busi­ness­men, with their tax­a­tion cer­tifi­cates and busi­ness li­censes be­ing in­te­grated into a sin­gle doc­u­ment this year.

The meet­ing also called for more ef­forts to build a fair mar­ket en­vi­ron­ment and to build a com­pre­hen­sive mar­ket exit mech­a­nism.

Li said: “Only when the gov­ern­ment can reg­u­late the mar­ket can we guar­an­tee free­dom to the mar­ket. And when such reg­u­la­tion works ef­fec­tively, we can have a smooth del­e­ga­tion of power and help en­ter­prises to grow faster.”

An im­proved sys­tem has been launched to help busi­nesses leave the mar­ket.

Trial runs have started in Pudong in Shang­hai, Yancheng in Jiangsu prov­ince, Ningbo in Zhe­jiang prov­ince, and Shen­zhen in Guang­dong prov­ince. Less doc­u­men­ta­tion is now re­quired from en­ter­prises if they want to leave the mar­ket, cre­at­ing room for new busi­nesses to en­ter. Eas­ier reg­is­tra­tion De­tailed re­quire­ments for busi­ness sites have also been low­ered, with the site reg­is­tra­tion pro­ce­dure be­ing stream­lined based on field re­search. In some cities, such as Shang­hai, some res­i­den­tial build­ings are be­ing al­lowed to be re­fur­bished for use as busi­ness venues.

The State Ad­min­is­tra­tion for In­dus­try and Com­merce will keep pro­mot­ing the re­place­ment of pa­per busi­ness cer­tifi­cates with e-cer­tifi­cates, with all reg­is­tra­tion com­pleted on­line. Trial runs will be car­ried out in ar­eas in­clud­ing Jiangsu and He­bei prov­inces be­fore the on­line reg­is­tra­tion process is ap­plied na­tion­wide.

Ef­forts will be con­tin­ued to in­te­grate busi­ness li­censes, cer­tifi­cates of or­ga­ni­za­tion and tax cer­tifi­cates. By the end of last month, 8.89 mil­lion new sin­gle cer­tifi­cates had been is­sued.

“Gov­ern­ments at all lev­els should keep work­ing hard to in­te­grate busi­ness cer­tifi­cates when pos­si­ble and re­duce in­sti­tu­tional costs for en­ter­prises,” Li said.

From Jan­uary to April, 4.6 mil­lion new busi­nesses were reg­is­tered, a 13.1 per­cent year-on-year in­crease. Reg­is­tered cap­i­tal reached 12.3 tril­lion yuan ($1.8 tril­lion), year-on-year growth of 66 per­cent.

At a news con­fer­ence in Fe­bru­ary, Zhang Mao, head of the ad­min­is­tra­tion — the min­istry that leads the re­form — said 12,000 new en­ter­prises were reg­is­tered ev­ery day last year, a 20 per­cent in­crease on 2014.

Be­fore the re­form started in 2014, any­one want­ing to start a new busi­ness had to ob­tain a series of ap­provals be­fore get­ting a busi­ness li­cense, a process that usu­ally took months.

Busi­ness sys­tem re­form is cru­cial this year to achieve sta­ble eco­nomic growth and main­tain em­ploy­ment.”

Con­tact the writ­ers at zhangyue@ chi­nadaily.com.cn

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